diff --git a/ChangeLog b/ChangeLog
index d0656eca6..cc42e2387 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,4 @@
+	* added support for merkle hash tree torrents (.merkle.torrent)
 	* added 'seed mode', which assumes that all files are complete
 	  and checks hashes lazily, as blocks are requested
 	* added new extension for file attributes (executable and hidden)
diff --git a/docs/features.rst b/docs/features.rst
index 589915ebf..ca42ed238 100644
--- a/docs/features.rst
+++ b/docs/features.rst
@@ -46,6 +46,8 @@ extensions
 * super seeding/initial seeding (`BEP 16`_).
 * private torrents (`BEP 27`_).
 * support for IPv6, including `BEP 7`_ and `BEP 24`_.
+* support for merkle hash tree torrents. This makes the size of torrent files
+  scale well with the size of the content.
 
 .. _extensions: manual.html#extensions
 .. _`http seeding`: manual.html#http-seeding
@@ -189,6 +191,38 @@ and hence decreasing the likelihood of slow peers blocking the completion of pie
 The piece picker can also be set to download pieces in sequential order.
 
 
+merkle hash tree torrents
+-------------------------
+
+Merkle hash tree torrents is an extension that lets a torrent file only contain the
+root hash of the hash tree forming the piece hashes. The main benefit of this feature
+is that regardless of how many pieces there is in a torrent, the .torrent file will
+always be the same size. It will only grow with the number of files (since it still
+has to contain the file names).
+
+With regular torrents, clients have to request multiple blocks for pieces, typically
+from different peers, before the data can be verified against the piece hash. The
+larger the pieces are, the longer it will take to download a complete piece and verify
+it. Before the piece is verified, it cannot be shared with the swarm, which means the
+larger piece sizes, the slower turnaround data has when it is downloaded by peers.
+Since on average the data has to sit around, waiting, in client buffers before it has
+been verified and can be uploaded again.
+
+Another problem with large piece sizes is that it is harder for a client to pinpoint
+the malicious or buggy peer when a piece fails, and it will take longer to re-download
+it and take more tries before the piece succeeds the larger the pieces are.
+
+The piece size in regular torrents is a tradeoff between the size of the .torrent file
+itself and the piece size. Often, for files that are 4 GB, the piece size is 2 or 4 MB,
+just to avoid making the .torrent file too big.
+
+Merkle torrents solves these problems by removing the tradeoff between .torrent size and
+piece size. With merkle torrents, the piece size can be the minimum block size (16 kB),
+which lets peers verify every block of data received from peers, immediately. This
+gives a minimum turnaround time and completely removes the problem of identifying malicious
+peers.
+
+
 portability
 ===========
 
diff --git a/docs/make_torrent.rst b/docs/make_torrent.rst
index 63f16b446..f9991f68e 100644
--- a/docs/make_torrent.rst
+++ b/docs/make_torrent.rst
@@ -185,7 +185,8 @@ The ``create_torrent`` class has the following synopsis::
 
 	struct create_torrent
 	{
-		create_torrent(file_storage& fs, int piece_size = 0, int pad_size_limit = -1);
+		enum { optimize = 1, merkle = 2 };
+		create_torrent(file_storage& fs, int piece_size = 0, int pad_size_limit = -1, int flags = optimize);
 		create_torrent(torrent_info const& ti);
 
 		entry generate() const;
@@ -211,7 +212,8 @@ create_torrent()
 
 	::
 
-		create_torrent(file_storage& fs, int piece_size = 0, int pad_size_limit = -1);
+		enum { optimize = 1, merkle = 2 };
+		create_torrent(file_storage& fs, int piece_size = 0, int pad_size_limit = -1, int flags = optimize);
 		create_torrent(torrent_info const& ti);
 
 The ``piece_size`` is the size of each piece in bytes. It must
@@ -220,15 +222,30 @@ piece_size will becalculated such that the torrent file is roughly 40 kB.
 
 If a ``pad_size_limit`` is specified (other than -1), any file larger than
 the specified number of bytes will be preceeded by a pad file to align it
-with the start od a piece.
+with the start od a piece. The pad_file_limit is ignored unless the
+``optimize`` flag is passed.
 
-The overlad that takes a ``torrent_info`` object will make a verbatim
+The overload that takes a ``torrent_info`` object will make a verbatim
 copy of its info dictionary (to preserve the info-hash). The copy of
 the info dictionary will be used by ``generate()``. This means
 that none of the member functions of create_torrent that affects
 the content of the info dictionary (such as ``set_hash()``), will
 have any affect.
 
