diff --git a/exec/totemudpu.c b/exec/totemudpu.c
index fff1d8d9..60de2e5c 100644
--- a/exec/totemudpu.c
+++ b/exec/totemudpu.c
@@ -173,6 +173,8 @@ struct totemudpu_instance {
 
 	int token_socket;
 
+	int local_loop_sock[2];
+
 	qb_loop_timer_handle timer_merge_detect_timeout;
 
 	int send_merge_detect_message;
@@ -204,8 +206,6 @@ static void totemudpu_start_merge_detect_timeout(
 static void totemudpu_stop_merge_detect_timeout(
 	void *udpu_context);
 
-static struct totem_ip_address localhost;
-
 static void totemudpu_instance_initialize (struct totemudpu_instance *instance)
 {
 	memset (instance, 0, sizeof (struct totemudpu_instance));
@@ -262,6 +262,7 @@ static inline void ucast_sendmsg (
 	struct sockaddr_storage sockaddr;
 	struct iovec iovec;
 	int addrlen;
+	int send_sock;
 
 	iovec.iov_base = (void *)msg;
 	iovec.iov_len = msg_len;
@@ -292,12 +293,20 @@ static inline void ucast_sendmsg (
 	msg_ucast.msg_accrightslen = 0;
 #endif
 
+	if (instance->netif_bind_state == BIND_STATE_REGULAR) {
+		send_sock = instance->token_socket;
+	} else {
+		send_sock = instance->local_loop_sock[1];
+		msg_ucast.msg_name = NULL;
+		msg_ucast.msg_namelen = 0;
+	}
+
 
 	/*
 	 * Transmit unicast message
 	 * An error here is recovered by totemsrp
 	 */
-	res = sendmsg (instance->token_socket, &msg_ucast, MSG_NOSIGNAL);
+	res = sendmsg (send_sock, &msg_ucast, MSG_NOSIGNAL);
 	if (res < 0) {
 		LOGSYS_PERROR (errno, instance->totemudpu_log_level_debug,
 				"sendmsg(ucast) failed (non-critical)");
@@ -325,22 +334,65 @@ static inline void mcast_sendmsg (
 	/*
 	 * Build multicast message
 	 */
-	qb_list_for_each(list, &(instance->member_list)) {
-		member = qb_list_entry (list,
-			struct totemudpu_member,
-			list);
+	if (instance->netif_bind_state == BIND_STATE_REGULAR) {
+		qb_list_for_each(list, &(instance->member_list)) {
+			member = qb_list_entry (list,
+				struct totemudpu_member,
+				list);
+				/*
+				 * Do not send multicast message if message is not "flush", member
+				 * is inactive and timeout for sending merge message didn't expired.
+				 */
+				if (only_active && !member->active && !instance->send_merge_detect_message)
+					continue ;
 
+				totemip_totemip_to_sockaddr_convert(&member->member,
+					instance->totem_interface->ip_port, &sockaddr, &addrlen);
+				msg_mcast.msg_name = &sockaddr;
+				msg_mcast.msg_namelen = addrlen;
+				msg_mcast.msg_iov = (void *)&iovec;
+				msg_mcast.msg_iovlen = 1;
+			#ifdef HAVE_MSGHDR_CONTROL
+				msg_mcast.msg_control = 0;
+			#endif
+			#ifdef HAVE_MSGHDR_CONTROLLEN
+				msg_mcast.msg_controllen = 0;
+			#endif
+			#ifdef HAVE_MSGHDR_FLAGS
+				msg_mcast.msg_flags = 0;
+			#endif
+			#ifdef HAVE_MSGHDR_ACCRIGHTS
+				msg_mcast.msg_accrights = NULL;
+			#endif
+			#ifdef HAVE_MSGHDR_ACCRIGHTSLEN
+				msg_mcast.msg_accrightslen = 0;
+			#endif
+
+				/*
+				 * Transmit multicast message
+				 * An error here is recovered by totemsrp
+				 */
+				res = sendmsg (member->fd, &msg_mcast, MSG_NOSIGNAL);
+				if (res < 0) {
+					LOGSYS_PERROR (errno, instance->totemudpu_log_level_debug,
+						"sendmsg(mcast) failed (non-critical)");
+				}
+		}
+
+		if (!only_active || instance->send_merge_detect_message) {
+			/*
+			 * Current message was sent to all nodes
+			 */
+			instance->merge_detect_messages_sent_before_timeout++;
+			instance->send_merge_detect_message = 0;
+		}
+	} else {
 		/*
-		 * Do not send multicast message if message is not "flush", member
-		 * is inactive and timeout for sending merge message didn't expired.
+		 * Transmit multicast message to local unix mcast loop
+		 * An error here is recovered by totemsrp
 		 */
-		if (only_active && !member->active && !instance->send_merge_detect_message)
-			continue ;
-
-		totemip_totemip_to_sockaddr_convert(&member->member,
-			instance->totem_interface->ip_port, &sockaddr, &addrlen);
-		msg_mcast.msg_name = &sockaddr;
-		msg_mcast.msg_namelen = addrlen;
+		msg_mcast.msg_name = NULL;
+		msg_mcast.msg_namelen = 0;
 		msg_mcast.msg_iov = (void *)&iovec;
 		msg_mcast.msg_iovlen = 1;
 	#ifdef HAVE_MSGHDR_CONTROL
@@ -359,24 +411,13 @@ static inline void mcast_sendmsg (
 		msg_mcast.msg_accrightslen = 0;
 	#endif
 
