diff --git a/indra/newview/llimpanel.cpp b/indra/newview/llimpanel.cpp
index 71d2f7eef..6360a953b 100644
--- a/indra/newview/llimpanel.cpp
+++ b/indra/newview/llimpanel.cpp
@@ -365,6 +365,7 @@ LLFloaterIMPanel::LLFloaterIMPanel(
 		mCallBackEnabled = LLVoiceClient::getInstance()->isSessionCallBackPossible(mSessionUUID);
 		
 		mVoiceChannel = new LLVoiceChannelP2P(mSessionUUID, mSessionLabel, mOtherParticipantUUID);
+		LLAvatarTracker::instance().addParticularFriendObserver(mOtherParticipantUUID, this);
 		break;
 	default:
 		llwarns << "Unknown session type" << llendl;
@@ -482,6 +483,20 @@ LLFloaterIMPanel::~LLFloaterIMPanel()
 	mFocusLostSignal.disconnect();
 }
 
+// virtual
+void LLFloaterIMPanel::changed(U32 mask)
+{
+	if (mask & REMOVE|ADD) // Fix remove/add friend choices
+		rebuildDynamics(getChild<LLComboBox>("instant_message_flyout"));
+	/* Singu TODO: Chat UI - Online icons?
+	if (mask & ONLINE)
+		// Show online icon here
+	else if (mask & NONE)
+		// Show offline icon here
+	*/
+}
+
+// virtual
 BOOL LLFloaterIMPanel::postBuild() 
 {
 	requires<LLLineEditor>("chat_editor");
@@ -988,12 +1003,16 @@ void LLFloaterIMPanel::removeDynamics(LLComboBox* flyout)
 {
 	flyout->remove(mDing ? getString("ding on") : getString("ding off"));
 	flyout->remove(mRPMode ? getString("rp mode on") : getString("rp mode off"));
+	flyout->remove(LLAvatarActions::isFriend(mOtherParticipantUUID) ? getString("remove friend") : getString("add friend"));
+	//flyout->remove(LLAvatarActions::isBlocked(mOtherParticipantUUID) ? getString("unmute") : getString("mute"));
 }
 
 void LLFloaterIMPanel::addDynamics(LLComboBox* flyout)
 {
 	flyout->add(mDing ? getString("ding on") : getString("ding off"), 6);
 	flyout->add(mRPMode ? getString("rp mode on") : getString("rp mode off"), 7);
+	flyout->add(LLAvatarActions::isFriend(mOtherParticipantUUID) ? getString("remove friend") : getString("add friend"), 8);
+	//flyout->add(LLAvatarActions::isBlocked(mOtherParticipantUUID) ? getString("unmute") : getString("mute"), 9);
 }
 
 void LLFloaterIMPanel::onFlyoutCommit(LLComboBox* flyout, const LLSD& value)
@@ -1018,6 +1037,8 @@ void LLFloaterIMPanel::onFlyoutCommit(LLComboBox* flyout, const LLSD& value)
 		// Toggle as requested, adjust the strings
 		if (option == 6) mDing = !mDing;
 		else if (option == 7) mRPMode = !mRPMode;
+		else if (option == 8) LLAvatarActions::isFriend(mOtherParticipantUUID) ? LLAvatarActions::removeFriendDialog(mOtherParticipantUUID) : LLAvatarActions::requestFriendshipDialog(mOtherParticipantUUID);
+		//else if (option == 9) LLAvatarActions::toggleBlock(mOtherParticipantUUID);
 
 		// Last add them back
 		addDynamics(flyout);
diff --git a/indra/newview/llimpanel.h b/indra/newview/llimpanel.h
index 130cfa1f3..94e6b1414 100644
--- a/indra/newview/llimpanel.h
+++ b/indra/newview/llimpanel.h
@@ -32,6 +32,7 @@
 #ifndef LL_IMPANEL_H
 #define LL_IMPANEL_H
 
