diff --git a/app.js b/app.js
index a7584d099..678126688 100644
--- a/app.js
+++ b/app.js
@@ -9,6 +9,7 @@ var sharedKey = '';
 var roomUrl = null;
 var ssrc2jid = {};
 var localVideoSrc = null;
+var flipXLocalVideo = true;
 var preziPlayer = null;
 
 /* window.onbeforeunload = closePageWarning; */
@@ -71,7 +72,7 @@ function audioStreamReady(stream) {
 
 function videoStreamReady(stream) {
 
-    change_local_video(stream);
+    change_local_video(stream, true);
 
     doJoin();
 }
@@ -134,27 +135,37 @@ function change_local_audio(stream) {
     document.getElementById('localAudio').volume = 0;
 }
 
-function change_local_video(stream) {
+function change_local_video(stream, flipX) {
 
     connection.jingle.localVideo = stream;
-    RTC.attachMediaStream($('#localVideo'), stream);
-    document.getElementById('localVideo').autoplay = true;
-    document.getElementById('localVideo').volume = 0;
 
-    localVideoSrc = document.getElementById('localVideo').src;
-    updateLargeVideo(localVideoSrc, true, 0);
+    var localVideo = document.createElement('video');
+    localVideo.id = 'localVideo_'+stream.id;
+    localVideo.autoplay = true;
+    localVideo.volume = 0; // is it required if audio is separated ?
+    localVideo.oncontextmenu = function () { return false; };
 
-    $('#localVideo').click(function () {
-        $(document).trigger("video.selected", [false]);
-        updateLargeVideo($(this).attr('src'), true, 0);
+    var localVideoContainer = document.getElementById('localVideoContainer');
+    localVideoContainer.appendChild(localVideo);
 
-        $('video').each(function (idx, el) {
-            if (el.id.indexOf('mixedmslabel') !== -1) {
-                el.volume = 0;
-                el.volume = 1;
-            }
-        });
-    });
+    var localVideoSelector = $('#' + localVideo.id);
+    // Add click handler
+    localVideoSelector.click(function () { handleVideoThumbClicked(localVideo.src); } );
+    // Add stream ended handler
+    stream.onended = function () {
+        localVideoContainer.removeChild(localVideo);
+        checkChangeLargeVideo(localVideo.src);
+    };
+    // Flip video x axis if needed
+    flipXLocalVideo = flipX;
+    if(flipX) {
+        localVideoSelector.addClass("flipVideoX");
+    }
+    // Attach WebRTC stream
+    RTC.attachMediaStream(localVideoSelector, stream);
+
+    localVideoSrc = localVideo.src;
+    updateLargeVideo(localVideoSrc, 0);
 }
 
 $(document).bind('remotestreamadded.jingle', function (event, data, sid) {
@@ -243,42 +254,27 @@ $(document).bind('remotestreamadded.jingle', function (event, data, sid) {
 
     data.stream.onended = function () {
         console.log('stream ended', this.id);
-        if (sel.attr('src') === $('#largeVideo').attr('src')) {
-            // this is currently displayed as large
-            // pick the last visible video in the row
-            // if nobody else is left, this picks the local video
-            var pick = $('#remoteVideos>span[id!="mixedstream"]:visible:last>video').get(0);
-            // mute if localvideo
-            var isLocalVideo = false;
-            if (pick) {
-                 if (pick.src === localVideoSrc)
-                 isLocalVideo = true;
 
-                 updateLargeVideo(pick.src, isLocalVideo, pick.volume);
-            }
-        }
         // Mark video as removed to cancel waiting loop(if video is removed before has started)
         sel.removed = true;
+        sel.remove();
 
