diff --git a/src/ejabberd_c2s.erl b/src/ejabberd_c2s.erl
index 309287721..0a3cfe6b5 100644
--- a/src/ejabberd_c2s.erl
+++ b/src/ejabberd_c2s.erl
@@ -286,7 +286,8 @@ init([StateName, StateData, _FSMLimitOpts]) ->
 	    NewStateData = StateData#state{sid = SID, socket_monitor = MRef},
 	    {ok, StateName, NewStateData};
        true ->
-	    {ok, StateName, StateData#state{socket_monitor = MRef}}
+        %% pack, as sharing is not preserved accross message passing
+	    {ok, StateName, pack(StateData#state{socket_monitor = MRef})}
     end.
 
 %% Return list of all available resources of contacts,
@@ -2148,11 +2149,22 @@ maybe_migrate(StateName, StateData) ->
 		    After = ejabberd_cluster:rehash_timeout(),
 		    migrate(self(), NewNode, After)
 	    end,
-	    fsm_next_state(StateName, StateData);
+	    fsm_next_state_pack(StateName, StateData); 
 	Node ->
 	    fsm_migrate(StateName, StateData, Node, 0)
     end.
 
+%% fsm_next_state_pack: Pack the StateData structure to improve
+%% sharing.
+fsm_next_state_pack(StateName, StateData) ->
+    fsm_next_state_gc(StateName, pack(StateData)).
+
+%% fsm_next_state_gc: Garbage collect the process heap to make use of
+%% the newly packed StateData structure.
+fsm_next_state_gc(StateName, PackedStateData) ->
+    erlang:garbage_collect(),
+    fsm_next_state(StateName, PackedStateData).
+
 %% fsm_next_state: Generate the next_state FSM tuple with different
 %% timeout, depending on the future state
 fsm_next_state(session_established, StateData) ->
@@ -2231,3 +2243,54 @@ bounce_messages() ->
     after 0 ->
 	    ok
     end.
+
+
+
+%%%----------------------------------------------------------------------
+%%% JID Set memory footprint reduction code
+%%%----------------------------------------------------------------------
+
+%% Try to reduce the heap footprint of the four presence sets
+%% by ensuring that we re-use strings and Jids wherever possible.
+pack(S = #state{pres_a=A,
+                pres_i=I,
+                pres_f=F,
+                pres_t=T}) ->
+    {NewA, Pack1} = pack_jid_set(A, gb_trees:empty()),
+    {NewI, Pack2} = pack_jid_set(I, Pack1),
+    {NewF, Pack3} = pack_jid_set(F, Pack2),
+    {NewT, _Pack4} = pack_jid_set(T, Pack3),
+    %% Throw away Pack4 so that if we delete references to
+    %% Strings or Jids in any of the sets there will be
+    %% no live references for the GC to find.
+    S#state{pres_a=NewA,
+            pres_i=NewI,
+            pres_f=NewF,
+            pres_t=NewT}.
+
+pack_jid_set(Set, Pack) ->
+    Jids = ?SETS:to_list(Set),
+    {PackedJids, NewPack} = pack_jids(Jids, Pack, []),
+    {?SETS:from_list(PackedJids), NewPack}.
+
+pack_jids([], Pack, Acc) -> {Acc, Pack};
+pack_jids([{U,S,R}=Jid | Jids], Pack, Acc) ->
+    case gb_trees:lookup(Jid, Pack) of
+        {value, PackedJid} ->
+            pack_jids(Jids, Pack, [PackedJid | Acc]);
+        none ->
+            {NewU, Pack1} = pack_string(U, Pack),
+            {NewS, Pack2} = pack_string(S, Pack1),
+            {NewR, Pack3} = pack_string(R, Pack2),
+            NewJid = {NewU, NewS, NewR},
+            NewPack = gb_trees:insert(NewJid, NewJid, Pack3),
+            pack_jids(Jids, NewPack, [NewJid | Acc])
+    end.
+
+pack_string(String, Pack) ->
+    case gb_trees:lookup(String, Pack) of
+        {value, PackedString} ->
+            {PackedString, Pack};
+        none ->
+            {String, gb_trees:insert(String, String, Pack)}
+    end.