diff --git a/iphone/Maps/Classes/CompassView.h b/iphone/Maps/Classes/CompassView.h
index 7a6e0c687e..177d435477 100644
--- a/iphone/Maps/Classes/CompassView.h
+++ b/iphone/Maps/Classes/CompassView.h
@@ -4,4 +4,6 @@
 @interface CompassView : UIView
 // Rotation angle in radians (decart system)
 @property (nonatomic, assign) float angle;
+// Image to display instead of compass arrow
+@property (nonatomic, retain) UIImage * image;
 @end
diff --git a/iphone/Maps/Classes/CompassView.mm b/iphone/Maps/Classes/CompassView.mm
index 22f40f9996..fbf4c6f8c5 100644
--- a/iphone/Maps/Classes/CompassView.mm
+++ b/iphone/Maps/Classes/CompassView.mm
@@ -3,6 +3,7 @@
 @implementation CompassView
 
 @synthesize angle;
+@synthesize image;
 
 - (id)initWithFrame:(CGRect)frame
 {
@@ -21,29 +22,44 @@
   [self setNeedsDisplay];
 }
 
-// Draws an arrow looking to the right like this:
-// =>
-// and rotates it to given angle
+- (void)setImage:(UIImage *)aImage
+{
+  [image release];
+  image = aImage;
+  [image retain];
+  [self setNeedsDisplay];
+}
+
 - (void)drawRect:(CGRect)rect
 {
-  UIBezierPath * aPath = [UIBezierPath bezierPath];
-  
-  float const w = rect.size.width;
-  float const w2 = w / 2.0;
-  float const w3 = w / 3.0;
-  [aPath moveToPoint:CGPointMake(w3, w2)];
-  [aPath addLineToPoint:CGPointMake(0, w2 - w3)];
-  [aPath addLineToPoint:CGPointMake(w, w2)];
-  [aPath addLineToPoint:CGPointMake(0, w2 + w3)];
-  [aPath closePath];
-  
-  CGAffineTransform matrix = CGAffineTransformMakeTranslation(w2, w2);
-  matrix = CGAffineTransformRotate(matrix, -angle);
-  matrix = CGAffineTransformTranslate(matrix, -w2, -w2);
-  [aPath applyTransform:matrix];
-  
-  [[UIColor blueColor] setFill];
-  [aPath fill];
+  if (image)
+  {
+    [image drawInRect:rect];
+  }
+  else
+  {
+    // Draws an arrow looking to the right like this:
+    // =>
+    // and rotates it to given angle
+    UIBezierPath * aPath = [UIBezierPath bezierPath];
+
+    float const w = rect.size.width;
+    float const w2 = w / 2.0;
+    float const w3 = w / 3.0;
+    [aPath moveToPoint:CGPointMake(w3, w2)];
+    [aPath addLineToPoint:CGPointMake(0, w2 - w3)];
+    [aPath addLineToPoint:CGPointMake(w, w2)];
+    [aPath addLineToPoint:CGPointMake(0, w2 + w3)];
+    [aPath closePath];
+
+    CGAffineTransform matrix = CGAffineTransformMakeTranslation(w2, w2);
+    matrix = CGAffineTransformRotate(matrix, -angle);
+    matrix = CGAffineTransformTranslate(matrix, -w2, -w2);
+    [aPath applyTransform:matrix];
+
+    [[UIColor blueColor] setFill];
+    [aPath fill];
+  }
 }
 
 @end
diff --git a/iphone/Maps/Classes/SearchVC.h b/iphone/Maps/Classes/SearchVC.h
index 07f6b49965..8278dd2ffa 100644
--- a/iphone/Maps/Classes/SearchVC.h
+++ b/iphone/Maps/Classes/SearchVC.h
@@ -19,7 +19,6 @@ namespace search { class Result; }
   UIButton * m_radarButton;
   UISearchBar * m_searchBar;
   UITableView * m_table;
-  string m_currentCountryFlagCode;
 }
 
 - (id)initWithFramework:(Framework *)framework andLocationManager:(LocationManager *)lm;
diff --git a/iphone/Maps/Classes/SearchVC.mm b/iphone/Maps/Classes/SearchVC.mm
index d35c2ae037..e18a1461de 100644
--- a/iphone/Maps/Classes/SearchVC.mm
+++ b/iphone/Maps/Classes/SearchVC.mm
@@ -13,6 +13,10 @@
 #include "../../map/measurement_utils.hpp"
 #include "../../search/result.hpp"
 
+
+/// When to display compass instead of country flags
+#define MIN_COMPASS_DISTANCE 25000.0
+
 SearchVC * g_searchVC = nil;
 volatile int g_queryId = 0;
 
