diff --git a/src/component-index.js b/src/component-index.js
index c705150e12..2644f1a379 100644
--- a/src/component-index.js
+++ b/src/component-index.js
@@ -75,6 +75,8 @@ import views$create_room$RoomAlias from './components/views/create_room/RoomAlia
 views$create_room$RoomAlias && (module.exports.components['views.create_room.RoomAlias'] = views$create_room$RoomAlias);
 import views$dialogs$BaseDialog from './components/views/dialogs/BaseDialog';
 views$dialogs$BaseDialog && (module.exports.components['views.dialogs.BaseDialog'] = views$dialogs$BaseDialog);
+import views$dialogs$ChatCreateOrReuseDialog from './components/views/dialogs/ChatCreateOrReuseDialog';
+views$dialogs$ChatCreateOrReuseDialog && (module.exports.components['views.dialogs.ChatCreateOrReuseDialog'] = views$dialogs$ChatCreateOrReuseDialog);
 import views$dialogs$ChatInviteDialog from './components/views/dialogs/ChatInviteDialog';
 views$dialogs$ChatInviteDialog && (module.exports.components['views.dialogs.ChatInviteDialog'] = views$dialogs$ChatInviteDialog);
 import views$dialogs$ConfirmUserActionDialog from './components/views/dialogs/ConfirmUserActionDialog';
diff --git a/src/components/views/dialogs/ChatCreateOrReuseDialog.js b/src/components/views/dialogs/ChatCreateOrReuseDialog.js
new file mode 100644
index 0000000000..7761e25010
--- /dev/null
+++ b/src/components/views/dialogs/ChatCreateOrReuseDialog.js
@@ -0,0 +1,111 @@
+/*
+Copyright 2017 Vector Creations Ltd
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+import React from 'react';
+import sdk from '../../../index';
+import dis from '../../../dispatcher';
+import MatrixClientPeg from '../../../MatrixClientPeg';
+import DMRoomMap from '../../../utils/DMRoomMap';
+import AccessibleButton from '../elements/AccessibleButton';
+import Unread from '../../../Unread';
+import classNames from 'classnames';
+import createRoom from '../../../createRoom';
+
+export default class CreateOrReuseChatDialog extends React.Component {
+
+    constructor(props) {
+        super(props);
+        this.onNewDMClick = this.onNewDMClick.bind(this);
+        this.onRoomTileClick = this.onRoomTileClick.bind(this);
+    }
+
+    onNewDMClick() {
+        createRoom({dmUserId: this.props.userId});
+        this.props.onFinished(true);
+    }
+
+    onRoomTileClick(roomId) {
+        dis.dispatch({
+            action: 'view_room',
+            room_id: roomId,
+        });
+        this.props.onFinished(true);
+    }
+
+    render() {
+        const client = MatrixClientPeg.get();
+
+        const dmRoomMap = new DMRoomMap(client);
+        const dmRooms = dmRoomMap.getDMRoomsForUserId(this.props.userId);
+
+        const RoomTile = sdk.getComponent("rooms.RoomTile");
+
+        const tiles = [];
+        for (const roomId of dmRooms) {
+            const room = client.getRoom(roomId);
+            if (room) {
+                const me = room.getMember(client.credentials.userId);
+                const highlight = (
+                    room.getUnreadNotificationCount('highlight') > 0 ||
+                    me.membership == "invite"
+                );
+                tiles.push(
+                    <RoomTile key={room.roomId} room={room}
+                        collapsed={false}
+                        selected={false}
+                        unread={Unread.doesRoomHaveUnreadMessages(room)}
+                        highlight={highlight}
+                        isInvite={me.membership == "invite"}
+                        onClick={this.onRoomTileClick}
+                    />
+                );
+            }
+        }
+
+        const labelClasses = classNames({
+            mx_MemberInfo_createRoom_label: true,
+            mx_RoomTile_name: true,
+        });
+        const startNewChat = <AccessibleButton
+            className="mx_MemberInfo_createRoom"
+            onClick={this.onNewDMClick}
+        >
+            <div className="mx_RoomTile_avatar">
+                <img src="img/create-big.svg" width="26" height="26" />
+            </div>
+            <div className={labelClasses}><i>Start new chat</i></div>
+        </AccessibleButton>;
+
+        const BaseDialog = sdk.getComponent('views.dialogs.BaseDialog');
+        return (
+            <BaseDialog className='mx_CreateOrReuseChatDialog'
+                onFinished={() => {
+                    this.props.onFinished(false)
+                }}
+                title='Create a new chat or reuse an existing one'
+            >
+                You already have existing direct chats with this user:
+                {tiles}
+                {startNewChat}
+            </BaseDialog>
+        );
+    }
+}
+
+CreateOrReuseChatDialog.propTyps = {
+    userId: React.PropTypes.string.isRequired,
+    onFinished: React.PropTypes.func.isRequired,
+};
diff --git a/src/components/views/dialogs/ChatInviteDialog.js b/src/components/views/dialogs/ChatInviteDialog.js
index 42394259fb..0e6a2b62e6 100644
--- a/src/components/views/dialogs/ChatInviteDialog.js
+++ b/src/components/views/dialogs/ChatInviteDialog.js
@@ -111,18 +111,27 @@ module.exports = React.createClass({
             if (inviteList === null) return;
         }
 
