Google has rolled out an update to Hangouts app for Android to add new features such as SMS integration into Hangouts conversations, improved contact list, new widget and overall improvement.

Google, the world's largest internet search company, rolled out a significant update to Hangouts app for Android eliminating one of the biggest pain points for its users. Notably, Google added the ability to merge text messages and Hangouts conversations from the same contact into a single thread and vice versa.In an official Google+ blog post Monday, Google engineer Mike Dodd detailed new features, which bring the Hangouts Android app to version 2.1.

The SMS integration will give users the ability to chat with friends and family without switching apps. If a user signs off from Hangouts, he or she can continue chats via SMS without starting a new thread. Users can choose whether they want to send and receive messages through Hangouts or SMS and also demerge conversations, which makes it easy to distinguish between different message sources, Google said.

The latest update for Hangouts also includes simplified contact list. While it may seem less important, but the SMS integration compliments the new feature. The contact list will appear separately in two sections, people who use Hangout and phone contacts. This makes it easier for users to choose either SMS or Hangout for chatting with others.

Finally, Hangouts version 2.1 includes a new home screen widget. Since Google has long been looking at different ways to keep its services simple to use and at users' fingertips always, the new Hangouts widget will help users launch the app and start conversations much easily. The update also fixed some bugs within the app to improve the overall performance. According to Google, the update has improved the quality of video calls on Hangouts and better SMS and MMS reliability.

Prior to this, Google has constantly rolled out several updates to its online chat application. In February, Google redesignedHangouts for iOS devices, added animated stickers, 10-second video messages and iPad optimization.

The updated Hangouts 2.1 is available for download from Google Play Store. Existing users can update the app from their Android handsets.