diff --git a/Libraries/SPTarkov.Server.Core/Extensions/ItemExtensions.cs b/Libraries/SPTarkov.Server.Core/Extensions/ItemExtensions.cs
index 8a9bec1a..a0ce4565 100644
--- a/Libraries/SPTarkov.Server.Core/Extensions/ItemExtensions.cs
+++ b/Libraries/SPTarkov.Server.Core/Extensions/ItemExtensions.cs
@@ -416,5 +416,37 @@ namespace SPTarkov.Server.Core.Extensions
 
             return new InventoryItemHash { ByItemId = inventoryItems.ToDictionary(item => item.Id), ByParentId = byParentId };
         }
+
+        /// <summary>
+        ///     Remove spawned in session (FiR) status from items inside a container
+        /// </summary>
+        /// <param name="pmcData">Player profile</param>
+        /// <param name="containerSlotId">Container slot id to find items for and remove FiR from e.g. "Backpack"</param>
+        public static void RemoveFiRStatusFromItemsInContainer(this PmcData pmcData, string containerSlotId)
+        {
+            var container = pmcData?.Inventory?.Items?.FirstOrDefault(item => item.SlotId == containerSlotId);
+            if (container is null)
+            {
+                return;
+            }
+
+            var parentItemLookup = pmcData.Inventory.Items.ToLookup(item => item.ParentId);
+            var parentIdsToSearch = new Queue<string>();
+            parentIdsToSearch.Enqueue(container.Id);
+
+            while (parentIdsToSearch.Count > 0)
+            {
+                var currentParentId = parentIdsToSearch.Dequeue();
+                foreach (var childItem in parentItemLookup[currentParentId])
+                {
+                    if (childItem.Upd?.SpawnedInSession != null && childItem.Upd.SpawnedInSession.Value)
+                    {
+                        childItem.Upd.SpawnedInSession = false;
+                    }
+
+                    parentIdsToSearch.Enqueue(childItem.Id);
+                }
+            }
+        }
     }
 }
diff --git a/Libraries/SPTarkov.Server.Core/Helpers/InRaidHelper.cs b/Libraries/SPTarkov.Server.Core/Helpers/InRaidHelper.cs
index f689352d..e9de0b4a 100644
--- a/Libraries/SPTarkov.Server.Core/Helpers/InRaidHelper.cs
+++ b/Libraries/SPTarkov.Server.Core/Helpers/InRaidHelper.cs
@@ -144,34 +144,6 @@ public class InRaidHelper(InventoryHelper inventoryHelper, ConfigServer configSe
         pmcData.Inventory.FastPanel = new();
     }
 
-    /// <summary>
-    ///     Remove FiR status from designated container.
-    /// </summary>
-    /// <param name="sessionId">Session id</param>
-    /// <param name="pmcData">Player profile</param>
-    /// <param name="secureContainerSlotId">Container slot id to find items for and remove FiR from</param>
-    public void RemoveFiRStatusFromItemsInContainer(MongoId sessionId, PmcData pmcData, string secureContainerSlotId)
-    {
-        if (!pmcData.Inventory.Items.Any(item => item.SlotId == secureContainerSlotId))
-        {
-            return;
-        }
-
-        List<Item> itemsInsideContainer = [];
-        foreach (var inventoryItem in pmcData.Inventory.Items.Where(item => item.Upd is not null && item.SlotId != "hideout"))
-        {
-            if (inventoryItem.ItemIsInsideContainer(secureContainerSlotId, pmcData.Inventory.Items))
-            {
-                itemsInsideContainer.Add(inventoryItem);
-            }
-        }
-
-        foreach (var item in itemsInsideContainer.Where(item => item.Upd?.SpawnedInSession ?? false))
-        {
-            item.Upd.SpawnedInSession = false;
-        }
-    }
-
     /// <summary>
     ///     Get a list of items from a profile that will be lost on death.
     /// </summary>
diff --git a/Libraries/SPTarkov.Server.Core/Services/LocationLifecycleService.cs b/Libraries/SPTarkov.Server.Core/Services/LocationLifecycleService.cs
index 4f54bf1e..0f6da4f9 100644
--- a/Libraries/SPTarkov.Server.Core/Services/LocationLifecycleService.cs
+++ b/Libraries/SPTarkov.Server.Core/Services/LocationLifecycleService.cs
@@ -777,7 +777,7 @@ public class LocationLifecycleService(
 
             inRaidHelper.DeleteInventory(serverPmcProfile, sessionId);
 
-            inRaidHelper.RemoveFiRStatusFromItemsInContainer(sessionId, serverPmcProfile, "SecuredContainer");
+            serverPmcProfile.RemoveFiRStatusFromItemsInContainer("SecuredContainer");
         }
 
         // Must occur AFTER killer messages have been sent
diff --git a/UnitTests/Tests/Extensions/ItemTests.cs b/UnitTests/Tests/Extensions/ItemTests.cs
index 960bcd13..20dcd819 100644
--- a/UnitTests/Tests/Extensions/ItemTests.cs
+++ b/UnitTests/Tests/Extensions/ItemTests.cs
@@ -1,6 +1,7 @@
 using NUnit.Framework;
 using SPTarkov.Server.Core.Extensions;
 using SPTarkov.Server.Core.Models.Common;
+using SPTarkov.Server.Core.Models.Eft.Common;
 using SPTarkov.Server.Core.Models.Eft.Common.Tables;
 
