diff --git a/livekit-rtc/livekit/rtc/chat.py b/livekit-rtc/livekit/rtc/chat.py
index 22e4b0c8..f779dae3 100644
--- a/livekit-rtc/livekit/rtc/chat.py
+++ b/livekit-rtc/livekit/rtc/chat.py
@@ -12,18 +12,28 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+from __future__ import annotations
 from dataclasses import dataclass, field
 from datetime import datetime
 import json
 import logging
 from typing import Any, Dict, Literal, Optional
-
-from .room import Room, Participant, DataPacket
+import asyncio
+
+from .room import (
+    Room,
+    Participant,
+    DataPacket,
+    TextStreamReader,
+    RemoteParticipant,
+    LocalParticipant,
+)
 from .event_emitter import EventEmitter
 from ._utils import generate_random_base62
 
-_CHAT_TOPIC = "lk-chat-topic"
-_CHAT_UPDATE_TOPIC = "lk-chat-update-topic"
+_LEGACY_CHAT_TOPIC = "lk-chat-topic"
+_LEGACY_CHAT_UPDATE_TOPIC = "lk-chat-update-topic"
+_DS_CHAT_TOPIC = "lk.chat"
 
 EventTypes = Literal["message_received",]
 
@@ -38,11 +48,17 @@ def __init__(self, room: Room):
         super().__init__()
         self._lp = room.local_participant
         self._room = room
+        self._tasks: list[asyncio.Task] = []
 
         room.on("data_received", self._on_data_received)
+        room.unregister_text_stream_handler(_DS_CHAT_TOPIC)
+        room.register_text_stream_handler(_DS_CHAT_TOPIC, self._on_text_stream_received)
 
     def close(self):
         self._room.off("data_received", self._on_data_received)
+        self._room.unregister_text_stream_handler(_DS_CHAT_TOPIC)
+        for task in self._tasks:
+            task.cancel()
 
     async def send_message(self, message: str) -> "ChatMessage":
         """Send a chat message to the end user using LiveKit Chat Protocol.
@@ -58,9 +74,12 @@ async def send_message(self, message: str) -> "ChatMessage":
             is_local=True,
             participant=self._lp,
         )
+        msg_dict = msg.asjsondict()
+        msg_dict["ignoreLegacy"] = True
+        await self._lp.send_text(message, topic=_DS_CHAT_TOPIC)
         await self._lp.publish_data(
-            payload=json.dumps(msg.asjsondict()),
-            topic=_CHAT_TOPIC,
+            payload=json.dumps(msg_dict),
+            topic=_LEGACY_CHAT_TOPIC,
         )
         return msg
 
@@ -72,15 +91,18 @@ async def update_message(self, message: "ChatMessage"):
         """
         await self._lp.publish_data(
             payload=json.dumps(message.asjsondict()),
-            topic=_CHAT_UPDATE_TOPIC,
+            topic=_LEGACY_CHAT_UPDATE_TOPIC,
         )
 
     def _on_data_received(self, dp: DataPacket):
         # handle both new and updates the same way, as long as the ID is in there
         # the user can decide how to replace the previous message
-        if dp.topic == _CHAT_TOPIC or dp.topic == _CHAT_UPDATE_TOPIC:
+        if dp.topic == _LEGACY_CHAT_TOPIC or dp.topic == _LEGACY_CHAT_UPDATE_TOPIC:
             try:
                 parsed = json.loads(dp.data)
+                # if the message is marked as ignoreLegacy, we'll skip it
+                if parsed.get("ignoreLegacy"):
+                    return
                 msg = ChatMessage.from_jsondict(parsed)
                 if dp.participant:
                     msg.participant = dp.participant
@@ -88,6 +110,31 @@ def _on_data_received(self, dp: DataPacket):
             except Exception as e:
                 logging.warning("failed to parse chat message: %s", e, exc_info=e)
 
+    def _on_text_stream_received(
+        self, stream: TextStreamReader, participant_identity: str
+    ):
+        task = asyncio.create_task(
+            self._handle_text_stream(stream, participant_identity)
+        )
+        self._tasks.append(task)
+        task.add_done_callback(self._tasks.remove)
+
+    async def _handle_text_stream(
+        self, stream: TextStreamReader, participant_identity: str
+    ):
+        msg = await ChatMessage.from_text_stream(stream)
+        participant: RemoteParticipant | LocalParticipant | None = (
+            self._room._remote_participants.get(participant_identity)
+        )
+        if (
+            participant is None
+            and self._room.local_participant.identity == participant_identity
+        ):
+            participant = self._room.local_participant
+            msg.is_local = True
+        msg.participant = participant
+        self.emit("message_received", msg)
+
 
 @dataclass
 class ChatMessage:
@@ -129,3 +176,13 @@ def asjsondict(self):
         if self.deleted:
             d["deleted"] = True
         return d
+
+    @classmethod
+    async def from_text_stream(cls, stream: TextStreamReader):
+        message_text = await stream.read_all()
+        timestamp = datetime.fromtimestamp(stream.info.timestamp / 1000.0)
+        return cls(
+            message=message_text,
+            timestamp=timestamp,
+            id=stream.info.stream_id,
+        )