diff --git a/.editorconfig b/.editorconfig
new file mode 100644
index 00000000..1385f5ff
--- /dev/null
+++ b/.editorconfig
@@ -0,0 +1,13 @@
+# editorconfig.org
+root = true
+
+[*]
+indent_style = spaces
+indent_size = 4
+end_of_line = lf
+charset = utf-8
+trim_trailing_whitespace = true
+insert_final_newline = true
+
+[*.md]
+trim_trailing_whitespace = false
diff --git a/.gitignore b/.gitignore
new file mode 100644
index 00000000..3c3629e6
--- /dev/null
+++ b/.gitignore
@@ -0,0 +1 @@
+node_modules
diff --git a/.npmignore b/.npmignore
new file mode 100644
index 00000000..08b25532
--- /dev/null
+++ b/.npmignore
@@ -0,0 +1 @@
+node_modules
diff --git a/LICENSE b/LICENSE
new file mode 100644
index 00000000..121dfa3b
--- /dev/null
+++ b/LICENSE
@@ -0,0 +1,20 @@
+The MIT License
+
+Copyright (C) 2016 Erik Barke.
+
+Permission is hereby granted, free of charge, to any person obtaining a copy of
+this software and associated documentation files (the "Software"), to deal in
+the Software without restriction, including without limitation the rights to
+use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies
+of the Software, and to permit persons to whom the Software is furnished to do
+so, subject to the following conditions:
+
+The above copyright notice and this permission notice shall be included in all
+copies or substantial portions of the Software.
+
+THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS
+FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR
+COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER
+IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN
+CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
diff --git a/README.md b/README.md
new file mode 100644
index 00000000..12e7e512
--- /dev/null
+++ b/README.md
@@ -0,0 +1,127 @@
+# karma-typescript
+This is a preprocessor for transpiling Typescript on the fly for unit testing with Karma.
+
+### Sourcemaps
+Sourcemaps can optionally be created for debugging the original Typescript code, instead of the transpiled code, when running tests in a web browser.
+
+### Project tsconfig.json
+If specified, the preprocessor will load a tsconfig.json file, relative to the directory the test are run from, and merge the compiler options with the preprocessor options.
+
+Note: the preprocessor options will override the tsconfig.json options.
+
+### Npm installation:
+`npm install karma-typescript --save-dev`
+
+### Configuration
+
+The `karmaTypescript` configuration section is optional, if left out the files will be transpiled using the compiler default options.
+
+```javascript
+preprocessors: {
+    '**/*.ts': ['karma-typescript']
+},
+
+karmaTypescript: {
+
+    /*
+    Relative path to a tsconfig.json file, the
+    preprocessor will look for the file starting
+    from the directory where Karma was started.
+    This property is optional.
+    */
+    tsconfigPath: 'tsconfig.json',
+
+    /*
+    A function for custom file path transformation.
+    This property is optional.
+    */
+    transformPath: function(filepath) {
+        return filepath.replace(/\.ts$/, '.js')
+    },
+
+    /*
+    These are options for the Typescript compiler.
+    They will override the options in the tsconfig.json
+    file specified in tsconfigPath above.
+    This property is optional.
+    */
+    options: {
+        sourceMap: true,
+        target: 'es5',
+        module: 'commonjs'
+        // ... More options are available at:
+        // https://www.typescriptlang.org/docs/handbook/compiler-options.html
+    }
+}
+```
+
+### Example project using jasmine and commonjs + sourcemaps:
+
+There is a working example in the folder `example-project`.
+
+In the example, the .ts files are transpiled to `es5` format with sourcemaps, and then run through the karma-commonjs preprocessor for module loading.
+
+To run the example test, issue the following commands:
+
+```
+cd example-project
+npm install
+npm test
+```
+
+This should run the example unit test in Chrome, with sourcemaps available if you press the button `debug` in the browser window.
+
+### Example breakdown
+The unit test showcases module loading by using `import` but is still as simple as it gets; it imports the class to be tested and an interface required by the class. The interface is mocked, the class is instantiated and then the method `sayHello` is tested:
+
+```javascript
+import { IHelloService } from './hello-service.interface';
+import { HelloComponent } from './hello.component';
+
+class MockHelloService implements IHelloService {
+
+    public sayHello(): string {
+        return 'hello world!';
+    }
+}
+
+describe('HelloComponent', () => {
+
+    it('should', () => {
+
+        let mockHelloService = new MockHelloService();
+        let helloComponent = new HelloComponent(mockHelloService);
+
+        expect(helloComponent.sayHello()).toEqual('hello world!');
+    });
+});
+```
+Essential parts of karma.conf.js:
+
+```javascript
+frameworks: ['jasmine', 'commonjs'],
+
+files: [
+    { pattern: 'src/**/*.ts' }
+],
+
+preprocessors: {
+    '**/*.ts': ['karma-typescript', 'commonjs']
+},
+
+karmaTypescript: {
+    tsconfigPath: 'tsconfig.json',
+    options: {
+        sourceMap: true,
+        target: 'es5',
+        module: 'commonjs'
+    }
+}
+```
+If you inspect the tsconfig.json file you will see that the sourceMap option in karma.conf.js overrides the sourceMap option in the tsconfig.json.