-		/*
-		 * Transmit multicast message
-		 * An error here is recovered by totemsrp
-		 */
-		res = sendmsg (member->fd, &msg_mcast, MSG_NOSIGNAL);
+		res = sendmsg (instance->local_loop_sock[1], &msg_mcast,
+			MSG_NOSIGNAL);
 		if (res < 0) {
 			LOGSYS_PERROR (errno, instance->totemudpu_log_level_debug,
-				"sendmsg(mcast) failed (non-critical)");
+				"sendmsg(local mcast loop) failed (non-critical)");
 		}
 	}
-
-	if (!only_active || instance->send_merge_detect_message) {
-		/*
-		 * Current message was sent to all nodes
-		 */
-		instance->merge_detect_messages_sent_before_timeout++;
-		instance->send_merge_detect_message = 0;
-	}
 }
 
 int totemudpu_finalize (
@@ -391,6 +432,13 @@ int totemudpu_finalize (
 		close (instance->token_socket);
 	}
 
+	if (instance->local_loop_sock[0] > 0) {
+		qb_loop_poll_del (instance->totemudpu_poll_handle,
+			instance->local_loop_sock[0]);
+		close (instance->local_loop_sock[0]);
+		close (instance->local_loop_sock[1]);
+	}
+
 	totemudpu_stop_merge_detect_timeout(instance);
 
 	return (res);
@@ -508,7 +556,6 @@ static void timer_function_netif_check_timeout (
 	struct totemudpu_instance *instance = (struct totemudpu_instance *)data;
 	int interface_up;
 	int interface_num;
-	struct totem_ip_address *bind_address;
 
 	/*
 	 * Build sockets for every interface
@@ -545,14 +592,21 @@ static void timer_function_netif_check_timeout (
 		qb_loop_poll_del (instance->totemudpu_poll_handle,
 			instance->token_socket);
 		close (instance->token_socket);
+		instance->token_socket = -1;
 	}
 
 	if (interface_up == 0) {
+		if (instance->netif_bind_state == BIND_STATE_UNBOUND) {
+			log_printf (instance->totemudpu_log_level_error,
+				"One of your ip addresses are now bound to localhost. "
+				"Corosync would not work correctly.");
+			exit(COROSYNC_DONE_FATAL_ERR);
+		}
+
 		/*
 		 * Interface is not up
 		 */
 		instance->netif_bind_state = BIND_STATE_LOOPBACK;
-		bind_address = &localhost;
 
 		/*
 		 * Add a timer to retry building interfaces and request memb_gather_enter
@@ -568,19 +622,20 @@ static void timer_function_netif_check_timeout (
 		 * Interface is up
 		 */
 		instance->netif_bind_state = BIND_STATE_REGULAR;
-		bind_address = &instance->totem_interface->bindnet;
 	}
 	/*
 	 * Create and bind the multicast and unicast sockets
 	 */
 	totemudpu_build_sockets (instance,
-		bind_address,
+		&instance->totem_interface->bindnet,
 		&instance->totem_interface->boundto);
 
-	qb_loop_poll_add (instance->totemudpu_poll_handle,
-		QB_LOOP_MED,
-		instance->token_socket,
-		POLLIN, instance, net_deliver_fn);
+	if (instance->netif_bind_state == BIND_STATE_REGULAR) {
+		qb_loop_poll_add (instance->totemudpu_poll_handle,
+			QB_LOOP_MED,
+			instance->token_socket,
+			POLLIN, instance, net_deliver_fn);
+	}
 
 	totemip_copy (&instance->my_id, &instance->totem_interface->boundto);
 
