diff --git a/patches/minecraft/net/minecraft/world/inventory/GrindstoneMenu.java.patch b/patches/minecraft/net/minecraft/world/inventory/GrindstoneMenu.java.patch
index 8f31fefb4a..954836aefd 100644
--- a/patches/minecraft/net/minecraft/world/inventory/GrindstoneMenu.java.patch
+++ b/patches/minecraft/net/minecraft/world/inventory/GrindstoneMenu.java.patch
@@ -43,8 +43,8 @@
        ItemStack itemstack1 = this.f_39560_.m_8020_(1);
        boolean flag = !itemstack.m_41619_() || !itemstack1.m_41619_();
        boolean flag1 = !itemstack.m_41619_() && !itemstack1.m_41619_();
-+      this.xp = net.minecraftforge.common.ForgeHooks.onGrindstoneChange(itemstack, itemstack1, this.f_39559_, this.xp);
-+      if (this.xp != Integer.MIN_VALUE) return;
++      this.xp = net.minecraftforge.common.ForgeHooks.onGrindstoneChange(itemstack, itemstack1, this.f_39559_, -1);
++      if (this.xp == Integer.MIN_VALUE)
        if (!flag) {
           this.f_39559_.m_6836_(0, ItemStack.f_41583_);
        } else {
diff --git a/src/main/java/net/minecraftforge/common/ForgeHooks.java b/src/main/java/net/minecraftforge/common/ForgeHooks.java
index ed57b0a316..c301c72a49 100644
--- a/src/main/java/net/minecraftforge/common/ForgeHooks.java
+++ b/src/main/java/net/minecraftforge/common/ForgeHooks.java
@@ -759,7 +759,11 @@ public class ForgeHooks
     public static int onGrindstoneChange(@NotNull ItemStack top, @NotNull ItemStack bottom, Container outputSlot, int xp)
     {
         GrindstoneEvent.OnplaceItem e = new GrindstoneEvent.OnplaceItem(top, bottom, xp);
-        if (MinecraftForge.EVENT_BUS.post(e)) return e.getXp();
+        if (MinecraftForge.EVENT_BUS.post(e))
+        {
+            outputSlot.setItem(0, ItemStack.EMPTY);
+            return -1;
+        }
         if (e.getOutput().isEmpty()) return Integer.MIN_VALUE;
 
         outputSlot.setItem(0, e.getOutput());
diff --git a/src/main/java/net/minecraftforge/event/GrindstoneEvent.java b/src/main/java/net/minecraftforge/event/GrindstoneEvent.java
index c363ee3fda..734a5478e0 100644
--- a/src/main/java/net/minecraftforge/event/GrindstoneEvent.java
+++ b/src/main/java/net/minecraftforge/event/GrindstoneEvent.java
@@ -41,10 +41,7 @@ public abstract class GrindstoneEvent extends Event
     }
 
