diff --git a/Makefile.am b/Makefile.am
index cc15338b7e..3ef756c2dd 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -38,6 +38,8 @@ noinst_HEADERS += src/hash_impl.h
 noinst_HEADERS += src/field.h
 noinst_HEADERS += src/field_impl.h
 noinst_HEADERS += src/bench.h
+noinst_HEADERS += src/schnorr.h
+noinst_HEADERS += src/schnorr_impl.h
 
 pkgconfigdir = $(libdir)/pkgconfig
 pkgconfig_DATA = libsecp256k1.pc
@@ -49,10 +51,13 @@ libsecp256k1_la_LIBADD = $(SECP_LIBS)
 
 noinst_PROGRAMS =
 if USE_BENCHMARK
-noinst_PROGRAMS += bench_verify bench_recover bench_sign bench_internal
+noinst_PROGRAMS += bench_verify bench_recover bench_sign bench_internal bench_schnorr_verify
 bench_verify_SOURCES = src/bench_verify.c
 bench_verify_LDADD = libsecp256k1.la $(SECP_LIBS)
 bench_verify_LDFLAGS = -static
+bench_schnorr_verify_SOURCES = src/bench_schnorr_verify.c
+bench_schnorr_verify_LDADD = libsecp256k1.la $(SECP_LIBS)
+bench_schnorr_verify_LDFLAGS = -static
 bench_recover_SOURCES = src/bench_recover.c
 bench_recover_LDADD = libsecp256k1.la $(SECP_LIBS)
 bench_recover_LDFLAGS = -static
diff --git a/include/secp256k1.h b/include/secp256k1.h
index beda1e7b5d..a99ad2b659 100644
--- a/include/secp256k1.h
+++ b/include/secp256k1.h
@@ -341,6 +341,42 @@ SECP256K1_WARN_UNUSED_RESULT int secp256k1_context_randomize(
   const unsigned char *seed32
 ) SECP256K1_ARG_NONNULL(1);
 
+/** Create a signature using an experimental custom EC-Schnorr-SHA256 construction. It produces non-malleable 64-byte signatures which are recoverable and batch-validatable.
+ *  Returns: 1: signature created
+ *           0: the nonce generation function failed, or the private key was invalid.
+ *  In:      ctx:    pointer to a context object, initialized for signing (cannot be NULL)
+ *           msg32:  the 32-byte message hash being signed (cannot be NULL)
+ *           seckey: pointer to a 32-byte secret key (cannot be NULL)
+ *           noncefp:pointer to a nonce generation function. If NULL, secp256k1_nonce_function_default is used
+ *           ndata:  pointer to arbitrary data used by the nonce generation function (can be NULL)
+ *  Out:     sig64:  pointer to a 64-byte array where the signature will be placed (cannot be NULL)
+ */
+int secp256k1_schnorr_sign(
+  const secp256k1_context_t* ctx,
+  const unsigned char *msg32,
+  unsigned char *sig64,
+  const unsigned char *seckey,
+  secp256k1_nonce_function_t noncefp,
+  const void *ndata
+) SECP256K1_ARG_NONNULL(1) SECP256K1_ARG_NONNULL(2) SECP256K1_ARG_NONNULL(3) SECP256K1_ARG_NONNULL(4);
+
+/** Verify a signature created by secp256k1_schnorr_sign.
+ *  Returns: 1: public key and signature correct
+ *           0: incorrect signature
+ *           -1: invalid public key
+ * In:       ctx:       a secp256k1 context object, initialized for verification.
