No photos possible while filming video. Yes, you can set time-lapse mode with the shutter button in the app. Press and hold the button in photo mode. You can then select time-lapse at various intervals from the selections that appear. If you are wanting a time-lapse of a decent interval, don't set the interval too far apart. If you play back at 24 fps, a 5 sec interval will only give you a few seconds of video on playback with the P3's flight time. Here is a good program to create time-lapse.