diff --git a/indra/newview/app_settings/settings.xml b/indra/newview/app_settings/settings.xml
index 7de4f4289a..27bcddc447 100755
--- a/indra/newview/app_settings/settings.xml
+++ b/indra/newview/app_settings/settings.xml
@@ -14,6 +14,17 @@
     <key>Value</key>
     <integer>1</integer>
   </map>
+  <key>AutohideChatBar</key>
+  <map>
+    <key>Comment</key>
+    <string>Hide the chat bar from the bottom button bar and only show it as an overlay when needed.</string>
+    <key>Persist</key>
+    <integer>1</integer>
+    <key>Type</key>
+    <string>Boolean</string>
+    <key>Value</key>
+    <integer>0</integer>
+  </map>
   <key>GridListDownload</key>
   <map>
     <key>Comment</key>
diff --git a/indra/newview/llbottomtray.cpp b/indra/newview/llbottomtray.cpp
index e25c8a61c3..63d62b121b 100755
--- a/indra/newview/llbottomtray.cpp
+++ b/indra/newview/llbottomtray.cpp
@@ -201,10 +201,7 @@ public:
 
 	void onFocusLost()
 	{
-		if (gAgentCamera.cameraMouselook())
-		{
-			LLBottomTray::getInstance()->setVisible(FALSE);
-		}
+		setVisible(FALSE);
 	}
 
 	LLNearbyChatBar*	mNearbyChatBar;
@@ -225,6 +222,7 @@ LLBottomTray::LLBottomTray(const LLSD&)
 	mBottomTrayContextMenu(NULL),
 	mCamButton(NULL),
 	mBottomTrayLite(NULL),
+	mPopupChatBar(NULL),
 	mIsInLiteMode(false),
 	mDragStarted(false),
 	mDraggedItem(NULL),
@@ -237,7 +235,6 @@ LLBottomTray::LLBottomTray(const LLSD&)
 
 	mFactoryMap["chat_bar"] = LLCallbackMap(LLBottomTray::createNearbyChatBar, NULL);
 
-	buildFromFile("panel_bottomtray.xml");
 // <AW: Flat cam floater>
 	// find this callback registered in llfloatercamera.cpp now
 //	LLUICtrl::CommitCallbackRegistry::defaultRegistrar().add("CameraPresets.ChangeView", boost::bind(&LLFloaterCamera::onClickCameraItem, _2));
@@ -251,8 +248,14 @@ LLBottomTray::LLBottomTray(const LLSD&)
 		mBottomTrayLite = new LLBottomTrayLite();
 		mBottomTrayLite->setFollowsAll();
 		mBottomTrayLite->setVisible(FALSE);
+
+		mPopupChatBar = new LLBottomTrayLite();
+		mPopupChatBar->setFollowsAll();
+		mPopupChatBar->setVisible(FALSE);
 	}
 
+	buildFromFile("panel_bottomtray.xml");
+
 	mImageDragIndication = LLUI::getUIImage(getString("DragIndicationImageName"));
 	mDesiredNearbyChatWidth = mNearbyChatBar ? mNearbyChatBar->getRect().getWidth() : 0;
 }
@@ -288,7 +291,13 @@ void* LLBottomTray::createNearbyChatBar(void* userdata)
 
 LLNearbyChatBar* LLBottomTray::getNearbyChatBar()
 {
-	return mIsInLiteMode ? mBottomTrayLite->mNearbyChatBar : mNearbyChatBar;
+	if(mIsInLiteMode)
+		return mBottomTrayLite->mNearbyChatBar;
+
+	if(gSavedSettings.getBOOL("AutohideChatBar"))
+		return mPopupChatBar->mNearbyChatBar;
+
+	return mNearbyChatBar;
 }
 
 LLIMChiclet* LLBottomTray::createIMChiclet(const LLUUID& session_id)
@@ -421,6 +430,7 @@ void LLBottomTray::onMouselookModeOut()
 	mIsInLiteMode = false;
 	mBottomTrayLite->setVisible(FALSE);
 	mNearbyChatBar->getChatBox()->setText(mBottomTrayLite->mNearbyChatBar->getChatBox()->getText());
+	mPopupChatBar->mNearbyChatBar->getChatBox()->setText(mBottomTrayLite->mNearbyChatBar->getChatBox()->getText());
 	setVisible(TRUE);
 }
 
@@ -433,30 +443,38 @@ void LLBottomTray::onMouselookModeIn()
 		getParent()->addChild(mBottomTrayLite);
 
 	mBottomTrayLite->setShape(getLocalRect());
-	mBottomTrayLite->mNearbyChatBar->getChatBox()->setText(mNearbyChatBar->getChatBox()->getText());
+	if(gSavedSettings.getBOOL("AutohideChatBar"))
+		mBottomTrayLite->mNearbyChatBar->getChatBox()->setText(mPopupChatBar->mNearbyChatBar->getChatBox()->getText());		
+	else
+		mBottomTrayLite->mNearbyChatBar->getChatBox()->setText(mNearbyChatBar->getChatBox()->getText());
 	mBottomTrayLite->mGesturePanel->setVisible(gSavedSettings.getBOOL("ShowGestureButton"));
 