-        var userContainer = sel.parent();
-        if(userContainer.children().length === 0) {
+        var audioCount = $('#'+container.id+'>audio').length;
+        var videoCount = $('#'+container.id+'>video').length;
+        if(!audioCount && !videoCount) {
             console.log("Remove whole user");
             // Remove whole container
-            userContainer.remove();
+            container.remove();
             Util.playSoundNotification('userLeft');
             resizeThumbnails();
-        } else {
-            // Remove only stream holder
-            sel.remove();
-            console.log("Remove stream only", sel);
         }
+
+        checkChangeLargeVideo(vid.src);
     };
-    sel.click(
-        function () {
-            $(document).trigger("video.selected", [false]);
-            updateLargeVideo($(this).attr('src'), false, 1);
-        }
-    );
+
+    // Add click handler
+    sel.click(function () { handleVideoThumbClicked(vid.src); });
+
     // an attempt to work around https://github.com/jitsi/jitmeet/issues/32
     if (isVideo
         && data.peerjid && sess.peerjid === data.peerjid &&
@@ -290,6 +286,46 @@ $(document).bind('remotestreamadded.jingle', function (event, data, sid) {
     }
 });
 
+function handleVideoThumbClicked(videoSrc) {
+
+    $(document).trigger("video.selected", [false]);
+
+    updateLargeVideo(videoSrc, 1);
+
+    $('audio').each(function (idx, el) {
+        // We no longer mix so we check for local audio now
+        if(el.id != 'localAudio') {
+            el.volume = 0;
+            el.volume = 1;
+        }
+    });
+}
+
+/**
+ * Checks if removed video is currently displayed and tries to display another one instead.
+ * @param removedVideoSrc src stream identifier of the video.
+ */
+function checkChangeLargeVideo(removedVideoSrc){
+    if (removedVideoSrc === $('#largeVideo').attr('src')) {
+        // this is currently displayed as large
+        // pick the last visible video in the row
+        // if nobody else is left, this picks the local video
+        var pick = $('#remoteVideos>span[id!="mixedstream"]:visible:last>video').get(0);
+
+        if(!pick) {
+            console.info("Last visible video no longer exists");
+            pick = $('#remoteVideos>span[id!="mixedstream"]>video').get(0);
+        }
+
+        // mute if localvideo
+        if (pick) {
+            updateLargeVideo(pick.src, pick.volume);
+        } else {
+            console.warn("Failed to elect large video");
+        }
+    }
+}
+
 // an attempt to work around https://github.com/jitsi/jitmeet/issues/32
 function sendKeyframe(pc) {
     console.log('sendkeyframe', pc.iceConnectionState);
@@ -404,7 +440,7 @@ $(document).bind('callactive.jingle', function (event, videoelem, sid) {
         videoelem.show();
         resizeThumbnails();
 
-        updateLargeVideo(videoelem.attr('src'), false, 1);
+        updateLargeVideo(videoelem.attr('src'), 1);
 
         showFocusIndicator();
     }
@@ -566,6 +602,8 @@ $(document).bind('presence.muc', function (event, jid, info, pres) {
                 break;
             case 'recvonly':
                 el.hide();
+                // FIXME: Check if we have to change large video
+                //checkChangeLargeVideo(el);
                 break;
             }
         }
@@ -751,23 +789,27 @@ function isPresentationVisible() {
 /**
  * Updates the large video with the given new video source.
  */
-function updateLargeVideo(newSrc, localVideo, vol) {
+function updateLargeVideo(newSrc, vol) {
     console.log('hover in', newSrc);
 
     setPresentationVisible(false);
 
     if ($('#largeVideo').attr('src') !== newSrc) {
 
-        document.getElementById('largeVideo').volume = vol;
+        // FIXME: is it still required ? audio is separated
+        //document.getElementById('largeVideo').volume = vol;
 
         $('#largeVideo').fadeOut(300, function () {
             $(this).attr('src', newSrc);
 
