Yes, 5.1 works via the optical connection, I connected my laptop to the 5.1 system this way. Software is included with various functions such as equalisers and room effects. The volume knob on the unit has a long delay, that's the only flaw, but you don't have to use it to adjust the volume. Otherwise, I can highly recommend it. Much better sound quality and performance than the laptop sound card and 5.1 output works, which is why I bought it.