diff --git a/src/lib/ipc/CIpcClientProxy.cpp b/src/lib/ipc/CIpcClientProxy.cpp
index 6d8184a8..c48e4413 100644
--- a/src/lib/ipc/CIpcClientProxy.cpp
+++ b/src/lib/ipc/CIpcClientProxy.cpp
@@ -16,8 +16,10 @@
  */
 
 #include "CIpcClientProxy.h"
+#include "IStream.h"
 
-CIpcClientProxy::CIpcClientProxy()
+CIpcClientProxy::CIpcClientProxy(IStream& stream) :
+m_stream(stream)
 {
 }
 
diff --git a/src/lib/ipc/CIpcClientProxy.h b/src/lib/ipc/CIpcClientProxy.h
index 6e95e526..6722cecc 100644
--- a/src/lib/ipc/CIpcClientProxy.h
+++ b/src/lib/ipc/CIpcClientProxy.h
@@ -17,8 +17,13 @@
 
 #pragma once
 
+class IStream;
+
 class CIpcClientProxy {
 public:
-	CIpcClientProxy();
+	CIpcClientProxy(IStream& stream);
 	virtual ~CIpcClientProxy();
+
+private:
+	IStream&			m_stream;
 };
diff --git a/src/lib/ipc/CIpcServer.cpp b/src/lib/ipc/CIpcServer.cpp
index 1e16c17c..9ab9241b 100644
--- a/src/lib/ipc/CIpcServer.cpp
+++ b/src/lib/ipc/CIpcServer.cpp
@@ -17,15 +17,30 @@
 
 #include "CIpcServer.h"
 #include "Ipc.h"
+#include "IEventQueue.h"
+#include "TMethodEventJob.h"
+#include "CEvent.h"
+#include "CLog.h"
+#include "CIpcClientProxy.h"
+#include "IStream.h"
+#include "IDataSocket.h"
+
+CEvent::Type			CIpcServer::s_clientConnectedEvent = CEvent::kUnknown;
 
 CIpcServer::CIpcServer() :
 m_address(CNetworkAddress(IPC_HOST, IPC_PORT))
 {
 	m_address.resolve();
+
+	EVENTQUEUE->adoptHandler(
+		IListenSocket::getConnectingEvent(), &m_socket,
+		new TMethodEventJob<CIpcServer>(
+			this, &CIpcServer::handleClientConnecting));
 }
 
 CIpcServer::~CIpcServer()
 {
+	EVENTQUEUE->removeHandler(IListenSocket::getConnectingEvent(), &m_socket);
 }
 
 void
@@ -33,3 +48,26 @@ CIpcServer::listen()
 {
 	m_socket.bind(m_address);
 }
+
+void
+CIpcServer::handleClientConnecting(const CEvent&, void*)
+{
+	IStream* stream = m_socket.accept();
+	if (stream == NULL) {
+		return;
+	}
+	LOG((CLOG_NOTE "accepted ipc client connection"));
+
+	// TODO: delete on disconnect
+	CIpcClientProxy* proxy = new CIpcClientProxy(*stream);
+	m_clients.insert(proxy);
+
+	EVENTQUEUE->addEvent(CEvent(getClientConnectedEvent(), this, proxy));
+}
+
+CEvent::Type
+CIpcServer::getClientConnectedEvent()
+{
+	return EVENTQUEUE->registerTypeOnce(
+		s_clientConnectedEvent, "CIpcServer::clientConnected");
+}
diff --git a/src/lib/ipc/CIpcServer.h b/src/lib/ipc/CIpcServer.h
index f4ab5395..608bdd7f 100644
--- a/src/lib/ipc/CIpcServer.h
+++ b/src/lib/ipc/CIpcServer.h
@@ -19,23 +19,47 @@
 
 #include "CTCPListenSocket.h"
 #include "CNetworkAddress.h"
+#include <set>
+
+class CEvent;
+class CIpcClientProxy;
 
 //! IPC server for communication between daemon and GUI.
 /*!
- * The IPC server listens on localhost. The IPC client runs on both the
- * client/server process or the GUI. The IPC server runs on the daemon process.
- * This allows the GUI to send config changes to the daemon and client/server,
- * and allows the daemon and client/server to send log data to the GUI.
- */
+The IPC server listens on localhost. The IPC client runs on both the
+client/server process or the GUI. The IPC server runs on the daemon process.
+This allows the GUI to send config changes to the daemon and client/server,
+and allows the daemon and client/server to send log data to the GUI.
+*/
 class CIpcServer {
 public:
 	CIpcServer();
 	virtual ~CIpcServer();
 