+ *           msg32:     the 32-byte message hash being verified (cannot be NULL)
+ *           sig64:     the 64-byte signature being verified (cannot be NULL)
+ *           pubkey:    the public key to verify with (cannot be NULL)
+ *           pubkeylen: the length of pubkey
+ */
+SECP256K1_WARN_UNUSED_RESULT int secp256k1_schnorr_verify(
+  const secp256k1_context_t* ctx,
+  const unsigned char *msg32,
+  const unsigned char *sig64,
+  const unsigned char *pubkey,
+  int pubkeylen
+) SECP256K1_ARG_NONNULL(1) SECP256K1_ARG_NONNULL(2) SECP256K1_ARG_NONNULL(3) SECP256K1_ARG_NONNULL(4);
 
 # ifdef __cplusplus
 }
diff --git a/src/bench_schnorr_verify.c b/src/bench_schnorr_verify.c
new file mode 100644
index 0000000000..a3b85067a5
--- /dev/null
+++ b/src/bench_schnorr_verify.c
@@ -0,0 +1,64 @@
+/**********************************************************************
+ * Copyright (c) 2014 Pieter Wuille                                   *
+ * Distributed under the MIT software license, see the accompanying   *
+ * file COPYING or http://www.opensource.org/licenses/mit-license.php.*
+ **********************************************************************/
+
+#include <stdio.h>
+#include <string.h>
+
+#include "include/secp256k1.h"
+#include "util.h"
+#include "bench.h"
+
+typedef struct {
+    unsigned char key[32];
+    unsigned char sig[64];
+    unsigned char pubkey[33];
+    int pubkeylen;
+} benchmark_schnorr_sig_t;
+
+typedef struct {
+    secp256k1_context_t *ctx;
+    unsigned char msg[32];
+    benchmark_schnorr_sig_t sigs[64];
+    int numsigs;
+} benchmark_schnorr_verify_t;
+
+static void benchmark_schnorr_init(void* arg) {
+    int i, k;
+    benchmark_schnorr_verify_t* data = (benchmark_schnorr_verify_t*)arg;
+
+    for (i = 0; i < 32; i++) data->msg[i] = 1 + i;
+    for (k = 0; k < data->numsigs; k++) {
+        for (i = 0; i < 32; i++) data->sigs[k].key[i] = 33 + i + k;
+        secp256k1_schnorr_sign(data->ctx, data->msg, data->sigs[k].sig, data->sigs[k].key, NULL, NULL);
+        data->sigs[k].pubkeylen = 33;
+        CHECK(secp256k1_ec_pubkey_create(data->ctx, data->sigs[k].pubkey, &data->sigs[k].pubkeylen, data->sigs[k].key, 1));
+    }
+}
+
+static void benchmark_schnorr_verify(void* arg) {
+    int i;
+    benchmark_schnorr_verify_t* data = (benchmark_schnorr_verify_t*)arg;
+
+    for (i = 0; i < 20000 / data->numsigs; i++) {
+        data->sigs[0].sig[(i >> 8) % 64] ^= (i & 0xFF);
+        CHECK(secp256k1_schnorr_verify(data->ctx, data->msg, data->sigs[0].sig, data->sigs[0].pubkey, data->sigs[0].pubkeylen) == ((i & 0xFF) == 0));
+        data->sigs[0].sig[(i >> 8) % 64] ^= (i & 0xFF);
+    }
+}
+
+
+
+int main(void) {
+    benchmark_schnorr_verify_t data;
+
+    data.ctx = secp256k1_context_create(SECP256K1_CONTEXT_SIGN | SECP256K1_CONTEXT_VERIFY);
+
+    data.numsigs = 1;
+    run_benchmark("schnorr_verify", benchmark_schnorr_verify, benchmark_schnorr_init, NULL, &data, 10, 20000);
+
+    secp256k1_context_destroy(data.ctx);
+    return 0;
+}
diff --git a/src/schnorr.h b/src/schnorr.h
new file mode 100644
index 0000000000..7b7ef9e7c2
--- /dev/null
+++ b/src/schnorr.h
@@ -0,0 +1,18 @@
+/***********************************************************************
+ * Copyright (c) 2015 Pieter Wuille                                    *
+ * Distributed under the MIT software license, see the accompanying    *
+ * file COPYING or http://www.opensource.org/licenses/mit-license.php. *
+ ***********************************************************************/
+
+#ifndef _SECP256K1_SCHNORR_
+#define _SECP256K1_SCHNORR_
+
+#include "scalar.h"
+#include "group.h"
+
+typedef void (*secp256k1_schnorr_msghash_t)(unsigned char *h32, const unsigned char *r32, const unsigned char *msg32);
+
+static int secp256k1_schnorr_sig_sign(const secp256k1_ecmult_gen_context_t* ctx, unsigned char *sig64, const secp256k1_scalar_t *key, secp256k1_scalar_t *nonce, secp256k1_schnorr_msghash_t hash, const unsigned char *msg32);
+static int secp256k1_schnorr_sig_verify(const secp256k1_ecmult_context_t* ctx, const unsigned char *sig64, const secp256k1_ge_t *pubkey, secp256k1_schnorr_msghash_t hash, const unsigned char *msg32);
+
+#endif
diff --git a/src/schnorr_impl.h b/src/schnorr_impl.h
new file mode 100644
index 0000000000..d1a85ac152
--- /dev/null
+++ b/src/schnorr_impl.h
@@ -0,0 +1,116 @@
+/***********************************************************************
+ * Copyright (c) 2015 Pieter Wuille                                    *
+ * Distributed under the MIT software license, see the accompanying    *
+ * file COPYING or http://www.opensource.org/licenses/mit-license.php. *
+ ***********************************************************************/
+
+#ifndef _SECP256K1_SCHNORR_IMPL_H_
+#define _SECP256K1_SCHNORR_IMPL_H_
+
+#include <string.h>
+
+#include "schnorr.h"
+#include "num.h"
+#include "field.h"
+#include "group.h"
+#include "ecmult.h"
+#include "ecmult_gen.h"
+
+/**
+ * Custom Schnorr-based signature scheme:
+ *
+ * Signing:
+ *   Inputs: 32-byte message m, 32-byte scalar key x (!=0), 32-byte scalar nonce k (!=0)
+ *
+ *   Compute point R = k * G. Reject nonce if R's y coordinate is odd (or negate nonce).
