diff --git a/app/models/status_message.rb b/app/models/status_message.rb
index c77d0ce14..976ebac90 100644
--- a/app/models/status_message.rb
+++ b/app/models/status_message.rb
@@ -38,12 +38,30 @@ class StatusMessage < Post
     write_attribute(:message, text)
   end
 
-  def formatted_message(opts = {})
+  def formatted_message(opts={})
     return self.raw_message unless self.raw_message
+
+    escaped_message = opts[:plain_text] ? self.raw_message: ERB::Util.h(self.raw_message)
+    mentioned_message = self.format_mentions(escaped_message, opts)
+    self.format_tags(mentioned_message, opts)
+  end
+
+  def format_tags(text, opts={})
+    return text if opts[:plain_text]
+    regex = /(^|\s)#(\w+)/
+    form_message = text.gsub(regex) do |matched_string|
+      tag = self.tags.detect do |t|
+        t.name == $~[2]
+      end
+      tag ? "#{$~[1]}<a href=\"/p?tag=#{tag.name}\" class=\"tag\">##{ERB::Util.h(tag.name)}</a>" : ERB::Util.h($~[2])
+    end
+    form_message
+  end
+
+  def format_mentions(text, opts = {})
     people = self.mentioned_people
     regex = /@\{([^;]+); ([^\}]+)\}/
-    escaped_message = opts[:plain_text] ? raw_message : ERB::Util.h(raw_message)
-    form_message = escaped_message.gsub(regex) do |matched_string|
+    form_message = text.gsub(regex) do |matched_string|
       person = people.detect{ |p|
         p.diaspora_handle == $~[2]
       }
diff --git a/spec/models/status_message_spec.rb b/spec/models/status_message_spec.rb
index e71e3df0b..7be1cf4f7 100644
--- a/spec/models/status_message_spec.rb
+++ b/spec/models/status_message_spec.rb
@@ -6,6 +6,11 @@ require 'spec_helper'
 
 
 describe StatusMessage do
+  include ActionView::Helpers::UrlHelper
+  include Rails.application.routes.url_helpers
+  def controller
+    mock()
+  end
 
   before do
     @user = alice
@@ -68,12 +73,6 @@ describe StatusMessage do
   end
 
   describe 'mentions' do
-    def controller
-      mock()
-    end
-
-    include ActionView::Helpers::UrlHelper
-    include Rails.application.routes.url_helpers
     before do
       @people = [alice, bob, eve].map{|u| u.person}
       @test_string = <<-STR
@@ -83,9 +82,9 @@ STR
       @sm = Factory.create(:status_message, :message => @test_string )
     end
 
-    describe '#formatted_message' do
+    describe '#format_mentions' do
       it 'adds the links in the formated message text' do
-        @sm.formatted_message.should == <<-STR
+        @sm.format_mentions(@sm.raw_message).should == <<-STR
 #{link_to('@' << @people[0].name, person_path(@people[0]), :class => 'mention')} can mention people like Raphael #{link_to('@' << @people[1].name, person_path(@people[1]), :class => 'mention')}
 can mention people like Raphaellike Raphael #{link_to('@' << @people[2].name, person_path(@people[2]), :class => 'mention')} can mention people like Raph
 STR
@@ -94,13 +93,13 @@ STR
       context 'with :plain_text option' do
         it 'removes the mention syntax and displays the unformatted name' do
           status  = Factory(:status_message, :message => "@{Barack Obama; barak@joindiaspora.com } is so cool @{Barack Obama; barak@joindiaspora.com } ")
-          status.formatted_message(:plain_text => true).should == 'Barack Obama is so cool Barack Obama '
+          status.format_mentions(status.raw_message, :plain_text => true).should == 'Barack Obama is so cool Barack Obama '
         end
       end
 
       it 'leaves the name of people that cannot be found' do
         @sm.stub(:mentioned_people).and_return([])
-        @sm.formatted_message.should == <<-STR
+        @sm.format_mentions(@sm.raw_message).should == <<-STR
 Raphael can mention people like Raphael Ilya
 can mention people like Raphaellike Raphael Daniel can mention people like Raph
 STR
@@ -113,8 +112,10 @@ STR
 .values
         p.save!
 
-        @sm.formatted_message.should_not include(@people[0].profile.first_name)
+        @sm.format_mentions(@sm.raw_message).should_not include(@people[0].profile.first_name)
       end
+    end
+    describe '#formatted_message' do
       it 'escapes the message' do
         xss = "</a> <script> alert('hey'); </script>"
         @sm.message << xss
@@ -177,6 +178,23 @@ STR
     before do
       @sm = Factory.build(:status_message)
     end
+    describe '#format_tags' do
+      before do
+        @str =  '#what #hey'
+        @sm.message = @str
+        @sm.build_tags
+        @sm.save
+        @sm.reload
+      end
+      it 'links the tag to /p' do
+        link = link_to('#what', posts_path(:tag => 'what'), :class => 'tag')
+        @sm.format_tags(@str).should include(link)
+      end
+      it 'responds to plain_text' do
+        @sm.format_tags(@str, :plain_text => true).should == @str
+
+      end
+    end
     describe '#build_tags' do
       it 'builds the tags' do
         @sm.message = '#what'