diff --git a/osu-resources b/osu-resources
index a5199500cc..b348c1e540 160000
--- a/osu-resources
+++ b/osu-resources
@@ -1 +1 @@
-Subproject commit a5199500cc3ba96101fd858e0f78f36e538697b1
+Subproject commit b348c1e540edbb3325a8da9bca452c9dce2938d6
diff --git a/osu.Game/Graphics/Cursor/OsuTooltipContainer.cs b/osu.Game/Graphics/Cursor/OsuTooltipContainer.cs
index 46addf5ac2..815d820a47 100644
--- a/osu.Game/Graphics/Cursor/OsuTooltipContainer.cs
+++ b/osu.Game/Graphics/Cursor/OsuTooltipContainer.cs
@@ -1,6 +1,7 @@
 // Copyright (c) 2007-2017 ppy Pty Ltd <contact@ppy.sh>.
 // Licensed under the MIT Licence - https://raw.githubusercontent.com/ppy/osu/master/LICENCE
 
+using OpenTK;
 using OpenTK.Graphics;
 using osu.Framework.Allocation;
 using osu.Framework.Extensions.Color4Extensions;
@@ -24,6 +25,7 @@ namespace osu.Game.Graphics.Cursor
         {
             private readonly Box background;
             private readonly OsuSpriteText text;
+            private bool instantMovement = true;
 
             public override string TooltipText
             {
@@ -32,7 +34,7 @@ namespace osu.Game.Graphics.Cursor
                     if (value == text.Text) return;
 
                     text.Text = value;
-                    if (Alpha > 0)
+                    if (IsPresent)
                     {
                         AutoSizeDuration = 250;
                         background.FlashColour(OsuColour.Gray(0.4f), 1000, EasingTypes.OutQuint);
@@ -80,6 +82,7 @@ namespace osu.Game.Graphics.Cursor
 
             protected override void PopIn()
             {
+                instantMovement |= !IsPresent;
                 FadeIn(500, EasingTypes.OutQuint);
             }
 
@@ -88,6 +91,19 @@ namespace osu.Game.Graphics.Cursor
                 using (BeginDelayedSequence(150))
                     FadeOut(500, EasingTypes.OutQuint);
             }
+
+            public override void Move(Vector2 pos)
+            {
+                if (instantMovement)
+                {
+                    Position = pos;
+                    instantMovement = false;
+                }
+                else
+                {
+                    MoveTo(pos, 200, EasingTypes.OutQuint);
+                }
+            }
         }
     }
 }
diff --git a/osu.Game/Online/Chat/Channel.cs b/osu.Game/Online/Chat/Channel.cs
index 93fd0a8956..01685cc7dc 100644
--- a/osu.Game/Online/Chat/Channel.cs
+++ b/osu.Game/Online/Chat/Channel.cs
@@ -5,6 +5,7 @@ using System;
 using System.Collections.Generic;
 using System.Linq;
 using Newtonsoft.Json;
+using osu.Framework.Configuration;
 using osu.Framework.Lists;
 
 namespace osu.Game.Online.Chat
@@ -25,7 +26,7 @@ namespace osu.Game.Online.Chat
 
         public readonly SortedList<Message> Messages = new SortedList<Message>(Comparer<Message>.Default);
 
-        //internal bool Joined;
+        public Bindable<bool> Joined = new Bindable<bool>();
 
         public bool ReadOnly => Name != "#lazer";
 
