diff --git a/modules/audio_coding/BUILD.gn b/modules/audio_coding/BUILD.gn
index d5fb1a4..e67a05d 100644
--- a/modules/audio_coding/BUILD.gn
+++ b/modules/audio_coding/BUILD.gn
@@ -976,6 +976,8 @@
     "neteq/red_payload_splitter.h",
     "neteq/relative_arrival_delay_tracker.cc",
     "neteq/relative_arrival_delay_tracker.h",
+    "neteq/reorder_optimizer.cc",
+    "neteq/reorder_optimizer.h",
     "neteq/statistics_calculator.cc",
     "neteq/statistics_calculator.h",
     "neteq/sync_buffer.cc",
@@ -2016,6 +2018,7 @@
         "neteq/random_vector_unittest.cc",
         "neteq/red_payload_splitter_unittest.cc",
         "neteq/relative_arrival_delay_tracker_unittest.cc",
+        "neteq/reorder_optimizer_unittest.cc",
         "neteq/statistics_calculator_unittest.cc",
         "neteq/sync_buffer_unittest.cc",
         "neteq/time_stretch_unittest.cc",
diff --git a/modules/audio_coding/neteq/delay_manager.cc b/modules/audio_coding/neteq/delay_manager.cc
index 9f7eebd..97d1d2e 100644
--- a/modules/audio_coding/neteq/delay_manager.cc
+++ b/modules/audio_coding/neteq/delay_manager.cc
@@ -32,6 +32,16 @@
 constexpr int kMaxBaseMinimumDelayMs = 10000;
 constexpr int kStartDelayMs = 80;
 
+std::unique_ptr<ReorderOptimizer> MaybeCreateReorderOptimizer(
+    const DelayManager::Config& config) {
+  if (!config.use_reorder_optimizer) {
+    return nullptr;
+  }
+  return std::make_unique<ReorderOptimizer>(
+      (1 << 15) * config.reorder_forget_factor, config.ms_per_loss_percent,
+      config.start_forget_weight);
+}
+
 }  // namespace
 
 DelayManager::Config::Config() {
@@ -47,16 +57,22 @@
                    << " start_forget_weight=" << start_forget_weight.value_or(0)
                    << " resample_interval_ms="
                    << resample_interval_ms.value_or(0)
-                   << " max_history_ms=" << max_history_ms;
+                   << " max_history_ms=" << max_history_ms
+                   << " use_reorder_optimizer=" << use_reorder_optimizer
+                   << " reorder_forget_factor=" << reorder_forget_factor
+                   << " ms_per_loss_percent=" << ms_per_loss_percent;
 }
 
 std::unique_ptr<StructParametersParser> DelayManager::Config::Parser() {
-  return StructParametersParser::Create(              //
-      "quantile", &quantile,                          //
-      "forget_factor", &forget_factor,                //
-      "start_forget_weight", &start_forget_weight,    //
-      "resample_interval_ms", &resample_interval_ms,  //
-      "max_history_ms", &max_history_ms);
+  return StructParametersParser::Create(                //
+      "quantile", &quantile,                            //
+      "forget_factor", &forget_factor,                  //
+      "start_forget_weight", &start_forget_weight,      //
+      "resample_interval_ms", &resample_interval_ms,    //
+      "max_history_ms", &max_history_ms,                //
+      "use_reorder_optimizer", &use_reorder_optimizer,  //
+      "reorder_forget_factor", &reorder_forget_factor,  //
+      "ms_per_loss_percent", &ms_per_loss_percent);
 }
 
 // TODO(jakobi): remove legacy field trial.
@@ -90,6 +106,7 @@
                           (1 << 15) * config.forget_factor,
                           config.start_forget_weight,
                           config.resample_interval_ms),
+      reorder_optimizer_(MaybeCreateReorderOptimizer(config)),
       relative_arrival_delay_tracker_(tick_timer, config.max_history_ms),
       base_minimum_delay_ms_(config.base_minimum_delay_ms),
       effective_minimum_delay_ms_(config.base_minimum_delay_ms),
@@ -115,9 +132,18 @@
     return absl::nullopt;
   }
 
