diff --git a/cunit/test_nsc.c b/cunit/test_nsc.c
index bd4c102a2..4f26468d4 100644
--- a/cunit/test_nsc.c
+++ b/cunit/test_nsc.c
@@ -273,6 +273,43 @@ static const uint8 nsc_stress_data[] =
 	, 0x00, 0x00, 0xff, 0xf7, 0x01, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00
 };
 
+static const uint8 rgb_scanline_data[] =
+{
+	0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00,
+	0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00,
+	0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00,
+	0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00,
+	0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00,
+	0xFF, 0x00, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00,
+	0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00,
+	0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00,
+	0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00,
+	0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00,
+	0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00,
+	0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF,
+	0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF,
+	0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF,
+	0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF,
+	0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF,
+
+	0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00,
+	0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00,
+	0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00,
+	0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00,
+	0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00,
+	0xFF, 0x00, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00,
+	0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00,
+	0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00,
+	0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00,
+	0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00,
+	0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00,
+	0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF,
+	0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF,
+	0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF,
+	0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF,
+	0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF, 0x00, 0x00, 0xFF
+};
+
 int init_nsc_suite(void)
 {
 	return 0;
@@ -311,4 +348,26 @@ void test_nsc_decode(void)
 
 void test_nsc_encode(void)
 {
+	int i;
+	uint8* rgb_data;
+	STREAM* enc_stream;
+	NSC_CONTEXT* context;
+
+	rgb_data = (uint8 *) malloc(64 * 64 * 3);
+	for (i = 0; i < 64; i++)
+		memcpy(rgb_data + i * 64 * 3, rgb_scanline_data, 64 * 3);
+
+	context = nsc_context_new();
+	nsc_context_set_cpu_opt(context, CPU_SSE2);
+	nsc_context_set_pixel_format(context, RDP_PIXEL_FORMAT_R8G8B8);
+
+	enc_stream = stream_new(65536);
+	stream_clear(enc_stream);
+	nsc_compose_message(context, enc_stream, rgb_data, 64, 64, 64 * 3);
+	/*freerdp_hexdump(stream_get_head(enc_stream), stream_get_length(enc_stream));*/
+	nsc_process_message(context, 32, 64, 64, stream_get_head(enc_stream), stream_get_length(enc_stream));
+	/*freerdp_hexdump(context->bmpdata, 64 * 64 * 4);*/
+	stream_free(enc_stream);
+
+	nsc_context_free(context);
 }
diff --git a/include/freerdp/codec/nsc.h b/include/freerdp/codec/nsc.h
index 482f8d78e..9912da00f 100644
--- a/include/freerdp/codec/nsc.h
+++ b/include/freerdp/codec/nsc.h
@@ -55,6 +55,9 @@ struct _NSC_CONTEXT
 	uint32 bmpdata_length; /* the maximum length of the buffer that bmpdata points to */
 	RDP_PIXEL_FORMAT pixel_format;
 
+	/* color palette allocated by the application */
+	const uint8* palette;
+
 	void (*decode)(NSC_CONTEXT* context);
 	void (*encode)(NSC_CONTEXT* context, uint8* bmpdata, int rowstride);
 
diff --git a/libfreerdp-codec/nsc_encode.c b/libfreerdp-codec/nsc_encode.c
index c8e4016b7..68975698a 100644
--- a/libfreerdp-codec/nsc_encode.c
+++ b/libfreerdp-codec/nsc_encode.c
@@ -37,38 +37,326 @@ static void nsc_context_initialize_encode(NSC_CONTEXT* context)
 	tempWidth = ROUND_UP_TO(context->width, 8);
 	tempHeight = ROUND_UP_TO(context->height, 2);
 	/* The maximum length a decoded plane can reach in all cases */
-	length = tempWidth * tempHeight;
+	length = tempWidth * tempHeight + 16;
 	if (length > context->priv->plane_buf_length)
 	{
-		for (i = 0; i < 4; i++)
+		for (i = 0; i < 5; i++)
 			context->priv->plane_buf[i] = (uint8*) xrealloc(context->priv->plane_buf[i], length);
 		context->priv->plane_buf_length = length;
 	}
 