diff --git a/osu.Game/Overlays/Chat/ChannelListItem.cs b/osu.Game/Overlays/Chat/ChannelListItem.cs
new file mode 100644
index 0000000000..9aa11cdd4f
--- /dev/null
+++ b/osu.Game/Overlays/Chat/ChannelListItem.cs
@@ -0,0 +1,188 @@
+// Copyright (c) 2007-2017 ppy Pty Ltd <contact@ppy.sh>.
+// Licensed under the MIT Licence - https://raw.githubusercontent.com/ppy/osu/master/LICENCE
+
+using System;
+using OpenTK;
+using OpenTK.Graphics;
+using osu.Framework.Allocation;
+using osu.Framework.Configuration;
+using osu.Framework.Graphics;
+using osu.Framework.Graphics.Containers;
+using osu.Framework.Input;
+using osu.Game.Graphics;
+using osu.Game.Graphics.Sprites;
+using osu.Game.Online.Chat;
+
+namespace osu.Game.Overlays.Chat
+{
+    public class ChannelListItem : ClickableContainer, IFilterable
+    {
+        private const float width_padding = 5;
+        private const float channel_width = 150;
+        private const float text_size = 15;
+        private const float transition_duration = 100;
+
+        private readonly Channel channel;
+
+        private readonly Bindable<bool> joinedBind = new Bindable<bool>();
+        private readonly OsuSpriteText name;
+        private readonly OsuSpriteText topic;
+        private readonly TextAwesome joinedCheckmark;
+
+        private Color4 joinedColour;
+        private Color4 topicColour;
+        private Color4 hoverColour;
+
+        public string[] FilterTerms => new[] { channel.Name };
+        public bool MatchingFilter
+        {
+            set
+            {
+                FadeTo(value ? 1f : 0f, 100);
+            }
+        }
+
+        public Action<Channel> OnRequestJoin;
+        public Action<Channel> OnRequestLeave;
+
+        public ChannelListItem(Channel channel)
+        {
+            this.channel = channel;
+
+            RelativeSizeAxes = Axes.X;
+            AutoSizeAxes = Axes.Y;
+
+            Action = () => { (channel.Joined ? OnRequestLeave : OnRequestJoin)?.Invoke(channel); };
+
+            Children = new Drawable[]
+            {
+                new FillFlowContainer
+                {
+                    RelativeSizeAxes = Axes.X,
+                    AutoSizeAxes = Axes.Y,
+                    Direction = FillDirection.Horizontal,
+                    Children = new Drawable[]
+                    {
+                        new Container
+                        {
+                            Children = new[]
+                            {
+                                joinedCheckmark = new TextAwesome
+                                {
+                                    Anchor = Anchor.TopRight,
+                                    Origin = Anchor.TopRight,
+                                    Icon = FontAwesome.fa_check_circle,
+                                    TextSize = text_size,
+                                    Shadow = false,
+                                    Margin = new MarginPadding { Right = 10f },
+                                    Alpha = 0f,
+                                },
+                            },
+                        },
+                        new Container
+                        {
+                            Width = channel_width,
+                            AutoSizeAxes = Axes.Y,
+                            Children = new[]
+                            {
+                                name = new OsuSpriteText
+                                {
+                                    Text = channel.ToString(),
+                                    TextSize = text_size,
+                                    Font = @"Exo2.0-Bold",
+                                    Shadow = false,
+                                },
+                            },
+                        },
+                        new Container
+                        {
+                            RelativeSizeAxes = Axes.X,
+                            Width = 0.7f,
+                            AutoSizeAxes = Axes.Y,
+                            Margin = new MarginPadding { Left = width_padding },
+                            Children = new[]
+                            {
+                                topic = new OsuSpriteText
+                                {
+                                    Text = channel.Topic,
+                                    TextSize = text_size,
+                                    Font = @"Exo2.0-SemiBold",
+                                    Shadow = false,
+                                    Alpha = 0.8f,
+                                },
+                            },
+                        },
+                        new FillFlowContainer
+                        {
+                            AutoSizeAxes = Axes.Both,
+                            Direction = FillDirection.Horizontal,
+                            Margin = new MarginPadding { Left = width_padding },
+                            Spacing = new Vector2(3f, 0f),
+                            Children = new Drawable[]
+                            {
+                                new TextAwesome
+                                {
+                                    Icon = FontAwesome.fa_user,
+                                    TextSize = text_size - 2,
+                                    Shadow = false,
+                                    Margin = new MarginPadding { Top = 1 },
+                                },
+                                new OsuSpriteText
+                                {
+                                    Text = @"0",
+                                    TextSize = text_size,
+                                    Font = @"Exo2.0-SemiBold",
+                                    Shadow = false,
+                                },
+                            },
+                        },
+                    },
+                },
+            };
+        }