+ *   Compute 32-byte r, the serialization of R's x coordinate.
+ *   Compute scalar h = Hash(r || m). Reject nonce if h == 0 or h >= order.
+ *   Compute scalar s = k - h * x.
+ *   The signature is (r, s).
+ *
+ *
+ * Verification:
+ *   Inputs: 32-byte message m, public key point Q, signature: (32-byte r, scalar s)
+ *
+ *   Signature is invalid if s >= order.
+ *   Signature is invalid if r >= p.
+ *   Compute scalar h = Hash(r || m). Signature is invalid if h == 0 or h >= order.
+ *   Option 1 (faster for single verification):
+ *     Compute point R = h * Q + s * G. Signature is invalid if R is infinity or R's y coordinate is odd.
+ *     Signature is valid if the serialization of R's x coordinate equals r.
+ *   Option 2 (allows batch validation and pubkey recovery):
+ *     Decompress x coordinate r into point R, with odd y coordinate. Fail if R is not on the curve.
+ *     Signature is valid if R + h * Q + s * G == 0.
+ */
+
+static int secp256k1_schnorr_sig_sign(const secp256k1_ecmult_gen_context_t* ctx, unsigned char *sig64, const secp256k1_scalar_t *key, secp256k1_scalar_t *nonce, secp256k1_schnorr_msghash_t hash, const unsigned char *msg32) {
+    secp256k1_gej_t Rj;
+    secp256k1_ge_t Ra;
+    unsigned char h32[32];
+    secp256k1_scalar_t h, s;
+    int overflow;
+
+    if (secp256k1_scalar_is_zero(key) || secp256k1_scalar_is_zero(nonce)) {
+        return 0;
+    }
+
+    secp256k1_ecmult_gen(ctx, &Rj, nonce);
+    secp256k1_ge_set_gej(&Ra, &Rj);
+    secp256k1_fe_normalize(&Ra.y);
+    if (secp256k1_fe_is_odd(&Ra.y)) {
+        secp256k1_scalar_negate(nonce, nonce);
+    }
+    secp256k1_fe_normalize(&Ra.x);
+    secp256k1_fe_get_b32(sig64, &Ra.x);
+    hash(h32, sig64, msg32);
+    overflow = 0;
+    secp256k1_scalar_set_b32(&h, h32, &overflow);
+    if (overflow || secp256k1_scalar_is_zero(&h)) {
+        return 0;
+    }
+    secp256k1_scalar_mul(&s, &h, key);
+    secp256k1_scalar_negate(&s, &s);
+    secp256k1_scalar_add(&s, &s, nonce);
+    secp256k1_scalar_get_b32(sig64 + 32, &s);
+    return 1;
+}
+
+static int secp256k1_schnorr_sig_verify(const secp256k1_ecmult_context_t* ctx, const unsigned char *sig64, const secp256k1_ge_t *pubkey, secp256k1_schnorr_msghash_t hash, const unsigned char *msg32) {
+    secp256k1_gej_t Qj, Rj;
+    secp256k1_ge_t Ra;
+    secp256k1_fe_t Rx;
+    secp256k1_scalar_t h, s;
+    unsigned char hh[32];
+    int overflow;
+
+    if (secp256k1_ge_is_infinity(pubkey)) {
+        return 0;
+    }
+    hash(hh, sig64, msg32);
+    overflow = 0;
+    secp256k1_scalar_set_b32(&h, hh, &overflow);
+    if (overflow || secp256k1_scalar_is_zero(&h)) {
+        return 0;
+    }
+    overflow = 0;
+    secp256k1_scalar_set_b32(&s, sig64 + 32, &overflow);
+    if (overflow) {
+        return 0;
+    }
+    if (!secp256k1_fe_set_b32(&Rx, sig64)) {
+        return 0;