 	if (context->nsc_stream.ChromaSubSamplingLevel > 0)
 	{
-		context->nsc_stream.PlaneByteCount[0] = tempWidth * context->height;
-		context->nsc_stream.PlaneByteCount[1] = tempWidth * tempHeight / 4;
-		context->nsc_stream.PlaneByteCount[2] = tempWidth * tempHeight / 4;
-		context->nsc_stream.PlaneByteCount[3] = context->width * context->height;
+		context->OrgByteCount[0] = tempWidth * context->height;
+		context->OrgByteCount[1] = tempWidth * tempHeight / 4;
+		context->OrgByteCount[2] = tempWidth * tempHeight / 4;
+		context->OrgByteCount[3] = context->width * context->height;
 	}
 	else
 	{
-		context->nsc_stream.PlaneByteCount[0] = context->width * context->height;
-		context->nsc_stream.PlaneByteCount[1] = context->width * context->height;
-		context->nsc_stream.PlaneByteCount[2] = context->width * context->height;
-		context->nsc_stream.PlaneByteCount[3] = context->width * context->height;
+		context->OrgByteCount[0] = context->width * context->height;
+		context->OrgByteCount[1] = context->width * context->height;
+		context->OrgByteCount[2] = context->width * context->height;
+		context->OrgByteCount[3] = context->width * context->height;
+	}
+}
+
+static void nsc_encode_argb_to_aycocg(NSC_CONTEXT* context, uint8* bmpdata, int rowstride)
+{
+	uint16 x;
+	uint16 y;
+	uint16 rw;
+	uint8 ccl;
+	uint8* src;
+	uint8* yplane;
+	uint8* coplane;
+	uint8* cgplane;
+	uint8* aplane;
+	sint16 r_val;
+	sint16 g_val;
+	sint16 b_val;
+	uint8 a_val;
+	uint32 tempWidth;
+	uint32 tempHeight;
+
+	tempWidth = ROUND_UP_TO(context->width, 8);
+	tempHeight = ROUND_UP_TO(context->height, 2);
+	rw = (context->nsc_stream.ChromaSubSamplingLevel > 0 ? tempWidth : context->width);
+	ccl = context->nsc_stream.ColorLossLevel;
+	yplane = context->priv->plane_buf[0];
+	coplane = context->priv->plane_buf[1];
+	cgplane = context->priv->plane_buf[2];
+	aplane = context->priv->plane_buf[3];
+
+	for (y = 0; y < context->height; y++)
+	{
+		src = bmpdata + (context->height - 1 - y) * rowstride;
+		yplane = context->priv->plane_buf[0] + y * rw;
+		coplane = context->priv->plane_buf[1] + y * rw;
+		cgplane = context->priv->plane_buf[2] + y * rw;
+		aplane = context->priv->plane_buf[3] + y * context->width;
+		for (x = 0; x < context->width; x++)
+		{
+			switch (context->pixel_format)
+			{
+				case RDP_PIXEL_FORMAT_B8G8R8A8:
+					b_val = *src++;
+					g_val = *src++;
+					r_val = *src++;
+					a_val = *src++;
+					break;
+				case RDP_PIXEL_FORMAT_R8G8B8A8:
+					r_val = *src++;
+					g_val = *src++;
+					b_val = *src++;
+					a_val = *src++;
+					break;
+				case RDP_PIXEL_FORMAT_B8G8R8:
+					b_val = *src++;
+					g_val = *src++;
+					r_val = *src++;
+					a_val = 0xFF;
+					break;
+				case RDP_PIXEL_FORMAT_R8G8B8:
+					r_val = *src++;
+					g_val = *src++;
+					b_val = *src++;
+					a_val = 0xFF;
+					break;
+				case RDP_PIXEL_FORMAT_B5G6R5_LE:
+					b_val = (sint16) (((*(src + 1)) & 0xF8) | ((*(src + 1)) >> 5));
+					g_val = (sint16) ((((*(src + 1)) & 0x07) << 5) | (((*src) & 0xE0) >> 3));
+					r_val = (sint16) ((((*src) & 0x1F) << 3) | (((*src) >> 2) & 0x07));
+					a_val = 0xFF;
+					src += 2;
+					break;
+				case RDP_PIXEL_FORMAT_R5G6B5_LE:
+					r_val = (sint16) (((*(src + 1)) & 0xF8) | ((*(src + 1)) >> 5));
+					g_val = (sint16) ((((*(src + 1)) & 0x07) << 5) | (((*src) & 0xE0) >> 3));
+					b_val = (sint16) ((((*src) & 0x1F) << 3) | (((*src) >> 2) & 0x07));
+					a_val = 0xFF;
+					src += 2;
+					break;
+				case RDP_PIXEL_FORMAT_P4_PLANER:
+					{
+						int shift;
+						uint8 idx;
+
+						shift = (7 - (x % 8));
+						idx = ((*src) >> shift) & 1;
+						idx |= (((*(src + 1)) >> shift) & 1) << 1;
+						idx |= (((*(src + 2)) >> shift) & 1) << 2;
+						idx |= (((*(src + 3)) >> shift) & 1) << 3;
+						idx *= 3;
+						r_val = (sint16) context->palette[idx];
+						g_val = (sint16) context->palette[idx + 1];
+						b_val = (sint16) context->palette[idx + 2];
+						if (shift == 0)
+							src += 4;
+					}
+					a_val = 0xFF;
+					break;
+				case RDP_PIXEL_FORMAT_P8:
+					{
+						int idx = (*src) * 3;
+
+						r_val = (sint16) context->palette[idx];
+						g_val = (sint16) context->palette[idx + 1];
+						b_val = (sint16) context->palette[idx + 2];
+						src++;
+					}
+					a_val = 0xFF;
+					break;
+				default:
+					r_val = g_val = b_val = a_val = 0;
+					break;
+			}
+			*yplane++ = (uint8) ((r_val >> 2) + (g_val >> 1) + (b_val >> 2));
+			/* Perform color loss reduction here */
+			*coplane++ = (uint8) ((r_val - b_val) >> ccl);
+			*cgplane++ = (uint8) ((-(r_val >> 1) + g_val - (b_val >> 1)) >> ccl);
+			*aplane++ = a_val;
+		}
+		if (context->nsc_stream.ChromaSubSamplingLevel > 0 && (x % 2) == 1)
+		{
+			*yplane = *(yplane - 1);
+			*coplane = *(coplane - 1);
+			*cgplane = *(cgplane - 1);
+		}
+	}
+	if (context->nsc_stream.ChromaSubSamplingLevel > 0 && (y % 2) == 1)
+	{
+		memcpy(yplane + rw, yplane, rw);
+		memcpy(coplane + rw, coplane, rw);
+		memcpy(cgplane + rw, cgplane, rw);
+	}
+}
+
+static void nsc_encode_subsampling(NSC_CONTEXT* context)
+{
+	uint16 x;
+	uint16 y;
+	uint8* co_dst;
+	uint8* cg_dst;
+	sint8* co_src0;
+	sint8* co_src1;
+	sint8* cg_src0;
+	sint8* cg_src1;
+	uint32 tempWidth;
+	uint32 tempHeight;
+
+	tempWidth = ROUND_UP_TO(context->width, 8);
+	tempHeight = ROUND_UP_TO(context->height, 2);
+
+	for (y = 0; y < tempHeight >> 1; y++)
+	{
+		co_dst = context->priv->plane_buf[1] + y * (tempWidth >> 1);
+		cg_dst = context->priv->plane_buf[2] + y * (tempWidth >> 1);
+		co_src0 = (sint8*) context->priv->plane_buf[1] + (y << 1) * tempWidth;
+		co_src1 = co_src0 + tempWidth;
+		cg_src0 = (sint8*) context->priv->plane_buf[2] + (y << 1) * tempWidth;
+		cg_src1 = cg_src0 + tempWidth;
+		for (x = 0; x < tempWidth >> 1; x++)
+		{
+			*co_dst++ = (uint8) (((sint16) *co_src0 + (sint16) *(co_src0 + 1) +
+				(sint16) *co_src1 + (sint16) *(co_src1 + 1)) >> 2);
+			*cg_dst++ = (uint8) (((sint16) *cg_src0 + (sint16) *(cg_src0 + 1) +
+				(sint16) *cg_src1 + (sint16) *(cg_src1 + 1)) >> 2);
+			co_src0 += 2;
+			co_src1 += 2;
+			cg_src0 += 2;
+			cg_src1 += 2;
+		}
 	}
 }
 