+            // Screen stream is already rotated
+            var flipX = (newSrc === localVideoSrc) && flipXLocalVideo;
+
             var videoTransform = document.getElementById('largeVideo').style.webkitTransform;
-            if (localVideo && videoTransform !== 'scaleX(-1)') {
+            if (flipX && videoTransform !== 'scaleX(-1)') {
                 document.getElementById('largeVideo').style.webkitTransform = "scaleX(-1)";
             }
-            else if (!localVideo && videoTransform === 'scaleX(-1)') {
+            else if (!flipX && videoTransform === 'scaleX(-1)') {
                 document.getElementById('largeVideo').style.webkitTransform = "none";
             }
 
@@ -1203,8 +1245,14 @@ function showToolbar() {
 //        TODO: Enable settings functionality. Need to uncomment the settings button in index.html.
 //        $('#settingsButton').css({visibility:"visible"});
     }
+    showDesktopSharingButton();
+}
+
+function showDesktopSharingButton() {
     if(isDesktopSharingEnabled()) {
-        $('#desktopsharing').css({display:"inline"});
+        $('#desktopsharing').css( {display:"inline"} );
+    } else {
+        $('#desktopsharing').css( {display:"none"} );
     }
 }
 
diff --git a/config.js b/config.js
index 344cd45ea..9b53c2872 100644
--- a/config.js
+++ b/config.js
@@ -9,5 +9,6 @@ var config = {
 //  useIPv6: true, // ipv6 support. use at your own risk
     useNicks: false,
     bosh: '//lambada.jitsi.net/http-bind', // FIXME: use xep-0156 for that
-    chromeDesktopSharing: false // Desktop sharing is disabled by default
+    desktopSharing: false, // Desktop sharing is disabled by default(call setDesktopSharing in the console to enable)
+    chromeExtensionId: 'nhkhigmiepmkogopmkfipjlfkeablnch' // Id of Jitsi Desktop Streamer chrome extension
 };
diff --git a/css/main.css b/css/main.css
index 0b3bda683..e702cc948 100644
--- a/css/main.css
+++ b/css/main.css
@@ -49,7 +49,7 @@ html, body{
     font-size: 10pt;
 }
 
-#localVideo {
+.flipVideoX {
     -moz-transform: scaleX(-1);
     -webkit-transform: scaleX(-1);
     -o-transform: scaleX(-1);
diff --git a/desktopsharing.js b/desktopsharing.js
index e0ac06787..1918a6426 100644
--- a/desktopsharing.js
+++ b/desktopsharing.js
@@ -9,13 +9,43 @@ var isUsingScreenStream = false;
  */
 var switchInProgress = false;
 
+/**
+ * Method used to get screen sharing stream.
+ *
+ * @type {function(stream_callback, failure_callback}
+ */
+var obtainDesktopStream = obtainScreenFromExtension;
+
+/**
+ * Desktop sharing must be enabled in config and works on chrome only.
+ */
+var desktopSharingEnabled = config.desktopSharing;
+
 /**
  * @returns {boolean} <tt>true</tt> if desktop sharing feature is available and enabled.
  */
 function isDesktopSharingEnabled() {
-    // Desktop sharing must be enabled in config and works on chrome only.
-    // Flag 'chrome://flags/#enable-usermedia-screen-capture' must be enabled.
-    return config.chromeDesktopSharing && RTC.browser == 'chrome';
+    return desktopSharingEnabled;
+}
+
+/**
+ * Call this method to toggle desktop sharing feature.
+ * @param method pass "ext" to use chrome extension for desktop capture(chrome extension required),
+ *        pass "webrtc" to use WebRTC "screen" desktop source('chrome://flags/#enable-usermedia-screen-capture'
+ *        must be enabled), pass any other string or nothing in order to disable this feature completely.
+ */
+function setDesktopSharing(method) {
+    if(method == "ext") {
+        obtainDesktopStream = obtainScreenFromExtension;
+        desktopSharingEnabled = true;
+    } else if(method == "webrtc") {
+        obtainDesktopStream = obtainWebRTCScreen;
+        desktopSharingEnabled = true;
+    } else {
+        obtainDesktopStream = null;
+        desktopSharingEnabled = false;
+    }
+    showDesktopSharingButton();
 }
 
