diff --git a/Content.Server/HotPotato/HotPotatoSystem.cs b/Content.Server/HotPotato/HotPotatoSystem.cs
index 79be700629..8091eea6fd 100644
--- a/Content.Server/HotPotato/HotPotatoSystem.cs
+++ b/Content.Server/HotPotato/HotPotatoSystem.cs
@@ -1,4 +1,6 @@
+using Content.Server.Audio;
 using Content.Server.Explosion.EntitySystems;
+using Content.Shared.Damage.Systems;
 using Content.Shared.Hands.Components;
 using Content.Shared.Hands.EntitySystems;
 using Content.Shared.HotPotato;
@@ -11,6 +13,8 @@ public sealed class HotPotatoSystem : SharedHotPotatoSystem
 {
     [Dependency] private readonly SharedHandsSystem _hands = default!;
     [Dependency] private readonly SharedPopupSystem _popup = default!;
+    [Dependency] private readonly AmbientSoundSystem _ambientSound = default!;
+    [Dependency] private readonly DamageOnHoldingSystem _damageOnHolding = default!;
 
     public override void Initialize()
     {
@@ -23,6 +27,8 @@ public sealed class HotPotatoSystem : SharedHotPotatoSystem
     {
         EnsureComp<ActiveHotPotatoComponent>(uid);
         comp.CanTransfer = false;
+        _ambientSound.SetAmbience(uid, true);
+        _damageOnHolding.SetEnabled(uid, true);
         Dirty(comp);
     }
 
diff --git a/Content.Shared/Damage/Components/DamageOnHoldingComponent.cs b/Content.Shared/Damage/Components/DamageOnHoldingComponent.cs
new file mode 100644
index 0000000000..fe28b7e7f0
--- /dev/null
+++ b/Content.Shared/Damage/Components/DamageOnHoldingComponent.cs
@@ -0,0 +1,33 @@
+using Content.Shared.Damage.Systems;
+using Robust.Shared.GameStates;
+using Robust.Shared.Serialization.TypeSerializers.Implementations.Custom;
+
+namespace Content.Shared.Damage.Components;
+
+[RegisterComponent, NetworkedComponent]
+[AutoGenerateComponentState]
+[Access(typeof(DamageOnHoldingSystem))]
+public sealed partial class DamageOnHoldingComponent : Component
+{
+    [DataField("enabled"), ViewVariables(VVAccess.ReadWrite)]
+    [AutoNetworkedField]
+    public bool Enabled = true;
+
+    /// <summary>
+    /// Damage per interval dealt to entity holding the entity with this component
+    /// </summary>
+    [DataField("damage"), ViewVariables(VVAccess.ReadWrite)]
+    public DamageSpecifier Damage = new();
+    // TODO: make it networked
+
+    /// <summary>
+    /// Delay between damage events in seconds
+    /// </summary>
+    [DataField("interval"), ViewVariables(VVAccess.ReadWrite)]
+    [AutoNetworkedField]
+    public float Interval = 1f;
+
+    [DataField("nextDamage", customTypeSerializer: typeof(TimeOffsetSerializer)), ViewVariables(VVAccess.ReadWrite)]
+    [AutoNetworkedField]
+    public TimeSpan NextDamage = TimeSpan.Zero;
+}
diff --git a/Content.Shared/Damage/Systems/DamageOnHoldingSystem.cs b/Content.Shared/Damage/Systems/DamageOnHoldingSystem.cs
new file mode 100644
index 0000000000..e22be2fbbf
--- /dev/null
+++ b/Content.Shared/Damage/Systems/DamageOnHoldingSystem.cs
@@ -0,0 +1,53 @@
+using Content.Shared.Damage.Components;
+using Robust.Shared.Containers;
+using Robust.Shared.Timing;
+
+namespace Content.Shared.Damage.Systems;
+
+public sealed class DamageOnHoldingSystem : EntitySystem
+{
+    [Dependency] private readonly SharedContainerSystem _container = default!;
+    [Dependency] private readonly DamageableSystem _damageableSystem = default!;
+    [Dependency] private readonly IGameTiming _timing = default!;
+
+    public override void Initialize()
+    {
+        base.Initialize();
+        SubscribeLocalEvent<DamageOnHoldingComponent, EntityUnpausedEvent>(OnUnpaused);
+        SubscribeLocalEvent<DamageOnHoldingComponent, MapInitEvent>(OnMapInit);
+    }
+
+    public void SetEnabled(EntityUid uid, bool enabled, DamageOnHoldingComponent? component = null)
+    {
+        if (Resolve(uid, ref component))
+        {
+            component.Enabled = enabled;
+            component.NextDamage = _timing.CurTime;
+        }
+    }
+
+    private void OnUnpaused(EntityUid uid, DamageOnHoldingComponent component, ref EntityUnpausedEvent args)
+    {
+        component.NextDamage += args.PausedTime;
+    }
+
+    private void OnMapInit(EntityUid uid, DamageOnHoldingComponent component, MapInitEvent args)
+    {
+        component.NextDamage = _timing.CurTime;
+    }
+
+    public override void Update(float frameTime)
+    {
+        var query = EntityQueryEnumerator<DamageOnHoldingComponent>();
+        while (query.MoveNext(out var uid, out var component))
+        {
+            if (!component.Enabled || component.NextDamage > _timing.CurTime)
+                continue;
+            if (_container.TryGetContainingContainer(uid, out var container))
+            {
+                _damageableSystem.TryChangeDamage(container.Owner, component.Damage, origin: uid);
+            }
+            component.NextDamage = _timing.CurTime + TimeSpan.FromSeconds(component.Interval);
+        }
+    }
+}
\ No newline at end of file
diff --git a/Content.Shared/HotPotato/HotPotatoComponent.cs b/Content.Shared/HotPotato/HotPotatoComponent.cs
index 2d02e10626..f5b2e16189 100644
--- a/Content.Shared/HotPotato/HotPotatoComponent.cs
+++ b/Content.Shared/HotPotato/HotPotatoComponent.cs
@@ -3,7 +3,7 @@ using Robust.Shared.GameStates;
 namespace Content.Shared.HotPotato;
 
