diff --git a/app/components/autocomplete/channel_mention/channel_mention.js b/app/components/autocomplete/channel_mention/channel_mention.js
index 03604bc8f..1d718017a 100644
--- a/app/components/autocomplete/channel_mention/channel_mention.js
+++ b/app/components/autocomplete/channel_mention/channel_mention.js
@@ -34,6 +34,7 @@ export default class ChannelMention extends PureComponent {
         onResultCountChange: PropTypes.func.isRequired,
         privateChannels: PropTypes.array,
         publicChannels: PropTypes.array,
+        directAndGroupMessages: PropTypes.array,
         deletedPublicChannels: PropTypes.instanceOf(Set),
         requestStatus: PropTypes.string.isRequired,
         theme: PropTypes.object.isRequired,
@@ -55,16 +56,15 @@ export default class ChannelMention extends PureComponent {
     }
 
     runSearch = debounce((currentTeamId, matchTerm) => {
-        if (!isMinimumServerVersion(this.props.serverVersion, 5, 4)) {
-            this.props.actions.searchChannels(currentTeamId, matchTerm);
+        if (isMinimumServerVersion(this.props.serverVersion, 5, 4)) {
+            this.props.actions.autocompleteChannelsForSearch(currentTeamId, matchTerm);
             return;
         }
-
-        this.props.actions.autocompleteChannelsForSearch(currentTeamId, matchTerm);
+        this.props.actions.searchChannels(currentTeamId, matchTerm);
     }, 200);
 
     componentWillReceiveProps(nextProps) {
-        const {isSearch, matchTerm, myChannels, otherChannels, privateChannels, publicChannels, requestStatus, myMembers, deletedPublicChannels} = nextProps;
+        const {isSearch, matchTerm, myChannels, otherChannels, privateChannels, publicChannels, directAndGroupMessages, requestStatus, myMembers, deletedPublicChannels} = nextProps;
 
         if ((matchTerm !== this.props.matchTerm && matchTerm === null) || this.state.mentionComplete) {
             // if the term changes but is null or the mention has been completed we render this component as null
@@ -91,6 +91,7 @@ export default class ChannelMention extends PureComponent {
         if (requestStatus !== RequestStatus.STARTED &&
             (myChannels !== this.props.myChannels || otherChannels !== this.props.otherChannels ||
                 privateChannels !== this.props.privateChannels || publicChannels !== this.props.publicChannels ||
+                directAndGroupMessages !== this.props.directAndGroupMessages ||
                 myMembers !== this.props.myMembers || deletedPublicChannels !== this.props.deletedPublicChannels)) {
             // if the request is complete and the term is not null we show the autocomplete
             const sections = [];
@@ -112,6 +113,15 @@ export default class ChannelMention extends PureComponent {
                         key: 'privateChannels',
                     });
                 }
+
+                if (directAndGroupMessages.length && isMinimumServerVersion(this.props.serverVersion, 5, 4)) {
+                    sections.push({
+                        id: t('suggestion.search.direct'),
+                        defaultMessage: 'Direct Messages',
+                        data: directAndGroupMessages,
+                        key: 'directAndGroupMessages',
+                    });
+                }
             } else {
                 if (myChannels.length) {
                     sections.push({
diff --git a/app/components/autocomplete/channel_mention/index.js b/app/components/autocomplete/channel_mention/index.js
index 1ac50077a..ab988decd 100644
--- a/app/components/autocomplete/channel_mention/index.js
+++ b/app/components/autocomplete/channel_mention/index.js
@@ -13,6 +13,7 @@ import {
     filterOtherChannels,
     filterPublicChannels,
     filterPrivateChannels,
+    filterDirectAndGroupMessages,
     getDeletedPublicChannelsIds,
     getMatchTermForChannelMention,
 } from 'app/selectors/autocomplete';
@@ -30,9 +31,11 @@ function mapStateToProps(state, ownProps) {
     let otherChannels;
     let publicChannels;
     let privateChannels;
+    let directAndGroupMessages;
     if (isSearch) {
         publicChannels = filterPublicChannels(state, matchTerm);
         privateChannels = filterPrivateChannels(state, matchTerm);
+        directAndGroupMessages = filterDirectAndGroupMessages(state, matchTerm);
     } else {
         myChannels = filterMyChannels(state, matchTerm);
         otherChannels = filterOtherChannels(state, matchTerm);
@@ -45,6 +48,7 @@ function mapStateToProps(state, ownProps) {
         publicChannels,
         deletedPublicChannels: getDeletedPublicChannelsIds(state),
         privateChannels,
+        directAndGroupMessages,
         currentTeamId: getCurrentTeamId(state),
         matchTerm,
         requestStatus: state.requests.channels.getChannels.status,
diff --git a/app/components/autocomplete/channel_mention_item/channel_mention_item.js b/app/components/autocomplete/channel_mention_item/channel_mention_item.js
index a8966a83e..4257a3c72 100644
--- a/app/components/autocomplete/channel_mention_item/channel_mention_item.js
+++ b/app/components/autocomplete/channel_mention_item/channel_mention_item.js
@@ -8,6 +8,8 @@ import {
     TouchableOpacity,
 } from 'react-native';
 