-  underrun_optimizer_.Update(*relative_delay);
+  bool reordered =
+      relative_arrival_delay_tracker_.newest_timestamp() != timestamp;
+  if (!reorder_optimizer_ || !reordered) {
+    underrun_optimizer_.Update(*relative_delay);
+  }
   target_level_ms_ =
       underrun_optimizer_.GetOptimalDelayMs().value_or(kStartDelayMs);
+  if (reorder_optimizer_) {
+    reorder_optimizer_->Update(*relative_delay, reordered, target_level_ms_);
+    target_level_ms_ = std::max(
+        target_level_ms_, reorder_optimizer_->GetOptimalDelayMs().value_or(0));
+  }
   target_level_ms_ = std::max(target_level_ms_, effective_minimum_delay_ms_);
   if (maximum_delay_ms_ > 0) {
     target_level_ms_ = std::min(target_level_ms_, maximum_delay_ms_);
@@ -148,6 +174,9 @@
   underrun_optimizer_.Reset();
   relative_arrival_delay_tracker_.Reset();
   target_level_ms_ = kStartDelayMs;
+  if (reorder_optimizer_) {
+    reorder_optimizer_->Reset();
+  }
 }
 
 int DelayManager::TargetDelayMs() const {
diff --git a/modules/audio_coding/neteq/delay_manager.h b/modules/audio_coding/neteq/delay_manager.h
index c751836..277b80d 100644
--- a/modules/audio_coding/neteq/delay_manager.h
+++ b/modules/audio_coding/neteq/delay_manager.h
@@ -20,6 +20,7 @@
 #include "api/neteq/tick_timer.h"
 #include "modules/audio_coding/neteq/histogram.h"
 #include "modules/audio_coding/neteq/relative_arrival_delay_tracker.h"
+#include "modules/audio_coding/neteq/reorder_optimizer.h"
 #include "modules/audio_coding/neteq/underrun_optimizer.h"
 #include "rtc_base/constructor_magic.h"
 #include "rtc_base/experiments/struct_parameters_parser.h"
@@ -39,6 +40,10 @@
     absl::optional<int> resample_interval_ms;
     int max_history_ms = 2000;
 
+    bool use_reorder_optimizer = true;
+    double reorder_forget_factor = 0.9993;
+    int ms_per_loss_percent = 20;
+
     // Options that are externally populated.
     int max_packets_in_buffer = 200;
     int base_minimum_delay_ms = 0;
@@ -104,6 +109,7 @@
   // TODO(jakobi): set maximum buffer delay instead of number of packets.
   const int max_packets_in_buffer_;
   UnderrunOptimizer underrun_optimizer_;
+  std::unique_ptr<ReorderOptimizer> reorder_optimizer_;
   RelativeArrivalDelayTracker relative_arrival_delay_tracker_;
 
   int base_minimum_delay_ms_;
diff --git a/modules/audio_coding/neteq/histogram.h b/modules/audio_coding/neteq/histogram.h
index 5b2f2b1..265a10e 100644
--- a/modules/audio_coding/neteq/histogram.h
+++ b/modules/audio_coding/neteq/histogram.h
@@ -42,7 +42,7 @@
   virtual int NumBuckets() const;
 
   // Returns the probability for each bucket in Q30.
-  std::vector<int> buckets() const { return buckets_; }
+  const std::vector<int>& buckets() const { return buckets_; }
 
   // Accessors only intended for testing purposes.
   int base_forget_factor_for_testing() const { return base_forget_factor_; }
diff --git a/modules/audio_coding/neteq/relative_arrival_delay_tracker.cc b/modules/audio_coding/neteq/relative_arrival_delay_tracker.cc
index 5b9580c..02c5a43 100644
--- a/modules/audio_coding/neteq/relative_arrival_delay_tracker.cc
+++ b/modules/audio_coding/neteq/relative_arrival_delay_tracker.cc
@@ -12,6 +12,8 @@
 
