diff --git a/Makefile b/Makefile
index 30abfe93..9e717c36 100644
--- a/Makefile
+++ b/Makefile
@@ -33,10 +33,10 @@ unit:
 e2e:
 	$(warning e2e tests require prosody-trunk and luarocks)
 	cd server && prosodyctl --config prosody.cfg.lua install mod_sasl2 > /dev/null
+	cd server && prosodyctl --config prosody.cfg.lua install mod_sasl2_bind2 > /dev/null
+	cd server && prosodyctl --config prosody.cfg.lua install mod_sasl2_sm > /dev/null
 # https://github.com/xmppjs/xmpp.js/pull/1006
-# cd server && prosodyctl --config prosody.cfg.lua install mod_sasl2_bind2 > /dev/null
 # cd server && prosodyctl --config prosody.cfg.lua install mod_sasl2_fast > /dev/null
-# cd server && prosodyctl --config prosody.cfg.lua install mod_sasl2_sm > /dev/null
 	npm run e2e
 
 clean:
@@ -46,6 +46,8 @@ clean:
 	rm -f server/prosody.err
 	rm -f server/prosody.log
 	rm -f server/prosody.pid
+	rm -rf server/modules
+	rm -rf server/.cache
 	npx lerna clean --yes
 	rm -rf node_modules/
 	rm -f packages/*/dist/*.js
diff --git a/package-lock.json b/package-lock.json
index 3e827a7a..d9e9792c 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -14891,6 +14891,7 @@
         "@xmpp/connection": "^0.14.0",
         "@xmpp/debug": "^0.14.0",
         "@xmpp/events": "^0.14.0",
+        "@xmpp/id": "^0.14.0",
         "@xmpp/jid": "^0.14.0",
         "@xmpp/xml": "^0.14.0",
         "ltx": "^3.1.1"
diff --git a/packages/client-core/src/bind2/README.md b/packages/client-core/src/bind2/README.md
new file mode 100644
index 00000000..ac634dd3
--- /dev/null
+++ b/packages/client-core/src/bind2/README.md
@@ -0,0 +1,36 @@
+# bind2
+
+bind2 for `@xmpp/client`.
+
+Included and enabled in `@xmpp/client`.
+
+## Usage
+
+Resource is optional and will be chosen by the server if omitted.
+
+### string
+
+```js
+import { xmpp } from "@xmpp/client";
+
+const client = xmpp({ resource: "laptop" });
+```
+
+### function
+
+Instead, you can provide a function that will be called every time resource binding occurs (every (re)connect).
+
+```js
+import { xmpp } from "@xmpp/client";
+
+const client = xmpp({ resource: onBind });
+
+async function onBind(bind) {
+  const resource = await fetchResource();
+  return resource;
+}
+```
+
+## References
+
+[XEP-0386: Bind 2](https://xmpp.org/extensions/xep-0386.html)
diff --git a/packages/client-core/src/bind2/bind2.js b/packages/client-core/src/bind2/bind2.js
new file mode 100644
index 00000000..89faed20
--- /dev/null
+++ b/packages/client-core/src/bind2/bind2.js
@@ -0,0 +1,57 @@
+import xml from "@xmpp/xml";
+
+const NS_BIND = "urn:xmpp:bind:0";
+
+export default function bind2({ sasl2, entity }, tag) {
+  const features = new Map();
+
+  sasl2.use(
+    NS_BIND,
+    async (element) => {
+      if (!element.is("bind", NS_BIND)) return;
+
+      tag = typeof tag === "function" ? await tag() : tag;
+
+      const sessionFeatures = await getSessionFeatures({ element, features });
+
+      return xml(
+        "bind",
+        { xmlns: "urn:xmpp:bind:0" },
+        tag && xml("tag", null, tag),
+        ...sessionFeatures,
+      );
+    },
+    (element) => {
+      const aid = element.root().getChildText("authorization-identifier");
+      if (aid) entity._jid(aid);
+
+      for (const child of element.getChildElements()) {
+        const feature = features.get(child.getNS());
+        if (!feature?.[1]) continue;
+        feature?.[1](child);
+      }
+    },
+  );
+
+  return {
+    use(ns, req, res) {
+      features.set(ns, [req, res]);
+    },
+  };
+}
+
+function getSessionFeatures({ element, features }) {
+  const promises = [];
+
+  const inline = element.getChild("inline");
+  if (!inline) return promises;
+
+  for (const element of inline.getChildElements()) {
+    const xmlns = element.attrs.var;