 /*
@@ -25,7 +55,8 @@ function toggleScreenSharing() {
     if (!(connection && connection.connected
         && !switchInProgress
         && getConferenceHandler().peerconnection.signalingState == 'stable'
-        && getConferenceHandler().peerconnection.iceConnectionState == 'connected')) {
+        && getConferenceHandler().peerconnection.iceConnectionState == 'connected'
+        && obtainDesktopStream )) {
         return;
     }
     switchInProgress = true;
@@ -33,22 +64,29 @@ function toggleScreenSharing() {
     // Only the focus is able to set a shared key.
     if(!isUsingScreenStream)
     {
-        // Enable screen stream
-        getUserMediaWithConstraints(
-            ['screen'],
-            function(stream){
+        obtainDesktopStream(
+            function(stream) {
+                // We now use screen stream
                 isUsingScreenStream = true;
-                gotScreenStream(stream);
+                // Hook 'ended' event to restore camera when screen stream stops
+                stream.addEventListener('ended',
+                    function(e) {
+                        if(!switchInProgress) {
+                            toggleScreenSharing();
+                        }
+                    }
+                );
+                newStreamCreated(stream);
             },
-            getSwitchStreamFailed
-        );
+            getSwitchStreamFailed );
     } else {
         // Disable screen stream
         getUserMediaWithConstraints(
             ['video'],
             function(stream) {
+                // We are now using camera stream
                 isUsingScreenStream = false;
-                gotScreenStream(stream);
+                newStreamCreated(stream);
             },
             getSwitchStreamFailed, config.resolution || '360'
         );
@@ -60,18 +98,64 @@ function getSwitchStreamFailed(error) {
     switchInProgress = false;
 }
 
-function gotScreenStream(stream) {
+function newStreamCreated(stream) {
+
     var oldStream = connection.jingle.localVideo;
 
-    change_local_video(stream);
+    change_local_video(stream, !isUsingScreenStream);
 
     // FIXME: will block switchInProgress on true value in case of exception
-    getConferenceHandler().switchStreams(stream, oldStream, onDesktopStreamEnabled);
+    getConferenceHandler().switchStreams(
+        stream, oldStream,
+        function() {
+            // Switch operation has finished
+            switchInProgress = false;
+        });
 }
 
