diff --git a/server/client.go b/server/client.go
index abf26d97..f5dc3923 100644
--- a/server/client.go
+++ b/server/client.go
@@ -158,7 +158,7 @@ func (c *client) readLoop() {
 }
 
 func (c *client) traceMsg(msg []byte) {
-	pm := fmt.Sprintf("Processing msg: %d", c.inMsgs)
+	pm := fmt.Sprintf("Processing %s msg: %d", c.typeString(), c.inMsgs)
 	opa := []interface{}{pm, string(c.pa.subject), string(c.pa.reply), string(msg)}
 	Trace(logStr(opa), fmt.Sprintf("c: %d", c.cid))
 }
@@ -248,6 +248,9 @@ func (c *client) processPong() {
 }
 
 func (c *client) processMsgArgs(arg []byte) error {
+	if trace > 0 {
+		c.traceOp("MSG", arg)
+	}
 
 	// Unroll splitArgs to avoid runtime/heap issues
 	a := [MAX_MSG_ARGS][]byte{}
@@ -592,9 +595,45 @@ func (c *client) processMsg(msg []byte) {
 	isRoute := c.typ == ROUTER
 	var rmap map[string]struct{}
 
+	// If we are a route and we have a queue subscription, deliver direct
+	// since they are sent direct via L2 semantics.
+	if isRoute {
+		if sub := c.srv.routeSidQueueSubscriber(c.pa.sid); sub != nil {
+			mh := c.msgHeader(msgh[:si], sub)
+			c.deliverMsg(sub, mh, msg)
+			return
+		}
+	}
+
+	// Loop over all subscriptions that match.
+
 	for _, v := range r {
 		sub := v.(*subscription)
 
+		// Process queue group subscriptions by gathering them all up
+		// here. We will pick the winners when we are done processing
+		// all of the subscriptions.
+		if sub.queue != nil {
+			// Queue subscriptions handled from routes directly above.
+			if isRoute {
+				continue
+			}
+			// FIXME(dlc), this can be more efficient
+			if qmap == nil {
+				qmap = make(map[string][]*subscription)
+			}
+			qname := string(sub.queue)
+			qsubs = qmap[qname]
+			if qsubs == nil {
+				qsubs = make([]*subscription, 0, 4)
+			}
+			qsubs = append(qsubs, sub)
+			qmap[qname] = qsubs
+			continue
+		}
+
+		// Process normal, non-queue group subscriptions.
+
 		// If this is a send to a ROUTER, make sure we only send it
 		// once. The other side will handle the appropriate re-processing.
 		// Also enforce 1-Hop.
@@ -619,23 +658,10 @@ func (c *client) processMsg(msg []byte) {
 			rmap[sub.client.route.remoteId] = routeSeen
 		}
 
-		if sub.queue != nil {
-			// FIXME(dlc), this can be more efficient
-			if qmap == nil {
-				qmap = make(map[string][]*subscription)
-			}
-			qname := string(sub.queue)
-			qsubs = qmap[qname]
-			if qsubs == nil {
-				qsubs = make([]*subscription, 0, 4)
-			}
-			qsubs = append(qsubs, sub)
-			qmap[qname] = qsubs
-			continue
-		}
 		mh := c.msgHeader(msgh[:si], sub)
 		c.deliverMsg(sub, mh, msg)
 	}
+
 	if qmap != nil {
 		for _, qsubs := range qmap {
 			index := rand.Int() % len(qsubs)
diff --git a/server/route.go b/server/route.go
index 74a808e7..8e5784c0 100644
--- a/server/route.go
+++ b/server/route.go
@@ -3,10 +3,12 @@
 package server
 
 import (
+	"bytes"
 	"encoding/json"
 	"fmt"
 	"net"
 	"net/url"
+	"regexp"
 	"time"
 )
 
@@ -94,10 +96,46 @@ const (
 	unsubProto = "UNSUB %s%s" + _CRLF_
 )
 
