diff --git a/CHANGES b/CHANGES
index 2ca13e5..3e25175 100644
--- a/CHANGES
+++ b/CHANGES
@@ -8,6 +8,7 @@ HEAD
 - send Sending-Complete if overlap dialing is not used.
 - fixed numberingplan for 'connected number'.
 - added devicestate option.
+- capi-chat can play music-on-hold for first caller.
 
 chan_capi-1.0.2
 ------------------
diff --git a/README b/README
index 9ea395f..b23de03 100644
--- a/README
+++ b/README
@@ -283,7 +283,9 @@ Chat (MeetMe/Conference):
     (This uses the DSPs onboard a Dialogic DIVA Server Rev.2 card.)
         exten => s,1,capicommand(chat|<roomname>|<options>|controller)
 		Example:
-            exten => s,1,capicommand(chat|salesmeeting||1,3-6)
+            exten => s,1,capicommand(chat|salesmeeting|m|1,3-6)
+    Possible options:
+    'm' = The first caller will get music-on-hold until second caller arrives.
 
 
 Using CLIR
diff --git a/chan_capi_chat.c b/chan_capi_chat.c
index df55fcc..21e2e5d 100644
--- a/chan_capi_chat.c
+++ b/chan_capi_chat.c
@@ -22,10 +22,12 @@
 #include "chan_capi_chat.h"
 #include "chan_capi_utils.h"
 
+#define CHAT_FLAG_MOH      0x0001
 
 struct capichat_s {
 	char name[16];
 	unsigned int number;
+	int active;
 	struct capi_pvt *i;
 	struct capichat_s *next;
 };
@@ -82,6 +84,13 @@ static void update_capi_mixer(int remove, unsigned int roomnumber, struct capi_p
 		}
 		room = room->next;
 	}
+	room = chat_list;
+	while (room) {
+		if (room->number == roomnumber) {
+			room->active = found + ((remove) ? 0 : 1);
+		}
+		room = room->next;
+	}
 	cc_mutex_unlock(&chat_lock);
 
 	if (found) {
@@ -201,7 +210,8 @@ static struct capichat_s *add_chat_member(char *roomname, struct capi_pvt *i)
 /*
  * loop during chat
  */
-static void chat_handle_events(struct ast_channel *c, struct capi_pvt *i)
+static void chat_handle_events(struct ast_channel *c, struct capi_pvt *i,
+	struct capichat_s *room, unsigned int flags)
 {
 	struct ast_frame *f;
 	int ms;
@@ -211,15 +221,22 @@ static void chat_handle_events(struct ast_channel *c, struct capi_pvt *i)
 	int nfds = 0;
 	struct ast_channel *rchan;
 	struct ast_channel *chan = c;
+	int moh_active = 0;
+
+	ast_indicate(chan, -1);
 
 	waitfd = i->readerfd;
 	if (i->channeltype == CAPI_CHANNELTYPE_NULL) {
 		nfds = 1;
-		ast_indicate(chan, -1);
 		ast_set_read_format(chan, capi_capability);
 		ast_set_write_format(chan, capi_capability);
 	}
 
+	if ((flags & CHAT_FLAG_MOH) && (room->active < 2)) {
+		ast_moh_start(chan, NULL, NULL);
+		moh_active = 1;
+	}
+
 	while (1) {
 		ready_fd = 0;
 		ms = 100;
@@ -275,6 +292,10 @@ static void chat_handle_events(struct ast_channel *c, struct capi_pvt *i)
 				break;
 			}
 		}
+		if ((moh_active) && (room->active > 1)) {
+			ast_moh_stop(chan);
+			moh_active = 0;
+		}
 	}
 }
 
@@ -289,6 +310,7 @@ int pbx_capi_chat(struct ast_channel *c, char *param)
 	struct capichat_s *room;
 	ast_group_t tmpcntr;
 	unsigned long contr = 0;
+	unsigned int flags = 0;
 
 	roomname = strsep(&param, "|");
 	options = strsep(&param, "|");
@@ -307,6 +329,19 @@ int pbx_capi_chat(struct ast_channel *c, char *param)
 		contr = (unsigned long)(tmpcntr >> 1);
 	}
 
+	while ((options) && (*options)) {
+		switch (*options) {
+		case 'm':
+			flags |= CHAT_FLAG_MOH;
+			break;
+		default:
+			cc_log(LOG_WARNING, "Unknown chat option '%c'.\n",
+				*options);
+			break;
+		}
+		options++;
+	}
+
 	cc_verbose(3, 1, VERBOSE_PREFIX_3 "capi chat: %s: roomname=%s "
 		"options=%s controller=%s (0x%x)\n",
 		c->name, roomname, options, controller, contr);
@@ -321,8 +356,9 @@ int pbx_capi_chat(struct ast_channel *c, char *param)
 		}
 	}
 
-	if (c->_state != AST_STATE_UP)
+	if (c->_state != AST_STATE_UP) {
 		ast_answer(c);
+	}
 
 	capi_wait_for_answered(i);
 	if (!(capi_wait_for_b3_up(i))) {
@@ -336,7 +372,7 @@ int pbx_capi_chat(struct ast_channel *c, char *param)
 	}
 
 	/* main loop */
-	chat_handle_events(c, i);
+	chat_handle_events(c, i, room, flags);
 
 	del_chat_member(room);