diff --git a/src/field/pokemon.ts b/src/field/pokemon.ts
index d0a43e3bcf8..148cea1c103 100644
--- a/src/field/pokemon.ts
+++ b/src/field/pokemon.ts
@@ -5127,8 +5127,8 @@ export class EnemyPokemon extends Pokemon {
           newPokemon.setVisible(false); // Hide if replaced with first pokemon
         }
 
-        if (pokemonReplaced && newPokemon.isAllowedInBattle()) {
-          const modifiersToTransfer = this.scene.findModifiers(m => m instanceof PokemonHeldItemModifier && m.pokemonId === pokemonReplaced, true) as PokemonHeldItemModifier[];
+        if (pokemonReplaced && newPokemon.isAllowedInChallenge()) {
+          const modifiersToTransfer = this.scene.findModifiers(m => m instanceof PokemonHeldItemModifier && !(m instanceof BaseStatModifier) && m.pokemonId === pokemonReplaced, true) as PokemonHeldItemModifier[];
           const transferResults: Promise<boolean>[] = [];
           for (const modifier of modifiersToTransfer) {
             transferResults.push(this.scene.tryTransferHeldItemModifier(modifier, newPokemon, false, modifier.getStackCount(), true, true));
diff --git a/src/ui/party-ui-handler.ts b/src/ui/party-ui-handler.ts
index a28615a4211..e16088f524e 100644
--- a/src/ui/party-ui-handler.ts
+++ b/src/ui/party-ui-handler.ts
@@ -1063,7 +1063,7 @@ export default class PartyUiHandler extends MessageUiHandler {
       this.clearPartySlots();
       const releasedPokemon = this.scene.getPlayerParty().splice(slotIndex, 1)[0];
       let releasedId: number = 0;
-      if (releasedPokemon.isAllowedInBattle()) {
+      if (releasedPokemon.isAllowedInChallenge()) {
         releasedId = releasedPokemon.id;
       }
       this.populatePartySlots();