diff --git a/CHANGELOG.md b/CHANGELOG.md
index 7a914d35..03458ea5 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -30,6 +30,7 @@ This project adheres to [Semantic Versioning](http://semver.org/).
 ### Fixed
 - fixed issue with auto updater not offering version updates
 - fixed issue with new symlink handling code [#3340](https://github.com/sandboxie-plus/Sandboxie/issues/3340)
+- fixed issue with Scm_StartServiceCtrlDispatcherX not behaving correctly when nor tun as service [#1246](https://github.com/sandboxie-plus/Sandboxie/issues/1246)
 
 ### Removed
 - removed obsolete /nosbiectrl switch [#3391](https://github.com/sandboxie-plus/Sandboxie/issues/3391)
diff --git a/Sandboxie/apps/com/common.h b/Sandboxie/apps/com/common.h
index dbdf513b..4663d014 100644
--- a/Sandboxie/apps/com/common.h
+++ b/Sandboxie/apps/com/common.h
@@ -1,5 +1,6 @@
 /*
  * Copyright 2004-2020 Sandboxie Holdings, LLC 
+ * Copyright 2021-2023 David Xanatos, xanasoft.com
  *
  * This program is free software: you can redistribute it and/or modify
  *   it under the terms of the GNU General Public License as published by
@@ -755,6 +756,8 @@ BOOL Hook_Service_Control_Manager(void)
 
 BOOL Service_Start_ServiceMain(WCHAR *SvcName, const WCHAR *SvcDllName, const UCHAR *SvcProcName, BOOL UseMyStartServiceCtrlDispatcher)
 {
+    static const WCHAR *ServiceName_EnvVar =
+        L"00000000_" SBIE L"_SERVICE_NAME";
     HMODULE dll;
     LPSERVICE_MAIN_FUNCTION ServiceMain;
     ULONG table_len;
@@ -785,7 +788,7 @@ BOOL Service_Start_ServiceMain(WCHAR *SvcName, const WCHAR *SvcDllName, const UC
     table[0].lpServiceName = SvcName;
     table[0].lpServiceProc = ServiceMain;
 
-
+    SetEnvironmentVariable(ServiceName_EnvVar, SvcName);
 
     if (UseMyStartServiceCtrlDispatcher) {
         PROCESS_DATA *myData;
diff --git a/Sandboxie/core/dll/scm_create.c b/Sandboxie/core/dll/scm_create.c
index 182615c0..601c8c6d 100644
--- a/Sandboxie/core/dll/scm_create.c
+++ b/Sandboxie/core/dll/scm_create.c
@@ -1,6 +1,6 @@
 /*
  * Copyright 2004-2020 Sandboxie Holdings, LLC 
- * Copyright 2020-2021 David Xanatos, xanasoft.com
+ * Copyright 2020-2023 David Xanatos, xanasoft.com
  *
  * This program is free software: you can redistribute it and/or modify
  *   it under the terms of the GNU General Public License as published by
@@ -1212,34 +1212,40 @@ _FX BOOL Scm_StartServiceCtrlDispatcherX(
         // run is not necessarily the first entry in the table.
         //
 
+        if (wcscmp(ServiceName, L"*") == 0) {
+
+            BOOLEAN TooMany;
+
+            if (IsUnicode) {
+
+                SERVICE_TABLE_ENTRYW *svc = (SERVICE_TABLE_ENTRYW *)ServiceTable;
+                ServiceName = svc->lpServiceName;
+                TooMany = (svc[1].lpServiceName || svc[1].lpServiceProc);
+
+            } else {
+
+                SERVICE_TABLE_ENTRYA *svc = (SERVICE_TABLE_ENTRYA *)ServiceTable;
+
+                ANSI_STRING ansi;
+                RtlInitString(&ansi, svc->lpServiceName);
+                RtlAnsiStringToUnicodeString(&uni, &ansi, TRUE);
+                ServiceName = uni.Buffer;
+
+                TooMany = (svc[1].lpServiceName || svc[1].lpServiceProc);
+            }
+
+            if (TooMany) {
+
+                SbieApi_Log(2205, L"StartServiceCtrlDispatcher");
+                //SetLastError(ERROR_INVALID_PARAMETER);
+                //return FALSE;
+            }
+        }
+
     } else {
 
-        BOOLEAN TooMany;
-
-        if (IsUnicode) {
-
-            SERVICE_TABLE_ENTRYW *svc = (SERVICE_TABLE_ENTRYW *)ServiceTable;
-            ServiceName = svc->lpServiceName;
-            TooMany = (svc[1].lpServiceName || svc[1].lpServiceProc);
-
-        } else {
-
-            SERVICE_TABLE_ENTRYA *svc = (SERVICE_TABLE_ENTRYA *)ServiceTable;
-
-            ANSI_STRING ansi;
-            RtlInitString(&ansi, svc->lpServiceName);
-            RtlAnsiStringToUnicodeString(&uni, &ansi, TRUE);
-            ServiceName = uni.Buffer;
-
-            TooMany = (svc[1].lpServiceName || svc[1].lpServiceProc);
-        }
-
-        if (TooMany) {
-
-            SbieApi_Log(2205, L"StartServiceCtrlDispatcher");
-            //SetLastError(ERROR_INVALID_PARAMETER);
-            //return FALSE;
-        }
+        SetLastError(ERROR_FAILED_SERVICE_CONTROLLER_CONNECT);
+        return FALSE;
     }
 
     WCHAR text[130];
diff --git a/Sandboxie/core/svc/serviceserver2.cpp b/Sandboxie/core/svc/serviceserver2.cpp
index 4181e78d..79fc0d47 100644
--- a/Sandboxie/core/svc/serviceserver2.cpp
+++ b/Sandboxie/core/svc/serviceserver2.cpp
@@ -1,6 +1,6 @@
 /*
  * Copyright 2004-2020 Sandboxie Holdings, LLC 
- * Copyright 2020-2021 David Xanatos, xanasoft.com
+ * Copyright 2020-2023 David Xanatos, xanasoft.com
  *
  * This program is free software: you can redistribute it and/or modify
  *   it under the terms of the GNU General Public License as published by
@@ -334,7 +334,7 @@ ULONG ServiceServer::RunHandler2(
     if (ok) {
         errlvl = 0x21;
         ExePath = BuildPathForStartExe(idProcess, devmap, 
-                                        (type & SERVICE_WIN32_OWN_PROCESS) ? svcname : NULL, 
+                                        svcname ? (type & SERVICE_WIN32_OWN_PROCESS) ? svcname : L"*" : NULL, 
                                         path, NULL);
         if (! ExePath) {
             ok = FALSE;