This paper presents a novel end host multicast protocol (DSM) on top of the mesh overlays for P2P networks. Unlike the previous schemes, the major feature ofDSM is that it does not need a multicast tree for routing the multicast messages. DSM can implement the scalable and efFcient multicast communications in a fully distributed way and consists of the following algorithms: I . cluster formation that forms the group into clusters and each cluster consists of a small number of members; 2. cluster core selection that selects a core for each cluster who has the minimum sum of overlay hops to all other cluster members; 3. multicast routing that includes the balanced RA routing approach which enables a cluster core to construct the connections with other cores dynamically by using the rectangle area and the balanced forwardjlooding scheme in each cluster which evenly distributes the data traf- Jic and link stress among the links in the multicast system. Simulation results show that DSM is fully distributed, scalable and efjicient as compared with some well-known end host multicast system.