 void nsc_encode(NSC_CONTEXT* context, uint8* bmpdata, int rowstride)
 {
+	nsc_encode_argb_to_aycocg(context, bmpdata, rowstride);
+	if (context->nsc_stream.ChromaSubSamplingLevel > 0)
+	{
+		nsc_encode_subsampling(context);
+	}
+}
+
+static uint32 nsc_rle_encode(uint8* in, uint8* out, uint32 origsz)
+{
+	uint32 left;
+	uint32 runlength = 1;
+	uint32 planesize = 0;
+
+	left = origsz;
+	/**
+	 * We quit the loop if the running compressed size is larger than the original.
+	 * In such cases data will be sent uncompressed.
+	 */
+	while (left > 4 && planesize < origsz - 4)
+	{
+		if (left > 5 && *in == *(in + 1))
+		{
+			runlength++;
+		}
+		else if (runlength == 1)
+		{
+			*out++ = *in;
+			planesize++;
+		}
+		else if (runlength < 256)
+		{
+			*out++ = *in;
+			*out++ = *in;
+			*out++ = runlength - 2;
+			runlength = 1;
+			planesize += 3;
+		}
+		else
+		{
+			*out++ = *in;
+			*out++ = *in;
+			*out++ = 0xFF;
+			*out++ = (runlength & 0x000000FF);
+			*out++ = (runlength & 0x0000FF00) >> 8;
+			*out++ = (runlength & 0x00FF0000) >> 16;
+			*out++ = (runlength & 0xFF000000) >> 24;
+			runlength = 1;
+			planesize += 7;
+		}
+		in++;
+		left--;
+	}
+	if (planesize < origsz - 4)
+	{
+		memcpy(out, in, 4);
+	}
+	planesize += 4;
+
+	return planesize;
+}
+
+static void nsc_rle_compress_data(NSC_CONTEXT* context)
+{
+	uint16 i;
+	uint8* rle;
+	uint32 origsize;
+	uint32 planesize;
+
+	rle = context->nsc_stream.Planes;
+
+	for (i = 0; i < 4; i++)
+	{
+		origsize = context->OrgByteCount[i];
+		if (origsize == 0)
+		{
+			planesize = 0;
+		}
+		else
+		{
+			planesize = nsc_rle_encode(context->priv->plane_buf[i],
+				context->priv->plane_buf[4], origsize);
+			if (planesize < origsize)
+				memcpy(context->priv->plane_buf[i], context->priv->plane_buf[4], planesize);
+			else
+				planesize = origsize;
+		}
+
+		context->nsc_stream.PlaneByteCount[i] = planesize;
+	}
 }
 
