Abstract. As Grid systems expand and become more and more popular, there is a growing need for efficient, scalable and robust data transfer mechanisms that can deal effectively with large file transfers and flash crowd situations. In this paper, we address the problem of data transfer optimization by presenting GridTorrent- a modified BitTorrent protocol, tightly coupled with modern Grid middleware components. Grid-Torrent can be used to transfer files directly from established GridFTP servers or other GridTorrent peers that are simultaneously requesting the same information. The peer-to-peer approach, enables the aggregate data transfer throughput to escalate, even when numerous requests rely on a single data source, and achieve better utilization of the available Grid resources. Experimental results conducted using a prototype implementation suggest that there are significant advantages when using GridTorrent to optimize data transfers. Moreover, GridTorrent is completely backwards-compatible with already deployed Grids.