diff --git a/go.mod b/go.mod
index 75b6c9839..472c179ae 100644
--- a/go.mod
+++ b/go.mod
@@ -1,5 +1,9 @@
 module github.com/livekit/livekit-server
 
+replace github.com/livekit/mediatransportutil => ../mediatransportutil
+
+replace github.com/livekit/protocol => ../protocol
+
 go 1.22
 
 require (
diff --git a/pkg/rtc/participant.go b/pkg/rtc/participant.go
index 7cb7db17f..d58092f90 100644
--- a/pkg/rtc/participant.go
+++ b/pkg/rtc/participant.go
@@ -33,6 +33,7 @@ import (
 	"go.uber.org/atomic"
 	"google.golang.org/protobuf/proto"
 
+	"github.com/livekit/mediatransportutil"
 	"github.com/livekit/mediatransportutil/pkg/twcc"
 	"github.com/livekit/protocol/auth"
 	"github.com/livekit/protocol/livekit"
@@ -1499,7 +1500,7 @@ func (p *ParticipantImpl) onMediaTrack(track *webrtc.TrackRemote, rtpReceiver *w
 }
 
 func (p *ParticipantImpl) onDataMessage(kind livekit.DataPacket_Kind, data []byte) {
-	if p.IsDisconnected() || !p.CanPublishData() {
+	if p.IsDisconnected() {
 		return
 	}
 
@@ -1521,6 +1522,7 @@ func (p *ParticipantImpl) onDataMessage(kind livekit.DataPacket_Kind, data []byt
 	}
 
 	shouldForward := false
+	isPublisher := true
 	// only forward on user payloads
 	switch payload := dp.Value.(type) {
 	case *livekit.DataPacket_User:
@@ -1551,10 +1553,32 @@ func (p *ParticipantImpl) onDataMessage(kind livekit.DataPacket_Kind, data []byt
 		if p.Kind() == livekit.ParticipantInfo_AGENT {
 			shouldForward = true
 		}
+	case *livekit.DataPacket_TimeSyncRequest:
+		isPublisher = false
+		resp := mediatransportutil.HandleTimeSyncRequest(*payload.TimeSyncRequest)
+
+		rdp := &livekit.DataPacket{
+			Value: &livekit.DataPacket_TimeSyncResponse{
+				TimeSyncResponse: &resp,
+			},
+		}
+
+		rdpData, err := proto.Marshal(rdp)
+		if err != nil {
+			p.pubLogger.Warnw("failed marshalling time sync response", err)
+			return
+		}
+
+		err = p.SendDataPacket(kind, rdpData)
+		if err != nil {
+			p.pubLogger.Infow("failed sending time sync response", "error", err)
+			return
+		}
+
 	default:
 		p.pubLogger.Warnw("received unsupported data packet", nil, "payload", payload)
 	}
-	if shouldForward {
+	if shouldForward && p.CanPublishData() {
 		p.lock.RLock()
 		onDataPacket := p.onDataPacket
 		p.lock.RUnlock()
@@ -1563,7 +1587,9 @@ func (p *ParticipantImpl) onDataMessage(kind livekit.DataPacket_Kind, data []byt
 		}
 	}
 
-	p.setIsPublisher(true)
+	if isPublisher && p.CanPublishData() {
+		p.setIsPublisher(true)
+	}
 }
 
 func (p *ParticipantImpl) onICECandidate(c *webrtc.ICECandidate, target livekit.SignalTarget) error {