+The ``flags`` arguments specifies options for the torrent creation. It can
+be any combination of the following flags:
+
+optimize
+	This will insert pad files to align the files to piece boundaries, for
+	optimized disk-I/O.
+
+merkle
+	This will create a merkle hash tree torrent. A merkle torrent cannot
+	be opened in clients that don't specifically support merkle torrents.
+	The benefit is that the resulting torrent file will be much smaller and
+	not grow with more pieces. When this option is specified, it is
+	recommended to have a 16 kiB piece size.
+
 generate()
 ----------
 
diff --git a/examples/make_torrent.cpp b/examples/make_torrent.cpp
index 21133a1fe..de763001f 100644
--- a/examples/make_torrent.cpp
+++ b/examples/make_torrent.cpp
@@ -72,6 +72,8 @@ void print_usage()
 		"Generates a torrent file from the specified file\n"
 		"or directory and writes it to standard out\n\n"
 		"OPTIONS:\n"
+		"-m          generate a merkle hash tree torrent.\n"
+		"            merkle torrents require client support\n"
 		"-w url      adds a web seed to the torrent with\n"
 		"            the specified url\n"
 		"-t url      adds the specified tracker to the\n"
@@ -103,6 +105,7 @@ int main(int argc, char* argv[])
 		std::vector<std::string> trackers;
 		int pad_file_limit = -1;
 		int piece_size = 0;
+		int flags = 0;
 
 		for (int i = 2; i < argc; ++i)
 		{
@@ -125,11 +128,15 @@ int main(int argc, char* argv[])
 				case 'p':
 					++i;
 					pad_file_limit = atoi(argv[i]);
+					flags |= create_torrent::optimize;
 					break;
 				case 's':
 					++i;
 					piece_size = atoi(argv[i]);
 					break;
+				case 'm':
+					flags |= create_torrent::merkle;
+					break;
 				default:
 					print_usage();
 					return 1;
@@ -142,7 +149,7 @@ int main(int argc, char* argv[])
 
 		add_files(fs, full_path, file_filter);
 
-		create_torrent t(fs, piece_size, pad_file_limit);
+		create_torrent t(fs, piece_size, pad_file_limit, flags);
 		for (std::vector<std::string>::iterator i = trackers.begin()
 			, end(trackers.end()); i != end; ++i)
 			t.add_tracker(*i);
diff --git a/include/libtorrent/bt_peer_connection.hpp b/include/libtorrent/bt_peer_connection.hpp
index dbc93fd0c..bddc89ba8 100644
--- a/include/libtorrent/bt_peer_connection.hpp
+++ b/include/libtorrent/bt_peer_connection.hpp
@@ -132,7 +132,7 @@ namespace libtorrent
 			msg_have_none,
 			msg_reject_request,
 			msg_allowed_fast,
-			
+
 			// extension protocol message
 			msg_extended = 20,
 
diff --git a/include/libtorrent/create_torrent.hpp b/include/libtorrent/create_torrent.hpp
index 93ec613d7..ae8a2c1f9 100644
--- a/include/libtorrent/create_torrent.hpp
+++ b/include/libtorrent/create_torrent.hpp
@@ -69,7 +69,7 @@ namespace libtorrent
 
 	struct TORRENT_EXPORT create_torrent
 	{
-		enum { optimize = 1 };
+		enum { optimize = 1, merkle = 2 };
 
 		create_torrent(file_storage& fs, int piece_size = 0
 			, int pad_file_limit = -1, int flags = optimize);
@@ -134,11 +134,14 @@ namespace libtorrent
 		// to know if it should be written as a multifile torrent
 		// or not. e.g. test/test  there's one file and one directory
 		// and they have the same name.
-		bool m_multifile;
+		bool m_multifile:1;
 		
 		// this is true if the torrent is private. i.e., is should not
 		// be announced on the dht
-		bool m_private;
+		bool m_private:1;
+
+		// if set to one, a merkle torrent will be generated
+		bool m_merkle_torrent:1;
 	};
 
 	namespace detail
diff --git a/include/libtorrent/peer_connection.hpp b/include/libtorrent/peer_connection.hpp
index 8b799bd68..1ba5001c1 100644
--- a/include/libtorrent/peer_connection.hpp
+++ b/include/libtorrent/peer_connection.hpp
@@ -538,6 +538,7 @@ namespace libtorrent
 		bool has_disk_receive_buffer() const { return m_disk_recv_buffer; }
 		void cut_receive_buffer(int size, int packet_size);
 		void reset_recv_buffer(int packet_size);
+		void set_soft_packet_size(int size) { m_soft_packet_size = size; }
 
 		void setup_receive();
 
@@ -736,6 +737,12 @@ namespace libtorrent
 		// we're currently receiving
 		int m_packet_size;
 
+		// some messages needs to be read from the socket
+		// buffer in multiple stages. This soft packet
+		// size limits the read size between message handler
+		// dispatch. Ignored when set to 0
+		int m_soft_packet_size;
+
 		// the number of bytes of the bittorrent payload
 		// we've received so far
 		int m_recv_pos;
diff --git a/include/libtorrent/peer_id.hpp b/include/libtorrent/peer_id.hpp
index d737fb4fb..67d07cc7a 100644
--- a/include/libtorrent/peer_id.hpp
+++ b/include/libtorrent/peer_id.hpp
@@ -69,6 +69,11 @@ namespace libtorrent
 			std::memcpy(m_number, &s[0], sl);
 		}
 