-	//! Opens a TCP socket only allowing local connections
-	void listen();
+	//! @name manipulators
+	//@{
+
+	//! Opens a TCP socket only allowing local connections.
+	void				listen();
+
+	//@}
+	//! @name accessors
+	//@{
+
+	//! This event is raised when we have created the client proxy.
+	static CEvent::Type		getClientConnectedEvent();
+
+	//@}
 
 private:
-	CTCPListenSocket m_socket;
-	CNetworkAddress m_address;
+	void				handleClientConnecting(const CEvent&, void*);
+
+private:
+	typedef std::set<CIpcClientProxy*> CClientSet;
+
+	CTCPListenSocket	m_socket;
+	CNetworkAddress		m_address;
+	CClientSet			m_clients;
+
+	static CEvent::Type	s_clientConnectedEvent;
 };
diff --git a/src/test/integtests/CIpcTests.cpp b/src/test/integtests/CIpcTests.cpp
index 8bbcd700..6ae4b99f 100644
--- a/src/test/integtests/CIpcTests.cpp
+++ b/src/test/integtests/CIpcTests.cpp
@@ -20,17 +20,105 @@
 #include "CIpcClient.h"
 #include "CSocketMultiplexer.h"
 #include "CEventQueue.h"
+#include "TMethodEventJob.h"
+#include "CThread.h"
+#include "TMethodJob.h"
+#include "CArch.h"
+#include "CLog.h"
 
-TEST(CIpcTests, connectToServer)
+class CIpcTests : public ::testing::Test
 {
+public:
+	CIpcTests();
+	virtual ~CIpcTests();
+	void handleClientConnected(const CEvent&, void* vclient);
+	void raiseQuitEvent();
+
+private:
+	void timeoutThread(void*);
+
+public:
+	bool m_quitOnClientConnect;
+	bool m_clientConnected;
+	bool m_timeoutCheck;
+	double m_timeout;
+
+private:
+	CThread* m_timeoutThread;
+};
+
+TEST_F(CIpcTests, connectToServer)
+{
+	m_quitOnClientConnect = true;
+
 	CSocketMultiplexer multiplexer;
-	CEventQueue eventQueue;
+	CEventQueue events;
 
 	CIpcServer server;
 	server.listen();
 
+	events.adoptHandler(
+		CIpcServer::getClientConnectedEvent(), &server,
+		new TMethodEventJob<CIpcTests>(
+			this, &CIpcTests::handleClientConnected));
+
 	CIpcClient client;
 	client.connect();
 
-	eventQueue.loop();
+	m_timeoutCheck = true;
+	m_timeout = ARCH->time() + 5; // 5 sec timeout.
+	events.loop();
+
+	EXPECT_EQ(true, m_clientConnected);
 }
+
+CIpcTests::CIpcTests() :
+m_timeoutThread(nullptr),
+m_quitOnClientConnect(false),
+m_clientConnected(false),
+m_timeoutCheck(false),
+m_timeout(0)
+{
+	m_timeoutThread = new CThread(
+		new TMethodJob<CIpcTests>(
+		this, &CIpcTests::timeoutThread, nullptr));
+}
+
+CIpcTests::~CIpcTests()
+{
+	delete m_timeoutThread;
+}
+
+
+void
+CIpcTests::handleClientConnected(const CEvent&, void* vclient)
+{
+	m_clientConnected = true;
+
+	if (m_quitOnClientConnect) {
+		raiseQuitEvent();
+	}
+}
+
+void
+CIpcTests::raiseQuitEvent() 
+{
+	EVENTQUEUE->addEvent(CEvent(CEvent::kQuit, nullptr));
+}
+
+void
+CIpcTests::timeoutThread(void*)
+{
+	while (true) {
+		if (!m_timeoutCheck) {
+			ARCH->sleep(1);
+			continue;
+		}
+
+		if (ARCH->time() > m_timeout) {
+			LOG((CLOG_ERR "timeout"));
+			raiseQuitEvent();
+			m_timeoutCheck = false;
+		}
+	}
+}
\ No newline at end of file