diff --git a/homeassistant/components/camera/amcrest.py b/homeassistant/components/camera/amcrest.py
index c6568677583..a3d8dcf35df 100644
--- a/homeassistant/components/camera/amcrest.py
+++ b/homeassistant/components/camera/amcrest.py
@@ -4,8 +4,13 @@ This component provides basic support for Amcrest IP cameras.
 For more details about this platform, please refer to the documentation at
 https://home-assistant.io/components/camera.amcrest/
 """
+import asyncio
 import logging
 
+import aiohttp
+from aiohttp import web
+from aiohttp.web_exceptions import HTTPGatewayTimeout
+import async_timeout
 import voluptuous as vol
 
 import homeassistant.loader as loader
@@ -13,16 +18,19 @@ from homeassistant.components.camera import (Camera, PLATFORM_SCHEMA)
 from homeassistant.const import (
     CONF_HOST, CONF_NAME, CONF_USERNAME, CONF_PASSWORD, CONF_PORT)
 from homeassistant.helpers import config_validation as cv
+from homeassistant.helpers.aiohttp_client import async_create_clientsession
 
 REQUIREMENTS = ['amcrest==1.0.0']
 
 _LOGGER = logging.getLogger(__name__)
 
 CONF_RESOLUTION = 'resolution'
+CONF_STREAM_SOURCE = 'stream_source'
 
 DEFAULT_NAME = 'Amcrest Camera'
 DEFAULT_PORT = 80
 DEFAULT_RESOLUTION = 'high'
+DEFAULT_STREAM_SOURCE = 'mjpeg'
 
 NOTIFICATION_ID = 'amcrest_notification'
 NOTIFICATION_TITLE = 'Amcrest Camera Setup'
@@ -32,6 +40,14 @@ RESOLUTION_LIST = {
     'low': 1,
 }
 
+STREAM_SOURCE_LIST = {
+    'mjpeg': 0,
+    'snapshot': 1
+}
+
+CONTENT_TYPE_HEADER = 'Content-Type'
+TIMEOUT = 5
+
 PLATFORM_SCHEMA = PLATFORM_SCHEMA.extend({
     vol.Required(CONF_HOST): cv.string,
     vol.Required(CONF_USERNAME): cv.string,
@@ -40,6 +56,8 @@ PLATFORM_SCHEMA = PLATFORM_SCHEMA.extend({
         vol.All(vol.In(RESOLUTION_LIST)),
     vol.Optional(CONF_NAME, default=DEFAULT_NAME): cv.string,
     vol.Optional(CONF_PORT, default=DEFAULT_PORT): cv.port,
+    vol.Optional(CONF_STREAM_SOURCE, default=DEFAULT_STREAM_SOURCE):
+        vol.All(vol.In(STREAM_SOURCE_LIST)),
 })
 
 
@@ -64,19 +82,33 @@ def setup_platform(hass, config, add_devices, discovery_info=None):
             notification_id=NOTIFICATION_ID)
         return False
 
-    add_devices([AmcrestCam(config, data)])
+    add_devices([AmcrestCam(hass, config, data)])
     return True
 
 
 class AmcrestCam(Camera):
     """An implementation of an Amcrest IP camera."""
 
-    def __init__(self, device_info, data):
+    def __init__(self, hass, device_info, data):
         """Initialize an Amcrest camera."""
         super(AmcrestCam, self).__init__()
+        self._base_url = '%s://%s:%s/cgi-bin' % (
+            'http',
+            device_info.get(CONF_HOST),
+            device_info.get(CONF_PORT)
+        )
         self._data = data
+        self._hass = hass
         self._name = device_info.get(CONF_NAME)
         self._resolution = RESOLUTION_LIST[device_info.get(CONF_RESOLUTION)]
+        self._stream_source = STREAM_SOURCE_LIST[
+            device_info.get(CONF_STREAM_SOURCE)
+        ]
+        self._token = self._auth = aiohttp.BasicAuth(
+            device_info.get(CONF_USERNAME),
+            password=device_info.get(CONF_PASSWORD)
+        )
+        self._websession = async_create_clientsession(hass)
 
     def camera_image(self):
         """Return a still image reponse from the camera."""
@@ -84,6 +116,54 @@ class AmcrestCam(Camera):
         response = self._data.camera.snapshot(channel=self._resolution)
         return response.data
 
+    @asyncio.coroutine
+    def handle_async_mjpeg_stream(self, request):
+        """Return an MJPEG stream."""
+        # The snapshot implementation is handled by the parent class
+        if self._stream_source == STREAM_SOURCE_LIST['snapshot']:
+            yield from super().handle_async_mjpeg_stream(request)
+            return
+
+        # Otherwise, stream an MJPEG image stream directly from the camera
+        streaming_url = '%s/mjpg/video.cgi?channel=0&subtype=%d' % (
+            self._base_url,
+            self._resolution
+        )
+
+        stream = None
+        response = None
+        try:
+            with async_timeout.timeout(TIMEOUT, loop=self.hass.loop):
+                stream = yield from self._websession.get(
+                    streaming_url,
+                    auth=self._token,
+                    timeout=TIMEOUT
+                )
+            response = web.StreamResponse()
+            response.content_type = stream.headers.get(CONTENT_TYPE_HEADER)
+
+            yield from response.prepare(request)
+
+            while True:
+                data = yield from stream.content.read(16384)
+                if not data:
+                    break
+                response.write(data)
+
+        except (asyncio.TimeoutError, aiohttp.errors.ClientError):
+            _LOGGER.exception("Error on %s", streaming_url)
+            raise HTTPGatewayTimeout()
+
+        except asyncio.CancelledError:
+            _LOGGER.debug("Close stream by frontend.")
+            response = None
+
+        finally:
+            if stream is not None:
+                stream.close()
+            if response is not None:
+                yield from response.write_eof()
+
     @property
     def name(self):
         """Return the name of this camera."""