diff --git a/CHANGES.md b/CHANGES.md
index 7f2fdac83..9ea7adeaf 100644
--- a/CHANGES.md
+++ b/CHANGES.md
@@ -15,6 +15,9 @@
   To add custom emojis, edit the `emojis.json` file.
 - Refactor some presence and status handling code from `converse-core` into `@converse/headless/converse-status`.
 - New API [\_converse.api.headlines](https://conversejs.org/docs/html/api/-_converse.api.headlines.html#.get)
+- New config option [muc_mention_autocomplete_filter](https://conversejs.org/docs/html/configuration.html#muc_mention_autocomplete_filter)
+- New config option [muc_mention_autocomplete_show_avatar](https://conversejs.org/docs/html/configuration.html#muc_mention_autocomplete_show_avatar)
+
 
 ### Breaking changes
 
diff --git a/docs/source/configuration.rst b/docs/source/configuration.rst
index 1b523f285..f6b0d3aa7 100644
--- a/docs/source/configuration.rst
+++ b/docs/source/configuration.rst
@@ -941,6 +941,21 @@ muc_mention_autocomplete_min_chars
 The number of characters that need to be entered before the auto-complete list
 of matching nicknames is shown.
 
+muc_mention_autocomplete_filter
+-------------------------------
+
+* Default:  ``contains``
+
+The method used for filtering MUC participants when using auto-complete. 
+Valid values are ``contains`` and ``starts_with``.
+
+muc_mention_autocomplete_show_avatar
+-------------------------------
+
+* Default:  ``true``
+
+Show avatars of MUC participants when using auto-complete. 
+
 message_archiving
 -----------------
 
diff --git a/sass/_core.scss b/sass/_core.scss
index 55cfe4afc..7a0271571 100644
--- a/sass/_core.scss
+++ b/sass/_core.scss
@@ -504,6 +504,11 @@ body.converse-fullscreen {
         background-color: var(--avatar-background-color);
     }
 
+    .avatar-autocomplete {
+        margin-right: 0.5em; 
+        vertical-align: middle;
+    } 
+
     .activated {
         display: block !important;
     }
diff --git a/src/converse-muc-views.js b/src/converse-muc-views.js
index 96f35a292..3e4efa634 100644
--- a/src/converse-muc-views.js
+++ b/src/converse-muc-views.js
@@ -111,6 +111,8 @@ converse.plugins.add('converse-muc-views', {
             'muc_show_join_leave': true,
             'muc_show_join_leave_status': true,
             'muc_mention_autocomplete_min_chars': 0,
+            'muc_mention_autocomplete_filter': 'contains',
+            'muc_mention_autocomplete_show_avatar': true,
             'roomconfig_whitelist': [],
             'visible_toolbar_buttons': {
                 'toggle_occupants': true
@@ -744,6 +746,42 @@ converse.plugins.add('converse-muc-views', {
                 return this.model.occupants.filter('nick').map(o => ({'label': o.get('nick'), 'value': `@${o.get('nick')}`}));
             },
 
+            getAutoCompleteListItem(text, input) {
+                input = input.trim();
+                const element = document.createElement("li");
+                element.setAttribute("aria-selected", "false");
+
+                if (_converse.muc_mention_autocomplete_show_avatar) {
+                    const img = document.createElement("img");
+                    let dataUri = "data:" + _converse.DEFAULT_IMAGE_TYPE + ";base64," + _converse.DEFAULT_IMAGE;
+
+                    if (_converse.vcards) {
+                        const vcard = _converse.vcards.findWhere({'nickname': text});
+                        if (vcard) dataUri = "data:" + vcard.get('image_type') + ";base64," + vcard.get('image');
+                    }
+
+                    img.setAttribute("src", dataUri);
+                    img.setAttribute("width", "22");
+                    img.setAttribute("class", "avatar avatar-autocomplete");
+                    element.appendChild(img);
+                }
+
+                const regex = new RegExp("(" + input + ")", "ig");
+                const parts = input ? text.split(regex) : [text];
+
+                parts.forEach(txt => {
+                    if (input && txt.match(regex)) {
+                      const match = document.createElement("mark");
+                      match.textContent = txt;
+                      element.appendChild(match);
+                    } else {
+                      element.appendChild(document.createTextNode(txt));
+                    }
+                });
+
+                return element;
+            },
+
             initMentionAutoComplete () {
                 this.mention_auto_complete = new _converse.AutoComplete(this.el, {
                     'auto_first': true,
@@ -751,9 +789,10 @@ converse.plugins.add('converse-muc-views', {
                     'min_chars': _converse.muc_mention_autocomplete_min_chars,
                     'match_current_word': true,
                     'list': () => this.getAutoCompleteList(),
-                    'filter': _converse.FILTER_STARTSWITH,
+                    'filter': _converse.muc_mention_autocomplete_filter == 'contains' ? _converse.FILTER_CONTAINS : _converse.FILTER_STARTSWITH,
                     'ac_triggers': ["Tab", "@"],
-                    'include_triggers': []
+                    'include_triggers': [],
+                    'item': this.getAutoCompleteListItem
                 });
                 this.mention_auto_complete.on('suggestion-box-selectcomplete', () => (this.auto_completing = false));
             },