@@ -434,23 +438,52 @@ static void OnSearchResultCallback(search::Results const & res, int queryId)
       cell.featureName.text = [NSString stringWithUTF8String:r.GetString()];
       cell.featureCountry.text = [NSString stringWithUTF8String:r.GetRegionString()];
       cell.featureType.text = [NSString stringWithUTF8String:r.GetFeatureType()];
-      cell.featureDistance.text = [SearchVC formatDistance:r.GetDistanceFromCenter()];
-      if (m_radarButton.isSelected)
-        cell.accessoryView = nil;
+      double const distance = r.GetDistanceFromCenter();
+      cell.featureDistance.text = [SearchVC formatDistance:distance];
+      // Show flags only if feature is too far away and it has the flag
+      if (r.GetRegionFlag() && (distance < 0. || distance > MIN_COMPASS_DISTANCE))
+      {
+        UIImage * flagImage = [UIImage imageNamed:[NSString stringWithFormat:@"%s.png", r.GetRegionFlag()]];
+        UIImageView * imgView = [[UIImageView alloc] initWithImage:flagImage];
+        cell.accessoryView = imgView;
+        [imgView release];
+      }
       else
-      { // Show flags only when radar mode is disabled and feature is not in the same country as the user
-        char const * flagCode = r.GetRegionFlag();
-        if (flagCode && m_currentCountryFlagCode != flagCode)
+      {
+        CompassView * compass;
+        // Try to reuse existing compass view
+        if ([cell.accessoryView isKindOfClass:[CompassView class]])
+          compass = (CompassView *)cell.accessoryView;
+        else
         {
-          UIImage * flagImage = [UIImage imageNamed:[NSString stringWithFormat:@"%s.png", flagCode]];
-          UIImageView * imgView = [[UIImageView alloc] initWithImage:flagImage];
-          cell.accessoryView = imgView;
-          [imgView release];
+          // Create compass view
+          float const h = (int)(m_table.rowHeight * 0.6);
+          compass = [[CompassView alloc] initWithFrame:CGRectMake(0, 0, h, h)];
+          cell.accessoryView = compass;
+          [compass release];
+        }
+
+        // Separate case for continents
+        if (!r.GetRegionFlag())
+        {
+          // @TODO add valid icon
+          compass.image = [UIImage imageNamed:@"downloader"];
         }
         else
         {
-          // Reset cached flag for reused cell
-          cell.accessoryView = nil;
+          CLLocation * loc = [m_locationManager lastLocation];
+          CLHeading * heading = [m_locationManager lastHeading];
+          if (loc == nil || heading == nil)
+          {
+            compass.image = [UIImage imageNamed:@"location"];
+          }
+          else
+          {
+            double const northDeg = (heading.trueHeading < 0) ? heading.magneticHeading : heading.trueHeading;
+            m2::PointD const center = r.GetFeatureCenter();
+            compass.angle = ang::AngleTo(m2::PointD(MercatorBounds::LonToX(loc.coordinate.longitude),
+                            MercatorBounds::LatToY(loc.coordinate.latitude)), center) + northDeg / 180. * math::pi;
+          }
         }
       }
       return cell;
@@ -489,6 +522,8 @@ static void OnSearchResultCallback(search::Results const & res, int queryId)
     case search::Result::RESULT_SUGGESTION:
       char const * s = res.GetSuggestionString();
       [m_searchBar setText: [NSString stringWithUTF8String:s]];
+      // Remove blue selection from the row
+      [tableView deselectRowAtIndexPath: indexPath animated:YES];
       break;
     }
   }
@@ -517,10 +552,6 @@ static void OnSearchResultCallback(search::Results const & res, int queryId)
 
 - (void)onGpsUpdate:(location::GpsInfo const &)info
 {
-  // Update current country code only once after Search View was opened
-  if (m_currentCountryFlagCode.empty())
-    m_currentCountryFlagCode = m_framework->GetCountryCodeByPosition(info.m_latitude, info.m_longitude);
-
   // Refresh search results with newer location, but
   // do not search if text is not entered
   NSString * queryString = m_searchBar.text;
@@ -547,20 +578,9 @@ static void OnSearchResultCallback(search::Results const & res, int queryId)
     if (res.GetResultType() == search::Result::RESULT_FEATURE)
     {
       // Show compass only for cells without flags
-      CompassView * compass = nil;
-      if (cell.accessoryView == nil)
-      {
-        // Create compass view if it wasn't already created
-        float const h = m_table.rowHeight * 0.6;
-        compass = [[CompassView alloc] initWithFrame:CGRectMake(0, 0, h, h)];
-        cell.accessoryView = compass;
-        [compass release];
-      }
-      else if ([cell.accessoryView isKindOfClass:[CompassView class]])
-        compass = (CompassView *)cell.accessoryView;
-
-      if (compass)
+      if ([cell.accessoryView isKindOfClass:[CompassView class]])
       {
+        CompassView * compass = (CompassView *)cell.accessoryView;
         m2::PointD const center = res.GetFeatureCenter();
         compass.angle = ang::AngleTo(m2::PointD(MercatorBounds::LonToX(loc.coordinate.longitude),
                         MercatorBounds::LatToY(loc.coordinate.latitude)), center) + northDeg / 180. * math::pi;
diff --git a/iphone/Maps/Platform/LocationManager.h b/iphone/Maps/Platform/LocationManager.h
index 53a71dae68..41e2c5536e 100644
--- a/iphone/Maps/Platform/LocationManager.h
+++ b/iphone/Maps/Platform/LocationManager.h
@@ -23,6 +23,7 @@
 - (void)start:(id <LocationObserver>)observer;
 - (void)stop:(id <LocationObserver>)observer;
 - (CLLocation *)lastLocation;
+- (CLHeading *)lastHeading;
 // Fixes compass angle orientation when rotating screen to landscape
 - (void)setOrientation:(UIInterfaceOrientation)orientation;
 @end
diff --git a/iphone/Maps/Platform/LocationManager.mm b/iphone/Maps/Platform/LocationManager.mm
index e193390c79..c454ebc39b 100644
--- a/iphone/Maps/Platform/LocationManager.mm
+++ b/iphone/Maps/Platform/LocationManager.mm
@@ -86,6 +86,11 @@
   return m_locationManager.location;
 }
 
+- (CLHeading *)lastHeading
+{
+  return m_locationManager.heading;
+}
+
 - (void)location:(CLLocation *)location toGpsInfo:(location::GpsInfo &)info
 {
   info.m_horizontalAccuracy = location.horizontalAccuracy;