diff --git a/TShockAPI/Hooks/PlayerHooks.cs b/TShockAPI/Hooks/PlayerHooks.cs
index 9056fe55..3114020b 100644
--- a/TShockAPI/Hooks/PlayerHooks.cs
+++ b/TShockAPI/Hooks/PlayerHooks.cs
@@ -449,14 +449,16 @@ namespace TShockAPI.Hooks
 		/// <param name="ply">The player firing the event.</param>
 		/// <param name="rawtext">The raw chat text sent by the player.</param>
 		/// <param name="tshockText">The chat text after being formatted.</param>
-		public static void OnPlayerChat(TSPlayer ply, string rawtext, ref string tshockText)
+		public static bool OnPlayerChat(TSPlayer ply, string rawtext, ref string tshockText)
 		{
 			if (PlayerChat == null)
-				return;
+				return false;
 
 			var args = new PlayerChatEventArgs {Player = ply, RawText = rawtext, TShockFormattedText = tshockText};
 			PlayerChat(args);
 			tshockText = args.TShockFormattedText;
+
+			return args.Handled;
 		}
 
 		/// <summary>
diff --git a/TShockAPI/TShock.cs b/TShockAPI/TShock.cs
index 6b0e36ad..52bef011 100644
--- a/TShockAPI/TShock.cs
+++ b/TShockAPI/TShock.cs
@@ -1330,9 +1330,17 @@ namespace TShockAPI
 				{
 					text = String.Format(Config.Settings.ChatFormat, tsplr.Group.Name, tsplr.Group.Prefix, tsplr.Name, tsplr.Group.Suffix,
 											 args.Text);
-					Hooks.PlayerHooks.OnPlayerChat(tsplr, args.Text, ref text);
-					Utils.Broadcast(text, tsplr.Group.R, tsplr.Group.G, tsplr.Group.B);
+
+					//Invoke the PlayerChat hook. If this hook event is handled then we need to prevent sending the chat message
+					bool cancelChat = PlayerHooks.OnPlayerChat(tsplr, args.Text, ref text);
 					args.Handled = true;
+
+					if (cancelChat)
+					{
+						return;
+					}
+
+					Utils.Broadcast(text, tsplr.Group.R, tsplr.Group.G, tsplr.Group.B);
 				}
 				else
 				{
@@ -1344,7 +1352,13 @@ namespace TShockAPI
 
 					//Give that poor player their name back :'c
 					ply.name = name;
-					PlayerHooks.OnPlayerChat(tsplr, args.Text, ref text);
+
+					bool cancelChat = PlayerHooks.OnPlayerChat(tsplr, args.Text, ref text);
+					if (cancelChat)
+					{
+						args.Handled = true;
+						return;
+					}
 
 					//This netpacket is used to send chat text from the server to clients, in this case on behalf of a client
 					Terraria.Net.NetPacket packet = Terraria.GameContent.NetModules.NetTextModule.SerializeServerMessage(