+import {General} from 'mattermost-redux/constants';
+
 import {makeStyleSheetFromTheme} from 'app/utils/theme';
 
 export default class ChannelMentionItem extends PureComponent {
@@ -15,13 +17,20 @@ export default class ChannelMentionItem extends PureComponent {
         channelId: PropTypes.string.isRequired,
         displayName: PropTypes.string,
         name: PropTypes.string,
+        type: PropTypes.string,
         onPress: PropTypes.func.isRequired,
         theme: PropTypes.object.isRequired,
     };
 
     completeMention = () => {
-        const {onPress, name} = this.props;
-        onPress(name);
+        const {onPress, displayName, name, type} = this.props;
+        if (type === General.DM_CHANNEL) {
+            onPress('@' + displayName.replace(/ /g, ''));
+        } else if (type === General.DM_CHANNEL) {
+            onPress('@' + displayName.replace(/ /g, ''));
+        } else {
+            onPress(name);
+        }
     };
 
     render() {
@@ -30,10 +39,22 @@ export default class ChannelMentionItem extends PureComponent {
             displayName,
             name,
             theme,
+            type,
         } = this.props;
 
         const style = getStyleFromTheme(theme);
 
+        if (type === General.DM_CHANNEL || type === General.GM_CHANNEL) {
+            return (
+                <TouchableOpacity
+                    key={channelId}
+                    onPress={this.completeMention}
+                    style={style.row}
+                >
+                    <Text style={style.rowDisplayName}>{'@' + displayName}</Text>
+                </TouchableOpacity>
+            );
+        }
         return (
             <TouchableOpacity
                 key={channelId}
diff --git a/app/components/autocomplete/channel_mention_item/index.js b/app/components/autocomplete/channel_mention_item/index.js
index 12a25bb82..30b590167 100644
--- a/app/components/autocomplete/channel_mention_item/index.js
+++ b/app/components/autocomplete/channel_mention_item/index.js
@@ -7,14 +7,18 @@ import {getChannel} from 'mattermost-redux/selectors/entities/channels';
 
 import {getTheme} from 'mattermost-redux/selectors/entities/preferences';
 
+import {getChannelNameForSearchAutocomplete} from 'app/selectors/channel';
+
 import ChannelMentionItem from './channel_mention_item';
 
 function mapStateToProps(state, ownProps) {
     const channel = getChannel(state, ownProps.channelId);
+    const displayName = getChannelNameForSearchAutocomplete(state, ownProps.channelId);
 
     return {
-        displayName: channel.display_name,
+        displayName,
         name: channel.name,
+        type: channel.type,
         theme: getTheme(state),
     };
 }
diff --git a/app/selectors/autocomplete.js b/app/selectors/autocomplete.js
index e96c540fd..e03c47689 100644
--- a/app/selectors/autocomplete.js
+++ b/app/selectors/autocomplete.js
@@ -231,6 +231,36 @@ export const filterPrivateChannels = createSelector(
     }
 );
 
+export const filterDirectAndGroupMessages = createSelector(
+    getMyChannels,
+    (state) => state.entities.channels.channels,
+    (state, matchTerm) => matchTerm,
+    (myChannels, originalChannels, matchTerm) => {
+        if (matchTerm === null) {
+            return null;
+        }
+
+        let channels;
+        if (matchTerm) {
+            channels = myChannels.filter((c) => {
+                if (c.type === General.DM_CHANNEL && (originalChannels[c.id].display_name.startsWith(matchTerm))) {
+                    return true;
+                }
+                if (c.type === General.GM_CHANNEL && (c.name.startsWith(matchTerm) || c.display_name.replace(/ /g, '').startsWith(matchTerm))) {
+                    return true;
+                }
+                return false;
+            });
+        } else {
+            channels = myChannels.filter((c) => {
+                return c.type === General.DM_CHANNEL || c.type === General.GM_CHANNEL;
+            });
+        }
+
+        return channels.map((c) => c.id);
+    }
+);
+
 export const makeGetMatchTermForDateMention = () => {
     let lastMatchTerm = null;
     let lastValue;
diff --git a/app/selectors/channel.js b/app/selectors/channel.js
index 9cb6e7366..6c058bccd 100644
--- a/app/selectors/channel.js
+++ b/app/selectors/channel.js
@@ -27,3 +27,13 @@ export const getChannelMembersForDm = createSelector(
         return [otherUser];
     }
 );
+
+export const getChannelNameForSearchAutocomplete = createSelector(
+    (state, channelId) => state.entities.channels.channels[channelId],
+    (channel) => {
+        if (channel && channel.display_name) {
+            return channel.display_name;
+        }
+        return '';
+    }
+);
diff --git a/assets/base/i18n/en.json b/assets/base/i18n/en.json
index 32c6c5e98..e2bd74a88 100644
--- a/assets/base/i18n/en.json
+++ b/assets/base/i18n/en.json
@@ -481,6 +481,7 @@
   "suggestion.mention.morechannels": "Other Channels",
   "suggestion.mention.nonmembers": "Not in Channel",
   "suggestion.mention.special": "Special Mentions",
+  "suggestion.search.direct": "Direct Messages",
   "suggestion.search.private": "Private Channels",
   "suggestion.search.public": "Public Channels",
   "user.settings.display.clockDisplay": "Clock Display",