+		void assign(char const* str)
+		{
+			std::memcpy(m_number, str, size);
+		}
+
 		void clear()
 		{
 			std::fill(m_number,m_number+number_size,0);
diff --git a/include/libtorrent/torrent.hpp b/include/libtorrent/torrent.hpp
index 7f9575d15..82198087c 100644
--- a/include/libtorrent/torrent.hpp
+++ b/include/libtorrent/torrent.hpp
@@ -692,6 +692,8 @@ namespace libtorrent
 			m_verified.set_bit(piece);
 		}
 
+		bool add_merkle_nodes(std::map<int, sha1_hash> const& n, int piece);
+
 	private:
 
 		void on_files_deleted(int ret, disk_io_job const& j);
diff --git a/include/libtorrent/torrent_info.hpp b/include/libtorrent/torrent_info.hpp
index e9cd41256..4b53c1640 100644
--- a/include/libtorrent/torrent_info.hpp
+++ b/include/libtorrent/torrent_info.hpp
@@ -247,14 +247,27 @@ namespace libtorrent
 		sha1_hash hash_for_piece(int index) const
 		{ return sha1_hash(hash_for_piece_ptr(index)); }
 
+		std::vector<sha1_hash> const& merkle_tree() const { return m_merkle_tree; }
+		void set_merkle_tree(std::vector<sha1_hash>& h)
+		{ TORRENT_ASSERT(h.size() == m_merkle_tree.size() ); m_merkle_tree.swap(h); }
+
 		char const* hash_for_piece_ptr(int index) const
 		{
 			TORRENT_ASSERT(index >= 0);
 			TORRENT_ASSERT(index < m_files.num_pieces());
-			TORRENT_ASSERT(m_piece_hashes);
-			TORRENT_ASSERT(m_piece_hashes >= m_info_section.get());
-			TORRENT_ASSERT(m_piece_hashes < m_info_section.get() + m_info_section_size);
-			return &m_piece_hashes[index*20];
+			if (is_merkle_torrent())
+			{
+				TORRENT_ASSERT(index < m_merkle_tree.size() - m_merkle_first_leaf);
+				return (const char*)&m_merkle_tree[m_merkle_first_leaf + index][0];
+			}
+			else
+			{
+				TORRENT_ASSERT(m_piece_hashes);
+				TORRENT_ASSERT(m_piece_hashes >= m_info_section.get());
+				TORRENT_ASSERT(m_piece_hashes < m_info_section.get() + m_info_section_size);
+				TORRENT_ASSERT(index < m_info_section_size / 20);
+				return &m_piece_hashes[index*20];
+			}
 		}
 
 		boost::optional<pt::ptime> creation_date() const;
@@ -290,6 +303,11 @@ namespace libtorrent
 
 		int metadata_size() const { return m_info_section_size; }
 
+		bool add_merkle_nodes(std::map<int, sha1_hash> const& subtree
+			, int piece);
+		std::map<int, sha1_hash> build_merkle_list(int piece) const;
+		bool is_merkle_torrent() const { return !m_merkle_tree.empty(); }
+
 	private:
 
 		void copy_on_write();
@@ -345,6 +363,14 @@ namespace libtorrent
 		// pointing to the first byte of the first sha-1 hash
 		char const* m_piece_hashes;
 
+		// if this is a merkle torrent, this is the merkle
+		// tree. It has space for merkle_num_nodes(merkle_num_leafs(num_pieces))
+		// hashes
+		std::vector<sha1_hash> m_merkle_tree;
+		// the index to the first leaf. This is where the hash for the
+		// first piece is stored
+		int m_merkle_first_leaf;
+
 		// the info section parsed. points into m_info_section
 		// parsed lazily
 		mutable lazy_entry m_info_dict;
diff --git a/src/bt_peer_connection.cpp b/src/bt_peer_connection.cpp
index 1e7cdc288..6a87b70c9 100644
--- a/src/bt_peer_connection.cpp
+++ b/src/bt_peer_connection.cpp
@@ -788,9 +788,22 @@ namespace libtorrent
 		*(i.begin + 5) |= 0x10;
 #endif
 
+		// we support merkle torrents
+		*(i.begin + 5) |= 0x08;
+
 		// we support FAST extension
 		*(i.begin + 7) |= 0x04;
 
+#ifdef TORRENT_VERBOSE_LOGGING	
+		for (int k = 0; k < 8; ++k)
+		{
+			for (int j = 0; j < 8; ++j)
+			{
+				if (i.begin[k] & (0x80 >> j)) (*m_logger) << "1";
+				else (*m_logger) << "0";
+			}
+		}
+#endif
 		i.begin += 8;
 
 		// info hash
@@ -1060,17 +1073,57 @@ namespace libtorrent
 		buffer::const_interval recv_buffer = receive_buffer();
 		int recv_pos = recv_buffer.end - recv_buffer.begin;
 
