diff --git a/lib/marked.js b/lib/marked.js
index d5522afc..2262e293 100644
--- a/lib/marked.js
+++ b/lib/marked.js
@@ -21,7 +21,8 @@ var block = {
   blockquote: /^( *>[^\n]+(\n(?!def)[^\n]+)*\n*)+/,
   list: /^( *)(bull) [\s\S]+?(?:hr|def|\n{2,}(?! )(?!\1bull )\n*|\s*$)/,
   html: /^ *(?:comment|closed|closing) *(?:\n{2,}|\s*$)/,
-  def: /^ *\[([^\]]+)\]: *<?([^\s>]+)>?(?: +["(]([^\n]+)[")])? *(?:\n+|$)/,
+  def: /^ *\[([^^\]]+)\]: *<?([^\s>]+)>?(?: +["(]([^\n]+)[")])? *(?:\n+|$)/,
+  footnote: noop,
   table: noop,
   paragraph: /^((?:[^\n]+\n?(?!hr|heading|lheading|blockquote|tag|def))+)\n*/,
   text: /^[^\n]+/
@@ -86,13 +87,37 @@ block.gfm.paragraph = replace(block.paragraph)
   ();
 
 /**
- * GFM + Tables Block Grammar
+ * Tables Block Grammar
  */
 
-block.tables = merge({}, block.gfm, {
+block.tables = {
   nptable: /^ *(\S.*\|.*)\n *([-:]+ *\|[-| :]*)\n((?:.*\|.*(?:\n|$))*)\n*/,
   table: /^ *\|(.+)\n *\|( *[-:]+[-| :]*)\n((?: *\|.*(?:\n|$))*)\n*/
-});
+};
+
+/**
+ * Footnotes Block Grammar
+ */
+
+block.footnotes = {
+  footnote: /^\[\^([^\]]+)\]: *([^\n]*(?:\n+|$)(?: {1,}[^\n]*(?:\n+|$))*)/
+};
+
+block.footnotes.normal = {
+  footnote: block.footnotes.footnote
+};
+
+block.footnotes.normal.paragraph = replace(block.paragraph)
+  ('))+)', '|' + block.footnotes.footnote.source + '))+)')
+  ();
+
+block.footnotes.gfm = {
+  footnote: block.footnotes.footnote
+};
+
+block.footnotes.gfm.paragraph = replace(block.gfm.paragraph)
+  ('))+)', '|' + block.footnotes.footnote.source + '))+)')
+  ();
 
 /**
  * Block Lexer
@@ -101,15 +126,21 @@ block.tables = merge({}, block.gfm, {
 function Lexer(options) {
   this.tokens = [];
   this.tokens.links = {};
+  this.tokens.footnotes = [];
   this.options = options || marked.defaults;
   this.rules = block.normal;
 
   if (this.options.gfm) {
-    if (this.options.tables) {
-      this.rules = block.tables;
-    } else {
-      this.rules = block.gfm;
+    this.rules = block.gfm;
+    if (this.options.footnotes) {
+      this.rules = merge({}, this.rules, block.footnotes.gfm);
     }
+  } else if (this.options.footnotes) {
+    this.rules = merge({}, this.rules, block.footnotes.normal);
+  }
+
+  if (this.options.tables) {
+    this.rules = merge({}, this.rules, block.tables);
   }
 }
 
@@ -149,6 +180,7 @@ Lexer.prototype.lex = function(src) {
 Lexer.prototype.token = function(src, top, bq) {
   var src = src.replace(/^ +$/gm, '')
     , next
+    , key
     , loose
     , cap
     , bull
@@ -375,6 +407,21 @@ Lexer.prototype.token = function(src, top, bq) {
       continue;
     }
 
+    // footnote
+    if (top && (cap = this.rules.footnote.exec(src))) {
+      src = src.substring(cap[0].length);
+      key = cap[1].toLowerCase();
+      this.tokens.footnotes.push({
+        key: key,
+        text: cap[2]
+      });
+      this.tokens.footnotes['_' + key] = {
+        text: cap[2],
+        count: this.tokens.footnotes.length
+      };
+      continue;
+    }
+
     // table (gfm)
     if (top && (cap = this.rules.table.exec(src))) {
       src = src.substring(cap[0].length);
@@ -450,6 +497,7 @@ var inline = {
   autolink: /^<([^ >]+(@|:\/)[^ >]+)>/,
   url: noop,
   tag: /^<!--[\s\S]*?-->|^<\/?\w+(?:"[^"]*"|'[^']*'|[^'">])*?>/,
+  footnote: noop,
   link: /^!?\[(inside)\]\(href\)/,
   reflink: /^!?\[(inside)\]\s*\[([^\]]*)\]/,
   nolink: /^!?\[((?:\[[^\]]*\]|[^\[\]])*)\]/,
@@ -461,7 +509,7 @@ var inline = {
   text: /^[\s\S]+?(?=[\\<!\[_*`]| {2,}\n|$)/
 };
 
