diff --git a/CMakeLists.txt b/CMakeLists.txt
index 5c8e162f78..3db6a88e51 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -65,6 +65,7 @@ set(kwin_KDEINIT_SRCS
    effects/test_input.cpp
    effects/presentwindows.cpp
    effects/wavywindows.cpp
+   effects/minimizeanimation.cpp
    )
 
 qt4_add_dbus_adaptor( kwin_KDEINIT_SRCS org.kde.KWin.xml workspace.h KWinInternal::Workspace )
diff --git a/effects.cpp b/effects.cpp
index eca0030975..262c49ef14 100644
--- a/effects.cpp
+++ b/effects.cpp
@@ -19,6 +19,7 @@ License. See the file "COPYING" for the exact licensing terms.
 #include "effects/fadeout.h"
 #include "effects/howto.h"
 #include "effects/maketransparent.h"
+#include "effects/minimizeanimation.h"
 #include "effects/presentwindows.h"
 #include "effects/scalein.h"
 #include "effects/shakymove.h"
@@ -117,6 +118,7 @@ EffectsHandler::EffectsHandler( Workspace* ws )
 //    effects.append( new ZoomEffect( ws ));
 //    effects.append( new PresentWindowsEffect( ws ));
 //    effects.append( new WavyWindowsEffect( ws ));
+//    effects.append( new MinimizeAnimationEffect( ws ));
 //    effects.append( new HowtoEffect );
 //    effects.append( new MakeTransparentEffect );
 //    effects.append( new ShakyMoveEffect );
diff --git a/effects/minimizeanimation.cpp b/effects/minimizeanimation.cpp
new file mode 100644
index 0000000000..667fd1a51c
--- /dev/null
+++ b/effects/minimizeanimation.cpp
@@ -0,0 +1,128 @@
+/*****************************************************************
+ KWin - the KDE window manager
+ This file is part of the KDE project.
+
+Copyright (C) 2007 Rivo Laks <rivolaks@hot.ee>
+
+You can Freely distribute this program under the GNU General Public
+License. See the file "COPYING" for the exact licensing terms.
+******************************************************************/
+
+
+#include "minimizeanimation.h"
+
+#include <workspace.h>
+#include <client.h>
+
+
+// Note that currently effects need to be manually enabled in the EffectsHandler
+// class constructor (in effects.cpp).
+
+namespace KWinInternal
+{
+
+MinimizeAnimationEffect::MinimizeAnimationEffect( Workspace* ws ) : Effect()
+    {
+    mWorkspace = ws;
+    mActiveAnimations = 0;
+    }
+
+
+void MinimizeAnimationEffect::prePaintScreen( int* mask, QRegion* region, int time )
+    {
+    if( mActiveAnimations > 0 )
+        // We need to mark the screen as transformed. Otherwise the whole
+        //  screen won't be repainted, resulting in artefacts
+        *mask |= Scene::PAINT_SCREEN_TRANSFORMED;
+
+    effects->prePaintScreen(mask, region, time);
+    }
+
+void MinimizeAnimationEffect::prePaintWindow( EffectWindow* w, int* mask, QRegion* region, int time )
+    {
+    const float changeTime = 500;
+    if( mAnimationProgress.contains( w ))
+        {
+        Client* c = static_cast< Client* >( w->window() );
+        if( c->isMinimized() )
+            {
+            mAnimationProgress[w] += time / changeTime;
+            if( mAnimationProgress[w] >= 1.0f )
+                mAnimationProgress.remove( w );
+            }
+        else
+            {
+            mAnimationProgress[w] -= time / changeTime;
+            if( mAnimationProgress[w] <= 0.0f )
+                mAnimationProgress.remove( w );
+            }
+
+        // Schedule window for transformation if the animation is still in
+        //  progress
+        if( mAnimationProgress.contains( w ))
+            {
+            // We'll transform this window
+            *mask |= Scene::PAINT_WINDOW_TRANSFORMED;
+            *mask &= ~Scene::PAINT_WINDOW_DISABLED;
+            }
+        else
+            // Animation just finished
+            mActiveAnimations--;
+        }
+
+    effects->prePaintWindow( w, mask, region, time );
+    }
+
+void MinimizeAnimationEffect::paintWindow( EffectWindow* w, int mask, QRegion region, WindowPaintData& data )
+    {
+    if( mAnimationProgress.contains( w ))
+    {
+        // 0 = not minimized, 1 = fully minimized
+        float progress = mAnimationProgress[w];
+
+        Client* c = static_cast< Client* >( w->window() );
+        QRect geo = c->geometry();
+        QRect icon = c->iconGeometry();
+
+        data.xScale *= interpolate(1.0, icon.width() / (float)geo.width(), progress);
+        data.yScale *= interpolate(1.0, icon.height() / (float)geo.height(), progress);
+        data.xTranslate = (int)interpolate(data.xTranslate, icon.x() - geo.x(), progress);
+        data.yTranslate = (int)interpolate(data.yTranslate, icon.y() - geo.y(), progress);
+    }
+
+    // Call the next effect.