+#include "llcallingcard.h"
 #include "llfloater.h"
 #include "lllogchat.h"
 
@@ -46,7 +47,7 @@ class LLParticipantList;
 class LLViewerTextEditor;
 class LLVoiceChannel;
 
-class LLFloaterIMPanel : public LLFloater
+class LLFloaterIMPanel : public LLFloater, public LLFriendObserver
 {
 public:
 
@@ -65,6 +66,7 @@ public:
 	void lookupName();
 	void onAvatarNameLookup(const LLUUID&, const LLAvatarName& avatar_name);
 
+	/*virtual*/ void changed(U32 mask); // From LLFriendObserver, check friend status
 	/*virtual*/ BOOL postBuild();
 
 	// Check typing timeout timer.
@@ -74,7 +76,7 @@ public:
 
 	// add target ids to the session. 
 	// Return TRUE if successful, otherwise FALSE.
-	BOOL inviteToSession(const LLDynamicArray<LLUUID>& agent_ids);
+	bool inviteToSession(const LLDynamicArray<LLUUID>& agent_ids);
 
 	void addHistoryLine(const std::string &utf8msg, 
 						LLColor4 incolor = LLColor4::white, 
diff --git a/indra/newview/skins/default/xui/en-us/floater_instant_message.xml b/indra/newview/skins/default/xui/en-us/floater_instant_message.xml
index 10fabcfd6..53a441397 100644
--- a/indra/newview/skins/default/xui/en-us/floater_instant_message.xml
+++ b/indra/newview/skins/default/xui/en-us/floater_instant_message.xml
@@ -19,6 +19,10 @@
     <string name="ding off" value="Ding on new messages (Off)"/>
     <string name="rp mode on" value="RP Mode (On)"/>
     <string name="rp mode off" value="RP Mode (Off)"/>
+    <string name="add friend" value="Add Friend"/>
+    <string name="remove friend" value="Remove Friend"/>
+    <!--string name="mute" value="Mute"/>
+    <string name="unmute" value="Unmute"/-->
     <button bottom_delta="0" follows="left|top" height="20" left_delta="81" width="50" name="tp_btn" label="TP"/>
     <button bottom_delta="0" follows="left|top" height="20" left_delta="50" width="50" name="pay_btn" label="Pay"/>
     <button bottom_delta="0" follows="left|top" height="20" left_delta="50" width="50" name="history_btn" label="Log"/>
diff --git a/indra/newview/skins/default/xui/en-us/floater_instant_message_concisebuttons.xml b/indra/newview/skins/default/xui/en-us/floater_instant_message_concisebuttons.xml
index 2625e3869..1901df923 100644
--- a/indra/newview/skins/default/xui/en-us/floater_instant_message_concisebuttons.xml
+++ b/indra/newview/skins/default/xui/en-us/floater_instant_message_concisebuttons.xml
@@ -22,6 +22,10 @@
     <string name="ding off" value="Ding on new messages (Off)"/>
     <string name="rp mode on" value="RP Mode (On)"/>
     <string name="rp mode off" value="RP Mode (Off)"/>
+    <string name="add friend" value="Add Friend"/>
+    <string name="remove friend" value="Remove Friend"/>
+    <!--string name="mute" value="Mute"/>
+    <string name="unmute" value="Unmute"/-->
 	<button bottom="-20" follows="right|top" height="20" image_overlay="icn_voice-call-start.tga" image_overlay_alignment="left" label="Call" left_delta="81" name="start_call_btn" width="60"/>
 	<button bottom="-20" follows="right|top" height="20" image_overlay="icn_voice-call-end.tga" image_overlay_alignment="left" scale_image="true" label="End" name="end_call_btn" width="24"/>
 	<panel mouse_opaque="false" border="false" bottom="-20" follows="right|top" height="20" left_delta="16" name="speaker_controls" width="60">