 namespace UnitTests.Tests.Extensions;
@@ -139,4 +140,156 @@ public class ItemTests
         Assert.AreEqual(result[0].Id, rootItem.Id);
         Assert.AreEqual(result.Count, 1);
     }
+
+    [Test]
+    public void RemoveFiRStatusFromItemsInContainer_twoItemsInBackpack()
+    {
+        var profile = new PmcData() { Inventory = new BotBaseInventory() { Items = [] } };
+        profile.Inventory.Equipment = new MongoId();
+
+        // Add backpack
+        var backpackId = new MongoId();
+        profile.Inventory.Items.Add(
+            new Item
+            {
+                Id = backpackId,
+                Template = ItemTpl.BACKPACK_HAZARD_4_PILLBOX_BACKPACK_BLACK,
+                ParentId = profile.Inventory.Equipment,
+                SlotId = "Backpack",
+            }
+        );
+
+        // Add ifak to first slot in backpack
+        var item1Id = new MongoId();
+        profile.Inventory.Items.Add(
+            new Item
+            {
+                Id = item1Id,
+                Template = ItemTpl.MEDKIT_AFAK_TACTICAL_INDIVIDUAL_FIRST_AID_KIT,
+                ParentId = backpackId,
+                SlotId = "main",
+                Upd = new Upd { SpawnedInSession = true },
+                Location = new ItemLocation
+                {
+                    X = 0,
+                    Y = 0,
+                    R = ItemRotation.Horizontal,
+                },
+            }
+        );
+
+        // Add wrench to first slot of ifak
+        var item2Id = new MongoId();
+        profile.Inventory.Items.Add(
+            new Item
+            {
+                Id = item2Id,
+                Template = ItemTpl.BARTER_WRENCH,
+                ParentId = backpackId,
+                SlotId = "main",
+                Upd = new Upd { SpawnedInSession = true },
+                Location = new ItemLocation
+                {
+                    X = 1,
+                    Y = 0,
+                    R = ItemRotation.Horizontal,
+                },
+            }
+        );
+
+        // Add armband to armband slot as root
+        var item3Id = new MongoId();
+        profile.Inventory.Items.Add(
+            new Item
+            {
+                Id = item3Id,
+                Template = ItemTpl.ARMBAND_RED,
+                ParentId = profile.Inventory.Equipment,
+                SlotId = "Armband",
+                Upd = new Upd { SpawnedInSession = true },
+            }
+        );
+
+        profile.RemoveFiRStatusFromItemsInContainer("Backpack");
+
+        Assert.AreEqual(false, profile.Inventory.Items.FirstOrDefault(item => item.Id == item1Id).Upd.SpawnedInSession);
+        Assert.AreEqual(false, profile.Inventory.Items.FirstOrDefault(item => item.Id == item2Id).Upd.SpawnedInSession);
+        Assert.AreEqual(true, profile.Inventory.Items.FirstOrDefault(item => item.Id == item3Id).Upd.SpawnedInSession);
+    }
+
+    [Test]
+    public void RemoveFiRStatusFromItemsInContainer_oneItemWithChildInBackpack()
+    {
+        var profile = new PmcData { Inventory = new BotBaseInventory { Items = [] } };
+        profile.Inventory.Equipment = new MongoId();
+
+        // Add backpack
+        var backpackId = new MongoId();
+        profile.Inventory.Items.Add(
+            new Item
+            {
+                Id = backpackId,
+                Template = ItemTpl.BACKPACK_HAZARD_4_PILLBOX_BACKPACK_BLACK,
+                ParentId = profile.Inventory.Equipment,
+                SlotId = "Backpack",
+            }
+        );
+
+        // Add ifak to first slot in backpack
+        var item1Id = new MongoId();
+        profile.Inventory.Items.Add(
+            new Item
+            {
+                Id = item1Id,
+                Template = ItemTpl.MEDKIT_AFAK_TACTICAL_INDIVIDUAL_FIRST_AID_KIT,
+                ParentId = backpackId,
+                SlotId = "main",
+                Upd = new Upd { SpawnedInSession = true },
+                Location = new ItemLocation
+                {
+                    X = 0,
+                    Y = 0,
+                    R = ItemRotation.Horizontal,
+                },
+            }
+        );
+
+        // Add wrench to first slot of ifak as child
+        var item2Id = new MongoId();
+        profile.Inventory.Items.Add(
+            new Item
+            {
+                Id = item2Id,
+                Template = ItemTpl.BARTER_WRENCH,
+                ParentId = item1Id,
+                SlotId = "main",
+                Upd = new Upd { SpawnedInSession = true },
+                Location = new ItemLocation
+                {
+                    X = 1,
+                    Y = 0,
+                    R = ItemRotation.Horizontal,
+                },
+            }
+        );
+
+        // Add armband to armband slot as root
+        var item3Id = new MongoId();
+        profile.Inventory.Items.Add(
+            new Item
+            {
+                Id = item3Id,
+                Template = ItemTpl.ARMBAND_RED,
+                ParentId = profile.Inventory.Equipment,
+                SlotId = "Armband",
+                Upd = new Upd { SpawnedInSession = true },
+            }
+        );
+
+        profile.RemoveFiRStatusFromItemsInContainer("Backpack");
+
+        Assert.AreEqual(false, profile.Inventory.Items.FirstOrDefault(item => item.Id == item1Id).Upd.SpawnedInSession);
+        Assert.AreEqual(false, profile.Inventory.Items.FirstOrDefault(item => item.Id == item2Id).Upd.SpawnedInSession);
+        Assert.AreEqual(true, profile.Inventory.Items.FirstOrDefault(item => item.Id == item3Id).Upd.SpawnedInSession);
+    }
 }