+    }
+    secp256k1_gej_set_ge(&Qj, pubkey);
+    secp256k1_ecmult(ctx, &Rj, &Qj, &h, &s);
+    if (secp256k1_gej_is_infinity(&Rj)) {
+        return 0;
+    }
+    secp256k1_ge_set_gej_var(&Ra, &Rj);
+    secp256k1_fe_normalize_var(&Ra.y);
+    if (secp256k1_fe_is_odd(&Ra.y)) {
+        return 0;
+    }
+    return secp256k1_fe_equal_var(&Rx, &Ra.x);
+}
+
+#endif
diff --git a/src/secp256k1.c b/src/secp256k1.c
index 552c196aae..c35c6b66e1 100644
--- a/src/secp256k1.c
+++ b/src/secp256k1.c
@@ -16,6 +16,7 @@
 #include "ecmult_impl.h"
 #include "ecmult_gen_impl.h"
 #include "ecdsa_impl.h"
+#include "schnorr_impl.h"
 #include "eckey_impl.h"
 #include "hash_impl.h"
 
@@ -418,3 +419,60 @@ int secp256k1_context_randomize(secp256k1_context_t* ctx, const unsigned char *s
     secp256k1_ecmult_gen_blind(&ctx->ecmult_gen_ctx, seed32);
     return 1;
 }
+
+void secp256k1_schnorr_msghash_sha256(unsigned char *h32, const unsigned char *r32, const unsigned char *msg32) {
+    secp256k1_sha256_t sha;
+    secp256k1_sha256_initialize(&sha);
+    secp256k1_sha256_write(&sha, r32, 32);
+    secp256k1_sha256_write(&sha, msg32, 32);
+    secp256k1_sha256_finalize(&sha, h32);
+}
+
+int secp256k1_schnorr_sign(const secp256k1_context_t* ctx, const unsigned char *msg32, unsigned char *sig64, const unsigned char *seckey, secp256k1_nonce_function_t noncefp, const void* noncedata) {
+    secp256k1_scalar_t sec, non;
+    int ret = 0;
+    int overflow = 0;
+    unsigned int count = 0;
+    DEBUG_CHECK(ctx != NULL);
+    DEBUG_CHECK(secp256k1_ecmult_gen_context_is_built(&ctx->ecmult_gen_ctx));
+    DEBUG_CHECK(msg32 != NULL);
+    DEBUG_CHECK(sig64 != NULL);
+    DEBUG_CHECK(seckey != NULL);
+    if (noncefp == NULL) {
+        noncefp = secp256k1_nonce_function_default;
+    }
+
+    secp256k1_scalar_set_b32(&sec, seckey, NULL);
+    while (1) {
+        unsigned char nonce32[32];
+        ret = noncefp(nonce32, msg32, seckey, count, noncedata);
+        if (!ret) {
+            break;
+        }
+        secp256k1_scalar_set_b32(&non, nonce32, &overflow);
+        memset(nonce32, 0, 32);
+        if (!secp256k1_scalar_is_zero(&non) && !overflow) {
+            if (secp256k1_schnorr_sig_sign(&ctx->ecmult_gen_ctx, sig64, &sec, &non, secp256k1_schnorr_msghash_sha256, msg32)) {
+                break;
+            }
+        }
+        count++;
+    }
+    secp256k1_scalar_clear(&non);
+    secp256k1_scalar_clear(&sec);
+    return ret;
+}
+
+int secp256k1_schnorr_verify(const secp256k1_context_t* ctx, const unsigned char *msg32, const unsigned char *sig64, const unsigned char *pubkey, int pubkeylen) {
+    secp256k1_ge_t q;
+    DEBUG_CHECK(ctx != NULL);
+    DEBUG_CHECK(secp256k1_ecmult_context_is_built(&ctx->ecmult_ctx));
+    DEBUG_CHECK(msg32 != NULL);
+    DEBUG_CHECK(sig64 != NULL);
+    DEBUG_CHECK(pubkey != NULL);
+