-		if (recv_pos == 1)
+		boost::shared_ptr<torrent> t = associated_torrent().lock();
+		TORRENT_ASSERT(t);
+		bool merkle = (unsigned char)recv_buffer.begin[0] == 250;
+		if (merkle)
 		{
-			TORRENT_ASSERT(!has_disk_receive_buffer());
-			if (!allocate_disk_receive_buffer(packet_size() - 9))
+			if (recv_pos == 1)
+			{
+				set_soft_packet_size(13);
+				m_statistics.received_bytes(0, received);
+				return;
+			}
+			if (recv_pos < 13)
 			{
 				m_statistics.received_bytes(0, received);
 				return;
 			}
+			if (recv_pos == 13)
+			{
+				const char* ptr = recv_buffer.begin + 9;
+				int list_size = detail::read_int32(ptr);
+				// now we know how long the bencoded hash list is
+				// and we can allocate the disk buffer and receive
+				// into it
+
+				if (list_size > packet_size() - 13)
+				{
+					disconnect("invalid hash list in hash piece message");
+					return;
+				}
+
+				TORRENT_ASSERT(!has_disk_receive_buffer());
+				if (!allocate_disk_receive_buffer(packet_size() - 13 - list_size))
+				{
+					m_statistics.received_bytes(0, received);
+					return;
+				}
+			}
+		}
+		else
+		{
+			if (recv_pos == 1)
+			{
+				TORRENT_ASSERT(!has_disk_receive_buffer());
+				if (!allocate_disk_receive_buffer(packet_size() - 9))
+				{
+					m_statistics.received_bytes(0, received);
+					return;
+				}
+			}
 		}
 		TORRENT_ASSERT(has_disk_receive_buffer() || packet_size() == 9);
-
 		// classify the received data as protocol chatter
 		// or data payload for the statistics
 		if (recv_pos <= 9)
@@ -1090,15 +1143,86 @@ namespace libtorrent
 				, 9 - (recv_pos - received));
 		}
 
-		incoming_piece_fragment();
-		if (is_disconnecting()) return;
-		if (!packet_finished()) return;
-
 		const char* ptr = recv_buffer.begin + 1;
 		peer_request p;
 		p.piece = detail::read_int32(ptr);
 		p.start = detail::read_int32(ptr);
-		p.length = packet_size() - 9;
+
+		const int header_size = merkle?13:9;
+		int list_size = 0;
+
+		if (merkle)
+		{
+			list_size = detail::read_int32(ptr);
+			p.length = packet_size() - list_size - header_size;
+		}
+		else
+		{
+			p.length = packet_size() - header_size;
+		}
+
+#ifdef TORRENT_VERBOSE_LOGGING
+//			(*m_logger) << time_now_string() << " <== PIECE_FRAGMENT p: " << p.piece
+//				<< " start: " << p.start << " length: " << p.length << "\n";
+#endif
+
+		if (recv_pos - received < header_size && recv_pos >= header_size)
+		{
+// begin_receive_piece(p)
+		}
+
+		TORRENT_ASSERT(has_disk_receive_buffer() || packet_size() == header_size);
+
+		incoming_piece_fragment();
+		if (is_disconnecting()) return;
+		if (!packet_finished()) return;
+
+		if (merkle && list_size > 0)
+		{
+#ifdef TORRENT_VERBOSE_LOGGING
+			(*m_logger) << time_now_string() << " <== HASHPIECE " << p.piece << " list: " << list_size << " ";
+#endif
+			lazy_entry hash_list;
+			if (lazy_bdecode(recv_buffer.begin + 13, recv_buffer.end + 13 + list_size, hash_list) != 0)
+			{
+				disconnect("invalid bencoding in hashpiece message");
+				return;
+			}
+
+			// the list has this format:
+			// [ [node-index, hash], [node-index, hash], ... ]
+			if (hash_list.type() != lazy_entry::list_t)
+			{
+				disconnect("invalid hash-list in hashpiece message");
+				return;
+			}
+
+			std::map<int, sha1_hash> nodes;
+			for (int i = 0; i < hash_list.list_size(); ++i)
+			{
+				lazy_entry const* e = hash_list.list_at(i);
+				if (e->type() != lazy_entry::list_t
+					|| e->list_size() != 2
+					|| e->list_at(0)->type() != lazy_entry::int_t
+					|| e->list_at(1)->type() != lazy_entry::string_t
+					|| e->list_at(1)->string_length() != 20) continue;
+
+#ifdef TORRENT_VERBOSE_LOGGING
+				(*m_logger) << " " << e->list_int_value_at(0) << ": "
+					<< sha1_hash(e->list_at(1)->string_ptr());
+#endif
+				nodes.insert(nodes.begin(), std::make_pair(int(e->list_int_value_at(0))
+					, sha1_hash(e->list_at(1)->string_ptr())));
+			}
+#ifdef TORRENT_VERBOSE_LOGGING
+			(*m_logger) << "\n";
+#endif
+			if (!nodes.empty() && !t->add_merkle_nodes(nodes, p.piece))
+			{
+				disconnect("invalid hashes in hashpiece message");
+				return;
+			}
+		}
 
 		disk_buffer_holder holder(m_ses, release_disk_receive_buffer());
 		incoming_piece(p, holder);
@@ -1404,7 +1528,8 @@ namespace libtorrent
 		buffer::const_interval recv_buffer = receive_buffer();
 
