diff --git a/CHANGELOG.md b/CHANGELOG.md
index 96fe57619..9badb6c70 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -9,6 +9,13 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Added
 
+- `DailyTransport` now supports setting the audio bitrate to improve audio
+  quality through the `DailyParams.audio_out_bitrate` parameter. The new
+  default is 96kbps.
+
+- `DailyTransport` now uses the number of audio output channels (1 or 2) to set
+  mono or stereo audio when needed.
+
 - Interruptions support has been added to `TwilioFrameSerializer` when using
   `FastAPIWebsocketTransport`.
 
diff --git a/src/pipecat/transports/base_transport.py b/src/pipecat/transports/base_transport.py
index 72e609263..083aeac37 100644
--- a/src/pipecat/transports/base_transport.py
+++ b/src/pipecat/transports/base_transport.py
@@ -32,6 +32,7 @@ class TransportParams(BaseModel):
     audio_out_is_live: bool = False
     audio_out_sample_rate: int = 16000
     audio_out_channels: int = 1
+    audio_out_bitrate: int = 96000
     audio_in_enabled: bool = False
     audio_in_sample_rate: int = 16000
     audio_in_channels: int = 1
diff --git a/src/pipecat/transports/services/daily.py b/src/pipecat/transports/services/daily.py
index bb6032fa4..7cf330b9e 100644
--- a/src/pipecat/transports/services/daily.py
+++ b/src/pipecat/transports/services/daily.py
@@ -366,6 +366,12 @@ class DailyTransportClient(EventHandler):
                                 }
                             },
                         }
+                    },
+                    "microphone": {
+                        "sendSettings": {
+                            "channelConfig": "stereo" if self._params.audio_out_channels == 2 else "mono",
+                            "bitrate": self._params.audio_out_bitrate,
+                        }
                     }
                 },
             })