diff --git a/README.md b/README.md
index a1bcd82..e0e5969 100644
--- a/README.md
+++ b/README.md
@@ -32,6 +32,7 @@ WhisperLiveKit consists of three main components:
 - **👥 Speaker Diarization** - Identify different speakers in real-time using [Diart](https://github.com/juanmc2005/diart)
 - **🔒 Fully Local** - All processing happens on your machine - no data sent to external servers
 - **📱 Multi-User Support** - Handle multiple users simultaneously with a single backend/server
+- **📝 Punctuation-Based Speaker Splitting [BETA] ** - Align speaker changes with natural sentence boundaries for more readable transcripts
  
 ### ⚙️ Core differences from [Whisper Streaming](https://github.com/ufal/whisper_streaming)
 
@@ -230,6 +231,7 @@ WhisperLiveKit offers extensive configuration options:
 | `--task` | `transcribe` or `translate` | `transcribe` |
 | `--backend` | Processing backend | `faster-whisper` |
 | `--diarization` | Enable speaker identification | `False` |
+| `--punctuation-split` | Use punctuation to improve speaker boundaries | `True` |
 | `--confidence-validation` | Use confidence scores for faster validation | `False` |
 | `--min-chunk-size` | Minimum audio chunk size (seconds) | `1.0` |
 | `--vac` | Use Voice Activity Controller | `False` |
diff --git a/whisperlivekit/audio_processor.py b/whisperlivekit/audio_processor.py
index 08f2b29..bd0af88 100644
--- a/whisperlivekit/audio_processor.py
+++ b/whisperlivekit/audio_processor.py
@@ -377,13 +377,16 @@ class AudioProcessor:
                 # Process diarization
                 await diarization_obj.diarize(pcm_array)
                 
-                # Get current state and update speakers
-                state = await self.get_current_state()
-                new_end = diarization_obj.assign_speakers_to_tokens(
-                    state["end_attributed_speaker"], state["tokens"]
-                )
+                async with self.lock:
+                    new_end = diarization_obj.assign_speakers_to_tokens(
+                        self.end_attributed_speaker, 
+                        self.tokens,
+                        use_punctuation_split=self.args.punctuation_split
+                    )
+                    self.end_attributed_speaker = new_end
+                    if buffer_diarization:
+                        self.buffer_diarization = buffer_diarization
                 
-                await self.update_diarization(new_end, buffer_diarization)
                 self.diarization_queue.task_done()
                 
             except Exception as e:
diff --git a/whisperlivekit/core.py b/whisperlivekit/core.py
index 45467b9..ae6fa71 100644
--- a/whisperlivekit/core.py
+++ b/whisperlivekit/core.py
@@ -24,6 +24,7 @@ class TranscriptionEngine:
             "warmup_file": None,
             "confidence_validation": False,
             "diarization": False,
+            "punctuation_split": True,
             "min_chunk_size": 0.5,
             "model": "tiny",
             "model_cache_dir": None,
@@ -68,6 +69,6 @@ class TranscriptionEngine:
 
         if self.args.diarization:
             from whisperlivekit.diarization.diarization_online import DiartDiarization
-            self.diarization = DiartDiarization()
+            self.diarization = DiartDiarization(block_duration=self.args.min_chunk_size)
             
         TranscriptionEngine._initialized = True
diff --git a/whisperlivekit/diarization/diarization_online.py b/whisperlivekit/diarization/diarization_online.py
index 7db5003..978c47a 100644
--- a/whisperlivekit/diarization/diarization_online.py
+++ b/whisperlivekit/diarization/diarization_online.py
@@ -3,7 +3,8 @@ import re
 import threading
 import numpy as np
 import logging
-
+import time
+from queue import SimpleQueue, Empty
 
 from diart import SpeakerDiarization, SpeakerDiarizationConfig
 from diart.inference import StreamingInference
@@ -13,6 +14,10 @@ from diart.sources import MicrophoneAudioSource
 from rx.core import Observer
 from typing import Tuple, Any, List
 from pyannote.core import Annotation
+import diart.models as m
+
+segmentation = m.SegmentationModel.from_pretrained("pyannote/segmentation-3.0")
+embedding = m.EmbeddingModel.from_pretrained("speechbrain/spkrec-ecapa-voxceleb")
 
 logger = logging.getLogger(__name__)
 