+    if (!secp256k1_eckey_pubkey_parse(&q, pubkey, pubkeylen)) {
+        return -1;
+    }
+    return secp256k1_schnorr_sig_verify(&ctx->ecmult_ctx, sig64, &q, secp256k1_schnorr_msghash_sha256, msg32);
+}
diff --git a/src/tests.c b/src/tests.c
index 7ac02efd91..b81d00b5a3 100644
--- a/src/tests.c
+++ b/src/tests.c
@@ -1242,6 +1242,7 @@ void test_point_times_order(const secp256k1_gej_t *point) {
     CHECK(secp256k1_eckey_pubkey_serialize(&res3, pub, &psize, 1) == 0);
 }
 
+
 void run_point_times_order(void) {
     int i;
     secp256k1_fe_t x = SECP256K1_FE_CONST(0, 0, 0, 0, 0, 0, 0, 2);
@@ -2010,6 +2011,56 @@ void run_ecdsa_edge_cases(void) {
     test_ecdsa_edge_cases();
 }
 
+/** Horribly broken hash function. Do not use for anything but tests. */
+void test_schnorr_hash(unsigned char *h32, const unsigned char *r32, const unsigned char *msg32) {
+    int i;
+    for (i = 0; i < 32; i++) {
+        h32[i] = r32[i] ^ msg32[i];
+    }
+}
+
+void test_schnorr_sign_verify(void) {
+    unsigned char msg32[32];
+    unsigned char sig64[3][64];
+    secp256k1_gej_t pubkeyj[3];
+    secp256k1_ge_t pubkey[3];
+    secp256k1_scalar_t nonce[3], key[3];
+    int i = 0;
+    int k;
+
+    secp256k1_rand256_test(msg32);
+
+    for (k = 0; k < 3; k++) {
+        random_scalar_order_test(&key[k]);
+
+        do {
+            random_scalar_order_test(&nonce[k]);
+            if (secp256k1_schnorr_sig_sign(&ctx->ecmult_gen_ctx, sig64[k], &key[k], &nonce[k], &test_schnorr_hash, msg32)) {
+                break;
+            }
+        } while(1);
+
+        secp256k1_ecmult_gen(&ctx->ecmult_gen_ctx, &pubkeyj[k], &key[k]);
+        secp256k1_ge_set_gej_var(&pubkey[k], &pubkeyj[k]);
+        CHECK(secp256k1_schnorr_sig_verify(&ctx->ecmult_ctx, sig64[k], &pubkey[k], &test_schnorr_hash, msg32));
+
+        for (i = 0; i < 4; i++) {
+            int pos = secp256k1_rand32() % 64;
+            int mod = 1 + (secp256k1_rand32() % 255);
+            sig64[k][pos] ^= mod;
+            CHECK(secp256k1_schnorr_sig_verify(&ctx->ecmult_ctx, sig64[k], &pubkey[k], &test_schnorr_hash, msg32) == 0);
+            sig64[k][pos] ^= mod;
+        }
+    }
+}
+
+void run_schnorr_sign_verify(void) {
+    int i;
+    for (i = 0; i < 32 * count; i++) {
+         test_schnorr_sign_verify();
+    }
+}
+
 #ifdef ENABLE_OPENSSL_TESTS
 EC_KEY *get_openssl_key(const secp256k1_scalar_t *key) {
     unsigned char privkey[300];
@@ -2155,6 +2206,9 @@ int main(int argc, char **argv) {
     run_ecdsa_openssl();
 #endif
 
+    /* Schnorr tests */
+    run_schnorr_sign_verify();
+
     secp256k1_rand256(run32);
     printf("random run = %02x%02x%02x%02x%02x%02x%02x%02x%02x%02x%02x%02x%02x%02x%02x%02x\n", run32[0], run32[1], run32[2], run32[3], run32[4], run32[5], run32[6], run32[7], run32[8], run32[9], run32[10], run32[11], run32[12], run32[13], run32[14], run32[15]);