diff --git a/lib/api.rb b/lib/api.rb
index e24e0a78..6a8a3d65 100644
--- a/lib/api.rb
+++ b/lib/api.rb
@@ -15,5 +15,6 @@ module Gitlab
 
     mount Users
     mount Projects
+    mount Issues
   end
 end
diff --git a/lib/api/entities.rb b/lib/api/entities.rb
index f57545ff..e5095f71 100644
--- a/lib/api/entities.rb
+++ b/lib/api/entities.rb
@@ -25,5 +25,17 @@ module Gitlab
       expose :author, :using => Entities::UserBasic
       expose :expires_at, :updated_at, :created_at
     end
+
+    class Milestone < Grape::Entity
+      expose :id, :title, :description, :due_date, :closed, :updated_at, :created_at
+    end
+
+    class Issue < Grape::Entity
+      expose :id, :title, :description
+      expose :label_list, :as => :labels
+      expose :milestone, :using => Entities::Milestone
+      expose :assignee, :author, :using => Entities::UserBasic
+      expose :closed, :updated_at, :created_at
+    end
   end
 end
diff --git a/lib/api/issues.rb b/lib/api/issues.rb
new file mode 100644
index 00000000..2b6a1ac2
--- /dev/null
+++ b/lib/api/issues.rb
@@ -0,0 +1,111 @@
+module Gitlab
+  # Issues API
+  class Issues < Grape::API
+    before { authenticate! }
+
+    resource :issues do
+      # Get currently authenticated user's issues
+      #
+      # Example Request:
+      #   GET /issues
+      get do
+        present current_user.issues, :with => Entities::Issue
+      end
+    end
+
+    resource :projects do
+      # Get a list of project issues
+      #
+      # Parameters:
+      #   id (required) - The code name of a project
+      # Example Request:
+      #   GET /projects/:id/issues
+      get ":id/issues" do
+        present user_project.issues, :with => Entities::Issue
+      end
+
+      # Get a single project issue
+      #
+      # Parameters:
+      #   id (required) - The code name of a project
+      #   issue_id (required) - The ID of a project issue
+      # Example Request:
+      #   GET /projects/:id/issues/:issue_id
+      get ":id/issues/:issue_id" do
+        @issue = user_project.issues.find(params[:issue_id])
+        present @issue, :with => Entities::Issue
+      end
+
+      # Create a new project issue
+      #
+      # Parameters:
+      #   id (required) - The code name of a project
+      #   title (required) - The title of an issue
+      #   description (optional) - The description of an issue
+      #   assignee_id (optional) - The ID of a user to assign issue
+      #   milestone_id (optional) - The ID of a milestone to assign issue
+      #   labels (optional) - The labels of an issue
+      # Example Request:
+      #   POST /projects/:id/issues
+      post ":id/issues" do
+        @issue = user_project.issues.new(
+          :title        => params[:title],
+          :description  => params[:description],
+          :assignee_id  => params[:assignee_id],
+          :milestone_id => params[:milestone_id],
+          :label_list   => params[:labels]
+        )
+        @issue.author = current_user
+
+        if @issue.save
+          present @issue, :with => Entities::Issue
+        else
+          error!({'message' => '404 Not found'}, 404)
+        end
+      end
+
+      # Update an existing issue
+      #
+      # Parameters:
+      #   id (required) - The code name of a project
+      #   issue_id (required) - The ID of a project issue
+      #   title (optional) - The title of an issue
+      #   description (optional) - The description of an issue
+      #   assignee_id (optional) - The ID of a user to assign issue
+      #   milestone_id (optional) - The ID of a milestone to assign issue
+      #   labels (optional) - The labels of an issue
+      #   closed (optional) - The state of an issue (0 = false, 1 = true)
+      # Example Request:
+      #   PUT /projects/:id/issues/:issue_id
+      put ":id/issues/:issue_id" do
+        @issue = user_project.issues.find(params[:issue_id])