 void nsc_compose_message(NSC_CONTEXT* context, STREAM* s,
 	uint8* bmpdata, int width, int height, int rowstride)
 {
+	int i;
+
 	context->width = width;
 	context->height = height;
 	nsc_context_initialize_encode(context);
+
+	/* ARGB to AYCoCg conversion, chroma subsampling and colorloss reduction */
+	PROFILER_ENTER(context->priv->prof_nsc_encode);
+	context->encode(context, bmpdata, rowstride);
+	PROFILER_EXIT(context->priv->prof_nsc_encode);
+
+	/* RLE encode */
+	PROFILER_ENTER(context->priv->prof_nsc_rle_compress_data);
+	nsc_rle_compress_data(context);
+	PROFILER_EXIT(context->priv->prof_nsc_rle_compress_data);
+
+	/* Assemble the NSCodec message into stream */
+	stream_check_size(s, 20);
+	stream_write_uint32(s, context->nsc_stream.PlaneByteCount[0]); /* LumaPlaneByteCount (4 bytes) */
+	stream_write_uint32(s, context->nsc_stream.PlaneByteCount[1]); /* OrangeChromaPlaneByteCount (4 bytes) */
+	stream_write_uint32(s, context->nsc_stream.PlaneByteCount[2]); /* GreenChromaPlaneByteCount (4 bytes) */
+	stream_write_uint32(s, context->nsc_stream.PlaneByteCount[3]); /* AlphaPlaneByteCount (4 bytes) */
+	stream_write_uint8(s, context->nsc_stream.ColorLossLevel); /* ColorLossLevel (1 byte) */
+	stream_write_uint8(s, context->nsc_stream.ChromaSubSamplingLevel); /* ChromaSubsamplingLevel (1 byte) */
+	stream_write_uint16(s, 0); /* Reserved (2 bytes) */
+	for (i = 0; i < 4; i++)
+	{
+		if (context->nsc_stream.PlaneByteCount[i] > 0)
+		{
+			stream_check_size(s, context->nsc_stream.PlaneByteCount[i]);
+			stream_write(s, context->priv->plane_buf[i], context->nsc_stream.PlaneByteCount[i]);
+		}
+	}
 }
diff --git a/libfreerdp-codec/nsc_types.h b/libfreerdp-codec/nsc_types.h
index 81474a3e1..96a5787ba 100644
--- a/libfreerdp-codec/nsc_types.h
+++ b/libfreerdp-codec/nsc_types.h
@@ -30,7 +30,7 @@
 
 struct _NSC_CONTEXT_PRIV
 {
-	uint8* plane_buf[4];		/* Decompressed Plane Buffers in the respective order */
+	uint8* plane_buf[5];		/* Decompressed Plane Buffers in the respective order */
 	uint32 plane_buf_length;	/* Lengths of each plane buffer */
 
 	/* profilers */