diff --git a/indra/newview/llmutelist.cpp b/indra/newview/llmutelist.cpp
index 95094f6b52..7cb192e026 100644
--- a/indra/newview/llmutelist.cpp
+++ b/indra/newview/llmutelist.cpp
@@ -145,6 +145,9 @@ std::string LLMute::getDisplayType() const
 		case GROUP:
 			return LLTrans::getString("MuteGroup");
 			break;
+		case EXTERNAL:
+			return LLTrans::getString("MuteExternal");
+			break;
 	}
 }
 
@@ -303,6 +306,12 @@ BOOL LLMuteList::add(const LLMute& mute, U32 flags)
 
 void LLMuteList::updateAdd(const LLMute& mute)
 {
+	// External mutes (e.g. Avaline callers) are local only, don't send them to the server.
+	if (mute.mType == LLMute::EXTERNAL)
+	{
+		return;
+	}
+
 	// Update the database
 	LLMessageSystem* msg = gMessageSystem;
 	msg->newMessageFast(_PREHASH_UpdateMuteListEntry);
@@ -390,6 +399,12 @@ BOOL LLMuteList::remove(const LLMute& mute, U32 flags)
 
 void LLMuteList::updateRemove(const LLMute& mute)
 {
+	// External mutes are not sent to the server anyway, no need to remove them.
+	if (mute.mType == LLMute::EXTERNAL)
+	{
+		return;
+	}
+
 	LLMessageSystem* msg = gMessageSystem;
 	msg->newMessageFast(_PREHASH_RemoveMuteListEntry);
 	msg->nextBlockFast(_PREHASH_AgentData);
@@ -573,9 +588,14 @@ BOOL LLMuteList::saveToFile(const std::string& filename)
 		 it != mMutes.end();
 		 ++it)
 	{
-		it->mID.toString(id_string);
-		const std::string& name = it->mName;
-		fprintf(fp, "%d %s %s|%u\n", (S32)it->mType, id_string.c_str(), name.c_str(), it->mFlags);
+		// Don't save external mutes as they are not sent to the server and probably won't
+		//be valid next time anyway.
+		if (it->mType != LLMute::EXTERNAL)
+		{
+			it->mID.toString(id_string);
+			const std::string& name = it->mName;
+			fprintf(fp, "%d %s %s|%u\n", (S32)it->mType, id_string.c_str(), name.c_str(), it->mFlags);
+		}
 	}
 	fclose(fp);
 	return TRUE;
diff --git a/indra/newview/llmutelist.h b/indra/newview/llmutelist.h
index 7cb11e6031..79b556bdbb 100644
--- a/indra/newview/llmutelist.h
+++ b/indra/newview/llmutelist.h
@@ -45,7 +45,8 @@ class LLMute
 {
 public:
 	// Legacy mutes are BY_NAME and have null UUID.
-	enum EType { BY_NAME = 0, AGENT = 1, OBJECT = 2, GROUP = 3, COUNT = 4 };
+	// EXTERNAL mutes are only processed through an external system (e.g. Voice) and not stored.
+	enum EType { BY_NAME = 0, AGENT = 1, OBJECT = 2, GROUP = 3, EXTERNAL = 4, COUNT = 5 };
 	
 	// Bits in the mute flags.  For backwards compatibility (since any mute list entries that were created before the flags existed
 	// will have a flags field of 0), some of the flags are "inverted".
diff --git a/indra/newview/llparticipantlist.cpp b/indra/newview/llparticipantlist.cpp
index c3748ca81d..a058548459 100644
--- a/indra/newview/llparticipantlist.cpp
+++ b/indra/newview/llparticipantlist.cpp
@@ -722,7 +722,21 @@ void LLParticipantList::LLParticipantListMenu::toggleMute(const LLSD& userdata,
 
 	name = speakerp->mDisplayName;
 
-	LLMute mute(speaker_id, name, speakerp->mType == LLSpeaker::SPEAKER_AGENT ? LLMute::AGENT : LLMute::OBJECT);
+	LLMute::EType mute_type;
+	switch (speakerp->mType)
+	{
+		case LLSpeaker::SPEAKER_AGENT:
+			mute_type = LLMute::AGENT;
+			break;
+		case LLSpeaker::SPEAKER_OBJECT:
+			mute_type = LLMute::OBJECT;
+			break;
+		case LLSpeaker::SPEAKER_EXTERNAL:
+		default:
+			mute_type = LLMute::EXTERNAL;
+			break;
+	}
+	LLMute mute(speaker_id, name, mute_type);
 
 	if (!is_muted)
 	{
diff --git a/indra/newview/llvoiceclient.cpp b/indra/newview/llvoiceclient.cpp
index 298ce3fcec..542ec16547 100644
--- a/indra/newview/llvoiceclient.cpp
+++ b/indra/newview/llvoiceclient.cpp
@@ -5143,9 +5143,6 @@ LLVoiceClient::participantState *LLVoiceClient::sessionState::addParticipant(con
 			{
 				result->mAvatarIDValid = true;
 				result->mAvatarID = id;
-
-				if(result->updateMuteState())
-					mMuteDirty = true;
 			}
 			else
 			{
@@ -5154,7 +5151,12 @@ LLVoiceClient::participantState *LLVoiceClient::sessionState::addParticipant(con
 				setUUIDFromStringHash(result->mAvatarID, uri);
 			}
 		}
-		
+
+		if(result->updateMuteState())
+		{
+			mMuteDirty = true;
+		}
+
 		mParticipantsByUUID.insert(participantUUIDMap::value_type(&(result->mAvatarID), result));
 
 		if (LLSpeakerVolumeStorage::getInstance()->getSpeakerVolume(result->mAvatarID, result->mVolume))
@@ -5173,15 +5175,12 @@ bool LLVoiceClient::participantState::updateMuteState()
 {
 	bool result = false;
 	
-	if(mAvatarIDValid)
+	bool isMuted = LLMuteList::getInstance()->isMuted(mAvatarID, LLMute::flagVoiceChat);
+	if(mOnMuteList != isMuted)
 	{
-		bool isMuted = LLMuteList::getInstance()->isMuted(mAvatarID, LLMute::flagVoiceChat);
-		if(mOnMuteList != isMuted)
-		{
-			mOnMuteList = isMuted;
-			mVolumeDirty = true;
-			result = true;
-		}
+		mOnMuteList = isMuted;
+		mVolumeDirty = true;
+		result = true;
 	}
 	return result;
 }
diff --git a/indra/newview/skins/default/xui/en/strings.xml b/indra/newview/skins/default/xui/en/strings.xml
index e0d58a16c8..f544449d02 100644
--- a/indra/newview/skins/default/xui/en/strings.xml
+++ b/indra/newview/skins/default/xui/en/strings.xml
@@ -2163,10 +2163,11 @@ Clears (deletes) the media and all params from the given face.
   <string name="BusyModeResponseDefault">The Resident you messaged is in &apos;busy mode&apos; which means they have requested not to be disturbed.  Your message will still be shown in their IM panel for later viewing.</string>
 
 	<!-- Mute -->
-	<string name="MuteByName">(by name)</string>
+	<string name="MuteByName">(By name)</string>
 	<string name="MuteAgent">(Resident)</string>
-	<string name="MuteObject">(object)</string>
-	<string name="MuteGroup">(group)</string>
+	<string name="MuteObject">(Object)</string>
+	<string name="MuteGroup">(Group)</string>
+	<string name="MuteExternal">(External)</string>
 
 	<!-- Region/Estate Covenant -->
 	<string name="RegionNoCovenant">There is no Covenant provided for this Estate.</string>