diff --git a/src/Entities.js b/src/Entities.js
index 47103bfb65..5a666b1493 100644
--- a/src/Entities.js
+++ b/src/Entities.js
@@ -17,6 +17,31 @@ limitations under the License.
 var React = require('react');
 var sdk = require('./index');
 
+function isMatch(query, name, uid) {
+    query = query.toLowerCase();
+    name = name.toLowerCase();
+    uid = uid.toLowerCase();
+
+    // direct prefix matches
+    if (name.indexOf(query) === 0 || uid.indexOf(query) === 0) {
+        return true;
+    }
+
+    // strip @ on uid and try matching again
+    if (uid.length > 1 && uid[0] === "@" && uid.substring(1).indexOf(query) === 0) {
+        return true;
+    }
+
+    // split spaces in name and try matching constituent parts
+    var parts = name.split(" ");
+    for (var i = 0; i < parts.length; i++) {
+        if (parts[i].indexOf(query) === 0) {
+            return true;
+        }
+    }
+    return false;
+}
+
 /*
  * Converts various data models to Entity objects.
  *
@@ -49,7 +74,7 @@ class MemberEntity extends Entity {
     }
 
     matches(queryString) {
-        return this.model.name.toLowerCase().indexOf(queryString.toLowerCase()) === 0;
+        return isMatch(queryString, this.model.name, this.model.userId);
     }
 }
 
@@ -77,7 +102,7 @@ class UserEntity extends Entity {
 
     matches(queryString) {
         var name = this.model.displayName || this.model.userId;
-        return name.toLowerCase().indexOf(queryString.toLowerCase()) === 0;
+        return isMatch(queryString, name, this.model.userId);
     }
 }
 
diff --git a/src/components/views/rooms/MemberList.js b/src/components/views/rooms/MemberList.js
index 3af4cdc44f..9172d43a24 100644
--- a/src/components/views/rooms/MemberList.js
+++ b/src/components/views/rooms/MemberList.js
@@ -51,6 +51,7 @@ module.exports = React.createClass({
         var cli = MatrixClientPeg.get();
         cli.on("RoomState.members", this.onRoomStateMember);
         cli.on("RoomMember.name", this.onRoomMemberName);
+        cli.on("RoomState.events", this.onRoomStateEvent);
         cli.on("Room", this.onRoom); // invites
     },
 
@@ -60,6 +61,7 @@ module.exports = React.createClass({
             MatrixClientPeg.get().removeListener("RoomState.members", this.onRoomStateMember);
             MatrixClientPeg.get().removeListener("RoomMember.name", this.onRoomMemberName);
             MatrixClientPeg.get().removeListener("User.presence", this.userPresenceFn);
+            MatrixClientPeg.get().removeListener("RoomState.events", this.onRoomStateEvent);
         }
     },
 
@@ -69,11 +71,13 @@ module.exports = React.createClass({
         // Lazy-load in more than the first N members
         setTimeout(function() {
             if (!self.isMounted()) return;
+            // lazy load to prevent it blocking the first render
+            self._loadUserList();
+
             self.setState({
                 members: self.roomMembers()
             });
-            // lazy load to prevent it blocking the first render
-            self._loadUserList();
+            
         }, 50);
 
         // Attach a SINGLE listener for global presence changes then locate the
@@ -133,6 +137,12 @@ module.exports = React.createClass({
         this._updateList();
     },
 
+    onRoomStateEvent: function(event, state) {
+        if (event.getType() === "m.room.third_party_invite") {
+            this._updateList();
+        }
+    },
+
     _updateList: function() {
         this.memberDict = this.getMemberDict();