@@ -78,40 +83,104 @@ class DiarizationObserver(Observer):
 
 class WebSocketAudioSource(AudioSource):
     """
-    Custom AudioSource that blocks in read() until close() is called.
-    Use push_audio() to inject PCM chunks.
+    Buffers incoming audio and releases it in fixed-size chunks at regular intervals.
     """
-    def __init__(self, uri: str = "websocket", sample_rate: int = 16000):
+    def __init__(self, uri: str = "websocket", sample_rate: int = 16000, block_duration: float = 0.5):
         super().__init__(uri, sample_rate)
+        self.block_duration = block_duration
+        self.block_size = int(np.rint(block_duration * sample_rate))
+        self._queue = SimpleQueue()
+        self._buffer = np.array([], dtype=np.float32)
+        self._buffer_lock = threading.Lock()
         self._closed = False
         self._close_event = threading.Event()
+        self._processing_thread = None
+        self._last_chunk_time = time.time()
 
     def read(self):
+        """Start processing buffered audio and emit fixed-size chunks."""
+        self._processing_thread = threading.Thread(target=self._process_chunks)
+        self._processing_thread.daemon = True
+        self._processing_thread.start()
+        
         self._close_event.wait()
+        if self._processing_thread:
+            self._processing_thread.join(timeout=2.0)
+
+    def _process_chunks(self):
+        """Process audio from queue and emit fixed-size chunks at regular intervals."""
+        while not self._closed:
+            try:
+                audio_chunk = self._queue.get(timeout=0.1)
+                
+                with self._buffer_lock:
+                    self._buffer = np.concatenate([self._buffer, audio_chunk])
+                    
+                    while len(self._buffer) >= self.block_size:
+                        chunk = self._buffer[:self.block_size]
+                        self._buffer = self._buffer[self.block_size:]
+                        
+                        current_time = time.time()
+                        time_since_last = current_time - self._last_chunk_time
+                        if time_since_last < self.block_duration:
+                            time.sleep(self.block_duration - time_since_last)
+                        
+                        chunk_reshaped = chunk.reshape(1, -1)
+                        self.stream.on_next(chunk_reshaped)
+                        self._last_chunk_time = time.time()
+                        
+            except Empty:
+                with self._buffer_lock:
+                    if len(self._buffer) > 0 and time.time() - self._last_chunk_time > self.block_duration:
+                        padded_chunk = np.zeros(self.block_size, dtype=np.float32)
+                        padded_chunk[:len(self._buffer)] = self._buffer
+                        self._buffer = np.array([], dtype=np.float32)
+                        
+                        chunk_reshaped = padded_chunk.reshape(1, -1)
+                        self.stream.on_next(chunk_reshaped)
+                        self._last_chunk_time = time.time()
+            except Exception as e:
+                logger.error(f"Error in audio processing thread: {e}")
+                self.stream.on_error(e)
+                break
+        
+        with self._buffer_lock:
+            if len(self._buffer) > 0:
+                padded_chunk = np.zeros(self.block_size, dtype=np.float32)
+                padded_chunk[:len(self._buffer)] = self._buffer
+                chunk_reshaped = padded_chunk.reshape(1, -1)
+                self.stream.on_next(chunk_reshaped)
+        
+        self.stream.on_completed()
 
     def close(self):
         if not self._closed:
             self._closed = True
-            self.stream.on_completed()
             self._close_event.set()
 
     def push_audio(self, chunk: np.ndarray):
+        """Add audio chunk to the processing queue."""
         if not self._closed:
-            new_audio = np.expand_dims(chunk, axis=0)
-            logger.debug('Add new chunk with shape:', new_audio.shape)
-            self.stream.on_next(new_audio)
+            if chunk.ndim > 1:
+                chunk = chunk.flatten()
+            self._queue.put(chunk)
+            logger.debug(f'Added chunk to queue with {len(chunk)} samples')
 
 
 class DiartDiarization:
-    def __init__(self, sample_rate: int = 16000, config : SpeakerDiarizationConfig = None, use_microphone: bool = False):
+    def __init__(self, sample_rate: int = 16000, config : SpeakerDiarizationConfig = None, use_microphone: bool = False, block_duration: float = 0.5):
         self.pipeline = SpeakerDiarization(config=config)        
         self.observer = DiarizationObserver()
         
         if use_microphone:
-            self.source = MicrophoneAudioSource()
+            self.source = MicrophoneAudioSource(block_duration=block_duration)
             self.custom_source = None
         else:
-            self.custom_source = WebSocketAudioSource(uri="websocket_source", sample_rate=sample_rate)
+            self.custom_source = WebSocketAudioSource(
+                uri="websocket_source", 
+                sample_rate=sample_rate,
+                block_duration=block_duration
+            )
             self.source = self.custom_source
             
         self.inference = StreamingInference(
@@ -138,16 +207,107 @@ class DiartDiarization:
         if self.custom_source:
             self.custom_source.close()
 
-    def assign_speakers_to_tokens(self, end_attributed_speaker, tokens: list) -> float:
+    def assign_speakers_to_tokens(self, end_attributed_speaker, tokens: list, use_punctuation_split: bool = False) -> float:
         """
         Assign speakers to tokens based on timing overlap with speaker segments.
         Uses the segments collected by the observer.
+        
+        If use_punctuation_split is True, uses punctuation marks to refine speaker boundaries.
         """
         segments = self.observer.get_segments()
         