 #include <algorithm>
 
+#include "modules/include/module_common_types_public.h"
+
 namespace webrtc {
 
 absl::optional<int> RelativeArrivalDelayTracker::Update(uint32_t timestamp,
@@ -23,6 +25,7 @@
     // Restart relative delay esimation from this packet.
     delay_history_.clear();
     packet_iat_stopwatch_ = tick_timer_->GetNewStopwatch();
+    newest_timestamp_ = timestamp;
     last_timestamp_ = timestamp;
     return absl::nullopt;
   }
@@ -37,6 +40,9 @@
 
   packet_iat_stopwatch_ = tick_timer_->GetNewStopwatch();
   last_timestamp_ = timestamp;
+  if (IsNewerTimestamp(timestamp, *newest_timestamp_)) {
+    newest_timestamp_ = timestamp;
+  }
 
   return relative_delay;
 }
@@ -44,6 +50,7 @@
 void RelativeArrivalDelayTracker::Reset() {
   delay_history_.clear();
   packet_iat_stopwatch_ = tick_timer_->GetNewStopwatch();
+  newest_timestamp_ = absl::nullopt;
   last_timestamp_ = absl::nullopt;
 }
 
diff --git a/modules/audio_coding/neteq/relative_arrival_delay_tracker.h b/modules/audio_coding/neteq/relative_arrival_delay_tracker.h
index da7f121..fed56be 100644
--- a/modules/audio_coding/neteq/relative_arrival_delay_tracker.h
+++ b/modules/audio_coding/neteq/relative_arrival_delay_tracker.h
@@ -28,6 +28,10 @@
 
   void Reset();
 
+  absl::optional<uint32_t> newest_timestamp() const {
+    return newest_timestamp_;
+  }
+
  private:
   // Updates `delay_history_`.
   void UpdateDelayHistory(int iat_delay_ms,
@@ -46,8 +50,8 @@
   };
   std::deque<PacketDelay> delay_history_;
 
-  absl::optional<uint32_t>
-      last_timestamp_;  // Timestamp for the last received packet.
+  absl::optional<uint32_t> newest_timestamp_;
+  absl::optional<uint32_t> last_timestamp_;
 
   std::unique_ptr<TickTimer::Stopwatch>
       packet_iat_stopwatch_;  // Time elapsed since last packet.
diff --git a/modules/audio_coding/neteq/relative_arrival_delay_tracker_unittest.cc b/modules/audio_coding/neteq/relative_arrival_delay_tracker_unittest.cc
index f764b85..b4e9456 100644
--- a/modules/audio_coding/neteq/relative_arrival_delay_tracker_unittest.cc
+++ b/modules/audio_coding/neteq/relative_arrival_delay_tracker_unittest.cc
@@ -49,14 +49,17 @@
 
   // Insert reordered packet.
   EXPECT_EQ(tracker.Update(kTs - 4 * kTsIncrement, kFs), 80);
+  EXPECT_EQ(tracker.newest_timestamp(), kTs);
 
   // Insert another reordered packet.
   EXPECT_EQ(tracker.Update(kTs - kTsIncrement, kFs), 20);
+  EXPECT_EQ(tracker.newest_timestamp(), kTs);
 
   // Insert the next packet in order and verify that the relative delay is
   // estimated based on the first inserted packet.
   tick_timer.Increment(4 * kFrameSizeMs / tick_timer.ms_per_tick());
   EXPECT_EQ(tracker.Update(kTs + kTsIncrement, kFs), 60);
+  EXPECT_EQ(tracker.newest_timestamp(), kTs + kTsIncrement);
 }
 