-function onDesktopStreamEnabled() {
-    // Wait a moment before enabling the button
-    window.setTimeout(function() {
-        switchInProgress = false;
-    }, 3000);
+/**
+ * Method obtains desktop stream from WebRTC 'screen' source.
+ * Flag 'chrome://flags/#enable-usermedia-screen-capture' must be enabled.
+ */
+function obtainWebRTCScreen(streamCallback, failCallback) {
+    getUserMediaWithConstraints(
+        ['screen'],
+        streamCallback,
+        failCallback
+    );
+}
+
+/**
+ * Asks Chrome extension to call chooseDesktopMedia and gets chrome 'desktop' stream for returned stream token.
+ */
+function obtainScreenFromExtension(streamCallback, failCallback) {
+    // Check for extension API
+    if(!chrome || !chrome.runtime) {
+        failCallback("Failed to communicate with extension - no API available");
+        return;
+    }
+    // Sends 'getStream' msg to the extension. Extension id must be defined in the config.
+    chrome.runtime.sendMessage(
+        config.chromeExtensionId,
+        { getStream: true},
+        function(response) {
+            if(!response) {
+                failCallback(chrome.runtime.lastError);
+                return;
+            }
+            console.log("Response from extension: "+response);
+            if(response.streamId) {
+                getUserMediaWithConstraints(
+                    ['desktop'],
+                    function(stream) {
+                        streamCallback(stream);
+                    },
+                    failCallback,
+                    null, null, null,
+                    response.streamId);
+            } else {
+                failCallback("Extension failed to get the stream");
+            }
+        }
+    );
 }
diff --git a/index.html b/index.html
index 392fbc08e..784859488 100644
--- a/index.html
+++ b/index.html
@@ -14,9 +14,9 @@
     <script src="//code.jquery.com/ui/1.10.4/jquery-ui.js"></script>
     <script src="muc.js?v=9"></script><!-- simple MUC library -->
     <script src="estos_log.js?v=2"></script><!-- simple stanza logger -->
+    <script src="desktopsharing.js?v=1"></script><!-- desktop sharing -->
     <script src="app.js?v=23"></script><!-- application logic -->
     <script src="chat.js?v=3"></script><!-- chat logic -->
-    <script src="desktopsharing.js?v=1"></script><!-- desktop sharing logic -->
     <script src="util.js?v=2"></script><!-- utility functions -->
     <script src="etherpad.js?v=5"></script><!-- etherpad plugin -->
     <script src="smileys.js?v=1"></script><!-- smiley images -->
@@ -85,7 +85,7 @@
         <div id="remoteVideos">
             <span id="localVideoContainer" class="videocontainer">
                 <span id="localNick"></span>
-                <video id="localVideo" autoplay oncontextmenu="return false;" muted></video>
+                <!--<video id="localVideo" autoplay oncontextmenu="return false;" muted></video> - is now per stream generated -->
                 <audio id="localAudio" autoplay oncontextmenu="return false;" muted></audio>
                 <span class="focusindicator"></span>
             </span>
diff --git a/libs/strophe/strophe.jingle.adapter.js b/libs/strophe/strophe.jingle.adapter.js
index b24f82dad..a9e1ac55a 100644
--- a/libs/strophe/strophe.jingle.adapter.js
+++ b/libs/strophe/strophe.jingle.adapter.js
@@ -337,11 +337,9 @@ TraceablePeerConnection.prototype.modifySources = function(successCallback) {
                             switch(self.pendingop) {
                                 case 'mute':
                                     sdp.media[1] = sdp.media[1].replace('a=sendrecv', 'a=recvonly');
-                                    console.error("MUTE");
                                     break;
                                 case 'unmute':
                                     sdp.media[1] = sdp.media[1].replace('a=recvonly', 'a=sendrecv');
-                                    console.error("UNMUTE");
                                     break;
                             }
                             sdp.raw = sdp.session + sdp.media.join('');
@@ -502,7 +500,7 @@ function setupRTC() {
     return RTC;
 }
 
-function getUserMediaWithConstraints(um, success_callback, failure_callback, resolution, bandwidth, fps) {
+function getUserMediaWithConstraints(um, success_callback, failure_callback, resolution, bandwidth, fps, desktopStream) {
     var constraints = {audio: false, video: false};
 
     if (um.indexOf('video') >= 0) {
@@ -521,6 +519,17 @@ function getUserMediaWithConstraints(um, success_callback, failure_callback, res
             }
         };
     }
+    if (um.indexOf('desktop') >= 0) {
+        constraints.video = {
+            mandatory: {
+                chromeMediaSource: "desktop",
+                chromeMediaSourceId: desktopStream,
+                maxWidth: window.screen.width,
+                maxHeight: window.screen.height,
+                maxFrameRate: 3
+            }
+        }
+    }
 
     if (resolution && !constraints.video) {
         constraints.video = {mandatory: {}};// same behaviour as true
diff --git a/libs/strophe/strophe.jingle.sessionbase.js b/libs/strophe/strophe.jingle.sessionbase.js
index ac389d2c6..7bdf88785 100644
--- a/libs/strophe/strophe.jingle.sessionbase.js
+++ b/libs/strophe/strophe.jingle.sessionbase.js
@@ -51,6 +51,9 @@ SessionBase.prototype.switchStreams = function (new_stream, oldStream, success_c
     // Remember SDP to figure out added/removed SSRCs
     var oldSdp = new SDP(self.peerconnection.localDescription.sdp);
 
+    // Stop the stream to trigger onended event for old stream
+    oldStream.stop();
+
     self.peerconnection.removeStream(oldStream);
 
     self.connection.jingle.localVideo = new_stream;