diff --git a/ArduCopter/Copter.h b/ArduCopter/Copter.h
index d7c71db197..371e87f9f6 100644
--- a/ArduCopter/Copter.h
+++ b/ArduCopter/Copter.h
@@ -969,6 +969,9 @@ private:
     ModeThrow mode_throw{*this};
     ModeGuidedNoGPS mode_guided_nogps{*this};
     ModeSmartRTL mode_smartrtl{*this};
+#if OPTFLOW == ENABLED
+    ModeFlowHold mode_flowhold{*this};
+#endif
 
     // mode.cpp
     Mode *mode_from_mode_num(const uint8_t mode);
diff --git a/ArduCopter/defines.h b/ArduCopter/defines.h
index 5db91a9d9b..ab5d505682 100644
--- a/ArduCopter/defines.h
+++ b/ArduCopter/defines.h
@@ -108,6 +108,7 @@ enum control_mode_t {
     AVOID_ADSB =   19,  // automatic avoidance of obstacles in the macro scale - e.g. full-sized aircraft
     GUIDED_NOGPS = 20,  // guided mode but only accepts attitude and altitude
     SMART_RTL =    21,  // SMART_RTL returns to home by retracing its steps
+    FLOWHOLD  =    22,  // FLOWHOLD holds position with optical flow without rangefinder
 };
 
 enum mode_reason_t {
diff --git a/ArduCopter/mode.cpp b/ArduCopter/mode.cpp
index 584c709096..fc46016a8f 100644
--- a/ArduCopter/mode.cpp
+++ b/ArduCopter/mode.cpp
@@ -89,6 +89,12 @@ Copter::Mode *Copter::mode_from_mode_num(const uint8_t mode)
             ret = &mode_smartrtl;
             break;
 
+#if OPTFLOW == ENABLED
+        case FLOWHOLD:
+            ret = &mode_flowhold;
+            break;
+#endif
+            
         default:
             break;
     }
diff --git a/ArduCopter/mode.h b/ArduCopter/mode.h
index ff41942e36..68e5962a23 100644
--- a/ArduCopter/mode.h
+++ b/ArduCopter/mode.h
@@ -1138,3 +1138,87 @@ protected:
 private:
 
 };
+
+
+/*
+  class to support FLOWHOLD mode, which is a position hold mode using
+  optical flow directly, avoiding the need for a rangefinder
+ */
+
+class ModeFlowHold : public Mode {
+public:
+    ModeFlowHold(Copter &copter) :
+        Copter::Mode(copter) {
+        AP_Param::setup_object_defaults(this, var_info);            
+    }
+    
+    bool init(bool ignore_checks) override;
+    void run(void) override;
+
+    bool requires_GPS() const override { return false; }
+    bool has_manual_throttle() const override { return false; }
+    bool allows_arming(bool from_gcs) const override { return true; };
+    bool is_autopilot() const override { return false; }
+    
+    static const struct AP_Param::GroupInfo var_info[];    
+
+protected:
+    const char *name() const override { return "FLOWHOLD"; }
+    const char *name4() const override { return "FHLD"; }
+
+private:
+
+    // FlowHold states
+    enum FlowHoldModeState {
+        FlowHold_MotorStopped,
+        FlowHold_Takeoff,
+        FlowHold_Flying,
+        FlowHold_Landed
+    };
+    
+    // calculate attitude from flow data
+    void flow_to_angle(Vector2f &bf_angle);
+
+    LowPassFilterVector2f flow_filter;
+
+    bool flowhold_init(bool ignore_checks);
+    void flowhold_run();
+    void flowhold_flow_to_angle(Vector2f &angle, bool stick_input);
+    void update_height_estimate(void);
+
+    // minimum assumed height
+    const float height_min = 0.1;
+
+    // maximum scaling height
+    const float height_max = 3.0;
+    
+    AP_Float flow_max;
+    AC_PI_2D flow_pi_xy{0.2, 0.3, 3000, 5, 0.0025};
+    AP_Float flow_filter_hz;
+    AP_Int8  flow_min_quality;
+    AP_Int8  brake_rate_dps;
+
+    float quality_filtered;
+
+    uint8_t log_counter;
+    bool limited;
+    Vector2f xy_I;
+
+    // accumulated INS delta velocity in north-east form since last flow update
+    Vector2f delta_velocity_ne;
+
+    // last flow rate in radians/sec in north-east axis
+    Vector2f last_flow_rate_rps;
+    
+    // timestamp of last flow data
+    uint32_t last_flow_ms;
+
+    float last_ins_height;
+    float height_offset;
+
+    // are we braking after pilot input?
