diff --git a/.vscode/launch.json b/.vscode/launch.json
index 2e0006786..16af97373 100644
--- a/.vscode/launch.json
+++ b/.vscode/launch.json
@@ -7,6 +7,18 @@
             "name": "wgpu_room(debug)",
             "program": "${workspaceFolder}/examples/target/debug/wgpu_room",
             "preLaunchTask": "build"
+        },
+        {
+            "type": "lldb",
+            "request": "launch",
+            "name": "local_audio(debug)",
+            "program": "${workspaceFolder}/target/debug/local_audio",
+            "preLaunchTask": "build",
+            "env": {
+                "LIVEKIT_URL": "ws://localhost:7880",
+                "LIVEKIT_API_KEY": "testkey",
+                "LIVEKIT_API_SECRET": "testsecret",
+            },
         }
     ]
 }
\ No newline at end of file
diff --git a/examples/local_audio/src/main.rs b/examples/local_audio/src/main.rs
index 26cf14ab5..82b832991 100644
--- a/examples/local_audio/src/main.rs
+++ b/examples/local_audio/src/main.rs
@@ -339,6 +339,38 @@ async fn stream_audio_to_livekit_with_shared_apm(
     Ok(())
 }
 
+async fn handle_room_events(room: Arc<Room>) -> Result<()> {
+    let mut room_events = room.subscribe();
+
+    while let Some(event) = room_events.recv().await {
+        match event {
+            RoomEvent::TrackMuted { participant, publication } => {
+                println!(
+                    "Track muted by {}: {} ({:?})",
+                    participant.identity(),
+                    publication.name(),
+                    publication.kind()
+                );
+            }
+
+            RoomEvent::TrackUnmuted { participant, publication } => {
+                println!(
+                    "Track unmuted by {}: {} ({:?})",
+                    participant.identity(),
+                    publication.name(),
+                    publication.kind()
+                );
+            }
+            _ => {
+                // Handle other room events as needed
+                debug!("Room event: {:?}", event);
+            }
+        }
+    }
+
+    Ok(())
+}
+
 async fn handle_remote_audio_streams(
     room: Arc<Room>,
     mixer: AudioMixer,
@@ -573,6 +605,9 @@ async fn main() -> Result<()> {
         1000, // 1 second buffer
     );
 
+    // Handle room events
+    tokio::spawn(handle_room_events(room.clone()));
+
     // Create and publish audio track
     let track = LocalAudioTrack::create_audio_track(
         "microphone",
@@ -581,7 +616,7 @@ async fn main() -> Result<()> {
 
     room.local_participant()
         .publish_track(
-            LocalTrack::Audio(track),
+            LocalTrack::Audio(track.clone()),
             TrackPublishOptions { source: TrackSource::Microphone, ..Default::default() },
         )
         .await?;
@@ -702,6 +737,17 @@ async fn main() -> Result<()> {
         if _audio_playback.is_some() { "Enabled" } else { "Disabled" }
     );
 
+    // Demonstrate muting/unmuting the microphone track
+    tokio::spawn(async move {
+        // Demonstrate muting/unmuting after some time
+        tokio::time::sleep(tokio::time::Duration::from_secs(1)).await;
+        track.mute();
+        info!("Microphone muted for 5 seconds...");
+        tokio::time::sleep(tokio::time::Duration::from_secs(5)).await;
+        track.unmute();
+        info!("Microphone unmuted.");
+    });
+
     // Wait for Ctrl+C
     tokio::signal::ctrl_c().await?;
     info!("\nShutting down...");
diff --git a/livekit/src/room/participant/local_participant.rs b/livekit/src/room/participant/local_participant.rs
index a9a2320fd..105f53efa 100644
--- a/livekit/src/room/participant/local_participant.rs
+++ b/livekit/src/room/participant/local_participant.rs
@@ -278,6 +278,9 @@ impl LocalParticipant {
         let publication = LocalTrackPublication::new(track_info.clone(), track.clone());
         track.update_info(track_info); // Update sid + source
 
+        // set track for publication to listen mute/unmute events
+        publication.set_track(Some(track.clone().into()));
+
         let transceiver =
             self.inner.rtc_engine.create_sender(track.clone(), options.clone(), encodings).await?;
 
diff --git a/livekit/src/room/participant/remote_participant.rs b/livekit/src/room/participant/remote_participant.rs
index a4e1df2ae..0c752afd4 100644
--- a/livekit/src/room/participant/remote_participant.rs
+++ b/livekit/src/room/participant/remote_participant.rs
@@ -149,6 +149,7 @@ impl RemoteParticipant {
                 name: remote_publication.name(),
                 r#type: proto::TrackType::from(remote_publication.kind()) as i32,
                 source: proto::TrackSource::from(remote_publication.source()) as i32,
+                muted: remote_publication.is_muted(),
                 ..Default::default()
             });
 
diff --git a/livekit/src/room/track/mod.rs b/livekit/src/room/track/mod.rs
index 79d0ab122..230234360 100644
--- a/livekit/src/room/track/mod.rs
+++ b/livekit/src/room/track/mod.rs
@@ -204,7 +204,7 @@ pub(super) fn set_muted(inner: &Arc<TrackInner>, track: &Track, muted: bool) {
         if let Some(on_mute) = inner.events.lock().muted.as_ref() {
             on_mute(track.clone());
         }
-    } else if let Some(on_unmute) = inner.events.lock().muted.as_ref() {
+    } else if let Some(on_unmute) = inner.events.lock().unmuted.as_ref() {
         on_unmute(track.clone());
     }
 }