 /// <summary>
-/// Similar to <see cref="Content.Shared.Interaction.Components.UnremoveableComponent"/>
+/// Similar to <see cref="Interaction.Components.UnremoveableComponent"/>
 /// except entities with this component can be removed in specific case: <see cref="CanTransfer"/>
 /// </summary>
 [RegisterComponent, NetworkedComponent]
diff --git a/Resources/Prototypes/Entities/Objects/Weapons/Bombs/funny.yml b/Resources/Prototypes/Entities/Objects/Weapons/Bombs/funny.yml
index f7b4d4c5ac..a0f646d1e1 100644
--- a/Resources/Prototypes/Entities/Objects/Weapons/Bombs/funny.yml
+++ b/Resources/Prototypes/Entities/Objects/Weapons/Bombs/funny.yml
@@ -1,6 +1,6 @@
 - type: entity
   name: hot potato
-  description: Once activated, this time bomb can't be dropped - only passed to someone else!
+  description: Once activated, you can't drop this time bomb - hit someone else with it to save yourself! Don't burn your hands!
   parent: BaseItem
   id: HotPotato
   components:
@@ -11,6 +11,11 @@
     - type: Item
       sprite: Objects/Weapons/Bombs/hot_potato.rsi
       size: 5
+    - type: AmbientSound
+      enabled: false
+      range: 8
+      sound:
+        path: /Audio/Effects/lightburn.ogg
     - type: MeleeWeapon
       damage:
         types:
@@ -29,6 +34,11 @@
       canCreateVacuum: false
     - type: DeleteOnTrigger
     - type: HotPotato
+    - type: DamageOnHolding
+      enabled: false
+      damage:
+        types:
+          Heat: 1
     - type: Appearance
       visuals:
         - type: GenericEnumVisualizer