--- a/lightstring.js
+++ b/lightstring.js
@@ -202,13 +202,15 @@ Lightstring.Connection.prototype = {
         }
       }
       else if (name === 'challenge') {
-
-
+        that.emit('challenge', stanza);
       }
       else if (name === 'response') {
 
 
       }
+      else if (name === 'failure') {
+        that.emit('failure', stanza);
+      }
       else if (name === 'success') {
         that.emit('success', stanza);
       }

new file mode 100644
--- /dev/null
+++ b/plugins/DIGEST-MD5.js
@@ -0,0 +1,137 @@
+'use strict';
+
+/**
+  Copyright (c) 2012, Sonny Piers <sonny at fastmail dot net>
+
+  Permission to use, copy, modify, and/or distribute this software for any
+  purpose with or without fee is hereby granted, provided that the above
+  copyright notice and this permission notice appear in all copies.
+
+  THE SOFTWARE IS PROVIDED "AS IS" AND THE AUTHOR DISCLAIMS ALL WARRANTIES
+  WITH REGARD TO THIS SOFTWARE INCLUDING ALL IMPLIED WARRANTIES OF
+  MERCHANTABILITY AND FITNESS. IN NO EVENT SHALL THE AUTHOR BE LIABLE FOR
+  ANY SPECIAL, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES
+  WHATSOEVER RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN AN
+  ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING OUT OF
+  OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.
+*/
+
+Lightstring.plugins['DIGEST-MD5'] = {
+  handlers: {
+    'mechanisms': function (stanza) {
+      if(stanza.mechanisms.indexOf('DIGEST-MD5') === -1)
+        return;
+
+        this.send(
+          "<auth xmlns='urn:ietf:params:xml:ns:xmpp-sasl'" +
+               " mechanism='DIGEST-MD5'/>"
+        );
+    },
+    'success': function (stanza) {
+      this.send(
+        "<stream:stream to='" + this.jid.domain + "'" +
+                      " xmlns='jabber:client'" +
+                      " xmlns:stream='http://etherx.jabber.org/streams'" +
+                      " version='1.0'/>"
+      );
+    },
+    'features': function (stanza) {
+      var that = this;
+      //TODO check if bind supported
+      var bind =
+        "<iq type='set' id='"+Lightstring.newId('sendiq:')+"' xmlns='jabber:client'>" +
+          "<bind xmlns='urn:ietf:params:xml:ns:xmpp-bind'>" +
+            (this.jid.resource? "<resource>" + this.jid.resource + "</resource>": "") +
+          "</bind>" +
+        "</iq>";
+      this.send(
+        bind,
+        //Success
+        function(stanza) {
+          //Session http://xmpp.org/rfcs/rfc3921.html#session
+          that.jid = new Lightstring.JID(stanza.DOM.textContent);
+          that.send(
+            "<iq type='set' id='"+Lightstring.newId('sendiq:')+"' xmlns='jabber:client'>" +
+              "<session xmlns='urn:ietf:params:xml:ns:xmpp-session'/>" +
+            "</iq>",
+            function() {
+              that.emit('connected');
+            }
+          );
+        },
+        //Error
+        function(stanza) {
+          //TODO: Error?
+        }
+      );
+    },
+    'challenge': function (stanza) {
+      //FIXME this is mostly Strophe code
+
+      function _quote(str) {
+        return '"' + str.replace(/\\/g, '\\\\').replace(/"/g, '\\"') + '"';
+      };
+
+      var challenge = atob(stanza.DOM.textContent);
+
+      var attribMatch = /([a-z]+)=("[^"]+"|[^,"]+)(?:,|$)/;
+
+      var cnonce = MD5.hexdigest(Math.random() * 1234567890);
+      var realm = '';
+      var host = null;
+      var nonce = '';
+      var qop = '';
+      var matches;
+
+      while (challenge.match(attribMatch)) {
+        matches = challenge.match(attribMatch);
+        challenge = challenge.replace(matches[0], '');
+        matches[2] = matches[2].replace(/^"(.+)"$/, '$1');
+        switch (matches[1]) {
+        case 'realm':
+            realm = matches[2];
+            break;
+        case 'nonce':
+            nonce = matches[2];
+            break;
+        case 'qop':
+            qop = matches[2];
+            break;
+        case 'host':
+            host = matches[2];
+            break;
+        }
+      }
+
+      var digest_uri = 'xmpp/' + this.jid.domain;
+      if (host !== null)
+          digest_uri = digest_uri + '/' + host;
+      var A1 = MD5.hash(this.jid.node +
+                        ':' + realm + ':' + this.password) +
+                        ':' + nonce + ':' + cnonce;
+      var A2 = 'AUTHENTICATE:' + digest_uri;
+
+      var responseText = '';
+      responseText += 'username=' + _quote(this.jid.node) + ',';
+      responseText += 'realm=' + _quote(realm) + ',';
+      responseText += 'nonce=' + _quote(nonce) + ',';
+      responseText += 'cnonce=' + _quote(cnonce) + ',';
+      responseText += 'nc="00000001",';
+      responseText += 'qop="auth",';
+      responseText += 'digest-uri=' + _quote(digest_uri) + ',';
+      responseText += 'response=' + _quote(
+          MD5.hexdigest(MD5.hexdigest(A1) + ':' +
+                        nonce + ':00000001:' +
+                        cnonce + ':auth:' +
+                        MD5.hexdigest(A2))) + ',';
+      responseText += 'charset="utf-8"';
+      this.send(
+        "<response xmlns='urn:ietf:params:xml:ns:xmpp-sasl'>" +
+          btoa(responseText) +
+        "</response>");
+    },
+    'failure': function (stanza) {
+      //TODO: throw an error?
+    }
+  }
+};

--- a/plugins/PLAIN.js
+++ b/plugins/PLAIN.js
@@ -34,7 +34,6 @@ Lightstring.plugins['PLAIN'] = {
              " mechanism='PLAIN'>" + token + "</auth>"
       );
     },
-    //TODO twice success event
     'success': function (stanza) {
       this.send(
         "<stream:stream to='" + this.jid.domain + "'" +