+    const feature = features.get(xmlns);
+    if (!feature) continue;
+    promises.push(feature[0](element));
+  }
+
+  return Promise.all(promises);
+}
diff --git a/packages/client-core/src/bind2/bind2.test.js b/packages/client-core/src/bind2/bind2.test.js
new file mode 100644
index 00000000..b0aac358
--- /dev/null
+++ b/packages/client-core/src/bind2/bind2.test.js
@@ -0,0 +1,117 @@
+import { mockClient, id, promiseError } from "@xmpp/test";
+
+function mockFeatures(entity) {
+  entity.mockInput(
+    <features xmlns="http://etherx.jabber.org/streams">
+      <authentication xmlns="urn:xmpp:sasl:2">
+        <mechanism>PLAIN</mechanism>
+        <inline>
+          <bind xmlns="urn:xmpp:bind:0" />
+        </inline>
+      </authentication>
+    </features>,
+  );
+}
+
+function catchAuthenticate(entity) {
+  return entity.catchOutgoing((stanza) => {
+    if (stanza.is("authenticate", "urn:xmpp:sasl:2")) return true;
+  });
+}
+
+test("without tag", async () => {
+  const { entity } = mockClient();
+  mockFeatures(entity);
+  const stanza = await catchAuthenticate(entity);
+
+  await expect(stanza.getChild("bind", "urn:xmpp:bind:0").toString()).toEqual(
+    (<bind xmlns="urn:xmpp:bind:0" />).toString(),
+  );
+});
+
+test("with string tag", async () => {
+  const resource = id();
+  const { entity } = mockClient({ resource });
+  mockFeatures(entity);
+  const stanza = await catchAuthenticate(entity);
+
+  expect(stanza.getChild("bind", "urn:xmpp:bind:0").toString()).toEqual(
+    (
+      <bind xmlns="urn:xmpp:bind:0">
+        <tag>{resource}</tag>
+      </bind>
+    ).toString(),
+  );
+});
+
+test("with function resource returning string", async () => {
+  // eslint-disable-next-line unicorn/consistent-function-scoping
+  function resource() {
+    return "1k2k3";
+  }
+
+  const { entity } = mockClient({ resource });
+  mockFeatures(entity);
+  const stanza = await catchAuthenticate(entity);
+
+  expect(stanza.getChild("bind", "urn:xmpp:bind:0").toString()).toEqual(
+    (
+      <bind xmlns="urn:xmpp:bind:0">
+        <tag>{resource()}</tag>
+      </bind>
+    ).toString(),
+  );
+});
+
+test("with function resource throwing", async () => {
+  const error = new Error("foo");
+
+   
+  function resource() {
+    throw error;
+  }
+
+  const { entity } = mockClient({ resource });
+
+  const willError = promiseError(entity);
+
+  mockFeatures(entity);
+
+  expect(await willError).toBe(error);
+});
+
+test("with function resource returning resolved promise", async () => {
+  // eslint-disable-next-line unicorn/consistent-function-scoping
+  async function resource() {
+    return "1k2k3";
+  }
+
+  const { entity } = mockClient({ resource });
+  mockFeatures(entity);
+  const stanza = await catchAuthenticate(entity);
+
+  expect(stanza.getChild("bind", "urn:xmpp:bind:0").toString()).toEqual(
+    (
+      <bind xmlns="urn:xmpp:bind:0">
+        <tag>{await resource()}</tag>
+      </bind>
+    ).toString(),
+  );
+});
+
+test("with function resource returning rejected promise", async () => {
+  const error = new Error("foo");
+
+   
+  async function resource() {
+    throw error;
+  }
+
+  const { entity } = mockClient({ resource });
+
+  const willError = promiseError(entity);
+
+  mockFeatures(entity);
+
+  expect(await willError).toBe(error);
+});
diff --git a/packages/client/index.js b/packages/client/index.js
index 6b52adab..54a35d90 100644
--- a/packages/client/index.js
+++ b/packages/client/index.js
@@ -17,6 +17,7 @@ import _sasl from "@xmpp/sasl";
 import _resourceBinding from "@xmpp/resource-binding";
 import _sessionEstablishment from "@xmpp/session-establishment";
 import _streamManagement from "@xmpp/stream-management";
+import _bind2 from "@xmpp/client-core/src/bind2/bind2.js";
 