+        const addrTexts = inviteList.map(addr => addr.address);
         if (inviteList.length > 0) {
-            if (this._isDmChat(inviteList)) {
+            if (this._isDmChat(addrTexts)) {
+                const userId = inviteList[0].address;
                 // Direct Message chat
-                var room = this._getDirectMessageRoom(inviteList[0]);
-                if (room) {
-                    // A Direct Message room already exists for this user and you
-                    // so go straight to that room
-                    dis.dispatch({
-                        action: 'view_room',
-                        room_id: room.roomId,
+                const rooms = this._getDirectMessageRooms(userId);
+                if (rooms.length > 0) {
+                    // A Direct Message room already exists for this user, so select a
+                    // room from a list that is similar to the one in MemberInfo panel
+                    const ChatCreateOrReuseDialog = sdk.getComponent(
+                        "views.dialogs.ChatCreateOrReuseDialog"
+                    );
+                    Modal.createDialog(ChatCreateOrReuseDialog, {
+                        userId: userId,
+                        onFinished: (success) => {
+                            if (success) {
+                                this.props.onFinished(true, inviteList[0]);
+                            }
+                            // else show this ChatInviteDialog again
+                        }
                     });
-                    this.props.onFinished(true, inviteList[0]);
                 } else {
                     this._startChat(inviteList);
                 }
@@ -267,22 +276,20 @@ module.exports = React.createClass({
         if (this._cancelThreepidLookup) this._cancelThreepidLookup();
     },
 
-    _getDirectMessageRoom: function(addr) {
+    _getDirectMessageRooms: function(addr) {
         const dmRoomMap = new DMRoomMap(MatrixClientPeg.get());
-        var dmRooms = dmRoomMap.getDMRoomsForUserId(addr);
-        if (dmRooms.length > 0) {
-            // Cycle through all the DM rooms and find the first non forgotten or parted room
-            for (let i = 0; i < dmRooms.length; i++) {
-                let room = MatrixClientPeg.get().getRoom(dmRooms[i]);
-                if (room) {
-                    const me = room.getMember(MatrixClientPeg.get().credentials.userId);
-                    if (me.membership == 'join') {
-                        return room;
-                    }
+        const dmRooms = dmRoomMap.getDMRoomsForUserId(addr);
+        const rooms = [];
+        dmRooms.forEach(dmRoom => {
+            let room = MatrixClientPeg.get().getRoom(dmRoom);
+            if (room) {
+                const me = room.getMember(MatrixClientPeg.get().credentials.userId);
+                if (me.membership == 'join') {
+                    rooms.push(room);
                 }
             }
-        }
-        return null;
+        });
+        return rooms;
     },
 
     _startChat: function(addrs) {
@@ -381,8 +388,11 @@ module.exports = React.createClass({
         return false;
     },
 
-    _isDmChat: function(addrs) {
-        if (addrs.length === 1 && getAddressType(addrs[0]) === "mx" && !this.props.roomId) {
+    _isDmChat: function(addrTexts) {
+        if (addrTexts.length === 1 &&
+            getAddressType(addrTexts[0]) === "mx" &&
+            !this.props.roomId
+        ) {
             return true;
         } else {
             return false;
diff --git a/src/components/views/rooms/MemberInfo.js b/src/components/views/rooms/MemberInfo.js
index 485b4ab5c7..467c31eb2a 100644
--- a/src/components/views/rooms/MemberInfo.js
+++ b/src/components/views/rooms/MemberInfo.js
@@ -553,6 +553,13 @@ module.exports = WithMatrixClient(React.createClass({
         Modal.createDialog(ImageView, params, "mx_Dialog_lightbox");
     },
 
+    onRoomTileClick(roomId) {
+        dis.dispatch({
+            action: 'view_room',
+            room_id: roomId,
+        });
+    },
+
     _renderDevices: function() {
         if (!this._enableDevices) {
             return null;
@@ -613,6 +620,7 @@ module.exports = WithMatrixClient(React.createClass({
                             unread={Unread.doesRoomHaveUnreadMessages(room)}
                             highlight={highlight}
                             isInvite={me.membership == "invite"}
+                            onClick={this.onRoomTileClick}
                         />
                     );
                 }
diff --git a/src/components/views/rooms/RoomTile.js b/src/components/views/rooms/RoomTile.js
index f6c0f7034e..7d9034edd2 100644
--- a/src/components/views/rooms/RoomTile.js
+++ b/src/components/views/rooms/RoomTile.js
@@ -19,7 +19,6 @@ limitations under the License.
 var React = require('react');
 var ReactDOM = require("react-dom");
 var classNames = require('classnames');
-var dis = require("../../../dispatcher");
 var MatrixClientPeg = require('../../../MatrixClientPeg');
 import DMRoomMap from '../../../utils/DMRoomMap';
 var sdk = require('../../../index');
@@ -35,6 +34,7 @@ module.exports = React.createClass({
     propTypes: {
         connectDragSource: React.PropTypes.func,
         connectDropTarget: React.PropTypes.func,
+        onClick: React.PropTypes.func,
         isDragging: React.PropTypes.bool,
 
         room: React.PropTypes.object.isRequired,
@@ -100,10 +100,9 @@ module.exports = React.createClass({
     },
 
     onClick: function() {
-        dis.dispatch({
-            action: 'view_room',
-            room_id: this.props.room.roomId,
-        });
+        if (this.props.onClick) {
+            this.props.onClick(this.props.room.roomId);
+        }
     },
 
     onMouseEnter: function() {