+    bool braking;
+
+    // last time there was significant stick input
+    uint32_t last_stick_input_ms;
+};
diff --git a/ArduCopter/mode_flip.cpp b/ArduCopter/mode_flip.cpp
index 637c4c7b76..3e71904fc9 100644
--- a/ArduCopter/mode_flip.cpp
+++ b/ArduCopter/mode_flip.cpp
@@ -41,7 +41,10 @@ int8_t    flip_pitch_dir;           // pitch direction (-1 = pitch forward, 1 =
 bool Copter::ModeFlip::init(bool ignore_checks)
 {
     // only allow flip from ACRO, Stabilize, AltHold or Drift flight modes
-    if (_copter.control_mode != ACRO && _copter.control_mode != STABILIZE && _copter.control_mode != ALT_HOLD) {
+    if (_copter.control_mode != ACRO &&
+        _copter.control_mode != STABILIZE &&
+        _copter.control_mode != ALT_HOLD &&
+        _copter.control_mode != FLOWHOLD) {
         return false;
     }
 
diff --git a/ArduCopter/mode_flowhold.cpp b/ArduCopter/mode_flowhold.cpp
new file mode 100644
index 0000000000..c7336a24cd
--- /dev/null
+++ b/ArduCopter/mode_flowhold.cpp
@@ -0,0 +1,534 @@
+#include "Copter.h"
+#include <utility>
+
+#if OPTFLOW == ENABLED
+
+/*
+  implement FLOWHOLD mode, for position hold using opttical flow
+  without rangefinder
+ */
+
+const AP_Param::GroupInfo Copter::ModeFlowHold::var_info[] = {
+    // @Param: _XY_P
+    // @DisplayName: Flow (horizontal) P gain
+    // @Description: Flow (horizontal) P gain.
+    // @Range: 0.1 6.0
+    // @Increment: 0.1
+    // @User: Advanced
+
+    // @Param: _XY_I
+    // @DisplayName: Flow I gain
+    // @Description: Flow I gain
+    // @Range: 0.02 1.00
+    // @Increment: 0.01
+    // @User: Advanced
+
+    // @Param: _XY_IMAX
+    // @DisplayName: Flow integrator maximum
+    // @Description: Flow integrator maximum
+    // @Range: 0 4500
+    // @Increment: 10
+    // @Units: cdeg
+    // @User: Advanced
+    AP_SUBGROUPINFO(flow_pi_xy, "_XY_",  1, Copter::ModeFlowHold, AC_PI_2D),
+
+    // @Param: _FLOW_MAX
+    // @DisplayName: Flow Max
+    // @Description: Controls maximum apparent flow rate in flowhold
+    // @Range: 0.1 2.5
+    // @User: Standard
+    AP_GROUPINFO("_FLOW_MAX", 2, Copter::ModeFlowHold, flow_max, 0.6),
+
+    // @Param: _FILT_HZ
+    // @DisplayName: Flow Filter Frequency
+    // @Description: Filter frequency for flow data
+    // @Range: 1 100
+    // @User: Standard
+    AP_GROUPINFO("_FILT_HZ", 3, Copter::ModeFlowHold, flow_filter_hz, 5),
+
+    // @Param: _MIN_QUAL
+    // @DisplayName: Minimum flow quality
+    // @Description: Minimum flow quality to use flow position hold
+    // @Range: 0 255
+    // @User: Standard
+    AP_GROUPINFO("_MIN_QUAL", 4, Copter::ModeFlowHold, flow_min_quality, 10),
+
+    // 5 was FLOW_SPEED
+    
+    // @Param: _BRAKE_RATE
+    // @DisplayName: Braking rate
+    // @Description: Controls deceleration rate on stick release
+    // @Range: 1 30
+    // @User: Standard
+    // @Units: deg/sec
+    AP_GROUPINFO("_BRAKE_RATE", 6, Copter::ModeFlowHold, brake_rate_dps, 8),
+    
+    AP_GROUPEND
+};
+
+#define CONTROL_FLOWHOLD_EARTH_FRAME 0
+
+// flowhold_init - initialise flowhold controller
+bool Copter::ModeFlowHold::init(bool ignore_checks)
+{
+#if FRAME_CONFIG == HELI_FRAME
+    // do not allow helis to enter Alt Hold if the Rotor Runup is not complete
+    if (!ignore_checks && !motors->rotor_runup_complete()){
+        return false;
+    }
+#endif
+
+    if (!copter.optflow.enabled() || !copter.optflow.healthy()) {
+        return false;
+    }
+
+    // initialize vertical speeds and leash lengths
+    copter.pos_control->set_speed_z(-copter.g2.pilot_speed_dn, copter.g.pilot_speed_up);
+    copter.pos_control->set_accel_z(copter.g.pilot_accel_z);
+
+    // initialise position and desired velocity
+    if (!copter.pos_control->is_active_z()) {