 import SASLFactory from "saslmechanisms";
 import scramsha1 from "@xmpp/sasl-scram-sha-1";
@@ -59,7 +60,11 @@ function client(options = {}) {
     { streamFeatures, saslFactory },
     createOnAuthenticate(credentials ?? { username, password }, userAgent),
   );
-  service;
+
+  // SASL2 inline features
+  const bind2 = _bind2({ sasl2, entity }, resource);
+
+  // Stream features - order matters and define priority
   const sasl = _sasl(
     { streamFeatures, saslFactory },
     createOnAuthenticate(credentials ?? { username, password }, userAgent),
@@ -68,6 +73,7 @@ function client(options = {}) {
     streamFeatures,
     entity,
     middleware,
+    bind2,
   });
   const resourceBinding = _resourceBinding(
     { iqCaller, streamFeatures },
@@ -97,6 +103,7 @@ function client(options = {}) {
     sessionEstablishment,
     streamManagement,
     mechanisms,
+    bind2,
   });
 }
 
diff --git a/packages/resource-binding/README.md b/packages/resource-binding/README.md
index 6c4ee530..1fb96cc2 100644
--- a/packages/resource-binding/README.md
+++ b/packages/resource-binding/README.md
@@ -20,29 +20,14 @@ const client = xmpp({ resource: "laptop" });
 
 Instead, you can provide a function that will be called every time resource binding occurs (every (re)connect).
 
-Uses cases:
-
-- Have the user choose a resource every time
-- Do not ask for resource before connection is made
-- Debug resource binding
-- Perform an asynchronous operation to get the resource
-
 ```js
 import { xmpp } from "@xmpp/client";
 
-const client = xmpp({ resource: bindResource });
-
-async function bindResource(bind) {
-  console.debug("bind");
-  const value = await prompt("enter resource");
-  console.debug("binding");
-  try {
-    const { resource } = await bind(value);
-    console.debug("bound", resource);
-  } catch (err) {
-    console.error(err);
-    throw err;
-  }
+const client = xmpp({ resource: onBind });
+
+async function onBind(bind) {
+  const resource = await fetchResource();
+  return resource;
 }
 ```
 
diff --git a/packages/resource-binding/index.js b/packages/resource-binding/index.js
index 5a0372e0..5324db22 100644
--- a/packages/resource-binding/index.js
+++ b/packages/resource-binding/index.js
@@ -20,10 +20,8 @@ async function bind(entity, iqCaller, resource) {
 
 function route({ iqCaller }, resource) {
   return async ({ entity }, next) => {
-    await (typeof resource === "function"
-      ? resource((resource) => bind(entity, iqCaller, resource))
-      : bind(entity, iqCaller, resource));
-
+    resource = typeof resource === "function" ? await resource() : resource;
+    await bind(entity, iqCaller, resource);
     next();
   };
 }
diff --git a/packages/resource-binding/test.js b/packages/resource-binding/test.js
index 99fd7f99..9d0291ea 100644
--- a/packages/resource-binding/test.js
+++ b/packages/resource-binding/test.js
@@ -61,10 +61,8 @@ test("with function resource", async () => {
   const jid = "foo@bar/" + resource;
 