-const RSID = "RSID"
+// FIXME(dlc) - Make these reserved and reject if they come in as a sid
+// from a client connection.
+
+const (
+	RSID             = "RSID"
+	QRSID            = "QRSID"
+	RSID_CID_INDEX   = 1
+	RSID_SID_INDEX   = 2
+	EXPECTED_MATCHES = 3
+)
+
+// FIXME(dlc) - This may be too slow, check at later date.
+var qrsidRe = regexp.MustCompile(`QRSID:(\d+):([^\s]+)`)
+
+func (s *Server) routeSidQueueSubscriber(rsid []byte) *subscription {
+	if !bytes.HasPrefix(rsid, []byte(QRSID)) {
+		return nil
+	}
+	matches := qrsidRe.FindSubmatch(rsid)
+	if matches == nil || len(matches) != EXPECTED_MATCHES {
+		return nil
+	}
+	cid := uint64(parseInt64(matches[RSID_CID_INDEX]))
+	client := s.clients[cid]
+	if client == nil {
+		return nil
+	}
+	sid := matches[RSID_SID_INDEX]
+	if sub, ok := (client.subs.Get(sid)).(*subscription); ok {
+		return sub
+	}
+	return nil
+}
 
 func routeSid(sub *subscription) string {
-	return fmt.Sprintf("%s:%d:%s", RSID, sub.client.cid, sub.sid)
+	var qi string
+	if len(sub.queue) > 0 {
+		qi = "Q"
+	}
+	return fmt.Sprintf("%s%s:%d:%s", qi, RSID, sub.client.cid, sub.sid)
 }
 
 func (s *Server) broadcastToRoutes(proto string) {
diff --git a/server/util.go b/server/util.go
index edf56d9d..840359b2 100644
--- a/server/util.go
+++ b/server/util.go
@@ -36,6 +36,21 @@ func parseSize(d []byte) (n int) {
 	return n
 }
 
+// parseInt64 expects decimal positive numbers. We
+// return -1 to signal error
+func parseInt64(d []byte) (n int64) {
+	if len(d) == 0 {
+		return -1
+	}
+	for _, dec := range d {
+		if dec < ascii_0 || dec > ascii_9 {
+			return -1
+		}
+		n = n*10 + (int64(dec) - ascii_0)
+	}
+	return n
+}
+
 func secondsToDuration(seconds float64) time.Duration {
 	ttl := seconds * float64(time.Second)
 	return time.Duration(ttl)
diff --git a/test/routes_test.go b/test/routes_test.go
index aef9ec90..8737f4e5 100644
--- a/test/routes_test.go
+++ b/test/routes_test.go
@@ -237,6 +237,8 @@ func TestRouteQueueSemantics(t *testing.T) {
 
 	client := createClientConn(t, opts.Host, opts.Port)
 	clientSend, clientExpect := setupConn(t, client)
+	clientExpectMsgs := expectMsgsCommand(t, clientExpect)
+
 	defer client.Close()
 
 	route := createRouteConn(t, opts.ClusterHost, opts.ClusterPort)
@@ -245,41 +247,78 @@ func TestRouteQueueSemantics(t *testing.T) {
 	expectMsgs := expectMsgsCommand(t, routeExpect)
 
 	// Express multiple interest on this route for foo, queue group bar.
-	routeSend("SUB foo bar RSID:2:1\r\n")
-	routeSend("SUB foo bar RSID:2:2\r\n")
+	qrsid1 := "RSID:2:1"
+	routeSend(fmt.Sprintf("SUB foo bar %s\r\n", qrsid1))
+	qrsid2 := "RSID:2:2"
+	routeSend(fmt.Sprintf("SUB foo bar %s\r\n", qrsid2))
+
+	// Use ping roundtrip to make sure its processed.
+	routeSend("PING\r\n")
+	routeExpect(pongRe)
 
 	// Send PUB via client connection
 	clientSend("PUB foo 2\r\nok\r\n")
-
-	// Only 1
-	matches := expectMsgs(1)
-	checkMsg(t, matches[0], "foo", "RSID:2:1", "", "2", "ok")
-
-	// Normal Interest as well.
-	routeSend("SUB foo RSID:2:1\r\n")
-
-	// Send PUB via client connection
-	clientSend("PUB foo 2\r\nok\r\n")
-
-	// Still only 1
-	expectMsgs(1)
-
-	// Subscribe to foo on client
-	clientSend("SUB foo bar 1\r\n")
 	// Use ping roundtrip to make sure its processed.
 	clientSend("PING\r\n")
 	clientExpect(pongRe)
 
