diff --git a/demo/demo.js b/demo/demo.js
index 9811e9c6..cf5c9420 100644
--- a/demo/demo.js
+++ b/demo/demo.js
@@ -73,6 +73,7 @@ var TextMode = require("ace/mode/text").Mode;
 var GroovyMode = require("ace/mode/groovy").Mode;
 var ScalaMode = require("ace/mode/scala").Mode;
 var LatexMode = require("ace/mode/latex").Mode;
+var PowershellMode = require("ace/mode/powershell").Mode;
 var UndoManager = require("ace/undomanager").UndoManager;
 
 var vim = require("ace/keyboard/keybinding/vim").Vim;
@@ -201,6 +202,10 @@ exports.launch = function(env) {
     docs.latex.setMode(new LatexMode());
     docs.latex.setUndoManager(new UndoManager());
 
+    docs.powershell = new EditSession(require("ace/requirejs/text!demo/docs/powershell.ps1"));
+    docs.powershell.setMode(new PowershellMode());
+    docs.powershell.setUndoManager(new UndoManager());
+
     // Add a "name" property to all docs
     for (var doc in docs) {
         docs[doc].name = doc;
@@ -245,7 +250,8 @@ exports.launch = function(env) {
         csharp: new CSharpMode(),
         groovy: new GroovyMode(),
         scala: new ScalaMode(),
-        latex: new LatexMode()
+        latex: new LatexMode(),
+        powershell: new PowershellMode()
     };
 