 		TORRENT_ASSERT(recv_buffer.left() >= 1);
-		int packet_type = recv_buffer[0];
+		int packet_type = (unsigned char)recv_buffer[0];
+		if (packet_type == 250) packet_type = msg_piece;
 		if (packet_type < 0
 			|| packet_type >= num_supported_messages
 			|| m_message_handler[packet_type] == 0)
@@ -1780,14 +1905,53 @@ namespace libtorrent
 		boost::shared_ptr<torrent> t = associated_torrent().lock();
 		TORRENT_ASSERT(t);
 
-		char msg[4 + 1 + 4 + 4];
+		bool merkle = t->torrent_file().is_merkle_torrent() && r.start == 0;
+	// the hash piece looks like this:
+	// uint8_t  msg
+	// uint32_t piece index
+	// uint32_t start
+	// uint32_t list len
+	// var      bencoded list
+	// var      piece data
+		char msg[4 + 1 + 4 + 4 + 4];
 		char* ptr = msg;
 		TORRENT_ASSERT(r.length <= 16 * 1024);
 		detail::write_int32(r.length + 1 + 4 + 4, ptr);
-		detail::write_uint8(msg_piece, ptr);
+		if (merkle)
+			detail::write_uint8(250, ptr);
+		else
+			detail::write_uint8(msg_piece, ptr);
 		detail::write_int32(r.piece, ptr);
 		detail::write_int32(r.start, ptr);
-		send_buffer(msg, sizeof(msg));
+
+		// if this is a merkle torrent and the start offset
+		// is 0, we need to include the merkle node hashes
+		if (merkle)
+		{
+			std::vector<char>	piece_list_buf;
+			entry piece_list;
+			entry::list_type& l = piece_list.list();
+			std::map<int, sha1_hash> merkle_node_list = t->torrent_file().build_merkle_list(r.piece);
+			for (std::map<int, sha1_hash>::iterator i = merkle_node_list.begin()
+				, end(merkle_node_list.end()); i != end; ++i)
+			{
+				l.push_back(entry(entry::list_t));
+				l.back().list().push_back(i->first);
+				l.back().list().push_back(i->second.to_string());
+			}
+			bencode(std::back_inserter(piece_list_buf), piece_list);
+			detail::write_int32(piece_list_buf.size(), ptr);
+
+			char* ptr = msg;
+			detail::write_int32(r.length + 1 + 4 + 4 + 4 + piece_list_buf.size(), ptr);
+
+			send_buffer(msg, 17);
+			send_buffer(&piece_list_buf[0], piece_list_buf.size());
+		}
+		else
+		{
+			send_buffer(msg, 13);
+		}
 
 		append_send_buffer(buffer.get(), r.length
 			, boost::bind(&session_impl::free_disk_buffer
diff --git a/src/create_torrent.cpp b/src/create_torrent.cpp
index ce71599b4..e9f037bf3 100644
--- a/src/create_torrent.cpp
+++ b/src/create_torrent.cpp
@@ -90,6 +90,7 @@ namespace libtorrent
 		, m_creation_date(pt::second_clock::universal_time())
 		, m_multifile(fs.num_files() > 1)
 		, m_private(false)
+		, m_merkle_torrent(flags & merkle)
 	{
 		TORRENT_ASSERT(fs.num_files() > 0);
 #if BOOST_VERSION < 103600
@@ -99,7 +100,7 @@ namespace libtorrent
 #endif
 
 		// a piece_size of 0 means automatic
-		if (piece_size == 0)
+		if (piece_size == 0 && !m_merkle_torrent)
 		{
 			const int target_size = 40 * 1024;
 			piece_size = fs.total_size() / (target_size / 20);
@@ -112,6 +113,10 @@ namespace libtorrent
 			}
 			piece_size = i;
 		}
+		else if (piece_size == 0 && m_merkle_torrent)
+		{
+			piece_size = 16*1024;
+		}
 