 TEST(RelativeArrivalDelayTrackerTest, MaxDelayHistory) {
diff --git a/modules/audio_coding/neteq/reorder_optimizer.cc b/modules/audio_coding/neteq/reorder_optimizer.cc
new file mode 100644
index 0000000..f6e073f
--- /dev/null
+++ b/modules/audio_coding/neteq/reorder_optimizer.cc
@@ -0,0 +1,75 @@
+/*
+ *  Copyright (c) 2021 The WebRTC project authors. All Rights Reserved.
+ *
+ *  Use of this source code is governed by a BSD-style license
+ *  that can be found in the LICENSE file in the root of the source
+ *  tree. An additional intellectual property rights grant can be found
+ *  in the file PATENTS.  All contributing project authors may
+ *  be found in the AUTHORS file in the root of the source tree.
+ */
+
+#include "modules/audio_coding/neteq/reorder_optimizer.h"
+
+#include <algorithm>
+#include <limits>
+#include <vector>
+
+namespace webrtc {
+
+namespace {
+
+constexpr int kDelayBuckets = 100;
+constexpr int kBucketSizeMs = 20;
+
+}  // namespace
+
+ReorderOptimizer::ReorderOptimizer(int forget_factor,
+                                   int ms_per_loss_percent,
+                                   absl::optional<int> start_forget_weight)
+    : histogram_(kDelayBuckets, forget_factor, start_forget_weight),
+      ms_per_loss_percent_(ms_per_loss_percent) {}
+
+void ReorderOptimizer::Update(int relative_delay_ms,
+                              bool reordered,
+                              int base_delay_ms) {
+  const int index = reordered ? relative_delay_ms / kBucketSizeMs : 0;
+  if (index < histogram_.NumBuckets()) {
+    // Maximum delay to register is 2000 ms.
+    histogram_.Add(index);
+  }
+  int bucket_index = MinimizeCostFunction(base_delay_ms);
+  optimal_delay_ms_ = (1 + bucket_index) * kBucketSizeMs;
+}
+
+void ReorderOptimizer::Reset() {
+  histogram_.Reset();
+  optimal_delay_ms_.reset();
+}
+
+int ReorderOptimizer::MinimizeCostFunction(int base_delay_ms) const {
+  const std::vector<int>& buckets = histogram_.buckets();
+
+  // Values are calculated in Q30.
+  int64_t loss_probability = 1 << 30;
+  int64_t min_cost = std::numeric_limits<int64_t>::max();
+  int min_bucket = 0;
+  for (int i = 0; i < static_cast<int>(buckets.size()); ++i) {
+    loss_probability -= buckets[i];
+    int64_t delay_ms =
+        static_cast<int64_t>(std::max(0, i * kBucketSizeMs - base_delay_ms))
+        << 30;
+    int64_t cost = delay_ms + 100 * ms_per_loss_percent_ * loss_probability;
+
+    if (cost < min_cost) {
+      min_cost = cost;
+      min_bucket = i;
+    }
+    if (loss_probability == 0) {
+      break;
+    }
+  }
+
+  return min_bucket;
+}
+
+}  // namespace webrtc
diff --git a/modules/audio_coding/neteq/reorder_optimizer.h b/modules/audio_coding/neteq/reorder_optimizer.h
new file mode 100644
index 0000000..06f6bc7
--- /dev/null
+++ b/modules/audio_coding/neteq/reorder_optimizer.h
@@ -0,0 +1,43 @@
+/*
+ *  Copyright (c) 2021 The WebRTC project authors. All Rights Reserved.
+ *
+ *  Use of this source code is governed by a BSD-style license
+ *  that can be found in the LICENSE file in the root of the source
+ *  tree. An additional intellectual property rights grant can be found
+ *  in the file PATENTS.  All contributing project authors may
+ *  be found in the AUTHORS file in the root of the source tree.
+ */
+
+#ifndef MODULES_AUDIO_CODING_NETEQ_REORDER_OPTIMIZER_H_
+#define MODULES_AUDIO_CODING_NETEQ_REORDER_OPTIMIZER_H_
+
+#include "absl/types/optional.h"
+#include "modules/audio_coding/neteq/histogram.h"
+
+namespace webrtc {
+
+// Calculates an optimal delay to reduce the chance of missing reordered
+// packets. The delay/loss trade-off can be tune using the `ms_per_loss_percent`