+        copter.pos_control->set_alt_target_to_current_alt();
+        copter.pos_control->set_desired_velocity_z(copter.inertial_nav.get_velocity_z());
+    }
+
+    flow_filter.set_cutoff_frequency(copter.scheduler.get_loop_rate_hz(), flow_filter_hz.get());
+
+    quality_filtered = 0;
+    flow_pi_xy.reset_I();
+    limited = false;
+    
+    // stop takeoff if running
+    copter.takeoff_stop();
+
+    flow_pi_xy.set_dt(1.0/copter.scheduler.get_loop_rate_hz());
+
+    // start with INS height
+    last_ins_height = copter.inertial_nav.get_altitude() * 0.01;
+    height_offset = 0;
+    
+    return true;
+}
+
+/*
+  calculate desired attitude from flow sensor. Called when flow sensor is healthy
+ */
+void Copter::ModeFlowHold::flowhold_flow_to_angle(Vector2f &bf_angles, bool stick_input)
+{
+    uint32_t now = AP_HAL::millis();
+    
+    // get corrected raw flow rate
+    Vector2f raw_flow = copter.optflow.flowRate() - copter.optflow.bodyRate();
+
+    // limit sensor flow, this prevents oscillation at low altitudes
+    raw_flow.x = constrain_float(raw_flow.x, -flow_max, flow_max);
+    raw_flow.y = constrain_float(raw_flow.y, -flow_max, flow_max);
+
+    // filter the flow rate
+    Vector2f sensor_flow = flow_filter.apply(raw_flow);
+
+    // scale by height estimate, limiting it to height_min to height_max
+    float ins_height = copter.inertial_nav.get_altitude() * 0.01;
+    float height_estimate = ins_height + height_offset;
+
+    // compensate for height, this converts to (approx) m/s
+    sensor_flow *= constrain_float(height_estimate, height_min, height_max);
+
+    // rotate controller input to earth frame
+    Vector2f input_ef = copter.ahrs.rotate_body_to_earth2D(sensor_flow);
+
+    // run PI controller
+    flow_pi_xy.set_input(input_ef);
+
+    // get earth frame controller attitude in centi-degrees
+    Vector2f ef_output;
+
+    // get P term
+    ef_output = flow_pi_xy.get_p();
+
+    if (stick_input) {
+        last_stick_input_ms = now;
+        braking = true;
+    }
+    if (!stick_input && braking) {
+        // stop braking if either 3s has passed, or we have slowed below 0.3m/s
+        if (now - last_stick_input_ms > 3000 || sensor_flow.length() < 0.3) {
+            braking = false;
+#if 0
+            printf("braking done at %u vel=%f\n", now - last_stick_input_ms,
+                   sensor_flow.length());
+#endif
+        }
+    }
+    
+    if (!stick_input && !braking) {
+        // get I term
+        if (limited) {
+            // only allow I term to shrink in length
+            xy_I = flow_pi_xy.get_i_shrink();
+        } else {
+            // normal I term operation
+            xy_I = flow_pi_xy.get_pi();
+        }
+    }
+
+    if (!stick_input && braking) {
+        // calculate brake angle for each axis separately
+        for (uint8_t i=0; i<2; i++) {
+            float &velocity = sensor_flow[i];
+            float abs_vel_cms = fabsf(velocity)*100;
+            const float brake_gain = (15.0f * brake_rate_dps.get() + 95.0f) / 100.0f;
+            float lean_angle_cd = brake_gain * abs_vel_cms * (1.0f+500.0f/(abs_vel_cms+60.0f));
+            if (velocity < 0) {
+                lean_angle_cd = -lean_angle_cd;
+            }
+            bf_angles[i] = lean_angle_cd;
+        }
+        ef_output.zero();
+    }
+
+    
+    ef_output += xy_I;
+    ef_output *= copter.aparm.angle_max;
+
+    // convert to body frame
+    bf_angles += copter.ahrs.rotate_earth_to_body2D(ef_output);
+
+    // set limited flag to prevent integrator windup
+    limited = fabsf(bf_angles.x) > copter.aparm.angle_max || fabsf(bf_angles.y) > copter.aparm.angle_max;
+
+    // constrain to angle limit
