diff --git a/doc/tinc.conf.5.in b/doc/tinc.conf.5.in
index 560ae479..b49e3de6 100644
--- a/doc/tinc.conf.5.in
+++ b/doc/tinc.conf.5.in
@@ -159,8 +159,25 @@ It is possible to bind only to a single interface with this variable.
 .Pp
 This option may not work on all platforms.
 
-.It Va Broadcast Li = yes | no Po yes Pc Bq experimental
-When disabled, tinc will drop all broadcast and multicast packets, in both router and switch mode.
+.It Va Broadcast Li = no | mst | direct Po mst Pc Bq experimental
+This option selects the way broadcast packets are sent to other daemons.
+NOTE: all nodes in a VPN must use the same
+.Va Broadcast
+mode, otherwise routing loops can form.
+
+.Bl -tag -width indent
+.It no
+Broadcast packets are never sent to other nodes.
+
+.It mst
+Broadcast packets are sent and forwarded via the VPN's Minimum Spanning Tree.
+This ensures broadcast packets reach all nodes.
+
+.It direct
+Broadcast packets are sent directly to all nodes that can be reached directly.
+Broadcast packets received from other nodes are never forwarded.
+If the IndirectData option is also set, broadcast packets will only be sent to nodes which we have a meta connection to.
+.El
 
 .It Va ConnectTo Li = Ar name
 Specifies which other tinc daemon to connect to on startup.
diff --git a/doc/tinc.texi b/doc/tinc.texi
index 84e3495c..d7776826 100644
--- a/doc/tinc.texi
+++ b/doc/tinc.texi
@@ -778,8 +778,23 @@ variable.
 This option may not work on all platforms.
 
 @cindex Broadcast
-@item Broadcast = <yes | no> (yes) [experimental]
-When disabled, tinc will drop all broadcast and multicast packets, in both router and switch mode.
+@item Broadcast = <no | mst | direct> (mst) [experimental]
+This option selects the way broadcast packets are sent to other daemons.
+@emph{NOTE: all nodes in a VPN must use the same Broadcast mode, otherwise routing loops can form.}
+
+@table @asis
+@item no
+Broadcast packets are never sent to other nodes.
+
+@item mst
+Broadcast packets are sent and forwarded via the VPN's Minimum Spanning Tree.
+This ensures broadcast packets reach all nodes.
+
+@item direct
+Broadcast packets are sent directly to all nodes that can be reached directly.
+Broadcast packets received from other nodes are never forwarded.
+If the IndirectData option is also set, broadcast packets will only be sent to nodes which we have a meta connection to.
+@end table
 
 @cindex ConnectTo
 @item ConnectTo = <@var{name}>
diff --git a/src/net_packet.c b/src/net_packet.c
index b11949a2..43c8ce20 100644
--- a/src/net_packet.c
+++ b/src/net_packet.c
@@ -584,24 +584,50 @@ void send_packet(const node_t *n, vpn_packet_t *packet) {
 void broadcast_packet(const node_t *from, vpn_packet_t *packet) {
 	avl_node_t *node;
 	connection_t *c;
+	node_t *n;
+
+	// Always give ourself a copy of the packet.
+	if(from != myself)
+		send_packet(myself, packet);
+
+	// In TunnelServer mode, do not forward broadcast packets.
+        // The MST might not be valid and create loops.
+	if(tunnelserver || broadcast_mode == BMODE_NONE)
+		return;
 
 	ifdebug(TRAFFIC) logger(LOG_INFO, "Broadcasting packet of %d bytes from %s (%s)",
 			   packet->len, from->name, from->hostname);
 
-	if(from != myself) {
-		send_packet(myself, packet);
+	switch(broadcast_mode) {
+		// In MST mode, broadcast packets travel via the Minimum Spanning Tree.
+		// This guarantees all nodes receive the broadcast packet, and
+		// usually distributes the sending of broadcast packets over all nodes.
+		case BMODE_MST:
+			for(node = connection_tree->head; node; node = node->next) {
+				c = node->data;
 
-		// In TunnelServer mode, do not forward broadcast packets.
-                // The MST might not be valid and create loops.
-		if(tunnelserver)
-			return;
-	}
+				if(c->status.active && c->status.mst && c != from->nexthop->connection)
+					send_packet(c->node, packet);
+			}
+			break;
 