+
+        [BackgroundDependencyLoader]
+        private void load(OsuColour colours)
+        {
+            topicColour = colours.Gray9;
+            joinedColour = colours.Blue;
+            hoverColour = colours.Yellow;
+
+            joinedBind.ValueChanged += updateColour;
+            joinedBind.BindTo(channel.Joined);
+        }
+
+        protected override bool OnHover(InputState state)
+        {
+            if (!channel.Joined.Value)
+                name.FadeColour(hoverColour, 50, EasingTypes.OutQuint);
+
+            return base.OnHover(state);
+        }
+
+        protected override void OnHoverLost(InputState state)
+        {
+            if (!channel.Joined.Value)
+                name.FadeColour(Color4.White, transition_duration);
+        }
+
+        private void updateColour(bool joined)
+        {
+            if (joined)
+            {
+                name.FadeColour(Color4.White, transition_duration);
+                joinedCheckmark.FadeTo(1f, transition_duration);
+                topic.FadeTo(0.8f, transition_duration);
+                topic.FadeColour(Color4.White, transition_duration);
+                FadeColour(joinedColour, transition_duration);
+            }
+            else
+            {
+                joinedCheckmark.FadeTo(0f, transition_duration);
+                topic.FadeTo(1f, transition_duration);
+                topic.FadeColour(topicColour, transition_duration);
+                FadeColour(Color4.White, transition_duration);
+            }
+        }
+    }
+}
diff --git a/osu.Game/Overlays/Chat/ChannelSection.cs b/osu.Game/Overlays/Chat/ChannelSection.cs
new file mode 100644
index 0000000000..f12ec53605
--- /dev/null
+++ b/osu.Game/Overlays/Chat/ChannelSection.cs
@@ -0,0 +1,63 @@
+// Copyright (c) 2007-2017 ppy Pty Ltd <contact@ppy.sh>.
+// Licensed under the MIT Licence - https://raw.githubusercontent.com/ppy/osu/master/LICENCE
+
+using System.Collections.Generic;
+using System.Linq;
+using OpenTK;
+using osu.Framework.Graphics;
+using osu.Framework.Graphics.Containers;
+using osu.Game.Graphics.Sprites;
+using osu.Game.Online.Chat;
+
+namespace osu.Game.Overlays.Chat
+{
+    public class ChannelSection : Container, IHasFilterableChildren
+    {
+        private readonly OsuSpriteText header;
+
+        public readonly FillFlowContainer<ChannelListItem> ChannelFlow;
+
+        public IEnumerable<IFilterable> FilterableChildren => ChannelFlow.Children;
+        public string[] FilterTerms => new[] { Header };
+        public bool MatchingFilter
+        {
+            set
+            {
+                FadeTo(value ? 1f : 0f, 100);
+            }
+        }
+
+        public string Header
+        {
+            get { return header.Text; }
+            set { header.Text = value.ToUpper(); }
+        }
+
+        public IEnumerable<Channel> Channels
+        {
+            set { ChannelFlow.Children = value.Select(c => new ChannelListItem(c)); }
+        }
+
+        public ChannelSection()
+        {
+            RelativeSizeAxes = Axes.X;
+            AutoSizeAxes = Axes.Y;
+
+            Children = new Drawable[]
+            {
+                header = new OsuSpriteText
+                {
+                    TextSize = 15,
+                    Font = @"Exo2.0-Bold",
+                },
+                ChannelFlow = new FillFlowContainer<ChannelListItem>
+                {
+                    RelativeSizeAxes = Axes.X,
+                    AutoSizeAxes = Axes.Y,
+                    Margin = new MarginPadding { Top = 25 },
+                    Spacing = new Vector2(0f, 5f),
+                },
+            };
+        }
+    }
+}
diff --git a/osu.Game/Overlays/Chat/ChannelSelectionOverlay.cs b/osu.Game/Overlays/Chat/ChannelSelectionOverlay.cs
new file mode 100644
index 0000000000..cd736a5fe9
--- /dev/null
+++ b/osu.Game/Overlays/Chat/ChannelSelectionOverlay.cs
@@ -0,0 +1,184 @@
+// Copyright (c) 2007-2017 ppy Pty Ltd <contact@ppy.sh>.
+// Licensed under the MIT Licence - https://raw.githubusercontent.com/ppy/osu/master/LICENCE
+
+using System;
+using System.Collections.Generic;
+using OpenTK;
+using OpenTK.Graphics;
+using osu.Framework.Allocation;
+using osu.Framework.Extensions.Color4Extensions;
+using osu.Framework.Graphics;
+using osu.Framework.Graphics.Containers;
+using osu.Framework.Graphics.Sprites;
+using osu.Framework.Input;
+using osu.Game.Graphics;
+using osu.Game.Graphics.Backgrounds;
+using osu.Game.Graphics.Sprites;
+using osu.Game.Graphics.UserInterface;
+using osu.Game.Online.Chat;
+
+namespace osu.Game.Overlays.Chat
+{
+    public class ChannelSelectionOverlay : FocusedOverlayContainer
+    {
+        public static readonly float WIDTH_PADDING = 170;
+
+        private const float transition_duration = 500;
+
+        private readonly Box bg;
+        private readonly Triangles triangles;
+        private readonly Box headerBg;
+        private readonly SearchTextBox search;
+        private readonly SearchContainer<ChannelSection> sectionsFlow;
+
+        public Action<Channel> OnRequestJoin;
+        public Action<Channel> OnRequestLeave;
+
+        public IEnumerable<ChannelSection> Sections
+        {
+            set
+            {
+                sectionsFlow.Children = value;
+
+                foreach (ChannelSection s in sectionsFlow.Children)
+                {
+                    foreach (ChannelListItem c in s.ChannelFlow.Children)
+                    {
+                        c.OnRequestJoin = channel => { OnRequestJoin?.Invoke(channel); };
+                        c.OnRequestLeave = channel => { OnRequestLeave?.Invoke(channel); };
+                    }
+                }
+            }
+        }
+
+        public ChannelSelectionOverlay()
+        {
+            RelativeSizeAxes = Axes.X;
+
+            Children = new Drawable[]
+            {
+                new Container
+                {
