diff --git a/src/cabac.h b/src/cabac.h
index 6f7aaa78..be249ba2 100644
--- a/src/cabac.h
+++ b/src/cabac.h
@@ -122,6 +122,7 @@ typedef struct
     cabac_ctx_t transform_skip_gt2[5];
     cabac_ctx_t cclm_flag;
     cabac_ctx_t cclm_model;
+    cabac_ctx_t ibc_flag[3];
 
   } ctx;
 } cabac_data_t;
diff --git a/src/context.c b/src/context.c
index 8e042cc2..83bd5502 100644
--- a/src/context.c
+++ b/src/context.c
@@ -423,6 +423,13 @@ static const uint8_t INIT_CCLM_MODEL[4] = {
      9, 
 };
 
+static const uint8_t INIT_IBC_FLAG[4][3] = {
+  {   0,  43,  45, },
+  {   0,  57,  44, },
+  {  17,  42,  36, },
+  {   1,   5,   8, },
+};
+
 /*
 static const uint16_t g_inistateToCount[128] = {
   614,   647,   681,   718,   756,   797,   839,   884,   932,   982,   1034,  1089,  1148,  1209,  1274,  1342,
@@ -514,6 +521,7 @@ void uvg_init_contexts(encoder_state_t *state, int8_t QP, int8_t slice)
     uvg_ctx_init(&cabac->ctx.lfnst_idx_model[i], QP, INIT_LFNST_IDX[slice][i], INIT_LFNST_IDX[3][i]);
     uvg_ctx_init(&cabac->ctx.transform_skip_sig_coeff_group[i], QP, INIT_TRANSFORM_SKIP_SIG_COEFF_GROUP[slice][i], INIT_TRANSFORM_SKIP_SIG_COEFF_GROUP[3][i]);
     uvg_ctx_init(&cabac->ctx.transform_skip_sig[i], QP, INIT_TRANSFORM_SKIP_SIG[slice][i], INIT_TRANSFORM_SKIP_SIG[3][i]);
+    uvg_ctx_init(&cabac->ctx.ibc_flag[i], QP, INIT_IBC_FLAG[slice][i], INIT_IBC_FLAG[3][i]);
   }
 
   for (i = 0; i < 4; i++) {
diff --git a/src/encode_coding_tree.c b/src/encode_coding_tree.c
index 0552e211..cb27099b 100644
--- a/src/encode_coding_tree.c
+++ b/src/encode_coding_tree.c
@@ -1555,7 +1555,7 @@ void uvg_encode_coding_tree(
   }
 
   // Encode skip flag
-  if (state->frame->slicetype != UVG_SLICE_I && cu_width != 4) {
+  if ((state->frame->slicetype != UVG_SLICE_I || state->encoder_control->cfg.ibc) && cu_width != 4) {
 
     int8_t ctx_skip = 0;
 
@@ -1570,6 +1570,15 @@ void uvg_encode_coding_tree(
     CABAC_BIN(cabac, cur_cu->skipped, "SkipFlag");
 
     if (cur_cu->skipped) {
+
+      if (state->encoder_control->cfg.ibc) { // ToDo: Only for luma channel
+        // ToDo: Disable for blocks over 64x64 pixels
+        int8_t ctx_ibc = 0;
+        if (left_cu && left_cu->type == CU_IBC) ctx_ibc++;
+        if (above_cu && above_cu->type == CU_IBC) ctx_ibc++;
+        cabac->cur_ctx = &(cabac->ctx.ibc_flag[ctx_ibc]);
+        CABAC_BIN(cabac, (cur_cu->type == CU_IBC), "IBCFlag");
+      }
       DBG_PRINT_MV(state, x, y, (uint32_t)cu_width, (uint32_t)cu_width, cur_cu);
       uvg_hmvp_add_mv(state, x, y, (uint32_t)cu_width, (uint32_t)cu_width, cur_cu);
       int16_t num_cand = state->encoder_control->cfg.max_merge;
@@ -1597,6 +1606,15 @@ void uvg_encode_coding_tree(
   }
 
   // Prediction mode
+  if (state->frame->slicetype == UVG_SLICE_I && state->encoder_control->cfg.ibc) { // ToDo: Only for luma channel
+    // ToDo: Disable for blocks over 64x64 pixels
+    int8_t ctx_ibc = 0;
+    if (left_cu && left_cu->type == CU_IBC) ctx_ibc++;
+    if (above_cu && above_cu->type == CU_IBC) ctx_ibc++;
+    cabac->cur_ctx = &(cabac->ctx.ibc_flag[ctx_ibc]);
+    CABAC_BIN(cabac, (cur_cu->type == CU_IBC), "IBCFlag");
+  }
+
   if (state->frame->slicetype != UVG_SLICE_I && cu_width != 4) {
 
     int8_t ctx_predmode = 0;
@@ -1607,6 +1625,15 @@ void uvg_encode_coding_tree(
 
     cabac->cur_ctx = &(cabac->ctx.cu_pred_mode_model[ctx_predmode]);
     CABAC_BIN(cabac, (cur_cu->type == CU_INTRA), "PredMode");
+
+    // We need IBC flag if the mode is signalled as Inter
+    if (state->encoder_control->cfg.ibc && cur_cu->type != CU_INTRA) {
+      int8_t ctx_ibc = 0;
+      if (left_cu && left_cu->type == CU_IBC) ctx_ibc++;
+      if (above_cu && above_cu->type == CU_IBC) ctx_ibc++;
+      cabac->cur_ctx = &(cabac->ctx.ibc_flag[ctx_ibc]);
+      CABAC_BIN(cabac, (cur_cu->type == CU_IBC), "IBCFlag");
+    }
   }
 
   // part_mode