-inline._inside = /(?:\[[^\]]*\]|[^\[\]]|\](?=[^\[]*\]))*/;
+inline._inside = /(?:\[[^^\]]*\]|[^\[\]]|\](?=[^\[]*\]))*/;
 inline._href = /\s*<?([\s\S]*?)>?(?:\s+['"]([\s\S]*?)['"])?\s*/;
 
 inline.link = replace(inline.link)
@@ -483,10 +531,10 @@ inline.normal = merge({}, inline);
  * Pedantic Inline Grammar
  */
 
-inline.pedantic = merge({}, inline.normal, {
+inline.pedantic = {
   strong: /^__(?=\S)([\s\S]*?\S)__(?!_)|^\*\*(?=\S)([\s\S]*?\S)\*\*(?!\*)/,
   em: /^_(?=\S)([\s\S]*?\S)_(?!_)|^\*(?=\S)([\s\S]*?\S)\*(?!\*)/
-});
+};
 
 /**
  * GFM Inline Grammar
@@ -511,13 +559,22 @@ inline.breaks = merge({}, inline.gfm, {
   text: replace(inline.gfm.text)('{2,}', '*')()
 });
 
+/**
+ * Footnote Inline Grammar
+ */
+
+inline.footnote = {
+  footnote: /^ *\[\^([^\]]+)\]/
+};
+
 /**
  * Inline Lexer & Compiler
  */
 
-function InlineLexer(links, options) {
+function InlineLexer(links, footnotes, options) {
   this.options = options || marked.defaults;
   this.links = links;
+  this.footnotes = footnotes || {};
   this.rules = inline.normal;
   this.renderer = this.options.renderer || new Renderer;
   this.renderer.options = this.options;
@@ -533,8 +590,14 @@ function InlineLexer(links, options) {
     } else {
       this.rules = inline.gfm;
     }
-  } else if (this.options.pedantic) {
-    this.rules = inline.pedantic;
+  }
+
+  if (this.options.footnotes) {
+    this.rules = merge({}, this.rules, inline.footnote);
+  }
+
+  if (this.options.pedantic) {
+    this.rules = merge({}, this.rules, inline.pedantic);
   }
 }
 
@@ -548,8 +611,8 @@ InlineLexer.rules = inline;
  * Static Lexing/Compiling Method
  */
 
-InlineLexer.output = function(src, links, options) {
-  var inline = new InlineLexer(links, options);
+InlineLexer.output = function(src, links, footnotes, options) {
+  var inline = new InlineLexer(links, footnotes, options);
   return inline.output(src);
 };
 
@@ -560,6 +623,8 @@ InlineLexer.output = function(src, links, options) {
 InlineLexer.prototype.output = function(src) {
   var out = ''
     , link
+    , key
+    , ret
     , text
     , href
     , cap;
@@ -611,6 +676,16 @@ InlineLexer.prototype.output = function(src) {
       continue;
     }
 
+    // footnote
+    if (cap = this.rules.footnote.exec(src)) {
+      key = cap[1].toLowerCase();
+      if (ret = this.footnotes['_' + key]) {
+        src = src.substring(cap[0].length);
+        out += this.renderer.footnoteref(key, ret.count);
+        continue;
+      }
+    }
+
     // link
     if (cap = this.rules.link.exec(src)) {
       src = src.substring(cap[0].length);
@@ -889,6 +964,24 @@ Renderer.prototype.image = function(href, title, text) {
   return out;
 };
 
+Renderer.prototype.footnoteref = function(key, count) {
+  var out = '<sup class="footnote-ref" id="fnref-' + escape(key) + '">';
+  out += '<a href="#fn-' + escape(key) + '">' + count + '</a></sup>';
+  return out;
+};
+
+Renderer.prototype.footnotes = function(notes) {
+  var out = '<ol class="footnotes">';
+  for (var i = 0; i < notes.length; i++) {
+    out += '<li id="fn-' + escape(notes[i].key) + '">';
+    out += notes[i].text;
+    out += '<a href="#fnref-' + escape(notes[i].key) + '">&#8617;</a>'
+    out += '</li>';
+  }
+  out += '</ol>';
+  return out;
+};
+
 /**
  * Parsing & Compiling
  */
@@ -916,7 +1009,7 @@ Parser.parse = function(src, options, renderer) {
  */
 
 Parser.prototype.parse = function(src) {
-  this.inline = new InlineLexer(src.links, this.options, this.renderer);
+  this.inline = new InlineLexer(src.links, src.footnotes, this.options);
   this.tokens = src.reverse();
 
   var out = '';
@@ -924,6 +1017,10 @@ Parser.prototype.parse = function(src) {
     out += this.tok();
   }
 
+  if (src.footnotes.length) {
+    out += this.renderer.footnotes(src.footnotes);
+  }
+
   return out;
 };
 
@@ -1101,7 +1198,7 @@ function replace(regex, opt) {
   return function self(name, val) {
     if (!name) return new RegExp(regex, opt);
     val = val.source || val;
-    val = val.replace(/(^|[^\[])\^/g, '$1');
+    val = val.replace(/(^|[^\[\\])\^/g, '$1');
     regex = regex.replace(name, val);
     return self;
   };
@@ -1223,6 +1320,7 @@ marked.setOptions = function(opt) {
 marked.defaults = {
   gfm: true,
   tables: true,
+  footnotes: false,
   breaks: false,
   pedantic: false,
   sanitize: false,