+
+### Licensing
+
+This software is licensed with the MIT license.
+
+© 2016 Monounity
diff --git a/example-project/.npmignore b/example-project/.npmignore
new file mode 100644
index 00000000..08b25532
--- /dev/null
+++ b/example-project/.npmignore
@@ -0,0 +1 @@
+node_modules
diff --git a/example-project/README.md b/example-project/README.md
new file mode 100644
index 00000000..c1ca7256
--- /dev/null
+++ b/example-project/README.md
@@ -0,0 +1,7 @@
+# karma-typescript-example-project
+
+## Licensing
+
+This software is licensed with the MIT license.
+
+© 2016 Monounity
diff --git a/example-project/karma.conf.js b/example-project/karma.conf.js
new file mode 100644
index 00000000..41ba4445
--- /dev/null
+++ b/example-project/karma.conf.js
@@ -0,0 +1,25 @@
+module.exports = function(config) {
+  config.set({
+
+    frameworks: ['jasmine', 'commonjs'],
+
+    files: [
+        { pattern: 'src/**/*.ts' }
+    ],
+
+    preprocessors: {
+        '**/*.ts': ['karma-typescript', 'commonjs']
+    },
+
+    karmaTypescript: {
+        tsconfigPath: 'tsconfig.json',
+        options: {
+            sourceMap: true,
+            target: 'es5',
+            module: 'commonjs'
+        }
+    },
+
+    browsers: ['Chrome']
+  })
+}
diff --git a/example-project/package.json b/example-project/package.json
new file mode 100644
index 00000000..6de06ba4
--- /dev/null
+++ b/example-project/package.json
@@ -0,0 +1,27 @@
+{
+  "name": "karma-typescript-example-project",
+  "version": "1.0.0",
+  "description": "",
+  "author": "monounity",
+  "contributors": [
+    {
+      "name": "erikbarke"
+    }
+  ],
+  "private": true,
+  "license": "MIT",
+  "scripts": {
+    "test": "karma start"
+  },
+  "devDependencies": {
+    "@types/jasmine": "^2.2.31",
+    "jasmine-core": "^2.4.1",
+    "karma": "^1.2.0",
+    "karma-chrome-launcher": "^2.0.0",
+    "karma-cli": "^1.0.1",
+    "karma-commonjs": "^1.0.0",
+    "karma-jasmine": "^1.0.2",
+    "karma-typescript": "^1.0.3",
+    "typescript": "^2.0.0"
+  }
+}
diff --git a/example-project/src/hello-component.spec.ts b/example-project/src/hello-component.spec.ts
new file mode 100644
index 00000000..2550fd62
--- /dev/null
+++ b/example-project/src/hello-component.spec.ts
@@ -0,0 +1,20 @@
+import { IHelloService } from './hello-service.interface';
+import { HelloComponent } from './hello.component';
+
+class MockHelloService implements IHelloService {
+
+    public sayHello(): string {
+        return 'hello world!';
+    }
+}
+
+describe('HelloComponent', () => {
+
+    it('should', () => {
+
+        let mockHelloService = new MockHelloService();
+        let helloComponent = new HelloComponent(mockHelloService);
+
+        expect(helloComponent.sayHello()).toEqual('hello world!');
+    });
+});
diff --git a/example-project/src/hello-service.interface.ts b/example-project/src/hello-service.interface.ts
new file mode 100644
index 00000000..332ae06a
--- /dev/null
+++ b/example-project/src/hello-service.interface.ts
@@ -0,0 +1,3 @@
+export interface IHelloService {
+    sayHello(): string;
+}
diff --git a/example-project/src/hello.component.ts b/example-project/src/hello.component.ts
new file mode 100644
index 00000000..8d34c629
--- /dev/null
+++ b/example-project/src/hello.component.ts
@@ -0,0 +1,11 @@
+import { IHelloService } from './hello-service.interface';
+
+export class HelloComponent {
+
+    constructor(private helloService: IHelloService) {}
+
+    public sayHello(): string {
+
+        return this.helloService.sayHello();
+    }
+}
diff --git a/example-project/tsconfig.json b/example-project/tsconfig.json
new file mode 100644
index 00000000..5d11730e
--- /dev/null
+++ b/example-project/tsconfig.json
@@ -0,0 +1,12 @@
+{
+    "compileOnSave": false,
+    "compilerOptions": {
+        "module": "commonjs",
+        "target": "es5",