+    effects->paintWindow( w, mask, region, data );
+    }
+
+void MinimizeAnimationEffect::postPaintScreen()
+    {
+    if( mActiveAnimations > 0 )
+        // Damage the workspace so that everything would be repainted next time
+        mWorkspace->addDamageFull();
+
+    // Call the next effect.
+    effects->postPaintScreen();
+    }
+
+void MinimizeAnimationEffect::windowMinimized( EffectWindow* w )
+    {
+    Client* client = static_cast< Client* >( w->window() );
+    if( !mAnimationProgress.contains(w) && client->iconGeometry().isValid() )
+        {
+        mAnimationProgress[w] = 0.0f;
+        mActiveAnimations++;
+        }
+    }
+
+void MinimizeAnimationEffect::windowUnminimized( EffectWindow* w )
+    {
+    Client* client = static_cast< Client* >( w->window() );
+        if( !mAnimationProgress.contains(w) && client->iconGeometry().isValid() )
+        {
+        mAnimationProgress[w] = 1.0f;
+        mActiveAnimations++;
+        }
+    }
+
+} // namespace
+
diff --git a/effects/minimizeanimation.h b/effects/minimizeanimation.h
new file mode 100644
index 0000000000..6cd9b766a9
--- /dev/null
+++ b/effects/minimizeanimation.h
@@ -0,0 +1,46 @@
+/*****************************************************************
+ KWin - the KDE window manager
+ This file is part of the KDE project.
+
+Copyright (C) 2007 Rivo Laks <rivolaks@hot.ee>
+
+You can Freely distribute this program under the GNU General Public
+License. See the file "COPYING" for the exact licensing terms.
+******************************************************************/
+
+#ifndef KWIN_MINIMIZEANIMATION_H
+#define KWIN_MINIMIZEANIMATION_H
+
+// Include with base class for effects.
+#include <effects.h>
+
+
+namespace KWinInternal
+{
+
+/**
+ * Animates minimize/unminimize
+ **/
+class MinimizeAnimationEffect
+    : public Effect
+    {
+    public:
+        MinimizeAnimationEffect( Workspace* ws );
+
+        virtual void prePaintScreen( int* mask, QRegion* region, int time );
+        virtual void prePaintWindow( EffectWindow* w, int* mask, QRegion* region, int time );
+        virtual void paintWindow( EffectWindow* w, int mask, QRegion region, WindowPaintData& data );
+        virtual void postPaintScreen();
+
+        virtual void windowMinimized( EffectWindow* c );
+        virtual void windowUnminimized( EffectWindow* c );
+
+    private:
+        Workspace* mWorkspace;
+        QMap< EffectWindow*, float > mAnimationProgress;
+        int mActiveAnimations;
+    };
+
+} // namespace
+
+#endif