   const { entity } = mockClient({
-    resource: async (bind) => {
-      await delay();
-      const result = await bind(resource);
-      expect(result.toString()).toBe(jid);
+    resource: async () => {
+      return resource;
     },
   });
 
diff --git a/packages/sasl/index.js b/packages/sasl/index.js
index 78918517..f4a4b596 100644
--- a/packages/sasl/index.js
+++ b/packages/sasl/index.js
@@ -6,11 +6,8 @@ import xml from "@xmpp/xml";
 
 const NS = "urn:ietf:params:xml:ns:xmpp-sasl";
 
-function getMechanismNames(stanza) {
-  return stanza
-    .getChild("mechanisms", NS)
-    .getChildElements()
-    .map((el) => el.text());
+function getMechanismNames(element) {
+  return element.getChildElements().map((el) => el.text());
 }
 
 async function authenticate({ saslFactory, entity, mechanism, credentials }) {
@@ -74,8 +71,8 @@ async function authenticate({ saslFactory, entity, mechanism, credentials }) {
 }
 
 export default function sasl({ streamFeatures, saslFactory }, onAuthenticate) {
-  streamFeatures.use("mechanisms", NS, async ({ stanza, entity }) => {
-    const offered = getMechanismNames(stanza);
+  streamFeatures.use("mechanisms", NS, async ({ entity }, _next, element) => {
+    const offered = getMechanismNames(element);
     const supported = saslFactory._mechs.map(({ name }) => name);
     const intersection = supported.filter((mech) => offered.includes(mech));
 
diff --git a/packages/sasl2/index.js b/packages/sasl2/index.js
index 10a01e62..ab191d4f 100644
--- a/packages/sasl2/index.js
+++ b/packages/sasl2/index.js
@@ -1,6 +1,5 @@
 import { encode, decode } from "@xmpp/base64";
 import SASLError from "@xmpp/sasl/lib/SASLError.js";
-import jid from "@xmpp/jid";
 import xml from "@xmpp/xml";
 
 // https://xmpp.org/extensions/xep-0388.html
@@ -8,10 +7,7 @@ import xml from "@xmpp/xml";
 const NS = "urn:xmpp:sasl:2";
 
 function getMechanismNames(stanza) {
-  return stanza
-    .getChild("authentication", NS)
-    .getChildren("mechanism", NS)
-    .map((m) => m.text());
+  return stanza.getChildren("mechanism", NS).map((m) => m.text());
 }
 
 async function authenticate({
@@ -20,6 +16,8 @@ async function authenticate({
   mechanism,
   credentials,
   userAgent,
+  streamFeatures,
+  features,
 }) {
   const mech = saslFactory.create([mechanism]);
   if (!mech) {
@@ -63,7 +61,6 @@ async function authenticate({
       }
 
       if (element.name === "continue") {
-        // No tasks supported yet
         reject(new Error("continue is not supported yet"));
         return;
       }
@@ -73,17 +70,13 @@ async function authenticate({
         if (additionalData && mech.final) {
           mech.final(decode(additionalData));
         }
-        // This jid will be bare unless we do inline bind2 then it will be the bound full jid
-        const aid = element.getChild("authorization-identifier")?.text();
-        if (aid) {
-          if (!entity.jid?.resource) {
-            // No jid or bare jid, so update it
-            entity._jid(aid);
-          } else if (jid(aid).resource) {
-            // We have a full jid so use it
-            entity._jid(aid);
-          }
+
+        for (const child of element.getChildElements()) {
+          const feature = features.get(child.getNS());
+          if (!feature?.[1]) continue;
+          feature?.[1](child);
         }
+
         resolve(element);
         return;
       }
@@ -91,40 +84,75 @@ async function authenticate({
       entity.removeListener("nonza", handler);
     };
 
