diff --git a/cm_changelog.txt b/cm_changelog.txt
index e66cfe4e05..ca6d2ce5d5 100644
--- a/cm_changelog.txt
+++ b/cm_changelog.txt
@@ -77,6 +77,7 @@ This is usable for any OpenTTD servers
 *** 14.0-RC1 (22 Feb 2024) ***
 - Added hotkeys to save and load blueprints into slots (no gui yet).
 - Added build info overlay for the tools with build preview.
+- Added setting to invert Fn(Ctrl) behaviour when building signals by dragging.
 - Removed hotkeys that were added to vanilla, renamed the rest to have cm_ prefix.
 - Fixed colours on 32bpp sprites with CC (#14).
 - Fixed real town population and house stats in newly created games.
diff --git a/src/citymania/cm_hotkeys.cpp b/src/citymania/cm_hotkeys.cpp
index 87f3cb2a9e..c0a696d770 100644
--- a/src/citymania/cm_hotkeys.cpp
+++ b/src/citymania/cm_hotkeys.cpp
@@ -272,5 +272,9 @@ bool RoadToolbar_RemoveModChanged(Window *w, bool remove_active, bool button_cli
     return remove_active;
 }
 
+bool ChooseSignalDragBehaviour() {
+    if (_settings_client.gui.cm_invert_fn_for_signal_drag) return !_fn_mod;
+    return _fn_mod;
+}
 
 } // namespace citymania
diff --git a/src/citymania/cm_hotkeys.hpp b/src/citymania/cm_hotkeys.hpp
index 7515559174..4b2667723c 100644
--- a/src/citymania/cm_hotkeys.hpp
+++ b/src/citymania/cm_hotkeys.hpp
@@ -29,6 +29,7 @@ bool RoadToolbar_RemoveModChanged(Window *w, bool remove_active, bool button_cli
 void CountEffectiveAction();
 void ResetEffectiveActionCounter();
 std::pair<uint32, uint32> GetEPM();
+bool ChooseSignalDragBehaviour();
 
 } // namespace citymania
 
diff --git a/src/lang/english.txt b/src/lang/english.txt
index cc5bea16b6..9c316536db 100644
--- a/src/lang/english.txt
+++ b/src/lang/english.txt
@@ -6229,7 +6229,8 @@ CM_STR_CONFIG_SETTING_IMPROVED_STATION_JOIN_HELPTEXT            :Use Fn-click on
 CM_STR_CONFIG_SETTING_VEHICLES_CTRL                             :{ORANGE}Controls & Orders
 CM_STR_CONFIG_SETTING_AUTOSET_NOLOAD_ON_TRANSFER                :"Transfer" orders are "No Loading" by default: {STRING2}
 CM_STR_CONFIG_SETTING_AUTOSET_NOLOAD_ON_UNLOAD                  :"Unload all" orders are "No Loading" by default: {STRING2}
-CM_STR_CONFIG_SETTING_INVERT_FN_FOR_SIGNALS                     :Invert the effect of Fn modifier when building signals: {STRING2}
+CM_STR_CONFIG_SETTING_INVERT_FN_FOR_SIGNAL_DRAG                 :Invert the effect of Fn modifier when dragging signals: {STRING2}
+CM_STR_CONFIG_SETTING_INVERT_FN_FOR_SIGNAL_DRAG_HELPTEXT        :When enabled building signals by dragging places them to the next junction by default and does fixed length when Fn is pressed.
 
 CM_STR_TOGGLE_CLIENTS_OVERLAY                                   :{BLACK}Toggle client list overlay.
 