+    bf_angles.x = constrain_float(bf_angles.x, -copter.aparm.angle_max, copter.aparm.angle_max);
+    bf_angles.y = constrain_float(bf_angles.y, -copter.aparm.angle_max, copter.aparm.angle_max);
+
+    if (log_counter++ % 20 == 0) {
+        DataFlash_Class::instance()->Log_Write("FHLD", "TimeUS,SFx,SFy,Ax,Ay,Qual,Ix,Iy", "Qfffffffff",
+                                               AP_HAL::micros64(),
+                                               sensor_flow.x, sensor_flow.y,
+                                               bf_angles.x, bf_angles.y,
+                                               quality_filtered,
+                                               xy_I.x, xy_I.y);
+    }
+}
+
+// flowhold_run - runs the flowhold controller
+// should be called at 100hz or more
+void Copter::ModeFlowHold::run()
+{
+    FlowHoldModeState flowhold_state;
+    float takeoff_climb_rate = 0.0f;
+
+    update_height_estimate();
+    
+    // initialize vertical speeds and acceleration
+    copter.pos_control->set_speed_z(-copter.g2.pilot_speed_dn, copter.g.pilot_speed_up);
+    copter.pos_control->set_accel_z(copter.g.pilot_accel_z);
+
+    // apply SIMPLE mode transform to pilot inputs
+    copter.update_simple_mode();
+
+    // check for filter change
+    if (!is_equal(flow_filter.get_cutoff_freq(), flow_filter_hz.get())) {
+        flow_filter.set_cutoff_frequency(flow_filter_hz.get());
+    }
+
+    // get pilot desired climb rate
+    float target_climb_rate = copter.get_pilot_desired_climb_rate(copter.channel_throttle->get_control_in());
+    target_climb_rate = constrain_float(target_climb_rate, -copter.g2.pilot_speed_dn, copter.g.pilot_speed_up);
+
+    // get pilot's desired yaw rate
+    float target_yaw_rate = copter.get_pilot_desired_yaw_rate(copter.channel_yaw->get_control_in());
+    
+#if FRAME_CONFIG == HELI_FRAME
+    // helicopters are held on the ground until rotor speed runup has finished
+    bool takeoff_triggered = (copter.ap.land_complete && (target_climb_rate > 0.0f) && copter.motors->rotor_runup_complete());
+#else
+    bool takeoff_triggered = copter.ap.land_complete && (target_climb_rate > 0.0f);
+#endif
+    
+    // FlowHold State Machine Determination
+    if (!copter.motors->armed() || !copter.motors->get_interlock()) {
+        flowhold_state = FlowHold_MotorStopped;
+    } else if (copter.takeoff_state.running || takeoff_triggered) {
+        flowhold_state = FlowHold_Takeoff;
+    } else if (!copter.ap.auto_armed || copter.ap.land_complete) {
+        flowhold_state = FlowHold_Landed;
+    } else {
+        flowhold_state = FlowHold_Flying;
+    }
+
+    if (copter.optflow.healthy()) {
+        const float filter_constant = 0.95;
+        quality_filtered = filter_constant * quality_filtered + (1-filter_constant) * copter.optflow.quality();
+    } else {
+        quality_filtered = 0;
+    }
+    
+    Vector2f bf_angles;
+
+    // calculate alt-hold angles
+    int16_t roll_in = copter.channel_roll->get_control_in();
+    int16_t pitch_in = copter.channel_pitch->get_control_in();
+    float angle_max = copter.attitude_control->get_althold_lean_angle_max();
+    copter.get_pilot_desired_lean_angles(roll_in, pitch_in,
+                                         bf_angles.x, bf_angles.y,
+                                         angle_max);
+    
+    if (quality_filtered >= flow_min_quality &&
+        AP_HAL::millis() - copter.arm_time_ms > 3000) {
+        // don't use for first 3s when we are just taking off
+        Vector2f flow_angles;
+
+        flowhold_flow_to_angle(flow_angles, (roll_in != 0) || (pitch_in != 0));
+        flow_angles.x = constrain_float(flow_angles.x, -angle_max/2, angle_max/2);
+        flow_angles.y = constrain_float(flow_angles.y, -angle_max/2, angle_max/2);
