A system and method are directed towards managing interoperability between disparate IM networks. A clearinghouse server is provided that receives IM messages from disparate IM networks. The clearinghouse server examines the IM message to determine it is in a compatible protocol for a destination IM network. If the IM message is incompatible a translation service is used to translate the message into a compatible protocol. The translation service further determines if the destination IM network supports a feature employed by the received IM message. If the feature is supported or can be translated to a supported feature, the translation service will also perform the feature translation. Otherwise, the translation service may return an error message indicating that the received IM message includes an unsupported feature for the destination IM network. Upon satisfactory translation, the clearinghouse server forwards the translated IM message towards the destination IM network.