diff --git a/worlds/pokemon_rb/__init__.py b/worlds/pokemon_rb/__init__.py
index 809179cbef..644aa1ed9c 100644
--- a/worlds/pokemon_rb/__init__.py
+++ b/worlds/pokemon_rb/__init__.py
@@ -111,6 +111,7 @@ class PokemonRedBlueWorld(World):
         self.dexsanity_table = []
         self.trainersanity_table = []
         self.local_locs = []
+        self.pc_item = None
 
     @classmethod
     def stage_assert_generate(cls, multiworld: MultiWorld):
@@ -289,7 +290,9 @@ class PokemonRedBlueWorld(World):
             multiworld.random.shuffle(itempool)
             unplaced_items = []
             for i, item in enumerate(itempool):
-                if item.player == loc.player and loc.can_fill(multiworld.state, item, False):
+                if ((item.player == loc.player or (item.player in multiworld.groups
+                                                   and loc.player in multiworld.groups[item.player]["players"]))
+                        and loc.can_fill(multiworld.state, item, False)):
                     if item.advancement:
                         pool = progitempool
                     elif item.useful:
@@ -308,8 +311,6 @@ class PokemonRedBlueWorld(World):
                         break
                     else:
                         unplaced_items.append(item)
-            else:
-                raise FillError(f"Pokemon Red and Blue local item fill failed for player {loc.player}: could not place {item.name}")
             progitempool += [item for item in unplaced_items if item.advancement]
             usefulitempool += [item for item in unplaced_items if item.useful]
             filleritempool += [item for item in unplaced_items if (not item.advancement) and (not item.useful)]
@@ -446,15 +447,12 @@ class PokemonRedBlueWorld(World):
                 if loc.item is None:
                     locs.add(loc)
 
-        if not self.options.key_items_only:
-            loc = self.multiworld.get_location("Player's House 2F - Player's PC", self.player)
-            if loc.item is None:
-                locs.add(loc)
-
         for loc in sorted(locs):
             if loc.name in self.options.priority_locations.value:
                 add_item_rule(loc, lambda i: i.advancement)
-            add_item_rule(loc, lambda i: i.player == self.player)
+            add_item_rule(loc, lambda i: i.player == self.player
+                                         or (i.player in self.multiworld.groups
+                                             and self.player in self.multiworld.groups[i.player]["players"]))
             if self.options.old_man == "early_parcel" and loc.name != "Player's House 2F - Player's PC":
                 add_item_rule(loc, lambda i: i.name != "Oak's Parcel")
 
@@ -520,6 +518,14 @@ class PokemonRedBlueWorld(World):
                     else:
                         raise Exception("Failed to remove corresponding item while deleting unreachable Dexsanity location")
 
+        if not self.options.key_items_only:
+            loc = self.multiworld.get_location("Player's House 2F - Player's PC", self.player)
+            # Absolutely cannot have another player's item
+            if loc.item is not None and loc.item.player != self.player:
+                self.multiworld.itempool.append(loc.item)
+                loc.item = None
+            loc.place_locked_item(self.pc_item)
+
     @classmethod
     def stage_post_fill(cls, multiworld):
         # Convert all but one of each instance of a wild Pokemon to useful classification.
diff --git a/worlds/pokemon_rb/regions.py b/worlds/pokemon_rb/regions.py
index d4b8a8f506..aef0b945a2 100644
--- a/worlds/pokemon_rb/regions.py
+++ b/worlds/pokemon_rb/regions.py
@@ -1579,6 +1579,18 @@ def create_regions(world):
                     world.item_pool.append(item)
 
     world.random.shuffle(world.item_pool)
+    if not world.options.key_items_only:
+        if "Player's House 2F - Player's PC" in world.options.exclude_locations:
+            acceptable_item = lambda item: item.excludable
+        elif "Player's House 2F - Player's PC" in world.options.priority_locations:
+            acceptable_item = lambda item: item.advancement
+        else:
+            acceptable_item = lambda item: True
+        for i, item in enumerate(world.item_pool):
+            if acceptable_item(item):
+                world.pc_item = world.item_pool.pop(i)
+                break
+
     advancement_items = [item.name for item in world.item_pool if item.advancement] \
                         + [item.name for item in world.multiworld.precollected_items[world.player] if
                            item.advancement]