diff --git a/src/rail_gui.cpp b/src/rail_gui.cpp
index 476cfb5052..4e1a59108f 100644
--- a/src/rail_gui.cpp
+++ b/src/rail_gui.cpp
@@ -408,13 +408,13 @@ static void HandleAutoSignalPlacement()
 	if (_remove_button_clicked) {
 		// TODO invert ctrl option
 		Command<CMD_REMOVE_SIGNAL_TRACK>::Post(STR_ERROR_CAN_T_REMOVE_SIGNALS_FROM, CcPlaySound_CONSTRUCTION_RAIL,
-				TileVirtXY(_thd.selstart.x, _thd.selstart.y), TileVirtXY(_thd.selend.x, _thd.selend.y), track, citymania::_fn_mod);
+				TileVirtXY(_thd.selstart.x, _thd.selstart.y), TileVirtXY(_thd.selend.x, _thd.selend.y), track, citymania::ChooseSignalDragBehaviour());
 	} else {
 		bool sig_gui = FindWindowById(WC_BUILD_SIGNAL, 0) != nullptr;
 		SignalType sigtype = sig_gui ? _cur_signal_type : _settings_client.gui.default_signal_type;
 		SignalVariant sigvar = sig_gui ? _cur_signal_variant : (TimerGameCalendar::year < _settings_client.gui.semaphore_build_before ? SIG_SEMAPHORE : SIG_ELECTRIC);
 		Command<CMD_BUILD_SIGNAL_TRACK>::Post(STR_ERROR_CAN_T_BUILD_SIGNALS_HERE, CcPlaySound_CONSTRUCTION_RAIL,
-				TileVirtXY(_thd.selstart.x, _thd.selstart.y), TileVirtXY(_thd.selend.x, _thd.selend.y), track, sigtype, sigvar, false, citymania::_fn_mod, !_settings_client.gui.drag_signals_fixed_distance, _settings_client.gui.drag_signals_density);
+				TileVirtXY(_thd.selstart.x, _thd.selstart.y), TileVirtXY(_thd.selend.x, _thd.selend.y), track, sigtype, sigvar, false, citymania::ChooseSignalDragBehaviour(), !_settings_client.gui.drag_signals_fixed_distance, _settings_client.gui.drag_signals_density);
 	}
 }
 
diff --git a/src/settings_gui.cpp b/src/settings_gui.cpp
index be372eb675..fea71014dc 100644
--- a/src/settings_gui.cpp
+++ b/src/settings_gui.cpp
@@ -2051,6 +2051,7 @@ static SettingsContainer &GetSettingsTree()
 				construction->Add(new SettingEntry("gui.cm_open_orders_for_new_vehicles"));
 				construction->Add(new SettingEntry("gui.cm_use_improved_station_join"));
 				construction->Add(new SettingEntry("gui.cm_enable_polyrail_terraform"));
+				construction->Add(new SettingEntry("gui.cm_invert_fn_for_signal_drag"));
 			}
 
 			interface->Add(new SettingEntry("gui.toolbar_pos"));
diff --git a/src/settings_type.h b/src/settings_type.h
index 99293f61f0..2d801beab8 100644
--- a/src/settings_type.h
+++ b/src/settings_type.h
@@ -262,6 +262,7 @@ struct GUISettings {
 	uint8 cm_graph_background;
 	bool cm_show_client_overlay;
 	bool cm_enable_polyrail_terraform;
+	bool cm_invert_fn_for_signal_drag;
 	/* CityMania code end */
 
 	/**
diff --git a/src/table/settings/cmclient_settings.ini b/src/table/settings/cmclient_settings.ini
index c112df064c..617a07bd84 100644
--- a/src/table/settings/cmclient_settings.ini
+++ b/src/table/settings/cmclient_settings.ini
@@ -284,8 +284,8 @@ strhelp  = CM_STR_CONFIG_SETTING_ENABLE_POLYRAIL_TERRAFORM_HELPTEXT
 cat      = SC_EXPERT
 
 [SDTC_BOOL]
-var      = gui.cm_invert_ctrl_for_signals
+var      = gui.cm_invert_fn_for_signal_drag
 def      = false
-str      = CM_STR_CONFIG_SETTING_ENABLE_POLYRAIL_TERRAFORM
-strhelp  = CM_STR_CONFIG_SETTING_ENABLE_POLYRAIL_TERRAFORM_HELPTEXT
+str      = CM_STR_CONFIG_SETTING_INVERT_FN_FOR_SIGNAL_DRAG
+strhelp  = CM_STR_CONFIG_SETTING_INVERT_FN_FOR_SIGNAL_DRAG_HELPTEXT
 cat      = SC_BASIC