+// parameter.
+class ReorderOptimizer {
+ public:
+  ReorderOptimizer(int forget_factor,
+                   int ms_per_loss_percent,
+                   absl::optional<int> start_forget_weight);
+
+  void Update(int relative_delay_ms, bool reordered, int base_delay_ms);
+
+  absl::optional<int> GetOptimalDelayMs() const { return optimal_delay_ms_; }
+
+  void Reset();
+
+ private:
+  int MinimizeCostFunction(int base_delay_ms) const;
+
+  Histogram histogram_;
+  const int ms_per_loss_percent_;
+  absl::optional<int> optimal_delay_ms_;
+};
+
+}  // namespace webrtc
+#endif  // MODULES_AUDIO_CODING_NETEQ_REORDER_OPTIMIZER_H_
diff --git a/modules/audio_coding/neteq/reorder_optimizer_unittest.cc b/modules/audio_coding/neteq/reorder_optimizer_unittest.cc
new file mode 100644
index 0000000..aaa1062
--- /dev/null
+++ b/modules/audio_coding/neteq/reorder_optimizer_unittest.cc
@@ -0,0 +1,70 @@
+/*
+ *  Copyright (c) 2021 The WebRTC project authors. All Rights Reserved.
+ *
+ *  Use of this source code is governed by a BSD-style license
+ *  that can be found in the LICENSE file in the root of the source
+ *  tree. An additional intellectual property rights grant can be found
+ *  in the file PATENTS.  All contributing project authors may
+ *  be found in the AUTHORS file in the root of the source tree.
+ */
+
+#include "modules/audio_coding/neteq/reorder_optimizer.h"
+
+#include "test/gtest.h"
+
+namespace webrtc {
+
+namespace {
+
+constexpr int kForgetFactor = 32745;  // 0.9993 in Q15.
+constexpr int kMsPerLossPercent = 20;
+constexpr int kStartForgetWeight = 1;
+
+}  // namespace
+
+TEST(ReorderOptimizerTest, OnlyIncreaseDelayForReorderedPackets) {
+  ReorderOptimizer reorder_optimizer(kForgetFactor, kMsPerLossPercent,
+                                     kStartForgetWeight);
+  EXPECT_FALSE(reorder_optimizer.GetOptimalDelayMs());
+
+  // Delay should not increase for in-order packets.
+  reorder_optimizer.Update(60, /*reordered=*/false, 0);
+  EXPECT_EQ(reorder_optimizer.GetOptimalDelayMs(), 20);
+
+  reorder_optimizer.Update(100, /*reordered=*/false, 0);
+  EXPECT_EQ(reorder_optimizer.GetOptimalDelayMs(), 20);
+
+  reorder_optimizer.Update(80, /*reordered=*/true, 0);
+  EXPECT_EQ(reorder_optimizer.GetOptimalDelayMs(), 100);
+}
+
+TEST(ReorderOptimizerTest, AvoidIncreasingDelayWhenProbabilityIsLow) {
+  ReorderOptimizer reorder_optimizer(kForgetFactor, kMsPerLossPercent,
+                                     kStartForgetWeight);
+
+  reorder_optimizer.Update(40, /*reordered=*/true, 0);
+  reorder_optimizer.Update(40, /*reordered=*/true, 0);
+  reorder_optimizer.Update(40, /*reordered=*/true, 0);
+  EXPECT_EQ(reorder_optimizer.GetOptimalDelayMs(), 60);
+
+  // The cost of the delay is too high relative the probability.
+  reorder_optimizer.Update(600, /*reordered=*/true, 0);
+  EXPECT_EQ(reorder_optimizer.GetOptimalDelayMs(), 60);
+}
+
+TEST(ReorderOptimizerTest, BaseDelayIsSubtractedFromCost) {
+  constexpr int kBaseDelayMs = 200;
+  ReorderOptimizer reorder_optimizer(kForgetFactor, kMsPerLossPercent,
+                                     kStartForgetWeight);
+
+  reorder_optimizer.Update(40, /*reordered=*/true, kBaseDelayMs);
+  reorder_optimizer.Update(40, /*reordered=*/true, kBaseDelayMs);
+  reorder_optimizer.Update(40, /*reordered=*/true, kBaseDelayMs);
+  EXPECT_EQ(reorder_optimizer.GetOptimalDelayMs(), 60);
+
+  // The cost of the delay is too high relative the probability.
+  reorder_optimizer.Update(600, /*reordered=*/true, kBaseDelayMs);
+  EXPECT_EQ(reorder_optimizer.GetOptimalDelayMs(), 620);
+}
+
+}  // namespace webrtc