 		// make sure the size is an even power of 2
 #ifndef NDEBUG
@@ -137,6 +142,7 @@ namespace libtorrent
 		, m_creation_date(pt::second_clock::universal_time())
 		, m_multifile(ti.num_files() > 1)
 		, m_private(ti.priv())
+		, m_merkle_torrent(ti.is_merkle_torrent())
 	{
 		TORRENT_ASSERT(ti.is_valid());
 		if (ti.creation_date()) m_creation_date = *ti.creation_date();
@@ -290,14 +296,57 @@ namespace libtorrent
 		}
 
 		info["piece length"] = m_files.piece_length();
-		entry& pieces = info["pieces"];
-
-		std::string& p = pieces.string();
-
-		for (std::vector<sha1_hash>::const_iterator i = m_piece_hash.begin();
-			i != m_piece_hash.end(); ++i)
+		if (m_merkle_torrent)
 		{
-			p.append((char*)i->begin(), (char*)i->end());
+			std::vector<sha1_hash> merkle_tree;
+			
+			// defined in torrent_info.cpp
+			int merkle_num_leafs(int);
+			int merkle_num_nodes(int);
+			int merkle_get_parent(int);
+			int merkle_get_sibling(int);
+
+			int num_leafs = merkle_num_leafs(m_files.num_pieces());
+			int num_nodes = merkle_num_nodes(num_leafs);
+			int first_leaf = num_nodes - num_leafs;
+			merkle_tree.resize(num_nodes);
+			int num_pieces = m_piece_hash.size();
+			for (int i = 0; i < num_pieces; ++i)
+				merkle_tree[first_leaf + i] = m_piece_hash[i];
+			sha1_hash filler(0);
+			for (int i = num_pieces; i < num_leafs; ++i)
+				merkle_tree[first_leaf + i] = filler;
+
+			// now that we have initialized all leaves, build
+			// each level bottom-up
+			int level_start = first_leaf;
+			int level_size = num_leafs;
+			while (level_start > 0)
+			{
+				int parent = merkle_get_parent(level_start);
+				for (int i = level_start; i < level_start + level_size; i += 2, ++parent)
+				{
+					hasher h;
+					h.update((char const*)&merkle_tree[i][0], 20);
+					h.update((char const*)&merkle_tree[i+1][0], 20);
+					merkle_tree[parent] = h.final();
+				}
+				level_start = merkle_get_parent(level_start);
+				level_size /= 2;
+			}
+			TORRENT_ASSERT(level_size == 1);
+			std::string& p = info["root hash"].string();
+			p.assign((char const*)&merkle_tree[0][0], 20);
+		}
+		else
+		{
+			std::string& p = info["pieces"].string();
+
+			for (std::vector<sha1_hash>::const_iterator i = m_piece_hash.begin();
+				i != m_piece_hash.end(); ++i)
+			{
+				p.append((char*)i->begin(), (char*)i->end());
+			}
 		}
 
 		std::vector<char> buf;
diff --git a/src/peer_connection.cpp b/src/peer_connection.cpp
index c92871d4b..44c8a7e43 100644
--- a/src/peer_connection.cpp
+++ b/src/peer_connection.cpp
@@ -98,6 +98,7 @@ namespace libtorrent
 		, m_num_pieces(0)
 		, m_timeout(m_ses.settings().peer_timeout)
 		, m_packet_size(0)
+		, m_soft_packet_size(0)
 		, m_recv_pos(0)
 		, m_disk_recv_buffer_size(0)
 		, m_reading_bytes(0)
@@ -210,6 +211,7 @@ namespace libtorrent
 		, m_num_pieces(0)
 		, m_timeout(m_ses.settings().peer_timeout)
 		, m_packet_size(0)
+		, m_soft_packet_size(0)
 		, m_recv_pos(0)
 		, m_disk_recv_buffer_size(0)
 		, m_reading_bytes(0)
@@ -3512,6 +3514,9 @@ namespace libtorrent
 
 		TORRENT_ASSERT(m_packet_size > 0);
 		int max_receive = m_packet_size - m_recv_pos;
+		if (m_recv_pos >= m_soft_packet_size) m_soft_packet_size = 0;
+		if (m_soft_packet_size && max_receive > m_soft_packet_size - m_recv_pos)
+			max_receive = m_soft_packet_size - m_recv_pos;
 		int quota_left = m_bandwidth_limit[download_channel].quota_left();
 		if (!m_ignore_bandwidth_limits && max_receive > quota_left)
 			max_receive = quota_left;
@@ -3775,7 +3780,10 @@ namespace libtorrent
 				buffer(m_packet_size).swap(m_recv_buffer);
 			}
 
+			if (m_recv_pos >= m_soft_packet_size) m_soft_packet_size = 0;
 			max_receive = m_packet_size - m_recv_pos;
+			if (m_soft_packet_size && max_receive > m_soft_packet_size - m_recv_pos)
+				max_receive = m_soft_packet_size - m_recv_pos;
 			int quota_left = m_bandwidth_limit[download_channel].quota_left();
 			if (!m_ignore_bandwidth_limits && max_receive > quota_left)
 				max_receive = quota_left;
diff --git a/src/torrent.cpp b/src/torrent.cpp
index 2132ecf43..585c44600 100644
--- a/src/torrent.cpp
+++ b/src/torrent.cpp
@@ -439,6 +439,11 @@ namespace libtorrent
 		}
 	}
 
