diff --git a/core/textdocumentgenerator.cpp b/core/textdocumentgenerator.cpp
index b260b3f85..b4935d640 100644
--- a/core/textdocumentgenerator.cpp
+++ b/core/textdocumentgenerator.cpp
@@ -318,9 +318,6 @@ bool TextDocumentGenerator::loadDocument( const QString & fileName, QVector<Okul
     QVector< QLinkedList<Okular::Annotation*> > annots( d->mDocument->pageCount() );
     for ( int i = 0; i < d->mAnnotationInfos.count(); ++i ) {
         const TextDocumentGeneratorPrivate::AnnotationInfo &info = d->mAnnotationInfos[ i ];
-
-        QRect rect( 0, info.page * size.height(), size.width(), size.height() );
-        info.annotation->setBoundingRectangle( Okular::NormalizedRect( rect.left(), rect.top(), rect.right(), rect.bottom() ) );
         annots[ info.page ].append( info.annotation );
     }
 
diff --git a/generators/epub/CMakeLists.txt b/generators/epub/CMakeLists.txt
index d68cdcddb..fa989ad88 100644
--- a/generators/epub/CMakeLists.txt
+++ b/generators/epub/CMakeLists.txt
@@ -1,4 +1,6 @@
 
+add_subdirectory(data)
+
 include_directories(
    ${EPUB_INCLUDE_DIR}
 )
diff --git a/generators/epub/converter.cpp b/generators/epub/converter.cpp
index a0ebddba9..eeb479c39 100644
--- a/generators/epub/converter.cpp
+++ b/generators/epub/converter.cpp
@@ -17,7 +17,11 @@
 
 #include <kdebug.h>
 #include <klocale.h>
+#include <KStandardDirs>
+
 #include <core/action.h>
+#include <core/movie.h>
+#include <core/annotations.h>
 
 using namespace Epub;
 
@@ -135,6 +139,28 @@ void Converter::_insert_local_links(const QString &key, const QPair<int, int> &v
   }
 }
 
+static QPoint calculateXYPosition( QTextDocument *document, int startPosition )
+{
+  const QTextBlock startBlock = document->findBlock( startPosition );
+  const QRectF startBoundingRect = document->documentLayout()->blockBoundingRect( startBlock );
+
+  QTextLayout *startLayout = startBlock.layout();
+  if (!startLayout) {
+    kWarning() << "Start layout not found" << startLayout;
+    return QPoint();
+  }
+
+  int startPos = startPosition - startBlock.position();
+  const QTextLine startLine = startLayout->lineForTextPosition( startPos );
+
+  double x = startBoundingRect.x() ;
+  double y = startBoundingRect.y() + startLine.y();
+
+  y = (int)y % 800;
+
+  return QPoint(x,y);
+}
+
 QTextDocument* Converter::convert( const QString &fileName )
 {
   EpubDocument *newDocument = new EpubDocument(fileName);
@@ -170,7 +196,10 @@ QTextDocument* Converter::convert( const QString &fileName )
 
   // if the background color of the document is non-white it will be handled by QTextDocument::setHtml()
   bool firstPage = true;
+  QVector<Okular::MovieAnnotation *> movieAnnots;
+  const QSize videoSize(320, 240);
   do{
+    movieAnnots.clear();
     if(epub_it_get_curr(it)) {
       const QString link = QString::fromUtf8(epub_it_get_curr_url(it));
       mTextDocument->setCurrentSubDocument(link);
@@ -208,8 +237,32 @@ QTextDocument* Converter::convert( const QString &fileName )
               svgs.at(i).parentNode().replaceChild(nd,svgs.at(i));
             }
           }
-          htmlContent = dom.toString();
         }
+
+        // handle embedded videos
+        QDomNodeList videoTags = dom.elementsByTagName("video");
+        if(!videoTags.isEmpty()) {
+          for (int i = 0; i < videoTags.size(); ++i) {
+            QDomNodeList sourceTags = videoTags.at(i).toElement().elementsByTagName("source");
+            if(!sourceTags.isEmpty()) {
+              QString lnk = sourceTags.at(0).toElement().attribute("src");
+
+              Okular::Movie *movie = new Okular::Movie(mTextDocument->loadResource(EpubDocument::MovieResource,QUrl(lnk)).toString());
+              movie->setSize(videoSize);
+              movie->setShowControls(true);
+
+              Okular::MovieAnnotation *annot = new Okular::MovieAnnotation;
+              annot->setMovie(movie);
+
+              movieAnnots.push_back(annot);
+              QDomDocument tempDoc;
+              tempDoc.setContent(QString("<pre>&lt;video&gt;&lt;/video&gt;</pre>"));
+              qDebug() << "replacing";
+              videoTags.at(i).parentNode().replaceChild(tempDoc.documentElement(),videoTags.at(i));
+            }
+          }
+        }
+        htmlContent = dom.toString();
       }
 