+        "sourceMap": false,
+        "types":["jasmine"]
+    },
+    "exclude": [
+        "node_modules"
+    ]
+}
diff --git a/index.js b/index.js
new file mode 100644
index 00000000..82db1c5f
--- /dev/null
+++ b/index.js
@@ -0,0 +1,85 @@
+var fs = require('fs');
+var path = require('path');
+
+var createTypescriptPreprocessor = function(args, config, logger, helper) {
+
+    config = config || {};
+
+    var tsconfigPath;
+    var tsconfig;
+    var compilerOptions;
+    var log = logger.create('preprocessor.karma-typescript');
+    var tsc = require('typescript');
+
+    var transformPath = args.transformPath || config.transformPath || function (filepath) {
+        return filepath.replace(/\.ts$/, '.js')
+    }
+
+    log.info('Using Typescript %s', tsc.version);
+    log.debug('Compiler options from karma configuration:\n%s', JSON.stringify(config.options, null, 4));
+
+    if (config.tsconfigPath) {
+
+        try {
+
+            tsconfigPath = process.cwd() + '/' + config.tsconfigPath;
+            tsconfig = JSON.parse(fs.readFileSync(tsconfigPath, 'utf8'));
+
+            log.info('Using tsconfig from %s', tsconfigPath);
+            log.debug('Compiler options from %s:\n%s', tsconfigPath, JSON.stringify(tsconfig.compilerOptions, null, 4));
+        }
+        catch(error) {
+
+            log.warn(error.message);
+        }
+    }
+
+    if (tsconfig) {
+
+        compilerOptions = helper.merge(tsconfig.compilerOptions || {}, config.options || {});
+        log.debug('Compiler options after merge with karma configuration and tsconfig:\n%s', JSON.stringify(compilerOptions, null, 4));
+    }
+
+    return function(content, file, done) {
+
+        var transpileOutput,
+            reportDiagnostics = false,
+            moduleName = path.relative(process.cwd(), file.originalPath),
+            map;
+
+        log.debug('Processing "%s".', file.originalPath);
+
+        try {
+
+            file.path = transformPath(file.originalPath);
+
+            transpileOutput = tsc.transpileModule(content, { compilerOptions: compilerOptions }, reportDiagnostics, moduleName);
+
+            if(transpileOutput.sourceMapText) {
+
+                map = JSON.parse(transpileOutput.sourceMapText);
+                map.sources[0] = path.basename(file.originalPath);
+                map.sourcesContent = [content];
+                map.file = path.basename(file.path);
+                file.sourceMap = map;
+                datauri = 'data:application/json;charset=utf-8;base64,' + new Buffer(JSON.stringify(map)).toString('base64');
+
+                done(null, transpileOutput.outputText + '\n//# sourceMappingURL=' + datauri + '\n')
+            }
+            else {
+                done(null, transpileOutput.outputText);
+            }
+        }
+        catch(e) {
+
+            log.error('%s\n at %s\n%s', e.message, file.originalPath, e.stack);
+            return done(e, null);
+        }
+    };
+};
+
+createTypescriptPreprocessor.$inject = ['args', 'config.karmaTypescript', 'logger', 'helper'];
+
+module.exports = {
+    'preprocessor:karma-typescript': ['factory', createTypescriptPreprocessor]
+};
diff --git a/package.json b/package.json
new file mode 100644
index 00000000..ce7c161f
--- /dev/null
+++ b/package.json
@@ -0,0 +1,24 @@
+{
+  "name": "karma-typescript",
+  "version": "1.0.8",
+  "description": "Preprocessor for transpiling Typescript files on the fly with sourcemaps for debugging.",
+  "main": "index.js",
+  "keywords": [
+    "Jasmine",
+    "CommonJS",
+    "Karma",
+    "Typescript",
+    "Unit test"
+  ],
+  "author": "monounity",
+  "contributors": [
+    {
+      "name": "erikbarke"
+    }
+  ],
+  "repository": {
+    "type": "git",
+    "url": "https://github.com/monounity/karma-typescript.git"
+  },
+  "license": "MIT"
+}