diff --git a/CHANGELOG b/CHANGELOG
index 29f8da26d..ddde6e13c 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -1,4 +1,5 @@
 (next)
+  - VGA palette errors with Crystal Dream II fixed.
   - PC-98 FM synthesis fixed not to initialize itself
     again when rebooting, which fixes a problem with
     garbled FM synthesis after rebooting.
diff --git a/src/hardware/vga_draw.cpp b/src/hardware/vga_draw.cpp
index c230051df..b393ca0bc 100644
--- a/src/hardware/vga_draw.cpp
+++ b/src/hardware/vga_draw.cpp
@@ -2702,10 +2702,12 @@ void VGA_SetupDrawing(Bitu /*val*/) {
 			vga_fps = fps;
 			VGA_VerticalTimer(0);
 		}
-
-		VGA_DAC_UpdateColorPalette();
 	}
 	vga.draw.delay.singleline_delay = (float)vga.draw.delay.htotal;
+
+    /* FIXME: Why is this required to prevent VGA palette errors with Crystal Dream II?
+     *        What is this code doing to change the palette prior to this point? */
+    VGA_DAC_UpdateColorPalette();
 }
 
 void VGA_KillDrawing(void) {