     function getMode() {
@@ -352,6 +358,9 @@ exports.launch = function(env) {
         else if (mode instanceof LatexMode) {
             modeEl.value = "latex";
         }
+        else if (mode instanceof PowershellMode) {
+            modeEl.value = "powershell";
+        }
         else {
             modeEl.value = "text";
         }
diff --git a/demo/docs/powershell.ps1 b/demo/docs/powershell.ps1
new file mode 100644
index 00000000..09bc59ab
--- /dev/null
+++ b/demo/docs/powershell.ps1
@@ -0,0 +1,5 @@
+
+# This is a simple comment
+function Hello($name) {
+  Write-host "Hellot $name"
+}
diff --git a/kitchen-sink.html b/kitchen-sink.html
index 60c5433e..c8d80110 100644
--- a/kitchen-sink.html
+++ b/kitchen-sink.html
@@ -46,6 +46,7 @@
           <option value="groovy">Groovy</option>
           <option value="scala">Scala</option>
           <option value="latex">LaTeX</option>
+          <option value="powershell">Powershell</option>
         </select>
       </td>
     </tr>
@@ -78,6 +79,7 @@
           <option value="groovy">Groovy</option>
           <option value="scala">Scala</option>
           <option value="latex">LaTeX</option>
+          <option value="powershell">Powershell</option>
         </select>
       </td>
     </tr>
diff --git a/lib/ace/mode/powershell.js b/lib/ace/mode/powershell.js
new file mode 100644
index 00000000..ec2b6463
--- /dev/null
+++ b/lib/ace/mode/powershell.js
@@ -0,0 +1,56 @@
+define(function(require, exports, module) {
+
+var oop = require("pilot/oop");
+var TextMode = require("ace/mode/text").Mode;
+var Tokenizer = require("ace/tokenizer").Tokenizer;
+var PowershellHighlightRules = require("ace/mode/powershell_highlight_rules").PowershellHighlightRules;
+var MatchingBraceOutdent = require("ace/mode/matching_brace_outdent").MatchingBraceOutdent;
+var CstyleBehaviour = require("ace/mode/behaviour/cstyle").CstyleBehaviour;
+
+var Mode = function() {
+    this.$tokenizer = new Tokenizer(new PowershellHighlightRules().getRules());
+    this.$outdent = new MatchingBraceOutdent();
+    this.$behaviour = new CstyleBehaviour();
+};
+oop.inherits(Mode, TextMode);
+
+(function() {
+    
+	  this.getNextLineIndent = function(state, line, tab) {
+	      var indent = this.$getIndent(line);
+
+	      var tokenizedLine = this.$tokenizer.getLineTokens(line, state);
+	      var tokens = tokenizedLine.tokens;
+	      var endState = tokenizedLine.state;
+
+	      if (tokens.length && tokens[tokens.length-1].type == "comment") {
+	          return indent;
+	      }
+      
+	      if (state == "start") {
+	          var match = line.match(/^.*[\{\(\[]\s*$/);
+	          if (match) {
+	              indent += tab;
+	          }
+	      }
+
+	      return indent;
+	  };
+
+	  this.checkOutdent = function(state, line, input) {
+	      return this.$outdent.checkOutdent(line, input);
+	  };
+
+	  this.autoOutdent = function(state, doc, row) {
+	      this.$outdent.autoOutdent(doc, row);
+	  };
+
+
+    this.createWorker = function(session) {
+        return null;
+    };
+
+}).call(Mode.prototype);
+
+exports.Mode = Mode;
+});
diff --git a/lib/ace/mode/powershell_highlight_rules.js b/lib/ace/mode/powershell_highlight_rules.js
new file mode 100644
index 00000000..2703d8b7
--- /dev/null
+++ b/lib/ace/mode/powershell_highlight_rules.js
@@ -0,0 +1,93 @@
+define(function(require, exports, module) {
+
+var oop = require("pilot/oop");
+var lang = require("pilot/lang");
+var DocCommentHighlightRules = require("ace/mode/doc_comment_highlight_rules").DocCommentHighlightRules;
+var TextHighlightRules = require("ace/mode/text_highlight_rules").TextHighlightRules;
+
+var PowershellHighlightRules = function() {
+    
+    var keywords = lang.arrayToMap(
+      ("function|if|else|elseif|switch|while|default|for|do|until|break|continue|foreach|return|filter|in|trap|throw|param|begin|process|end").split("|")
+    );
+
+    var buildinConstants = lang.arrayToMap(
+        ("$Null|$True|$False").split("|")
+    );
+
+
+    // regexp must not have capturing parentheses. Use (?:) instead.
+    // regexps are ordered -> the first match is used
+
+    this.$rules = {
+        "start" : [
+            {
+                token : "comment",
+                regex : "#.*$"
+            }, {
+                token : "string.regexp",
+                regex : "[/](?:(?:\\[(?:\\\\]|[^\\]])+\\])|(?:\\\\/|[^\\]/]))*[/]\\w*\\s*(?=[).,;]|$)"
+            }, {
+                token : "string", // single line
+                regex : '["](?:(?:\\\\.)|(?:[^"\\\\]))*?["]'
+            }, {
+                token : "string", // single line
+                regex : "['](?:(?:\\\\.)|(?:[^'\\\\]))*?[']"
+            }, {
+                token : "constant.numeric", // hex
+                regex : "0[xX][0-9a-fA-F]+\\b"
+            }, {
+                token : "constant.numeric", // float
+                regex : "[+-]?\\d+(?:(?:\\.\\d*)?(?:[eE][+-]?\\d+)?)?\\b"
+            }, {
+                token : "constant.language.boolean",
+                regex : "(?:true|false)\\b"
+            }, {
+                token : function(value) {
+                    if (value == "this")
+                        return "variable.language";
+                    else if (keywords.hasOwnProperty(value))
+                        return "keyword";
+                    else if (buildinConstants.hasOwnProperty(value))
+                        return "constant.language";
+                    else
+                        return "identifier";
+                },
+                // TODO: Unicode escape sequences
+                // TODO: Unicode identifiers
+                regex : "[a-zA-Z_$][a-zA-Z0-9_$]*\\b"
+            }, {
+                token : "keyword.operator",
+                regex : "eq|ne|ge|gt|lt|le|like|notlike|match|notmatch|replace"
+            }, {
+                token : "lparen",
+                regex : "[[({]"
+            }, {
+                token : "rparen",
+                regex : "[\\])}]"
+            }, {
+                token : "text",
+                regex : "\\s+"
+            }
+        ],
+        "comment" : [
+            {
+                token : "comment", // closing comment
+                regex : ".*?\\*\\/",
+                next : "start"
+            }, {
+                token : "comment", // comment spanning whole line
+                merge : true,
+                regex : ".+"
+            }
+        ]
+    };
+    
+    this.embedRules(DocCommentHighlightRules, "doc-",
+        [ new DocCommentHighlightRules().getEndRule("start") ]);
+};
+
+oop.inherits(PowershellHighlightRules, TextHighlightRules);
+
+exports.PowershellHighlightRules = PowershellHighlightRules;
+});