diff --git a/common/locales/en/npc.json b/common/locales/en/npc.json
index b18d6e16e0..e0a6403dcf 100644
--- a/common/locales/en/npc.json
+++ b/common/locales/en/npc.json
@@ -5,8 +5,8 @@
     "mattShall": "Shall I bring you your steed, <%= name %>? Click a mount to saddle up.",
     "mattBochText1": "Welcome to the Stable! I'm Matt, the beast master. Choose a pet here to venture at your side. Feed them and they'll grow into powerful steeds.",
     "daniel": "Daniel",
-    "danielText": "Welcome to the Tavern! Stay a while and meet the locals. If you need to rest (vacation? illness?), I'll set you up at the inn. While checked-in, your Dailies are frozen as-is (checked/unchecked) until the day after check-out. You will not suffer for missing them at the day's end.",
-    "danielText2": "Be warned: If you are participating in a boss quest, the boss will still damage you for your party mates' missed Dailies!",
+    "danielText": "Welcome to the Tavern! Stay a while and meet the locals. If you need to rest (vacation? illness?), I'll set you up at the Inn. While checked-in, your Dailies won't hurt you at the day's end, but you can still check them off.",
+    "danielText2": "Be warned: If you are participating in a boss quest, the boss will still damage you for your party mates' missed Dailies! Also, your own damage to the Boss (or items collected) will not be applied until you check out of the Inn.",
     "alexander": "Alexander the Merchant",
     "welcomeMarket": "Welcome to the Market! Buy hard-to-find eggs and potions! Sell your extras! Commission useful services! Come see what we have to offer.",
     "sellForGold": "Sell <%= item %> for <%= gold %> Gold",
diff --git a/common/script/index.coffee b/common/script/index.coffee
index 9018a4d29f..8e0034caf9 100644
--- a/common/script/index.coffee
+++ b/common/script/index.coffee
@@ -1499,13 +1499,17 @@ api.wrap = (user, main=true) ->
           _.merge plan.consecutive, {count:0, offset:0, gemCapExtra:0}
           user.markModified? 'purchased.plan'
 
-      # User is resting at the inn. On cron, buffs are cleared and all dailies are reset without performing damage (fixes issue #5070)
+      # User is resting at the inn. 
+      # On cron, buffs are cleared and all dailies are reset without performing damage
       if user.preferences.sleep is true
         user.stats.buffs = clearBuffs
-        # @TODO: uncomment when new dailies behavior goes live, per https://github.com/HabitRPG/habitrpg/pull/5073#issuecomment-98436542
-        # user.dailys.forEach (daily) ->
-        #   daily.completed = false
-        #   _.each daily.checklist, ((i)->i.completed=false;true)
+        user.dailys.forEach (daily) ->
+          {completed, repeat} = daily
+          thatDay = moment(now).subtract({days: 1})
+
+          if api.shouldDo(thatDay, repeat, user.preferences) || completed
+            _.each daily.checklist, ((box)->box.completed=false;true)
+          daily.completed = false
         return
 
       # Tally each task
diff --git a/test/common/algos.mocha.coffee b/test/common/algos.mocha.coffee
index ec2febeb76..ea5695a9a4 100644
--- a/test/common/algos.mocha.coffee
+++ b/test/common/algos.mocha.coffee
@@ -195,12 +195,12 @@ describe 'User', ->
 
     it 'remains in the inn on cron', ->
       cron()
-      expect(user.preferences.sleep).to.be.ok()
+      expect(user.preferences.sleep).to.be true
 
     it 'resets dailies', ->
        user.dailys[0].completed = true
        cron()
-       expect(user.dailys[0].completed).to.not.be.ok
+       expect(user.dailys[0].completed).to.be false
 
     it 'resets checklist on incomplete dailies', ->
        user.dailys[0].checklist = [
@@ -222,7 +222,7 @@ describe 'User', ->
        ]
        cron()
        _.each user.dailys[0].checklist, (box)->
-        expect(box.completed).to.not.be.ok
+         expect(box.completed).to.be false
 
     it 'resets checklist on complete dailies', ->
        user.dailys[0].checklist = [
@@ -245,7 +245,58 @@ describe 'User', ->
        user.dailys[0].completed = true
        cron()
        _.each user.dailys[0].checklist, (box)->
-         expect(box.completed).to.not.be.ok
+         expect(box.completed).to.be false
+
+    it 'does not reset checklist on grey incomplete dailies', ->
+      yesterday = moment().subtract(1,'days')
+      user.dailys[0].repeat[shared.dayMapping[yesterday.day()]] = 0
+      user.dailys[0].checklist = [
+        {
+          "text" : "1",
+          "id" : "checklist-one",
+          "completed" : true
+        },
+        {
+          "text" : "2",
+          "id" : "checklist-two",
+          "completed" : true
+        },
+        {
+          "text" : "3",
+          "id" : "checklist-three",
+          "completed" : true
+        }
+      ]
+
+      cron()
+      _.each user.dailys[0].checklist, (box)->
+        expect(box.completed).to.be true
+
+    it 'resets checklist on complete grey complete dailies', ->
+      yesterday = moment().subtract(1,'days')
+      user.dailys[0].repeat[shared.dayMapping[yesterday.day()]] = 0
+      user.dailys[0].checklist = [
+        {
+          "text" : "1",
+          "id" : "checklist-one",
+          "completed" : true
+        },
+        {
+          "text" : "2",
+          "id" : "checklist-two",
+          "completed" : true
+        },
+        {
+          "text" : "3",
+          "id" : "checklist-three",
+          "completed" : true
+        }
+      ]
+      user.dailys[0].completed = true
+
+      cron()
+      _.each user.dailys[0].checklist, (box)->
+        expect(box.completed).to.be false
 
     it 'does not damage user for incomplete dailies', ->
       expect(user).toHaveHP 50