diff --git a/apps/openmw/mwgui/enchantingdialog.cpp b/apps/openmw/mwgui/enchantingdialog.cpp
index d5098adbf1..30d67f5540 100644
--- a/apps/openmw/mwgui/enchantingdialog.cpp
+++ b/apps/openmw/mwgui/enchantingdialog.cpp
@@ -24,7 +24,7 @@ namespace MWGui
 
     EnchantingDialog::EnchantingDialog()
         : WindowBase("openmw_enchanting_dialog.layout")
-        , EffectEditorBase()
+        , EffectEditorBase(EffectEditorBase::Enchanting)
         , mItemSelectionDialog(NULL)
     {
         getWidget(mName, "NameEdit");
diff --git a/apps/openmw/mwgui/spellcreationdialog.cpp b/apps/openmw/mwgui/spellcreationdialog.cpp
index b72962125e..e6da3d692a 100644
--- a/apps/openmw/mwgui/spellcreationdialog.cpp
+++ b/apps/openmw/mwgui/spellcreationdialog.cpp
@@ -287,7 +287,7 @@ namespace MWGui
 
     SpellCreationDialog::SpellCreationDialog()
         : WindowBase("openmw_spellcreation_dialog.layout")
-        , EffectEditorBase()
+        , EffectEditorBase(EffectEditorBase::Spellmaking)
     {
         getWidget(mNameEdit, "NameEdit");
         getWidget(mMagickaCost, "MagickaCost");
@@ -444,10 +444,11 @@ namespace MWGui
     // ------------------------------------------------------------------------------------------------
 
 
-    EffectEditorBase::EffectEditorBase()
+    EffectEditorBase::EffectEditorBase(Type type)
         : mAddEffectDialog()
         , mSelectAttributeDialog(NULL)
         , mSelectSkillDialog(NULL)
+        , mType(type)
     {
         mAddEffectDialog.eventEffectAdded += MyGUI::newDelegate(this, &EffectEditorBase::onEffectAdded);
         mAddEffectDialog.eventEffectModified += MyGUI::newDelegate(this, &EffectEditorBase::onEffectModified);
@@ -482,6 +483,13 @@ namespace MWGui
             const std::vector<ESM::ENAMstruct>& list = spell->mEffects.mList;
             for (std::vector<ESM::ENAMstruct>::const_iterator it2 = list.begin(); it2 != list.end(); ++it2)
             {
+                const ESM::MagicEffect * effect = MWBase::Environment::get().getWorld()->getStore().get<ESM::MagicEffect>().find(it2->mEffectID);
+
+                // skip effects that do not allow spellmaking/enchanting
+                int requiredFlags = (mType == Spellmaking) ? ESM::MagicEffect::AllowSpellmaking : ESM::MagicEffect::AllowEnchanting;
+                if (!(effect->mData.mFlags & requiredFlags))
+                    continue;
+
                 if (std::find(knownEffects.begin(), knownEffects.end(), it2->mEffectID) == knownEffects.end())
                     knownEffects.push_back(it2->mEffectID);
             }
diff --git a/apps/openmw/mwgui/spellcreationdialog.hpp b/apps/openmw/mwgui/spellcreationdialog.hpp
index f5d6f06161..be984c8d4d 100644
--- a/apps/openmw/mwgui/spellcreationdialog.hpp
+++ b/apps/openmw/mwgui/spellcreationdialog.hpp
@@ -85,7 +85,13 @@ namespace MWGui
     class EffectEditorBase
     {
     public:
-        EffectEditorBase();
+        enum Type
+        {
+            Spellmaking,
+            Enchanting
+        };
+
+        EffectEditorBase(Type type);
         virtual ~EffectEditorBase();
 
     protected:
@@ -121,6 +127,9 @@ namespace MWGui
         void setWidgets (Widgets::MWList* availableEffectsList, MyGUI::ScrollView* usedEffectsView);
 
         virtual void notifyEffectsChanged () {}
+
+    private:
+        Type mType;
     };
 
     class SpellCreationDialog : public WindowBase, public ReferenceInterface, public EffectEditorBase
diff --git a/components/esm/loadmgef.hpp b/components/esm/loadmgef.hpp
index 8281f4969d..64835530c1 100644
--- a/components/esm/loadmgef.hpp
+++ b/components/esm/loadmgef.hpp
@@ -16,6 +16,7 @@ struct MagicEffect
 
     enum Flags
     {
+        // Hardcoded flags
         TargetSkill = 0x1, // Affects a specific skill, which is specified elsewhere in the effect structure.
         TargetAttribute = 0x2, // Affects a specific attribute, which is specified elsewhere in the effect structure.
         NoDuration = 0x4, // Has no duration. Only runs effect once on cast.
@@ -28,7 +29,12 @@ struct MagicEffect
         UncappedDamage = 0x1000, // Negates multiple cap behaviours. Allows an effect to reduce an attribute below zero; removes the normal minimum effect duration of 1 second.
         NonRecastable = 0x4000,	// Does not land if parent spell is already affecting target. Shows "you cannot re-cast" message for self target.
         Unreflectable = 0x10000, // Cannot be reflected, the effect always lands normally.
-        CasterLinked = 0x20000	// Must quench if caster is dead, or not an NPC/creature. Not allowed in containter/door trap spells.
+        CasterLinked = 0x20000,	// Must quench if caster is dead, or not an NPC/creature. Not allowed in containter/door trap spells.
+
+        // Moddable flags
+        AllowSpellmaking = 0x200,
+        AllowEnchanting = 0x400,
+        Negative = 0x800 // TODO: needs research
     };
     enum MagnitudeDisplayType
     {