     /**
-     * This is the experience amount determined by the event, not the vanilla behavior. <br>
-     * If you are the first receiver of this event, it is guaranteed to be -1. <br>
-     * The value must be set to a positive value to override vanilla behavior. <br>
-     * if the value is equal to -1, the vanilla behavior for calculating experience will run. <br>
+     * This is the experience amount determined by the event. It will be {@code -1} unless {@link #setXp(int)} is called. <br>
      * @return The experience amount given to the player. <br>
      */
     public int getXp()
@@ -64,11 +61,22 @@ public abstract class GrindstoneEvent extends Event
     /**
      * This event is {@link Cancelable} <br>
      * {@link OnplaceItem} is fired when the inputs to a grindstone are changed. <br>
-     * It is called from {@link GrindstoneMenu#createResult()}. <br>
-     * If the event is canceled, vanilla behavior will not run, and the output will be set to {@link ItemStack#EMPTY}. <br>
-     * If the event is not canceled, but the output is not empty, it will set the output and not run vanilla behavior. <br>
-     * if the output is empty, and the event is not canceled, vanilla behavior will execute. <br>
-     * if the amount of experience is larger than or equal 0, the vanilla behavior for calculating experience will not run. <br>
+     *
+     * The following rules apply:
+     * <ul>
+     *     <li>If the event is canceled, vanilla behavior will not run, and the output will be {@linkplain ItemStack#EMPTY empty}.</li>
+     *     <li>If the event is not canceled</li>
+     *     <ul>
+     *          <li>and the output is empty, the output will be determined by vanilla.</li>
+     *          <li>and the output is not empty, the output will be set, without running vanilla behavior.</li>
+     *     </ul>
+     *     <li>Vanilla XP calculation logic will be used unless all of the following criterias are met:</li>
+     *     <ul>
+     *         <li>the amount of experience is greater than or equal to {@code 0};</li>
+     *         <li>the event is not {@linkplain #isCanceled() canceled};</li>
+     *         <li>the {@linkplain #getOutput() output} is not empty.</li>
+     *     </ul>
+     * </ul>
      */
     @Cancelable
     public static class OnplaceItem extends GrindstoneEvent
diff --git a/src/test/java/net/minecraftforge/debug/misc/GrindstoneEventTest.java b/src/test/java/net/minecraftforge/debug/misc/GrindstoneEventTest.java
new file mode 100644
index 0000000000..02b2d24bcb
--- /dev/null
+++ b/src/test/java/net/minecraftforge/debug/misc/GrindstoneEventTest.java
@@ -0,0 +1,86 @@
+/*
+ * Copyright (c) Forge Development LLC and contributors
+ * SPDX-License-Identifier: LGPL-2.1-only
+ */
+
+package net.minecraftforge.debug.misc;
+
+import net.minecraft.world.item.ItemStack;
+import net.minecraft.world.item.Items;
+import net.minecraftforge.common.MinecraftForge;
+import net.minecraftforge.event.GrindstoneEvent;
+import net.minecraftforge.eventbus.api.SubscribeEvent;
+import net.minecraftforge.fml.Bindings;
+import net.minecraftforge.fml.common.Mod;
+
+@Mod("grindstone_event_test")
+public class GrindstoneEventTest {
+    private static final boolean ENABLED = false;
+    public GrindstoneEventTest() {
+        if (ENABLED) {
+            MinecraftForge.EVENT_BUS.register(this);
+        }
+    }
+
+    @SubscribeEvent
+    public void onGrindestonePlace(GrindstoneEvent.OnplaceItem event)
+    {
+        // all of these "recipes" are slot sensitive, the top and bottom must match exactly for the behavior to change
+        // switching the order will cause the "recipe" to fail
+        ItemStack topItem = event.getTopItem();
+        ItemStack bottomItem = event.getBottomItem();
+        // craft lapis + netherite to get diamond and 5 XP
+        // this "recipe" is handled in OnTakeItem so the inputs only shrink by 1 each time
+        if (topItem.is(Items.LAPIS_LAZULI) && bottomItem.is(Items.NETHERITE_INGOT))
+        {
+            event.setOutput(new ItemStack(Items.DIAMOND, 1));
+            event.setXp(5);
+        }
+
+        // craft iron ore and flint to make raw iron ore, no XP is rewarded
+        // this "recipe" is *not* handled in OnTakeItem, so the inputs will always be set to empty regardless of stack size
+        if (topItem.is(Items.IRON_ORE) && bottomItem.is(Items.FLINT))
+        {
+            event.setOutput(new ItemStack(Items.RAW_IRON, 3));
+            event.setXp(0);
+        }
+
+        // when placing an iron axe in the top slot, simply copy it to the output without change (do not remove enchants)
+        // still grant XP equivalent to all enchantments on the axe
+        if (topItem.is(Items.IRON_AXE) && bottomItem.is(Items.AIR))
+        {
+            event.setOutput(topItem.copy());
+            event.setXp(-1);
+        }
+
+        // setting the output to empty will run default behavior, effectively ignoring all previous overrides to the event
+        // note this will ignore any XP value you set, effectively for this test mod this has no impact
+        if (topItem.is(Items.IRON_SHOVEL) && bottomItem.is(Items.AIR))
+        {
+            event.setOutput(ItemStack.EMPTY);
+        }
+
+        // canceling the event will prevent disenchanting an iron sword in the top slot
+        if (topItem.is(Items.IRON_SWORD) && bottomItem.is(Items.AIR))
+        {
+            event.setCanceled(true);
+        }
+    }
+
+    @SubscribeEvent
+    public void onGrindstoneTake(GrindstoneEvent.OnTakeItem event)
+    {
+        ItemStack topItem = event.getTopItem();
+        ItemStack bottomItem = event.getBottomItem();
+        // only shrink stacks by 1 for the lapis + netherite "recipe"
+        if (topItem.is(Items.LAPIS_LAZULI) && bottomItem.is(Items.NETHERITE_INGOT))
+        {
+            ItemStack top = topItem.copy();
+            ItemStack bottom = bottomItem.copy();
+            bottom.shrink(1);
+            top.shrink(1);
+            event.setNewBottomItem(bottom);
+            event.setNewTopItem(top);
+        }
+    }
+}
\ No newline at end of file
diff --git a/src/test/resources/META-INF/mods.toml b/src/test/resources/META-INF/mods.toml
index a0fb47688f..5d5bfe507a 100644
--- a/src/test/resources/META-INF/mods.toml
+++ b/src/test/resources/META-INF/mods.toml
@@ -268,6 +268,8 @@ modId="custom_item_decorations_test"
 modId="item_stacked_on_other_test"
 [[mods]]
 modId="ambient_occlusion_elements_test"
+[[mods]]
+modId="grindstone_event_test"
 
 
 # ADD ABOVE THIS LINE