+        parameters = {
+          :title        => (params[:title] || @issue.title),
+          :description  => (params[:description] || @issue.description),
+          :assignee_id  => (params[:assignee_id] || @issue.assignee_id),
+          :milestone_id => (params[:milestone_id] || @issue.milestone_id),
+          :label_list   => (params[:labels] || @issue.label_list),
+          :closed       => (params[:closed] || @issue.closed)
+        }
+
+        if @issue.update_attributes(parameters)
+          present @issue, :with => Entities::Issue
+        else
+          error!({'message' => '404 Not found'}, 404)
+        end
+      end
+
+      # Delete a project issue
+      #
+      # Parameters:
+      #   id (required) - The code name of a project
+      #   issue_id (required) - The ID of a project issue
+      # Example Request:
+      #   DELETE /projects/:id/issues/:issue_id
+      delete ":id/issues/:issue_id" do
+        @issue = user_project.issues.find(params[:issue_id])
+        @issue.destroy
+      end
+    end
+  end
+end
diff --git a/spec/api/issues_spec.rb b/spec/api/issues_spec.rb
new file mode 100644
index 00000000..d81a07e2
--- /dev/null
+++ b/spec/api/issues_spec.rb
@@ -0,0 +1,71 @@
+require 'spec_helper'
+
+describe Gitlab::API do
+  let(:user) { Factory :user }
+  let!(:project) { Factory :project, :owner => user }
+  let!(:issue) { Factory :issue, :author => user, :assignee => user, :project => project }
+  before { project.add_access(user, :read) }
+
+  describe "GET /issues" do
+    it "should return authentication error" do
+      get "#{api_prefix}/issues"
+      response.status.should == 401
+    end
+
+    describe "authenticated GET /issues" do
+      it "should return an array of issues" do
+        get "#{api_prefix}/issues?private_token=#{user.private_token}"
+        response.status.should == 200
+        json_response.should be_an Array
+        json_response.first['title'].should == issue.title
+      end
+    end
+  end
+
+  describe "GET /projects/:id/issues" do
+    it "should return project issues" do
+      get "#{api_prefix}/projects/#{project.code}/issues?private_token=#{user.private_token}"
+      response.status.should == 200
+      json_response.should be_an Array
+      json_response.first['title'].should == issue.title
+    end
+  end
+
+  describe "GET /projects/:id/issues/:issue_id" do
+    it "should return a project issue by id" do
+      get "#{api_prefix}/projects/#{project.code}/issues/#{issue.id}?private_token=#{user.private_token}"
+      response.status.should == 200
+      json_response['title'].should == issue.title
+    end
+  end
+
+  describe "POST /projects/:id/issues" do
+    it "should create a new project issue" do
+      post "#{api_prefix}/projects/#{project.code}/issues?private_token=#{user.private_token}",
+        :title => 'new issue', :labels => 'label, label2'
+      response.status.should == 201
+      json_response['title'].should == 'new issue'
+      json_response['description'].should be_nil
+      json_response['labels'].should == ['label', 'label2']
+    end
+  end
+
+  describe "PUT /projects/:id/issues/:issue_id" do
+    it "should update a project issue" do
+      put "#{api_prefix}/projects/#{project.code}/issues/#{issue.id}?private_token=#{user.private_token}",
+        :title => 'updated title', :labels => 'label2', :closed => 1
+      response.status.should == 200
+      json_response['title'].should == 'updated title'
+      json_response['labels'].should == ['label2']
+      json_response['closed'].should be_true
+    end
+  end
+
+  describe "DELETE /projects/:id/issues/:issue_id" do
+    it "should delete a project issue" do
+      expect {
+        delete "#{api_prefix}/projects/#{project.code}/issues/#{issue.id}?private_token=#{user.private_token}"
+      }.to change { Issue.count }.by(-1)
+    end
+  end
+end