+                    RelativeSizeAxes = Axes.Both,
+                    Masking = true,
+                    Children = new Drawable[]
+                    {
+                        bg = new Box
+                        {
+                            RelativeSizeAxes = Axes.Both,
+                        },
+                        triangles = new Triangles
+                        {
+                            RelativeSizeAxes = Axes.Both,
+                            TriangleScale = 5,
+                        },
+                    },
+                },
+                new Container
+                {
+                    RelativeSizeAxes = Axes.Both,
+                    Padding = new MarginPadding { Top = 85, Right = WIDTH_PADDING },
+                    Children = new[]
+                    {
+                        new ScrollContainer
+                        {
+                            RelativeSizeAxes = Axes.Both,
+                            Children = new[]
+                            {
+                                sectionsFlow = new SearchContainer<ChannelSection>
+                                {
+                                    RelativeSizeAxes = Axes.X,
+                                    AutoSizeAxes = Axes.Y,
+                                    Direction = FillDirection.Vertical,
+                                    LayoutDuration = 200,
+                                    LayoutEasing = EasingTypes.OutQuint,
+                                    Spacing = new Vector2(0f, 20f),
+                                    Padding = new MarginPadding { Vertical = 20, Left = WIDTH_PADDING },
+                                },
+                            },
+                        },
+                    },
+                },
+                new Container
+                {
+                    RelativeSizeAxes = Axes.X,
+                    AutoSizeAxes = Axes.Y,
+                    Children = new Drawable[]
+                    {
+                        headerBg = new Box
+                        {
+                            RelativeSizeAxes = Axes.Both,
+                        },
+                        new FillFlowContainer
+                        {
+                            RelativeSizeAxes = Axes.X,
+                            AutoSizeAxes = Axes.Y,
+                            Direction = FillDirection.Vertical,
+                            Spacing = new Vector2(0f, 10f),
+                            Padding = new MarginPadding { Top = 10f, Bottom = 10f, Left = WIDTH_PADDING, Right = WIDTH_PADDING },
+                            Children = new Drawable[]
+                            {
+                                new OsuSpriteText
+                                {
+                                    Text = @"Chat Channels",
+                                    TextSize = 20,
+                                    Shadow = false,
+                                },
+                                search = new HeaderSearchTextBox
+                                {
+                                    RelativeSizeAxes = Axes.X,
+                                    PlaceholderText = @"Search",
+                                    Exit = Hide,
+                                },
+                            },
+                        },
+                    },
+                },
+            };
+
+            search.Current.ValueChanged += newValue => sectionsFlow.SearchTerm = newValue;
+        }
+
+        [BackgroundDependencyLoader]
+        private void load(OsuColour colours)
+        {
+            bg.Colour = colours.Gray3;
+            triangles.ColourDark = colours.Gray3;
+            triangles.ColourLight = OsuColour.FromHex(@"353535");
+
+            headerBg.Colour = colours.Gray2.Opacity(0.75f);
+        }
+
+        protected override void OnFocus(InputState state)
+        {
+            InputManager.ChangeFocus(search);
+            base.OnFocus(state);
+        }
+
+        protected override void PopIn()
+        {
+            if (Alpha == 0) MoveToY(DrawHeight);
+
+            FadeIn(transition_duration, EasingTypes.OutQuint);
+            MoveToY(0, transition_duration, EasingTypes.OutQuint);
+
+            search.HoldFocus = true;
+            base.PopIn();
+        }
+
+        protected override void PopOut()
+        {
+            FadeOut(transition_duration, EasingTypes.InSine);
+            MoveToY(DrawHeight, transition_duration, EasingTypes.InSine);
+
+            search.HoldFocus = false;
+            base.PopOut();
+        }
+
+        private class HeaderSearchTextBox : SearchTextBox
+        {
+            protected override Color4 BackgroundFocused => Color4.Black.Opacity(0.2f);
+            protected override Color4 BackgroundUnfocused => Color4.Black.Opacity(0.2f);
+        }
+    }
+}
diff --git a/osu.Game/Overlays/Chat/ChatTabControl.cs b/osu.Game/Overlays/Chat/ChatTabControl.cs
index a281cff7db..23ddff9381 100644
--- a/osu.Game/Overlays/Chat/ChatTabControl.cs
+++ b/osu.Game/Overlays/Chat/ChatTabControl.cs
@@ -207,11 +207,15 @@ namespace osu.Game.Overlays.Chat
             {
                 public override bool Active
                 {
-                    get { return base.Active; }
+                    get { return false; }
+                    // ReSharper disable once ValueParameterNotUsed
                     set
                     {
-                        activeBindable.Value = value;
-                        base.Active = value;
+                        // we basically never want this tab to become active.
+                        // this allows us to become a "toggle" tab.
+                        // is a bit hacky, to say the least.
+                        activeBindable.Value = !activeBindable.Value;
+                        base.Active = false;
                     }
                 }
 
