diff --git a/dlls/shell32/dde.c b/dlls/shell32/dde.c
index 7505c2c5369..8ac6f9ca41b 100644
--- a/dlls/shell32/dde.c
+++ b/dlls/shell32/dde.c
@@ -127,6 +127,7 @@ static DWORD PROGMAN_OnExecute(WCHAR *command, int argc, WCHAR **argv)
     static const WCHAR show_groupW[] = {'S','h','o','w','G','r','o','u','p',0};
     static const WCHAR add_itemW[] = {'A','d','d','I','t','e','m',0};
     static const WCHAR delete_itemW[] = {'D','e','l','e','t','e','I','t','e','m',0};
+    static const WCHAR replace_itemW[] = {'R','e','p','l','a','c','e','I','t','e','m',0};
 
     static const WCHAR dotexeW[] = {'.','e','x','e',0};
     static const WCHAR dotlnkW[] = {'.','l','n','k',0};
@@ -255,7 +256,7 @@ static DWORD PROGMAN_OnExecute(WCHAR *command, int argc, WCHAR **argv)
 
         if (FAILED(hres)) return DDE_FNOTPROCESSED;
     }
-    else if (!strcmpiW(command, delete_itemW))
+    else if (!strcmpiW(command, delete_itemW) || !strcmpiW(command, replace_itemW))
     {
         WCHAR *name;
         BOOL ret;
diff --git a/dlls/shell32/tests/progman_dde.c b/dlls/shell32/tests/progman_dde.c
index 478b3e6ad53..dd9b777100e 100644
--- a/dlls/shell32/tests/progman_dde.c
+++ b/dlls/shell32/tests/progman_dde.c
@@ -325,6 +325,18 @@ static void test_progman_dde(DWORD instance, HCONV hConv)
     ok(error == DMLERR_NO_ERROR, "expected DMLERR_NO_ERROR, got %u\n", error);
     ok(!check_exists("Group1/test1.lnk"), "link should not exist\n");
 
+    error = dde_execute(instance, hConv, "[AddItem(notepad,test1)]");
+    ok(error == DMLERR_NO_ERROR, "expected DMLERR_NO_ERROR, got %u\n", error);
+    ok(check_exists("Group1/test1.lnk"), "link not created\n");
+
+    error = dde_execute(instance, hConv, "[ReplaceItem(test1)]");
+    ok(error == DMLERR_NO_ERROR, "expected DMLERR_NO_ERROR, got %u\n", error);
+    ok(!check_exists("Group1/test1.lnk"), "link should not exist\n");
+
+    error = dde_execute(instance, hConv, "[AddItem(regedit)]");
+    ok(error == DMLERR_NO_ERROR, "expected DMLERR_NO_ERROR, got %u\n", error);
+    ok(check_exists("Group1/regedit.lnk"), "link not created\n");
+
     /* test ShowGroup() and test which group an item gets added to */
     error = dde_execute(instance, hConv, "[ShowGroup(Group1)]");
     ok(error == DMLERR_NOTPROCESSED, "expected DMLERR_NOTPROCESSED, got %u\n", error);