+        bf_angles += flow_angles;
+    }
+    bf_angles.x = constrain_float(bf_angles.x, -angle_max, angle_max);
+    bf_angles.y = constrain_float(bf_angles.y, -angle_max, angle_max);
+            
+    // Alt Hold State Machine
+    switch (flowhold_state) {
+
+    case FlowHold_MotorStopped:
+
+        copter.motors->set_desired_spool_state(AP_Motors::DESIRED_SHUT_DOWN);
+        copter.attitude_control->input_euler_angle_roll_pitch_euler_rate_yaw(bf_angles.x, bf_angles.y, target_yaw_rate, copter.get_smoothing_gain());
+#if FRAME_CONFIG == HELI_FRAME    
+        // force descent rate and call position controller
+        copter.pos_control->set_alt_target_from_climb_rate(-abs(copter.g.land_speed), copter.G_Dt, false);
+#else
+        copter.attitude_control->reset_rate_controller_I_terms();
+        copter.attitude_control->set_yaw_target_to_current_heading();
+        copter.pos_control->relax_alt_hold_controllers(0.0f);   // forces throttle output to go to zero
+#endif
+        flow_pi_xy.reset_I();
+        copter.pos_control->update_z_controller();
+        break;
+
+    case FlowHold_Takeoff:
+        // set motors to full range
+        copter.motors->set_desired_spool_state(AP_Motors::DESIRED_THROTTLE_UNLIMITED);
+
+        // initiate take-off
+        if (!copter.takeoff_state.running) {
+            copter.takeoff_timer_start(constrain_float(copter.g.pilot_takeoff_alt,0.0f,1000.0f));
+            // indicate we are taking off
+            copter.set_land_complete(false);
+            // clear i terms
+            copter.set_throttle_takeoff();
+        }
+
+        // get take-off adjusted pilot and takeoff climb rates
+        copter.takeoff_get_climb_rates(target_climb_rate, takeoff_climb_rate);
+
+        // get avoidance adjusted climb rate
+        target_climb_rate = copter.get_avoidance_adjusted_climbrate(target_climb_rate);
+
+        // call attitude controller
+        copter.attitude_control->input_euler_angle_roll_pitch_euler_rate_yaw(bf_angles.x, bf_angles.y, target_yaw_rate, copter.get_smoothing_gain());
+
+        // call position controller
+        copter.pos_control->set_alt_target_from_climb_rate_ff(target_climb_rate, copter.G_Dt, false);
+        copter.pos_control->add_takeoff_climb_rate(takeoff_climb_rate, copter.G_Dt);
+        copter.pos_control->update_z_controller();
+        break;
+
+    case FlowHold_Landed:
+        // set motors to spin-when-armed if throttle below deadzone, otherwise full range (but motors will only spin at min throttle)
+        if (target_climb_rate < 0.0f) {
+            copter.motors->set_desired_spool_state(AP_Motors::DESIRED_SPIN_WHEN_ARMED);
+        } else {
+            copter.motors->set_desired_spool_state(AP_Motors::DESIRED_THROTTLE_UNLIMITED);
+        }
+
+        copter.attitude_control->reset_rate_controller_I_terms();
+        copter.attitude_control->set_yaw_target_to_current_heading();
+        copter.attitude_control->input_euler_angle_roll_pitch_euler_rate_yaw(bf_angles.x, bf_angles.y, target_yaw_rate, copter.get_smoothing_gain());
+        copter.pos_control->relax_alt_hold_controllers(0.0f);   // forces throttle output to go to zero
+        copter.pos_control->update_z_controller();
+        break;
+
+    case FlowHold_Flying:
+        copter.motors->set_desired_spool_state(AP_Motors::DESIRED_THROTTLE_UNLIMITED);
+
+#if AC_AVOID_ENABLED == ENABLED
+        // apply avoidance
+        copter.avoid.adjust_roll_pitch(bf_angles.x, bf_angles.y, copter.aparm.angle_max);
+#endif
+
+        // call attitude controller
+        copter.attitude_control->input_euler_angle_roll_pitch_euler_rate_yaw(bf_angles.x, bf_angles.y, target_yaw_rate, copter.get_smoothing_gain());
