Apple iPhone is capable of playing YouTube videos but does not allow downloading them, there are solutions like free Firefox extension Easy Youtube Video Downloader which allows downloading of Youtube videos on computer in iPhone compatible format which can be transferred to any MP4 compatible devices like Apple iPhone, but wouldn't it be nice to search and download Youtube videos from your iPhone and to do that you need nifty little Youtube downloader for iPhone named MxTube empowering you to stream and download Youtube videos in various qualities right from iPhone.

You need an jailbroken iPhone with Cydia installed to get this working, simply follow the steps next to install MxTube and download Youtube Videos on your iPhone 2G/3G/3GS :

1. Launch Cydia and search for MxTube.

2. Install MxTube.

3. Once installed launch MxTube from springboard, you can now search videos from Youtube.

4. To watch or download a video, simply tap on it and following options will be shown.

5. You will now be prompted to select video quality, higher the quality longer it will take to stream or download.

6. Download will start and progress will be visible under Downloads tab.

7. All completed video download will show up in Videos tab.