A system and method for forming a cascaded teleconference between digital telephony devices is disclosed. The method comprises selecting a plurality of digital telephony devices for a teleconference. Each digital telephony device includes a microphone, a speaker, an input port, and at least one output port. A cascaded peer to peer network is formed between the selected digital telephony devices. A sum of the local microphone signal and at least one conference microphone signal is transmitted at the output of each of the plurality of digital telephony devices. The at least one conference microphone signal is broadcast over the speaker at each of the plurality of digital telephony devices to provide the cascaded teleconference.