       QTextBlock before;
@@ -228,6 +281,22 @@ QTextDocument* Converter::convert( const QString &fileName )
         _cursor->insertHtml(htmlContent);
       }
 
+      QTextCursor csr(mTextDocument);   // a temporary cursor
+      csr.movePosition(QTextCursor::Start);
+      int index = 0;
+      while( !(csr = mTextDocument->find("<video></video>",csr)).isNull() ) {
+        const int posStart = csr.position();
+        const QPoint startPoint = calculateXYPosition(mTextDocument, posStart);
+        QImage img(KStandardDirs::locate("data", "okular/pics/okular-epub-movie.png"));
+        img = img.scaled(videoSize);
+        csr.insertImage(img);
+        const int posEnd = csr.position();
+        const QRect videoRect(startPoint,videoSize);
+        movieAnnots[index]->setBoundingRectangle(Okular::NormalizedRect(videoRect,mTextDocument->pageSize().width(), mTextDocument->pageSize().height()));
+        emit addAnnotation(movieAnnots[index++],posStart,posEnd);
+        csr.movePosition(QTextCursor::NextWord);
+      }
+
       mSectionMap.insert(link, before);
 
       _handle_anchors(before, link);
diff --git a/generators/epub/data/CMakeLists.txt b/generators/epub/data/CMakeLists.txt
new file mode 100644
index 000000000..e57a3be8b
--- /dev/null
+++ b/generators/epub/data/CMakeLists.txt
@@ -0,0 +1,4 @@
+ 
+install(FILES
+  okular-epub-movie.png
+  DESTINATION ${DATA_INSTALL_DIR}/okular/pics)
diff --git a/generators/epub/data/okular-epub-movie.png b/generators/epub/data/okular-epub-movie.png
new file mode 100644
index 000000000..d028e44ba
Binary files /dev/null and b/generators/epub/data/okular-epub-movie.png differ
diff --git a/generators/epub/epubdocument.cpp b/generators/epub/epubdocument.cpp
index 3060c7e2d..a1f88113b 100644
--- a/generators/epub/epubdocument.cpp
+++ b/generators/epub/epubdocument.cpp
@@ -8,6 +8,10 @@
  ***************************************************************************/
 
 #include "epubdocument.h"
+#include <QTemporaryFile>
+#include <QDir>
+
+#include <KDebug>
 
 #include <QRegExp>
 
@@ -84,16 +88,31 @@ QVariant EpubDocument::loadResource(int type, const QUrl &name)
 
   if (data) {
     switch(type) {
-    case QTextDocument::ImageResource:
-      resource.setValue(QImage::fromData((unsigned char *)data, size));
+    case QTextDocument::ImageResource:{
+      QImage img = QImage::fromData((unsigned char *)data, size);
+      const int maxHeight = maxContentHeight();
+      const int maxWidth = maxContentWidth();
+      if(img.height() > maxHeight)
+        img = img.scaledToHeight(maxHeight);
+      if(img.width() > maxWidth)
+        img = img.scaledToWidth(maxWidth);
+      resource.setValue(img);
       break;
-
+    }
     case QTextDocument::StyleSheetResource: {
       QString css = QString::fromUtf8(data);
       checkCSS(css);
       resource.setValue(css);
       break;
     }
+    case EpubDocument::MovieResource: {
+      QTemporaryFile *tmp = new QTemporaryFile(QString("%1/okrXXXXXX").arg(QDir::tempPath()),this);
+      if(!tmp->open()) kWarning() << "EPUB : error creating temporary video file";
+      if(tmp->write(data,size) == -1) kWarning() << "EPUB : error writing data" << tmp->errorString();
+      tmp->flush();
+      resource.setValue(tmp->fileName());
+      break;
+    }
     default:
       resource.setValue(QString::fromUtf8(data));
       break;
diff --git a/generators/epub/epubdocument.h b/generators/epub/epubdocument.h
index ef30a32c3..28c8fa015 100644
--- a/generators/epub/epubdocument.h
+++ b/generators/epub/epubdocument.h
@@ -29,6 +29,7 @@ namespace Epub {
     void setCurrentSubDocument(const QString &doc);
     int maxContentHeight() const;
     int maxContentWidth() const;
+    enum Multimedia { MovieResource = 4 };
 
   protected:
     virtual QVariant loadResource(int type, const QUrl &name);