+
+        // adjust climb rate using rangefinder
+        if (copter.rangefinder_alt_ok()) {
+            // if rangefinder is ok, use surface tracking
+            target_climb_rate = copter.get_surface_tracking_climb_rate(target_climb_rate, copter.pos_control->get_alt_target(), copter.G_Dt);
+        }
+
+        // get avoidance adjusted climb rate
+        target_climb_rate = copter.get_avoidance_adjusted_climbrate(target_climb_rate);
+
+        // call position controller
+        copter.pos_control->set_alt_target_from_climb_rate_ff(target_climb_rate, copter.G_Dt, false);
+        copter.pos_control->update_z_controller();
+        break;
+    }
+}
+
+
+/*
+  update height estimate using integrated accelerometer ratio with optical flow
+ */
+void Copter::ModeFlowHold::update_height_estimate(void)
+{
+    float ins_height = copter.inertial_nav.get_altitude() * 0.01;
+
+#if 1
+    // assume on ground when disarmed, or if we have only just started spooling the motors up
+    if (!hal.util->get_soft_armed() ||
+        copter.motors->get_desired_spool_state() != AP_Motors::DESIRED_THROTTLE_UNLIMITED ||
+        AP_HAL::millis() - copter.arm_time_ms < 1500) {
+        height_offset = -ins_height;
+        last_ins_height = ins_height;
+        return;
+    }
+#endif
+        
+    // get delta velocity in body frame
+    Vector3f delta_vel;
+    if (!copter.ins.get_delta_velocity(delta_vel)) {
+        return;
+    }
+
+    // integrate delta velocity in earth frame
+    const Matrix3f &rotMat = copter.ahrs.get_rotation_body_to_ned();
+    delta_vel = rotMat * delta_vel;
+    delta_velocity_ne.x += delta_vel.x;
+    delta_velocity_ne.y += delta_vel.y;
+    
+    if (!copter.optflow.healthy()) {
+        // can't update height model with no flow sensor
+        last_flow_ms = AP_HAL::millis();
+        delta_velocity_ne.zero();
+        return;
+    }
+
+    if (last_flow_ms == 0) {
+        // just starting up
+        last_flow_ms = copter.optflow.last_update();
+        delta_velocity_ne.zero();
+        height_offset = 0;
+        return;
+    }
+    
+    if (copter.optflow.last_update() == last_flow_ms) {
+        // no new flow data
+        return;
+    }
+
+    // convert delta velocity back to body frame to match the flow sensor
+    Vector2f delta_vel_bf = copter.ahrs.rotate_earth_to_body2D(delta_velocity_ne);
+
+    // and convert to an rate equivalent, to be comparable to flow
+    Vector2f delta_vel_rate(-delta_vel_bf.y, delta_vel_bf.x);
+    
+    // get body flow rate in radians per second
+    Vector2f flow_rate_rps = copter.optflow.flowRate() - copter.optflow.bodyRate();
+
+    uint32_t dt_ms = copter.optflow.last_update() - last_flow_ms;
+    if (dt_ms > 500) {
+        // too long between updates, ignore
+        last_flow_ms = copter.optflow.last_update();
+        delta_velocity_ne.zero();
+        last_flow_rate_rps = flow_rate_rps;
+        last_ins_height = ins_height;
+        height_offset = 0;
+        return;        
+    }
+
+    /*
+      basic equation is:
+      height_m = delta_velocity_mps / delta_flowrate_rps;
+     */
+    
+    // get delta_flowrate_rps
+    Vector2f delta_flowrate = flow_rate_rps - last_flow_rate_rps;
+    last_flow_rate_rps = flow_rate_rps;
+    last_flow_ms = copter.optflow.last_update();
+
+    /*
+      update height estimate
+     */
+    const float min_velocity_change = 0.04;
+    const float min_flow_change = 0.04;
+    const float height_delta_max = 0.25;
+
+    /*
+      for each axis update the height estimate
+     */
+    float delta_height = 0;
+    uint8_t total_weight=0;
+    float height_estimate = ins_height + height_offset;
+
+    for (uint8_t i=0; i<2; i++) {