-    entity.send(
-      xml("authenticate", { xmlns: NS, mechanism: mech.name }, [
-        mech.clientFirst &&
-          xml("initial-response", {}, encode(mech.response(creds))),
-        userAgent,
-      ]),
-    );
-
     entity.on("nonza", handler);
+
+    entity
+      .send(
+        xml("authenticate", { xmlns: NS, mechanism: mech.name }, [
+          mech.clientFirst &&
+            xml("initial-response", {}, encode(mech.response(creds))),
+          userAgent,
+          ...streamFeatures,
+        ]),
+      )
+      .catch(reject);
   });
 }
 
 export default function sasl2({ streamFeatures, saslFactory }, onAuthenticate) {
-  streamFeatures.use("authentication", NS, async ({ stanza, entity }) => {
-    const offered = getMechanismNames(stanza);
-    const supported = saslFactory._mechs.map(({ name }) => name);
-    const intersection = supported.filter((mech) => offered.includes(mech));
-
-    if (intersection.length === 0) {
-      throw new SASLError("SASL: No compatible mechanism available.");
-    }
-
-    async function done(credentials, mechanism, userAgent) {
-      await authenticate({
-        saslFactory,
-        entity,
-        mechanism,
-        credentials,
-        userAgent,
-      });
-    }
-
-    await onAuthenticate(done, intersection);
-
-    return true; // Not online yet, wait for next features
-  });
+  const features = new Map();
+
+  streamFeatures.use(
+    "authentication",
+    NS,
+    async ({ entity }, _next, element) => {
+      const offered = getMechanismNames(element);
+      const supported = saslFactory._mechs.map(({ name }) => name);
+      const intersection = supported.filter((mech) => offered.includes(mech));
+
+      if (intersection.length === 0) {
+        throw new SASLError("SASL: No compatible mechanism available.");
+      }
+
+      const streamFeatures = await getStreamFeatures({ element, features });
+
+      async function done(credentials, mechanism, userAgent) {
+        await authenticate({
+          saslFactory,
+          entity,
+          mechanism,
+          credentials,
+          userAgent,
+          streamFeatures,
+          features,
+        });
+      }
+
+      await onAuthenticate(done, intersection);
+
+      return true; // Not online yet, wait for next features
+    },
+  );
+
+  return {
+    use(ns, req, res) {
+      features.set(ns, [req, res]);
+    },
+  };
+}
+
+function getStreamFeatures({ element, features }) {
+  const promises = [];
+
+  const inline = element.getChild("inline");
+  if (!inline) return promises;
+
+  for (const element of inline.getChildElements()) {
+    const xmlns = element.getNS();
+    const feature = features.get(xmlns);
+    if (!feature) continue;
+    promises.push(feature[0](element));
+  }
+
+  return Promise.all(promises);
 }
diff --git a/packages/stream-features/test.js b/packages/stream-features/test.js
deleted file mode 100644
index e0900d53..00000000
--- a/packages/stream-features/test.js
+++ /dev/null
@@ -1,24 +0,0 @@
-import streamfeatures from "./index.js";
-import { xml } from "@xmpp/test";
-
-test.skip("selectFeature", () => {
-  const features = [];
-  features.push(
-    {
-      priority: 1000,
-      run: () => {},
-      match: (el) => el.getChild("bind"),
-    },
-    {
-      priority: 2000,
-      run: () => {},
-      match: (el) => el.getChild("bind"),
-    },
-  );
-
-  const feature = streamfeatures.selectFeature(
-    features,
-    xml("foo", {}, xml("bind")),
-  );
-  expect(feature.priority).toBe(2000);
-});
diff --git a/packages/stream-management/index.js b/packages/stream-management/index.js
index 4ec2bff7..d3d2667d 100644
--- a/packages/stream-management/index.js
+++ b/packages/stream-management/index.js
@@ -42,9 +42,8 @@ export default function streamManagement({
   streamFeatures,
   entity,
   middleware,
+  bind2,
 }) {
-  let address = null;
-
   const sm = {
     allowResume: true,
     preferredMaximum: null,
@@ -55,8 +54,7 @@ export default function streamManagement({
     max: null,
   };
 
