diff --git a/CMakeLists.txt b/CMakeLists.txt
index 59a8b08..cc7388c 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -97,6 +97,10 @@ if (WITH_G729)
 	if (G729_FOUND)
 		message(STATUS "bcg729 OK")
 		set(HAVE_BCG729 TRUE)
+
+		if (G729_ANNEX_B)
+			set(HAVE_BCG729_ANNEX_B TRUE)
+		endif (G729_ANNEX_B)
 		
 		include_directories(${G729_INCLUDE_DIR})
 	else (G729_FOUND)
diff --git a/cmake/FindG729.cmake b/cmake/FindG729.cmake
index 4a30ba0..1fbfeeb 100644
--- a/cmake/FindG729.cmake
+++ b/cmake/FindG729.cmake
@@ -1,14 +1,50 @@
+INCLUDE(CMakePushCheckState)
+INCLUDE(CheckCSourceCompiles)
+
 FIND_PATH(G729_INCLUDE_DIR bcg729/decoder.h)
 FIND_LIBRARY(G729_LIBRARY NAMES bcg729)
 
 IF(G729_INCLUDE_DIR AND G729_LIBRARY)
 	SET(G729_FOUND TRUE)
+
+	# The bcg729 API was changed in 1.0.2 to add support for G.729 Annex B.
+	# This checks whether we are dealing with the old or new API.
+	CMAKE_PUSH_CHECK_STATE()
+	SET(CMAKE_REQUIRED_INCLUDES "${INCLUDE_DIRECTORIES}" "${G729_INCLUDE_DIR}")
+	SET(CMAKE_REQUIRED_LIBRARIES "${G729_LIBRARY}")
+	SET(CMAKE_REQUIRED_QUIET TRUE)
+	# Try to compile something using the old (pre-1.0.2) API.
+	#
+	# We cannot do it the other way around, as initBcg729EncoderChannel()
+	# did not have a prototype before 1.0.2, thus compilation would not fail
+	# when passing it an extra argument.
+	CHECK_C_SOURCE_COMPILES("
+		#include <bcg729/encoder.h>
+
+		int main() {
+			/* This function requires an argument since 1.0.2 */
+			initBcg729EncoderChannel();
+			return 0;
+		}
+	" G729_OLD_API)
+	CMAKE_POP_CHECK_STATE()
+
+	IF (G729_OLD_API)
+		SET(G729_ANNEX_B FALSE)
+	ELSE (G729_OLD_API)
+		SET(G729_ANNEX_B TRUE)
+	ENDIF (G729_OLD_API)
 ENDIF(G729_INCLUDE_DIR AND G729_LIBRARY)
 
 IF(G729_FOUND)
 	IF (NOT G729_FIND_QUIETLY)
 		MESSAGE(STATUS "Found bcg729 includes:	${G729_INCLUDE_DIR}/bcg729/decoder.h")
 		MESSAGE(STATUS "Found bcg729 library: ${G729_LIBRARY}")
+		IF (G729_ANNEX_B)
+			MESSAGE(STATUS "bcg729 supports Annex B; using the new (1.0.2) API")
+		ELSE (G729_ANNEX_B)
+			MESSAGE(STATUS "bcg729 does not support Annex B; using the old (pre-1.0.2) API")
+		ENDIF (G729_ANNEX_B)
 	ENDIF (NOT G729_FIND_QUIETLY)
 ELSE(G729_FOUND)
 	IF (G729_FIND_REQUIRED)
diff --git a/src/audio/audio_decoder.cpp b/src/audio/audio_decoder.cpp
index 65935dd..c661910 100644
--- a/src/audio/audio_decoder.cpp
+++ b/src/audio/audio_decoder.cpp
@@ -547,7 +547,11 @@ uint16 t_g729a_audio_decoder::decode(uint8 *payload, uint16 payload_size,
 
 	for (uint16 done = 0; done < payload_size; done += 10)
 	{
+#ifdef HAVE_BCG729_ANNEX_B
+		bcg729Decoder(_context, &payload[done], 0, false, false, false, &pcm_buf[done * 8]);
+#else
 		bcg729Decoder(_context, &payload[done], false, &pcm_buf[done * 8]);
+#endif
 	}
 
 	return payload_size * 8;
@@ -562,7 +566,11 @@ uint16 t_g729a_audio_decoder::conceal(int16 *pcm_buf, uint16 pcm_buf_size)
 {
 	assert(pcm_buf_size >= 80);
 
+#ifdef HAVE_BCG729_ANNEX_B
+	bcg729Decoder(_context, nullptr, 0, true, false, false, pcm_buf);
+#else
 	bcg729Decoder(_context, nullptr, true, pcm_buf);
+#endif
 	return 80;
 }
 
diff --git a/src/audio/audio_encoder.cpp b/src/audio/audio_encoder.cpp
index d6ff356..952b1ee 100644
--- a/src/audio/audio_encoder.cpp
+++ b/src/audio/audio_encoder.cpp
@@ -433,7 +433,11 @@ uint16 t_g726_audio_encoder::encode(int16 *sample_buf, uint16 nsamples,
 t_g729a_audio_encoder::t_g729a_audio_encoder(uint16 payload_id, uint16 ptime, t_user *user_config)
 	: t_audio_encoder(payload_id, ptime, user_config)
 {
+#ifdef HAVE_BCG729_ANNEX_B
+	_context = initBcg729EncoderChannel(false);
+#else
 	_context = initBcg729EncoderChannel();
+#endif
 }
 
 t_g729a_audio_encoder::~t_g729a_audio_encoder()
@@ -451,7 +455,13 @@ uint16 t_g729a_audio_encoder::encode(int16 *sample_buf, uint16 nsamples,
 
 	for (uint16 done = 0; done < nsamples; done += 80)
 	{
+#ifdef HAVE_BCG729_ANNEX_B
+		uint8 frame_size = 10;
+		bcg729Encoder(_context, &sample_buf[done], &payload[done / 8], &frame_size);
+		assert(frame_size == 10);
+#else
 		bcg729Encoder(_context, &sample_buf[done], &payload[done / 8]);
+#endif
 	}
 
 	return nsamples / 8;
diff --git a/twinkle_config.h.in b/twinkle_config.h.in
index 3928565..6990142 100644
--- a/twinkle_config.h.in
+++ b/twinkle_config.h.in
@@ -3,6 +3,7 @@
 #cmakedefine HAVE_ILBC
 #cmakedefine HAVE_ZRTP
 #cmakedefine HAVE_BCG729
+#cmakedefine HAVE_BCG729_ANNEX_B
 #cmakedefine HAVE_GSM
 
 #cmakedefine HAVE_UNISTD_H