diff --git a/cm_changelog.txt b/cm_changelog.txt
index 8dce6ab160..8d4cc74325 100644
--- a/cm_changelog.txt
+++ b/cm_changelog.txt
@@ -75,8 +75,9 @@ This is usable for any OpenTTD servers
 == CHANGELOG ==
 
 *** 12.1 (? Oct 2021) ***
-- Hide new auto-terraforming mode for polyrail behind a setting for now as it is still quite bugged.
-- Fix modifer keys selection in settings ui.
+- Hid new auto-terraforming mode for polyrail behind a setting for now as it is still quite bugged.
+- Fixed auto-terraforming messing remove mode in polyrail tool.
+- Fixed modifer keys selection in settings ui.
 
 *** 12.0 (17 Oct 2021) ***
 - Automatically search servers when opening multiplayer window.
diff --git a/src/citymania/cm_hotkeys.cpp b/src/citymania/cm_hotkeys.cpp
index 4022950be1..e1d6b1c172 100644
--- a/src/citymania/cm_hotkeys.cpp
+++ b/src/citymania/cm_hotkeys.cpp
@@ -74,6 +74,10 @@ std::pair<uint32, uint32> GetEPM() {
                           _last_actions.size());
 }
 
+bool HasSeparateRemoveMod() {
+    return (_settings_client.gui.cm_fn_mod != _settings_client.gui.cm_remove_mod);
+}
+
 void UpdateModKeys(bool shift_pressed, bool ctrl_pressed, bool alt_pressed) {
     bool mod_pressed[(size_t)ModKey::END] = {false};
     if (shift_pressed) mod_pressed[(size_t)ModKey::SHIFT] = true;
@@ -97,10 +101,6 @@ void UpdateModKeys(bool shift_pressed, bool ctrl_pressed, bool alt_pressed) {
     }
 }
 
-bool HasSeparateRemoveMod() {
-    return (_settings_client.gui.cm_fn_mod != _settings_client.gui.cm_remove_mod);
-}
-
 ToolRemoveMode RailToolbar_GetRemoveMode(int widget) {
     switch(widget) {
         case WID_RAT_BUILD_NS:
diff --git a/src/citymania/cm_hotkeys.hpp b/src/citymania/cm_hotkeys.hpp
index f85ec6256f..ef3081df5b 100644
--- a/src/citymania/cm_hotkeys.hpp
+++ b/src/citymania/cm_hotkeys.hpp
@@ -9,6 +9,7 @@ extern bool _fn_mod;
 extern bool _estimate_mod;
 extern bool _remove_mod;
 
+
 enum class ToolRemoveMode : uint8 {
     NONE = 0,
     BUTTON = 1,
diff --git a/src/rail_gui.cpp b/src/rail_gui.cpp
index 2f98c65e51..1434a99d11 100644
--- a/src/rail_gui.cpp
+++ b/src/rail_gui.cpp
@@ -515,7 +515,7 @@ static void HandleAutodirPlacement()
 	if (citymania::_estimate_mod || !(_thd.place_mode & HT_POLY) ||
 			DoCommand(&cmd, DC_AUTO | DC_NO_WATER).GetErrorMessage() != STR_ERROR_ALREADY_BUILT ||
 			_rail_track_endtile == INVALID_TILE) {
-		if (_thd.cm_poly_terra) {
+		if (_thd.cm_poly_terra && !_remove_button_clicked) {
 			if (!citymania::HandleAutodirTerraform(start_tile, end_tile, track, cmd)) return;
 		} else {
 			if (!DoCommandP(&cmd)) return;
diff --git a/src/viewport.cpp b/src/viewport.cpp
index 1bfbc16bc4..2556cc7229 100644
--- a/src/viewport.cpp
+++ b/src/viewport.cpp
@@ -1181,7 +1181,7 @@ static void DrawTileSelection(const TileInfo *ti)
 		case HT_LINE: {
 			HighLightStyle type = GetPartOfAutoLine(ti->x, ti->y, _thd.selstart, _thd.selend, _thd.drawstyle & HT_DIR_MASK);
 			if (type < HT_DIR_END) {
-				DrawAutorailSelection(ti, type, _thd.cm_poly_terra ? CM_SPR_PALETTE_ZONING_YELLOW : PAL_NONE);
+				DrawAutorailSelection(ti, type, _thd.cm_poly_terra && !_thd.make_square_red ? CM_SPR_PALETTE_ZONING_YELLOW : PAL_NONE);
 			} else if (_thd.dir2 < HT_DIR_END) {
 				type = GetPartOfAutoLine(ti->x, ti->y, _thd.selstart2, _thd.selend2, _thd.dir2);
 				if (type < HT_DIR_END) DrawAutorailSelection(ti, type, PALETTE_SEL_TILE_BLUE);