@@ -220,6 +224,9 @@ namespace osu.Game.Overlays.Chat
                 public ChannelSelectorTabItem(Channel value, Bindable<bool> active) : base(value)
                 {
                     activeBindable = active;
+                    activeBindable.ValueChanged += v => selectorUpdateState();
+
+
                     Depth = float.MaxValue;
                     Width = 45;
 
@@ -235,6 +242,26 @@ namespace osu.Game.Overlays.Chat
                     backgroundInactive = colour.Gray2;
                     backgroundActive = colour.Gray3;
                 }
+
+                protected override void LoadComplete()
+                {
+                    base.LoadComplete();
+
+                    selectorUpdateState();
+                }
+
+                protected override void OnHoverLost(InputState state)
+                {
+                    selectorUpdateState();
+                }
+
+                private void selectorUpdateState()
+                {
+                    if (activeBindable.Value)
+                        fadeActive();
+                    else
+                        fadeInactive();
+                }
             }
         }
     }
diff --git a/osu.Game/Overlays/ChatOverlay.cs b/osu.Game/Overlays/ChatOverlay.cs
index f81c0ea922..2e6f143e74 100644
--- a/osu.Game/Overlays/ChatOverlay.cs
+++ b/osu.Game/Overlays/ChatOverlay.cs
@@ -29,6 +29,7 @@ namespace osu.Game.Overlays
     public class ChatOverlay : FocusedOverlayContainer, IOnlineComponent
     {
         private const float textbox_height = 60;
+        private const float channel_selection_min_height = 0.3f;
 
