diff --git a/PKHeX.Core/Legality/Encounters/Data/Encounters3.cs b/PKHeX.Core/Legality/Encounters/Data/Encounters3.cs
index 9087f7a58..8e3e32060 100644
--- a/PKHeX.Core/Legality/Encounters/Data/Encounters3.cs
+++ b/PKHeX.Core/Legality/Encounters/Data/Encounters3.cs
@@ -319,7 +319,7 @@ static Encounters3GC()
 
         private static readonly EncounterStaticShadow[] Encounter_XD =
         {
-            new EncounterStaticShadow { Fateful = true, Species = 216, Level = 11, Gauge = 03000, Moves = new[] {216,287,122,232}, Location = 143 }, // Teddiursa: Cipher Peon Naps @ Pokémon HQ Lab
+            new EncounterStaticShadow { Fateful = true, Species = 216, Level = 11, Gauge = 03000, Moves = new[] {216,287,122,232}, Location = 143, Gift = true }, // Teddiursa: Cipher Peon Naps @ Pokémon HQ Lab -- treat as Gift as it can only be captured in a Poké Ball
             new EncounterStaticShadow { Fateful = true, Species = 228, Level = 17, Gauge = 01500, Moves = new[] {185,204,052,046}, Location = 011, }, // Houndour: Cipher Peon Resix @ Cipher Lab
             new EncounterStaticShadow { Fateful = true, Species = 343, Level = 17, Gauge = 01500, Moves = new[] {317,287,189,060}, Location = 011, }, // Baltoy: Cipher Peon Browsix @ Cipher Lab
             new EncounterStaticShadow { Fateful = true, Species = 179, Level = 17, Gauge = 01500, Moves = new[] {034,215,084,086}, Location = 011, }, // Mareep: Cipher Peon Yellosix @ Cipher Lab
diff --git a/Tests/PKHeX.Core.Tests/Legality/Illegal/Misc/UltraBallTeddiursa.xk3 b/Tests/PKHeX.Core.Tests/Legality/Illegal/Misc/UltraBallTeddiursa.xk3
new file mode 100644
index 000000000..ee09969fb
Binary files /dev/null and b/Tests/PKHeX.Core.Tests/Legality/Illegal/Misc/UltraBallTeddiursa.xk3 differ