-	for(node = connection_tree->head; node; node = node->next) {
-		c = node->data;
+		// In direct mode, we send copies to each node we know of.
+	        // However, this only reaches nodes that can be reached in a single hop.
+		// We don't have enough information to forward broadcast packets in this case.
+		case BMODE_DIRECT:
+			if(from != myself)
+				break;
 
-		if(c->status.active && c->status.mst && c != from->nexthop->connection)
-			send_packet(c->node, packet);
+			for(node = node_udp_tree->head; node; node = node->next) {
+				n = node->data;
+
+				if(n->status.reachable && ((n->via == myself && n->nexthop == n) || n->via == n))
+					send_packet(c->node, packet);
+			}
+			break;
+
+		default:
+			break;
 	}
 }
 
diff --git a/src/net_setup.c b/src/net_setup.c
index a179228b..b8e17da9 100644
--- a/src/net_setup.c
+++ b/src/net_setup.c
@@ -429,7 +429,19 @@ static bool setup_myself(void) {
 
 	get_config_bool(lookup_config(config_tree, "PriorityInheritance"), &priorityinheritance);
 	get_config_bool(lookup_config(config_tree, "DecrementTTL"), &decrement_ttl);
-	get_config_bool(lookup_config(config_tree, "Broadcast"), &broadcast);
+	if(get_config_string(lookup_config(config_tree, "Broadcast"), &mode)) {
+		if(!strcasecmp(mode, "no"))
+			broadcast_mode = BMODE_NONE;
+		else if(!strcasecmp(mode, "yes") || !strcasecmp(mode, "mst"))
+			broadcast_mode = BMODE_MST;
+		else if(!strcasecmp(mode, "direct"))
+			broadcast_mode = BMODE_DIRECT;
+		else {
+			logger(LOG_ERR, "Invalid broadcast mode!");
+			return false;
+		}
+		free(mode);
+	}
 
 #if !defined(SOL_IP) || !defined(IP_TOS)
 	if(priorityinheritance)
diff --git a/src/route.c b/src/route.c
index 6eadb888..74ad9a34 100644
--- a/src/route.c
+++ b/src/route.c
@@ -34,12 +34,12 @@
 
 rmode_t routing_mode = RMODE_ROUTER;
 fmode_t forwarding_mode = FMODE_INTERNAL;
+bmode_t broadcast_mode = BMODE_MST;
 bool decrement_ttl = false;
 bool directonly = false;
 bool priorityinheritance = false;
 int macexpire = 600;
 bool overwrite_mac = false;
-bool broadcast = true;
 mac_t mymac = {{0xFE, 0xFD, 0, 0, 0, 0}};
 
 /* Sizes of various headers */
@@ -430,7 +430,7 @@ static void route_ipv4(node_t *source, vpn_packet_t *packet) {
 	if(!checklength(source, packet, ether_size + ip_size))
 		return;
 
-	if(broadcast && (((packet->data[30] & 0xf0) == 0xe0) || (
+	if(broadcast_mode && (((packet->data[30] & 0xf0) == 0xe0) || (
 			packet->data[30] == 255 &&
 			packet->data[31] == 255 &&
 			packet->data[32] == 255 &&
@@ -727,7 +727,7 @@ static void route_ipv6(node_t *source, vpn_packet_t *packet) {
 		return;
 	}
 
-	if(broadcast && packet->data[38] == 255)
+	if(broadcast_mode && packet->data[38] == 255)
 		broadcast_packet(source, packet);
 	else
 		route_ipv6_unicast(source, packet);
@@ -817,8 +817,7 @@ static void route_mac(node_t *source, vpn_packet_t *packet) {
 	subnet = lookup_subnet_mac(NULL, &dest);
 
 	if(!subnet) {
-		if(broadcast)
-			broadcast_packet(source, packet);
+		broadcast_packet(source, packet);
 		return;
 	}
 
diff --git a/src/route.h b/src/route.h
index 5622feb2..7b45e76a 100644
--- a/src/route.h
+++ b/src/route.h
@@ -36,12 +36,18 @@ typedef enum fmode_t {
 	FMODE_KERNEL,
 } fmode_t;
 
+typedef enum bmode_t {
+	BMODE_NONE = 0,
+	BMODE_MST,
+	BMODE_DIRECT,
+} bmode_t;
+
 extern rmode_t routing_mode;
 extern fmode_t forwarding_mode;
+extern bmode_t broadcast_mode;
 extern bool decrement_ttl;
 extern bool directonly;
 extern bool overwrite_mac;
-extern bool broadcast;
 extern bool priorityinheritance;
 extern int macexpire;