+        // only use height estimates when we have significant delta-velocity and significant delta-flow
+        float abs_flow = fabsf(delta_flowrate[i]);
+        if (abs_flow < min_flow_change ||
+            fabsf(delta_vel_rate[i]) < min_velocity_change) {
+            continue;
+        }
+        // get instantaneous height estimate
+        float height = delta_vel_rate[i] / delta_flowrate[i];
+        if (height <= 0) {
+            // discard negative heights
+            continue;
+        }
+        delta_height += (height - height_estimate) * abs_flow;
+        total_weight += abs_flow;
+    }
+    if (total_weight > 0) {
+        delta_height /= total_weight;
+    }
+    
+    if (delta_height < 0) {
+        // bias towards lower heights, as we'd rather have too low
+        // gain than have oscillation. This also compensates a bit for
+        // the discard of negative heights above
+        delta_height *= 2;
+    }
+
+    // don't update height by more than height_delta_max, this is a simple way of rejecting noise
+    float new_offset = height_offset + constrain_float(delta_height, -height_delta_max, height_delta_max);
+
+    // apply a simple filter
+    height_offset = 0.8 * height_offset + 0.2 * new_offset;
+    
+    if (ins_height + height_offset < height_min) {
+        // height estimate is never allowed below the minimum
+        height_offset = height_min - ins_height;
+    }
+
+    // new height estimate for logging
+    height_estimate = ins_height + height_offset;
+    
+    DataFlash_Class::instance()->Log_Write("FXY", "TimeUS,DFx,DFy,DVx,DVy,Hest,DH,Hofs,InsH,LastInsH,DTms", "QfffffffffI",
+                                           AP_HAL::micros64(),
+                                           delta_flowrate.x,
+                                           delta_flowrate.y,
+                                           delta_vel_rate.x,
+                                           delta_vel_rate.y,
+                                           height_estimate,
+                                           delta_height,
+                                           height_offset,
+                                           ins_height,
+                                           last_ins_height,
+                                           dt_ms);
+    mavlink_msg_named_value_float_send(MAVLINK_COMM_0, AP_HAL::millis(), "HEST", height_estimate);
+    mavlink_msg_named_value_float_send(MAVLINK_COMM_1, AP_HAL::millis(), "HEST", height_estimate);
+    delta_velocity_ne.zero();
+    last_ins_height = ins_height;
+}
+
+#endif // OPTFLOW == ENABLED
+
diff --git a/ArduCopter/sensors.cpp b/ArduCopter/sensors.cpp
index 39923f283d..cfb1fe5323 100644
--- a/ArduCopter/sensors.cpp
+++ b/ArduCopter/sensors.cpp
@@ -371,6 +371,7 @@ void Copter::update_sensor_status_flags(void)
     case GUIDED_NOGPS:
     case SPORT:
     case AUTOTUNE:
+    case FLOWHOLD:
         control_sensors_enabled |= MAV_SYS_STATUS_SENSOR_Z_ALTITUDE_CONTROL;
         break;
     default:
diff --git a/ArduCopter/takeoff.cpp b/ArduCopter/takeoff.cpp
index 44e4135114..401fe0a413 100644
--- a/ArduCopter/takeoff.cpp
+++ b/ArduCopter/takeoff.cpp
@@ -16,6 +16,7 @@ bool Copter::current_mode_has_user_takeoff(bool must_navigate)
             return true;
         case ALT_HOLD:
         case SPORT:
+        case FLOWHOLD:
             return !must_navigate;
         default:
             return false;
@@ -45,6 +46,7 @@ bool Copter::do_user_takeoff(float takeoff_alt_cm, bool must_navigate)
             case POSHOLD:
             case ALT_HOLD:
             case SPORT:
+            case FLOWHOLD:
                 set_auto_armed(true);
                 takeoff_timer_start(takeoff_alt_cm);
                 return true;