         private ScheduledDelegate messageRequest;
 
@@ -48,16 +49,21 @@ namespace osu.Game.Overlays
 
         private readonly ChatTabControl channelTabs;
 
+        private readonly Container chatContainer;
         private readonly Box chatBackground;
         private readonly Box tabBackground;
 
         private Bindable<double> chatHeight;
 
+        private readonly Container channelSelectionContainer;
+        private readonly ChannelSelectionOverlay channelSelection;
+
+        protected override bool InternalContains(Vector2 screenSpacePos) => chatContainer.Contains(screenSpacePos) || channelSelection.State == Visibility.Visible && channelSelection.Contains(screenSpacePos);
+
         public ChatOverlay()
         {
             RelativeSizeAxes = Axes.Both;
             RelativePositionAxes = Axes.Both;
-            Size = new Vector2(1, DEFAULT_HEIGHT);
             Anchor = Anchor.BottomLeft;
             Origin = Anchor.BottomLeft;
 
@@ -65,74 +71,119 @@ namespace osu.Game.Overlays
 
             Children = new Drawable[]
             {
-                new Container
+                channelSelectionContainer = new Container
                 {
-                    Name = @"chat area",
                     RelativeSizeAxes = Axes.Both,
-                    Padding = new MarginPadding { Top = TAB_AREA_HEIGHT },
-                    Children = new Drawable[]
+                    Height = 1f - DEFAULT_HEIGHT,
+                    Masking = true,
+                    Children = new[]
                     {
-                        chatBackground = new Box
+                        channelSelection = new ChannelSelectionOverlay
                         {
                             RelativeSizeAxes = Axes.Both,
                         },
-                        currentChannelContainer = new Container
+                    },
+                },
+                chatContainer = new Container
+                {
+                    Name = @"chat container",
+                    Anchor = Anchor.BottomLeft,
+                    Origin = Anchor.BottomLeft,
+                    RelativeSizeAxes = Axes.Both,
+                    Height = DEFAULT_HEIGHT,
+                    Children = new[]
+                    {
+                        new Container
                         {
+                            Name = @"chat area",
                             RelativeSizeAxes = Axes.Both,
-                            Padding = new MarginPadding
+                            Padding = new MarginPadding { Top = TAB_AREA_HEIGHT },
+                            Children = new Drawable[]
                             {
-                                Bottom = textbox_height + padding
-                            },
+                                chatBackground = new Box
+                                {
+                                    RelativeSizeAxes = Axes.Both,
+                                },
+                                currentChannelContainer = new Container
+                                {
+                                    RelativeSizeAxes = Axes.Both,
+                                    Padding = new MarginPadding
+                                    {
+                                        Bottom = textbox_height + padding
+                                    },
+                                },
+                                new Container
+                                {
+                                    Anchor = Anchor.BottomLeft,
+                                    Origin = Anchor.BottomLeft,
+                                    RelativeSizeAxes = Axes.X,
+                                    Height = textbox_height,
+                                    Padding = new MarginPadding
+                                    {
+                                        Top = padding * 2,
+                                        Bottom = padding * 2,
+                                        Left = ChatLine.LEFT_PADDING + padding * 2,
+                                        Right = padding * 2,
+                                    },
+                                    Children = new Drawable[]
+                                    {
+                                        inputTextBox = new FocusedTextBox
+                                        {
+                                            RelativeSizeAxes = Axes.Both,
+                                            Height = 1,
+                                            PlaceholderText = "type your message",
+                                            Exit = () => State = Visibility.Hidden,
+                                            OnCommit = postMessage,
+                                            HoldFocus = true,
+                                        }
+                                    }
+                                }
+                            }
                         },
                         new Container
                         {
-                            Anchor = Anchor.BottomLeft,
-                            Origin = Anchor.BottomLeft,
+                            Name = @"tabs area",
                             RelativeSizeAxes = Axes.X,
-                            Height = textbox_height,
-                            Padding = new MarginPadding
-                            {
-                                Top = padding * 2,
-                                Bottom = padding * 2,
-                                Left = ChatLine.LEFT_PADDING + padding * 2,
-                                Right = padding * 2,
-                            },
+                            Height = TAB_AREA_HEIGHT,
                             Children = new Drawable[]
                             {
-                                inputTextBox = new FocusedTextBox
+                                tabBackground = new Box
                                 {
                                     RelativeSizeAxes = Axes.Both,
-                                    Height = 1,
-                                    PlaceholderText = "type your message",
-                                    Exit = () => State = Visibility.Hidden,
-                                    OnCommit = postMessage,
-                                    HoldFocus = true,
-                                }
+                                    Colour = Color4.Black,
+                                },
+                                channelTabs = new ChatTabControl
+                                {
+                                    RelativeSizeAxes = Axes.Both,
+                                },
                             }
-                        }
-                    }
-                },
-                new Container
-                {
-                    Name = @"tabs area",
-                    RelativeSizeAxes = Axes.X,
-                    Height = TAB_AREA_HEIGHT,
-                    Children = new Drawable[]
-                    {
-                        tabBackground = new Box
-                        {
-                            RelativeSizeAxes = Axes.Both,
-                            Colour = Color4.Black,
                         },
-                        channelTabs = new ChatTabControl
-                        {
-                            RelativeSizeAxes = Axes.Both,
-                        },
-                    }
+                    },
                 },
             };
 
