Conventional chat systems send all of their messages on the server which relays the sender's message to the reciever user. In this project we have developed distribued chat and conferencing system in which messages are sent directly to the user without communicating to a central message. Only a global list of online users is stored. Once the user is active it sends its status to the server. The server simply stores a dictionary of users with their IP address. A user at any time can refresh the list and start communicating with a subgroup of people available online. Features such as dynamically entering and leaving a conference and creating a new conference were also supported. The UI and communication protocol is coded using java.