-  entity.on("online", (jid) => {
-    address = jid;
+  entity.on("online", () => {
     sm.outbound = 0;
     sm.inbound = 0;
   });
@@ -83,9 +81,23 @@ export default function streamManagement({
     return next();
   });
 
+  if (bind2) {
+    setupBind2({ bind2, sm, entity });
+  } else {
+    setupStreamFeature({ streamFeatures, sm, entity });
+  }
+
+  return sm;
+}
+
+function setupStreamFeature({ streamFeatures, sm, entity }) {
+  let address = null;
+  entity.on("online", (jid) => {
+    address = jid;
+  });
+
   // https://xmpp.org/extensions/xep-0198.html#enable
   // For client-to-server connections, the client MUST NOT attempt to enable stream management until after it has completed Resource Binding unless it is resuming a previous session
-
   streamFeatures.use("sm", NS, async (context, next) => {
     // Resuming
     if (sm.id) {
@@ -124,6 +136,28 @@ export default function streamManagement({
 
     sm.inbound = 0;
   });
+}
 
-  return sm;
+function setupBind2({ bind2, sm, entity }) {
+  let address = null;
+  entity.on("online", (jid) => {
+    address = jid;
+  });
+  bind2.use(
+    "urn:xmpp:sm:3",
+    (element) => {
+      if (!element.is("feature")) return;
+      // eslint-disable-next-line unicorn/prefer-ternary
+      if (sm.id) {
+        return xml("resume", { xmlns: NS });
+      } else {
+        return xml("enable", { xmlns: NS });
+      }
+    },
+    (element) => {
+      if (!element.is("enabled")) return;
+      console.log("ENABLED");
+      sm.enabled = true;
+    },
+  );
 }
diff --git a/packages/test/index.js b/packages/test/index.js
index 0c534d58..88ca81ee 100644
--- a/packages/test/index.js
+++ b/packages/test/index.js
@@ -3,8 +3,19 @@ import xml from "@xmpp/xml";
 import jid from "@xmpp/jid";
 import mockClient from "./mockClient.js";
 import { delay, promise, timeout } from "@xmpp/events";
+import id from "@xmpp/id";
 
-export { context, xml, jid, jid as JID, mockClient, delay, promise, timeout };
+export {
+  context,
+  xml,
+  jid,
+  jid as JID,
+  mockClient,
+  delay,
+  promise,
+  timeout,
+  id,
+};
 
 export function mockInput(entity, el) {
   entity.emit("input", el.toString());
diff --git a/packages/test/package.json b/packages/test/package.json
index 8d14e8c2..99583494 100644
--- a/packages/test/package.json
+++ b/packages/test/package.json
@@ -21,6 +21,7 @@
     "@xmpp/connection": "^0.14.0",
     "@xmpp/debug": "^0.14.0",
     "@xmpp/events": "^0.14.0",
+    "@xmpp/id": "^0.14.0",
     "@xmpp/jid": "^0.14.0",
     "@xmpp/xml": "^0.14.0",
     "ltx": "^3.1.1"
diff --git a/server/prosody.cfg.lua b/server/prosody.cfg.lua
index 499cda1f..c917b4a2 100644
--- a/server/prosody.cfg.lua
+++ b/server/prosody.cfg.lua
@@ -2,7 +2,7 @@
 -- DO NOT COPY BLINDLY
 -- see https://prosody.im/doc/configure
 
-local lfs = require "lfs";
+local lfs = Lua.require "lfs";
 
 plugin_paths = { "modules" }
 plugin_server = "https://modules.prosody.im/rocks/"
@@ -23,10 +23,10 @@ modules_enabled = {
   "version";
   "smacks";
   "sasl2";
+  "sasl2_bind2";
+  "sasl2_sm";
   -- https://github.com/xmppjs/xmpp.js/pull/1006
-  -- "sasl2_bind2";
   -- "sasl2_fast";
-  -- "sasl2_sm";
 };
 
 modules_disabled = {