-	// Receive notification on route
-	routeExpect(subRe)
+	// Only 1
+	matches := expectMsgs(1)
+	checkMsg(t, matches[0], "foo", "", "", "2", "ok")
+
+	// Add normal Interest as well to route interest.
+	routeSend("SUB foo RSID:2:4\r\n")
+
+	// Use ping roundtrip to make sure its processed.
+	routeSend("PING\r\n")
+	routeExpect(pongRe)
 
 	// Send PUB via client connection
 	clientSend("PUB foo 2\r\nok\r\n")
+	// Use ping roundtrip to make sure its processed.
+	clientSend("PING\r\n")
+	clientExpect(pongRe)
 
-	// Still only 1 for route
-	expectMsgs(1)
+	// Should be 2 now, 1 for all normal, and one for specific queue subscriber.
+	matches = expectMsgs(2)
 
-	// We could get one on client
+	// Expect first to be the normal subscriber, next will be the queue one.
+	checkMsg(t, matches[0], "foo", "RSID:2:4", "", "2", "ok")
+	checkMsg(t, matches[1], "foo", "", "", "2", "ok")
+
+	// Check the rsid to verify it is one of the queue group subscribers.
+	rsid := string(matches[1][SID_INDEX])
+	if rsid != qrsid1 && rsid != qrsid2 {
+		t.Fatalf("Expected a queue group rsid, got %s\n", rsid)
+	}
+
+	// Now create a queue subscription for the client as well as a normal one.
+	clientSend("SUB foo 1\r\n")
+	// Use ping roundtrip to make sure its processed.
+	clientSend("PING\r\n")
+	clientExpect(pongRe)
+	routeExpect(subRe)
+
+	clientSend("SUB foo bar 2\r\n")
+	// Use ping roundtrip to make sure its processed.
+	clientSend("PING\r\n")
+	clientExpect(pongRe)
+	routeExpect(subRe)
+
+	// Deliver a MSG from the route itself, make sure the client receives both.
+	routeSend("MSG foo RSID:2:1 2\r\nok\r\n")
+	// Queue group one.
+	routeSend("MSG foo QRSID:2:2 2\r\nok\r\n")
+
+	// Use ping roundtrip to make sure its processed.
+	routeSend("PING\r\n")
+	routeExpect(pongRe)
+
+	// Should be 2 now, 1 for all normal, and one for specific queue subscriber.
+	matches = clientExpectMsgs(2)
+	// Expect first to be the normal subscriber, next will be the queue one.
+	checkMsg(t, matches[0], "foo", "1", "", "2", "ok")
+	checkMsg(t, matches[1], "foo", "2", "", "2", "ok")
 }
 
 func TestSolicitRouteReconnect(t *testing.T) {
diff --git a/test/test.go b/test/test.go
index dfe7be57..8e6a6f12 100644
--- a/test/test.go
+++ b/test/test.go
@@ -285,7 +285,7 @@ var expBuf = make([]byte, 32768)
 // Test result from server against regexp
 func expectResult(t tLogger, c net.Conn, re *regexp.Regexp) []byte {
 	// Wait for commands to be processed and results queued for read
-	c.SetReadDeadline(time.Now().Add(1 * time.Second))
+	c.SetReadDeadline(time.Now().Add(2 * time.Second))
 	defer c.SetReadDeadline(time.Time{})
 
 	n, err := c.Read(expBuf)
@@ -315,7 +315,7 @@ func checkMsg(t tLogger, m [][]byte, subject, sid, reply, len, msg string) {
 	if string(m[SUB_INDEX]) != subject {
 		stackFatalf(t, "Did not get correct subject: expected '%s' got '%s'\n", subject, m[SUB_INDEX])
 	}
-	if string(m[SID_INDEX]) != sid {
+	if sid != "" && string(m[SID_INDEX]) != sid {
 		stackFatalf(t, "Did not get correct sid: expected '%s' got '%s'\n", sid, m[SID_INDEX])
 	}
 	if string(m[REPLY_INDEX]) != reply {