+	bool torrent::add_merkle_nodes(std::map<int, sha1_hash> const& nodes, int piece)
+	{
+		return m_torrent_file->add_merkle_nodes(nodes, piece);
+	}
+
 	peer_request torrent::to_req(piece_block const& p)
 	{
 		int block_offset = p.block_index * m_block_size;
@@ -3001,6 +3006,29 @@ namespace libtorrent
 				add_web_seed(url, web_seed_entry::http_seed);
 			}
 		}
+
+		if (m_torrent_file->is_merkle_torrent())
+		{
+			lazy_entry const* mt = rd.dict_find_string("merkle tree");
+			if (mt)
+			{
+				std::vector<sha1_hash> tree;
+				tree.resize(m_torrent_file->merkle_tree().size());
+				std::memcpy(&tree[0], mt->string_ptr()
+					, (std::min)(mt->string_length(), int(tree.size()) * 20));
+				if (mt->string_length() < tree.size() * 20)
+					std::memset(&tree[0] + mt->string_length() / 20, 0
+						, tree.size() - mt->string_length() / 20);
+				m_torrent_file->set_merkle_tree(tree);
+			}
+			else
+			{
+				// TODO: if this is a merkle torrent and we can't
+				// restore the tree, we need to wipe all the
+				// bits in the have array
+				TORRENT_ASSERT(false);
+			}
+		}
 	}
 	
 	void torrent::write_resume_data(entry& ret) const
@@ -3034,6 +3062,16 @@ namespace libtorrent
 			static_cast<int>(torrent_file().piece_length()) / block_size();
 		ret["blocks per piece"] = num_blocks_per_piece;
 
+		if (m_torrent_file->is_merkle_torrent())
+		{
+			// we need to save the whole merkle hash tree
+			// in order to resume
+			std::string& tree_str = ret["merkle tree"].string();
+			std::vector<sha1_hash> const& tree = m_torrent_file->merkle_tree();
+			tree_str.resize(tree.size() * 20);
+			std::memcpy(&tree_str[0], &tree[0], tree.size() * 20);
+		}
+
 		// if this torrent is a seed, we won't have a piece picker
 		// and there will be no half-finished pieces.
 		if (!is_seed())
diff --git a/src/torrent_info.cpp b/src/torrent_info.cpp
index 0701821e3..5bc45546a 100644
--- a/src/torrent_info.cpp
+++ b/src/torrent_info.cpp
@@ -61,9 +61,7 @@ POSSIBILITY OF SUCH DAMAGE.
 
 namespace gr = boost::gregorian;
 
-using namespace libtorrent;
-
-namespace
+namespace libtorrent
 {
 	
 	namespace fs = boost::filesystem;
@@ -255,10 +253,36 @@ namespace
 		}
 		return true;
 	}
-}
 
-namespace libtorrent
-{
+	int merkle_get_parent(int tree_node)
+	{
+		// node 0 doesn't have a parent
+		TORRENT_ASSERT(tree_node > 0);
+		return (tree_node - 1) / 2;
+	}
+
+	int merkle_get_sibling(int tree_node)
+	{
+		// node 0 doesn't have a sibling
+		TORRENT_ASSERT(tree_node > 0);
+		// even numbers have their sibling to the left
+		// odd numbers have their sibling to the right
+		return tree_node + (tree_node&1?1:-1);
+	}
+
+	int merkle_num_nodes(int leafs)
+	{
+		TORRENT_ASSERT(leafs > 0);
+		return (leafs << 1) - 1;
+	}
+
+	int merkle_num_leafs(int pieces)
+	{
+		// round up to nearest 2 exponent
+		int i;
+		for (i = 0; pieces > 0; pieces >>= 1, ++i);
+		return 1 << i;
+	}
 
 	int load_file(fs::path const& filename, std::vector<char>& v)
 	{
@@ -285,6 +309,7 @@ namespace libtorrent
 		, m_private(false)
 		, m_info_section_size(0)
 		, m_piece_hashes(0)
+		, m_merkle_first_leaf(0)
 	{
 		std::vector<char> tmp;
 		std::back_insert_iterator<std::vector<char> > out(tmp);
@@ -316,6 +341,7 @@ namespace libtorrent
 		, m_private(false)
 		, m_info_section_size(0)
 		, m_piece_hashes(0)
+		, m_merkle_first_leaf(0)
 	{
 		error_code ec;
 		if (!parse_torrent_file(torrent_file, ec))
@@ -328,6 +354,7 @@ namespace libtorrent
 		, m_private(false)
 		, m_info_section_size(0)
 		, m_piece_hashes(0)
+		, m_merkle_first_leaf(0)
 	{
 		error_code ec;
 		lazy_entry e;
@@ -365,6 +392,7 @@ namespace libtorrent
 		, m_private(false)
 		, m_info_section_size(0)
 		, m_piece_hashes(0)
+		, m_merkle_first_leaf(0)
 	{
 		std::vector<char> buf;
 		std::string utf8;
@@ -399,6 +427,7 @@ namespace libtorrent
 		, m_private(false)
 		, m_info_section_size(0)
 		, m_piece_hashes(0)
+		, m_merkle_first_leaf(0)
 	{
 		lazy_entry e;
 		if (lazy_bdecode(buffer, buffer + size, e) != 0)
@@ -608,26 +637,116 @@ namespace libtorrent
 			/ m_files.piece_length()));
 
 		lazy_entry const* pieces = info.dict_find("pieces");
-		if (pieces == 0 || pieces->type() != lazy_entry::string_t)
+		lazy_entry const* root_hash = info.dict_find("root hash");
+		if ((pieces == 0 || pieces->type() != lazy_entry::string_t)
+			&& (root_hash == 0 || root_hash->type() != lazy_entry::string_t))
 		{
 			ec = error_code(errors::torrent_missing_pieces, libtorrent_category);
 			return false;
 		}
 		