+        # Debug logging
+        logger.debug(f"assign_speakers_to_tokens called with {len(tokens)} tokens")
+        logger.debug(f"Available segments: {len(segments)}")
+        for i, seg in enumerate(segments[:5]):  # Show first 5 segments
+            logger.debug(f"  Segment {i}: {seg.speaker} [{seg.start:.2f}-{seg.end:.2f}]")
+        
+        # First pass: assign speakers based on timing overlap
         for token in tokens:
             for segment in segments:
                 if not (segment.end <= token.start or segment.start >= token.end):
                     token.speaker = extract_number(segment.speaker) + 1
                     end_attributed_speaker = max(token.end, end_attributed_speaker)
-        return end_attributed_speaker
\ No newline at end of file
+        
+        if use_punctuation_split and len(tokens) > 1:
+            punctuation_marks = {'.', '!', '?'}
+            
+            print("Here are the tokens:", 
+                  [(t.text, t.start, t.end, t.speaker) for t in tokens[:10]])
+            
+            segment_map = []
+            for segment in segments:
+                speaker_num = extract_number(segment.speaker) + 1
+                segment_map.append((segment.start, segment.end, speaker_num))
+            segment_map.sort(key=lambda x: x[0])  # Sort by start time
+            
+            i = 0
+            while i < len(tokens):
+                current_token = tokens[i]
+                
+                # Check if current token ends with sentence-ending punctuation
+                is_sentence_end = False
+                if current_token.text and current_token.text.strip():
+                    text = current_token.text.strip()
+                    if text[-1] in punctuation_marks:
+                        is_sentence_end = True
+                        logger.debug(f"Token {i} ends sentence: '{current_token.text}' at {current_token.end:.2f}s")
+                
+                if is_sentence_end and current_token.speaker != -1:
+                    # Find the dominant speaker for tokens after this punctuation
+                    punctuation_time = current_token.end
+                    current_speaker = current_token.speaker
+                    
+                    # Look ahead to find where the next sentence starts and ends
+                    j = i + 1
+                    next_sentence_tokens = []
+                    
+                    # Collect tokens until we hit another sentence-ending punctuation or run out
+                    while j < len(tokens):
+                        next_token = tokens[j]
+                        next_sentence_tokens.append(j)
+                        
+                        # Check if this token ends the next sentence
+                        if next_token.text and next_token.text.strip():
+                            if next_token.text.strip()[-1] in punctuation_marks:
+                                break
+                        j += 1
+                    
+                    if next_sentence_tokens:
+                        speaker_times = {}
+                        
+                        for idx in next_sentence_tokens:
+                            token = tokens[idx]
+                            # Find which segments overlap with this token
+                            for seg_start, seg_end, seg_speaker in segment_map:
+                                if not (seg_end <= token.start or seg_start >= token.end):
+                                    # Calculate overlap duration
+                                    overlap_start = max(seg_start, token.start)
+                                    overlap_end = min(seg_end, token.end)
+                                    overlap_duration = overlap_end - overlap_start
+                                    
+                                    if seg_speaker not in speaker_times:
+                                        speaker_times[seg_speaker] = 0
+                                    speaker_times[seg_speaker] += overlap_duration
+                        
+                        if speaker_times:
+                            dominant_speaker = max(speaker_times.items(), key=lambda x: x[1])[0]
+                            
+                            if dominant_speaker != current_speaker:
+                                logger.debug(f"  Speaker change after punctuation: {current_speaker} → {dominant_speaker}")
+                                
+                                for idx in next_sentence_tokens:
+                                    if tokens[idx].speaker != dominant_speaker:
+                                        logger.debug(f"    Reassigning token {idx} ('{tokens[idx].text}') to Speaker {dominant_speaker}")
+                                        tokens[idx].speaker = dominant_speaker
+                                        end_attributed_speaker = max(tokens[idx].end, end_attributed_speaker)
+                            else:
+                                for idx in next_sentence_tokens:
+                                    if tokens[idx].speaker == -1:
+                                        tokens[idx].speaker = current_speaker
+                                        end_attributed_speaker = max(tokens[idx].end, end_attributed_speaker)
+                
+                i += 1
+                                
+        
+        return end_attributed_speaker
diff --git a/whisperlivekit/parse_args.py b/whisperlivekit/parse_args.py
index f97215a..da28532 100644
--- a/whisperlivekit/parse_args.py
+++ b/whisperlivekit/parse_args.py
@@ -37,6 +37,13 @@ def parse_args():
         help="Enable speaker diarization.",
     )
 
+    parser.add_argument(
+        "--punctuation-split",
+        action="store_true",
+        default=False,
+        help="Use punctuation marks from transcription to improve speaker boundary detection. Requires both transcription and diarization to be enabled.",
+    )
+
     parser.add_argument(
         "--no-transcription",
         action="store_true",