 	mIsInLiteMode = true;
 }
 
-//virtual
-// setVisible used instead of onVisibilityChange, since LLAgent calls it on entering/leaving mouselook mode.
-// If bottom tray is already visible in mouselook mode, then onVisibilityChange will not be called from setVisible(true),
-void LLBottomTray::setVisible(BOOL visible)
+void LLBottomTray::setChatBarVisible(BOOL visible)
 {
 	if (mIsInLiteMode)
 	{
 		mBottomTrayLite->setVisible(visible);
 	}
-	else 
+	else if(gSavedSettings.getBOOL("AutohideChatBar"))
 	{
-		LLPanel::setVisible(visible);
+		// Attach the lite bottom tray
+		if (getParent() && mPopupChatBar->getParent() != getParent())
+			getParent()->addChild(mPopupChatBar);
+
+		if(visible)
+		{
+			if(mPopupChatBar->getVisible())
+				return;
+
+			mPopupChatBar->setShape(getLocalRect());
+			mPopupChatBar->mGesturePanel->setVisible(gSavedSettings.getBOOL("ShowGestureButton"));
+		}
+
+		mPopupChatBar->setVisible(visible);
 	}
-	//-TT 2.6.9 - removed?
-	//if(visible)
-	//	gFloaterView->setSnapOffsetBottom(getRect().getHeight());
-	//else
-	//	gFloaterView->setSnapOffsetBottom(0);
 }
 
 S32 LLBottomTray::notifyParent(const LLSD& info)
@@ -649,9 +667,27 @@ BOOL LLBottomTray::postBuild()
 	mAOToggleButton->setCommitCallback(boost::bind(&LLBottomTray::toggleAO,this));
 	mAOToggleButton->setToggleState(gSavedPerAccountSettings.getBOOL("UseAO"));
 	// ## Zi: Animation Overrider
+
+	gSavedSettings.getControl("AutohideChatBar")->getSignal()->connect(boost::bind(&LLBottomTray::onAutohideChatBarChanged, this));
+	onAutohideChatBarChanged();
+
 	return TRUE;
 }
 
+void LLBottomTray::onAutohideChatBarChanged()
+{
+	if(gSavedSettings.getBOOL("AutohideChatBar"))
+	{
+		mChatBarContainer->setVisible(FALSE);
+		mNearbyCharResizeHandlePanel->setVisible(FALSE);
+	}
+	else
+	{
+		mChatBarContainer->setVisible(TRUE);
+		mNearbyCharResizeHandlePanel->setVisible(TRUE);
+	}
+}
+
 //Drag-n-drop
 
 void LLBottomTray::onDraggableButtonMouseDown(LLUICtrl* ctrl, S32 x, S32 y)
diff --git a/indra/newview/llbottomtray.h b/indra/newview/llbottomtray.h
index a186721953..b076244c21 100644
--- a/indra/newview/llbottomtray.h
+++ b/indra/newview/llbottomtray.h
@@ -103,7 +103,7 @@ public:
 
 	virtual void reshape(S32 width, S32 height, BOOL called_from_parent);
 
-	virtual void setVisible(BOOL visible);
+	void setChatBarVisible(BOOL visible);
 
 	/*virtual*/ S32 notifyParent(const LLSD& info);
 
@@ -536,6 +536,7 @@ protected:
 	void showSidebarPanel(const LLSD& panel_name);
 //-TT 
 	bool onContextMenuItemEnabled(const LLSD& userdata);
+	void onAutohideChatBarChanged();
 
 	// Either default or saved after user's manual resize width of nearby chat.
 	// Nearby chat will not always have it, because sometimes it can be shrunk on resize,
@@ -552,6 +553,7 @@ protected:
 	LLButton*			mCamButton;
 	LLButton*			mMovementButton;
 	LLBottomTrayLite*   mBottomTrayLite;
+	LLBottomTrayLite*   mPopupChatBar;
 	LLButton*			mAOToggleButton;			// ## Zi: Animation Overrider
 	bool                mIsInLiteMode;
 
diff --git a/indra/newview/llnearbychatbar.cpp b/indra/newview/llnearbychatbar.cpp
index d2f2d70418..86879d580d 100644
--- a/indra/newview/llnearbychatbar.cpp
+++ b/indra/newview/llnearbychatbar.cpp
@@ -917,7 +917,7 @@ void LLNearbyChatBar::startChat(const char* line)
 	if (!cb )
 		return;
 
-	bt->setVisible(TRUE);
+	bt->setChatBarVisible(TRUE);
 	cb->mChatBox->setFocus(TRUE);
 
 	if (line)
@@ -943,6 +943,7 @@ void LLNearbyChatBar::stopChat()
 	if (!cb)
 		return;
 
+	bt->setChatBarVisible(FALSE);
 	cb->mChatBox->setFocus(FALSE);
 
  	// stop typing animation
diff --git a/indra/newview/skins/default/xui/en/panel_preferences_firestorm.xml b/indra/newview/skins/default/xui/en/panel_preferences_firestorm.xml
index 985264c31b..191eac764b 100644
--- a/indra/newview/skins/default/xui/en/panel_preferences_firestorm.xml
+++ b/indra/newview/skins/default/xui/en/panel_preferences_firestorm.xml
@@ -900,6 +900,17 @@
              text_color="White_25">
               (requires restart)
             </text>
+            <check_box
+             control_name="AutohideChatBar"
+             height="16"
+             initial_value="false"
+             label="Autohide Main Chatbar"
+             layout="topleft"
+             left="20"
+             name="AutohideChatBar"
+             tool_tip="Hide the chat bar from the bottom button bar and only show it as an overlay when needed."
+             top_pad="0"
+             width="256" />
             <check_box
              layout="topleft"
              follows="left|top"