@@ -720,6 +775,65 @@ int totemudpu_ifaces_get (
 }
 
 
+static int totemudpu_build_local_sockets(
+	struct totemudpu_instance *instance)
+{
+	int i;
+	unsigned int sendbuf_size;
+	unsigned int recvbuf_size;
+	unsigned int optlen = sizeof (sendbuf_size);
+	int res;
+
+	/*
+	 * Create local multicast loop socket
+	 */
+	if (socketpair(AF_UNIX, SOCK_DGRAM, 0, instance->local_loop_sock) == -1) {
+		LOGSYS_PERROR (errno, instance->totemudpu_log_level_warning,
+			"socket() failed");
+		return (-1);
+	}
+
+	for (i = 0; i < 2; i++) {
+		totemip_nosigpipe (sockets->local_loop_sock[i]);
+		res = fcntl (instance->local_loop_sock[i], F_SETFL, O_NONBLOCK);
+		if (res == -1) {
+			LOGSYS_PERROR (errno, instance->totemudpu_log_level_warning,
+				"Could not set non-blocking operation on multicast socket");
+			return (-1);
+		}
+	}
+
+	recvbuf_size = MCAST_SOCKET_BUFFER_SIZE;
+	sendbuf_size = MCAST_SOCKET_BUFFER_SIZE;
+
+	res = setsockopt (instance->local_loop_sock[0], SOL_SOCKET, SO_RCVBUF, &recvbuf_size, optlen);
+	if (res == -1) {
+		LOGSYS_PERROR (errno, instance->totemudpu_log_level_debug,
+			"Unable to set SO_RCVBUF size on UDP local mcast loop socket");
+		return (-1);
+	}
+	res = setsockopt (instance->local_loop_sock[1], SOL_SOCKET, SO_SNDBUF, &sendbuf_size, optlen);
+	if (res == -1) {
+		LOGSYS_PERROR (errno, instance->totemudpu_log_level_debug,
+			"Unable to set SO_SNDBUF size on UDP local mcast loop socket");
+		return (-1);
+	}
+
+	res = getsockopt (instance->local_loop_sock[0], SOL_SOCKET, SO_RCVBUF, &recvbuf_size, &optlen);
+	if (res == 0) {
+		log_printf (instance->totemudpu_log_level_debug,
+			"Local receive multicast loop socket recv buffer size (%d bytes).", recvbuf_size);
+	}
+
+	res = getsockopt (instance->local_loop_sock[1], SOL_SOCKET, SO_SNDBUF, &sendbuf_size, &optlen);
+	if (res == 0) {
+		log_printf (instance->totemudpu_log_level_debug,
+			"Local transmit multicast loop socket send buffer size (%d bytes).", sendbuf_size);
+	}
+
+	return (0);
+}
+
 static int totemudpu_build_sockets (
 	struct totemudpu_instance *instance,
 	struct totem_ip_address *bindnet_address,
@@ -838,8 +952,19 @@ int totemudpu_initialize (
 
 	instance->totemudpu_target_set_completed = target_set_completed;
 
-        totemip_localhost (AF_INET, &localhost);
-	localhost.nodeid = instance->totem_config->node_id;
+	/*
+	 * Create static local mcast sockets
+	 */
+	if (totemudpu_build_local_sockets(instance) == -1) {
+		free(instance);
+		return (-1);
+	}
+
+	qb_loop_poll_add (
+		instance->totemudpu_poll_handle,
+		QB_LOOP_MED,
+		instance->local_loop_sock[0],
+		POLLIN, instance, net_deliver_fn);
 
 	/*
 	 * RRP layer isn't ready to receive message because it hasn't
@@ -852,7 +977,7 @@ int totemudpu_initialize (
 		timer_function_netif_check_timeout,
 		&instance->timer_netif_check_timeout);
 
-	totemudpu_start_merge_detect_timeout(instance);
+	totemudpu_start_merge_detect_timeout((void*)instance);
 
 	*udpu_context = instance;
 	return (0);
@@ -992,8 +1117,9 @@ extern int totemudpu_recv_mcast_empty (
 	struct sockaddr_storage system_from;
 	struct msghdr msg_recv;
 	struct pollfd ufd;
-	int nfds;
+	int nfds, i;
 	int msg_processed = 0;
+	int sock;
 
 	/*
 	 * Receive datagram
@@ -1018,19 +1144,34 @@ extern int totemudpu_recv_mcast_empty (
 	msg_recv.msg_accrightslen = 0;
 #endif
 
-	do {
-		ufd.fd = instance->token_socket;
-		ufd.events = POLLIN;
-		nfds = poll (&ufd, 1, 0);
-		if (nfds == 1 && ufd.revents & POLLIN) {
-			res = recvmsg (instance->token_socket, &msg_recv, MSG_NOSIGNAL | MSG_DONTWAIT);
-			if (res != -1) {
-				msg_processed = 1;
+	for (i = 0; i < 2; i++) {
+		sock = -1;
+		if (i == 0) {
+			if (instance->netif_bind_state == BIND_STATE_REGULAR) {
+				sock = instance->token_socket;
 			} else {
-				msg_processed = -1;
+				continue;
 			}
 		}
-	} while (nfds == 1);
+		if (i == 1) {
+			sock = instance->local_loop_sock[0];
+		}
+		assert(sock != -1);
+
+		do {
+			ufd.fd = sock;
+			ufd.events = POLLIN;
+			nfds = poll (&ufd, 1, 0);
+			if (nfds == 1 && ufd.revents & POLLIN) {
+				res = recvmsg (sock, &msg_recv, MSG_NOSIGNAL | MSG_DONTWAIT);
+				if (res != -1) {
+					msg_processed = 1;
+				} else {
+					msg_processed = -1;
+				}
+			}
+		} while (nfds == 1);
+	}
 
 	return (msg_processed);
 }