-		if (pieces->string_length() != m_files.num_pieces() * 20)
+		if (pieces)
 		{
-			ec = error_code(errors::torrent_invalid_hashes, libtorrent_category);
-			return false;
-		}
+			if (pieces->string_length() != m_files.num_pieces() * 20)
+			{
+				ec = error_code(errors::torrent_invalid_hashes, libtorrent_category);
+				return false;
+			}
 
-		m_piece_hashes = m_info_section.get() + (pieces->string_ptr() - section.first);
-		TORRENT_ASSERT(m_piece_hashes >= m_info_section.get());
-		TORRENT_ASSERT(m_piece_hashes < m_info_section.get() + m_info_section_size);
+			m_piece_hashes = m_info_section.get() + (pieces->string_ptr() - section.first);
+			TORRENT_ASSERT(m_piece_hashes >= m_info_section.get());
+			TORRENT_ASSERT(m_piece_hashes < m_info_section.get() + m_info_section_size);
+		}
+		else
+		{
+			TORRENT_ASSERT(root_hash);
+			if (root_hash->string_length() != 20)
+			{
+				ec = error_code(errors::torrent_invalid_hashes, libtorrent_category);
+				return false;
+			}
+			int num_leafs = merkle_num_leafs(m_files.num_pieces());
+			int num_nodes = merkle_num_nodes(num_leafs);
+			m_merkle_first_leaf = num_nodes - num_leafs;
+			m_merkle_tree.resize(num_nodes);
+			std::memset(&m_merkle_tree[0], 0, num_nodes * 20);
+			m_merkle_tree[0].assign(root_hash->string_ptr());
+		}
 
 		m_private = info.dict_find_int_value("private", 0);
 		return true;
 	}
 
+	bool torrent_info::add_merkle_nodes(std::map<int, sha1_hash> const& subtree
+		, int piece)
+	{
+		int n = m_merkle_first_leaf + piece;
+		typedef std::map<int, sha1_hash>::const_iterator iter;
+		iter i = subtree.find(n);
+		if (i == subtree.end()) return false;
+		sha1_hash h = i->second;
+
+		// if the verification passes, these are the
+		// nodes to add to our tree
+		std::map<int, sha1_hash> to_add;
+
+		while (n > 0)
+		{
+			int sibling = merkle_get_sibling(n);
+			int parent = merkle_get_parent(n);
+			iter sibling_hash = subtree.find(sibling);
+			if (sibling_hash == subtree.end())
+				return false;
+			to_add[n] = h;
+			to_add[sibling] = sibling_hash->second;
+			hasher hs;
+			if (sibling < n)
+			{
+				hs.update((char const*)&sibling_hash->second[0], 20);
+				hs.update((char const*)&h[0], 20);
+			}
+			else
+			{
+				hs.update((char const*)&h[0], 20);
+				hs.update((char const*)&sibling_hash->second[0], 20);
+			}
+			h = hs.final();
+			n = parent;
+		}
+		if (h != m_merkle_tree[0]) return false;
+
+		// the nodes and piece hash matched the root-hash
+		// insert them into our tree
+
+		for (std::map<int, sha1_hash>::iterator i = to_add.begin()
+			, end(to_add.end()); i != end; ++i)
+		{
+			m_merkle_tree[i->first] = i->second;
+		}
+		return true;
+	}
+
+	// builds a list of nodes that are required to verify
+	// the given piece
+	std::map<int, sha1_hash> torrent_info::build_merkle_list(int piece) const
+	{
+		std::map<int, sha1_hash> ret;
+		int n = m_merkle_first_leaf + piece;
+		ret[n] = m_merkle_tree[n];
+		ret[0] = m_merkle_tree[0];
+		while (n > 0)
+		{
+			int sibling = merkle_get_sibling(n);
+			int parent = merkle_get_parent(n);
+			ret[sibling] = m_merkle_tree[sibling];
+			// we cannot build the tree path if one
+			// of the nodes in the tree is missing
+			TORRENT_ASSERT(m_merkle_tree[sibling] != sha1_hash(0));
+			n = parent;
+		}
+		return ret;
+	}
+
 	bool torrent_info::parse_torrent_file(lazy_entry const& torrent_file, error_code& ec)
 	{
 		if (torrent_file.type() != lazy_entry::dict_t)