             channelTabs.Current.ValueChanged += newChannel => CurrentChannel = newChannel;
+            channelTabs.ChannelSelectorActive.ValueChanged += value => channelSelection.State = value ? Visibility.Visible : Visibility.Hidden;
+            channelSelection.StateChanged += (overlay, state) =>
+            {
+                channelTabs.ChannelSelectorActive.Value = state == Visibility.Visible;
+
+                if (state == Visibility.Visible)
+                {
+                    inputTextBox.HoldFocus = false;
+                    if (1f - chatHeight.Value < channel_selection_min_height)
+                    {
+                        chatContainer.ResizeHeightTo(1f - channel_selection_min_height, 800, EasingTypes.OutQuint);
+                        channelSelectionContainer.ResizeHeightTo(channel_selection_min_height, 800, EasingTypes.OutQuint);
+                        channelSelection.Show();
+                        chatHeight.Value = 1f - channel_selection_min_height;
+                    }
+                }
+                else
+                {
+                    inputTextBox.HoldFocus = true;
+                }
+            };
         }
 
         private double startDragChatHeight;
@@ -205,8 +256,9 @@ namespace osu.Game.Overlays
             chatHeight = config.GetBindable<double>(OsuSetting.ChatDisplayHeight);
             chatHeight.ValueChanged += h =>
             {
-                Height = (float)h;
-                tabBackground.FadeTo(Height == 1 ? 1 : 0.8f, 200);
+                chatContainer.Height = (float)h;
+                channelSelectionContainer.Height = 1f - (float)h;
+                tabBackground.FadeTo(h == 1 ? 1 : 0.8f, 200);
             };
             chatHeight.TriggerChange();
 
@@ -243,6 +295,16 @@ namespace osu.Game.Overlays
                     addChannel(channels.Find(c => c.Name == @"#lazer"));
                     addChannel(channels.Find(c => c.Name == @"#osu"));
                     addChannel(channels.Find(c => c.Name == @"#lobby"));
+
+                    channelSelection.OnRequestJoin = addChannel;
+                    channelSelection.Sections = new[]
+                    {
+                        new ChannelSection
+                        {
+                            Header = "All Channels",
+                            Channels = channels,
+                        },
+                    };
                 });
 
                 messageRequest = Scheduler.AddDelayed(fetchNewMessages, 1000, true);
@@ -262,9 +324,7 @@ namespace osu.Game.Overlays
 
             set
             {
-                if (currentChannel == value) return;
-
-                if (channelTabs.ChannelSelectorActive) return;
+                if (currentChannel == value || value == null) return;
 
                 currentChannel = value;
 
@@ -316,6 +376,8 @@ namespace osu.Game.Overlays
 
             if (CurrentChannel == null)
                 CurrentChannel = channel;
+
+            channel.Joined.Value = true;
         }
 
         private void fetchInitialMessages(Channel channel)
diff --git a/osu.Game/osu.Game.csproj b/osu.Game/osu.Game.csproj
index e6dd7ba1c4..759bd2d6f0 100644
--- a/osu.Game/osu.Game.csproj
+++ b/osu.Game/osu.Game.csproj
@@ -442,6 +442,9 @@
     <Compile Include="Overlays\Music\PlaylistOverlay.cs" />
     <Compile Include="Rulesets\Replays\IAutoGenerator.cs" />
     <Compile Include="Rulesets\Replays\AutoGenerator.cs" />
+    <Compile Include="Overlays\Chat\ChannelSelectionOverlay.cs" />
+    <Compile Include="Overlays\Chat\ChannelListItem.cs" />
+    <Compile Include="Overlays\Chat\ChannelSection.cs" />
     <Compile Include="Screens\Multiplayer\DrawableRoom.cs" />
     <Compile Include="Online\Multiplayer\Room.cs" />
     <Compile Include="Online\Multiplayer\RoomStatus.cs" />