diff --git a/lib/compass/sass_extensions/sprites/image.rb b/lib/compass/sass_extensions/sprites/image.rb
index 4ee6a186a0..c9e07d704e 100644
--- a/lib/compass/sass_extensions/sprites/image.rb
+++ b/lib/compass/sass_extensions/sprites/image.rb
@@ -8,9 +8,10 @@ class Image
         PARENT = %r{(.+)[-_](.+)$}
 
         REPEAT_X = 'repeat-x'
+        REPEAT_Y = 'repeat-y'
         NO_REPEAT = 'no-repeat'
 
-        VALID_REPEATS = [REPEAT_X, NO_REPEAT]
+        VALID_REPEATS = [REPEAT_Y, REPEAT_X, NO_REPEAT]
         
         attr_reader :relative_file, :options, :base
         attr_accessor :top, :left
@@ -73,6 +74,10 @@ def repeat_x?
           repeat == REPEAT_X
         end
 
+        def repeat_y?
+          repeat == REPEAT_Y
+        end
+
         def no_repeat?
           repeat == NO_REPEAT
         end
diff --git a/lib/compass/sass_extensions/sprites/layout/horizontal.rb b/lib/compass/sass_extensions/sprites/layout/horizontal.rb
index 166d40dd58..e46c18fa2e 100644
--- a/lib/compass/sass_extensions/sprites/layout/horizontal.rb
+++ b/lib/compass/sass_extensions/sprites/layout/horizontal.rb
@@ -6,20 +6,35 @@ class Horizontal < SpriteLayout
 
           def layout!
             calculate_height!
-            calculate_positions!
             calculate_width!
+            calculate_positions!
+            tile_images_that_repeat!
           end
 
         private # ===========================================================================================>
 
           def calculate_height!
             @height = @images.map {|image| image.height + image.offset}.max
+            if repeating_images?
+              calculate_repeat_extra_height!
+            end
+            @height
           end
 
           def calculate_width!
             @width = @images.inject(0) { |sum, image| sum += (image.width + image.spacing) }
           end
 
+          def repeating_images?
+            @repeating_images ||= @images.any?(&:repeat_y?)
+          end
+
+          def calculate_repeat_extra_height!
+            m = @images.inject(1) {|m,img| img.repeat_y? ? m.lcm(img.height) : m }
+            remainder = @height % m
+            @height += (m - remainder) unless remainder.zero?
+          end
+
           def calculate_positions!
             @images.each_with_index do |image, index|
               image.top = image.position.unit_str == '%' ? (@height - image.height) * (image.position.value / 100.0) : image.position.value
@@ -29,6 +44,21 @@ def calculate_positions!
             end
           end
 
+          def tile_images_that_repeat!
+            return unless repeating_images?
+            @images.map {|img| img if img.repeat_y?}.compact.each do |image|
+              y = (image.top + image.height)
+              while y < @height do
+                begin
+                  img = image.dup
+                  img.top = y.to_i
+                  @images << img
+                  y += image.height
+                end 
+              end #while
+            end 
+          end 
+
         end
       end
     end
diff --git a/test/units/sprites/image_test.rb b/test/units/sprites/image_test.rb
index bd3e44abaf..dc80d38128 100644
--- a/test/units/sprites/image_test.rb
+++ b/test/units/sprites/image_test.rb
@@ -74,6 +74,11 @@ def test_image(options ={})
     assert img.repeat_x?
   end
 
+  test 'image repeat-y' do
+    img = test_image "selectors_ten_by_ten_repeat" => Sass::Script::String.new('repeat-y')
+    assert img.repeat_y?
+  end
+
   test 'image position' do
     image = test_image "selectors_ten_by_ten_position" => Sass::Script::Number.new(100, ["px"])
     assert_equal 100, image.position.value
diff --git a/test/units/sprites/layout_test.rb b/test/units/sprites/layout_test.rb
index 371e3eb3ce..d15b6558e7 100644
--- a/test/units/sprites/layout_test.rb
+++ b/test/units/sprites/layout_test.rb
@@ -67,6 +67,22 @@ def horizontal(options= {})
     assert_equal 12, map.width
   end
 
+  test "repeat-y layout single image" do
+    opts = {"layout" => Sass::Script::String.new('horizontal'), "squares_ten_by_ten_repeat" => Sass::Script::String.new('repeat-y')}
+    map = sprite_map_test(@options.merge(opts), 'squares/*.png')
+    assert_equal 30, map.width
+    assert_equal 20, map.height
+    assert_equal 3, map.images.size
+    assert_equal [[0,0], [0,10], [10,0]], map.images.map { |img| [img.top, img.left] }
+    assert map.horizontal?
+  end
+
+  test "repeat-y layout multi image" do
+    opts = {"layout" => Sass::Script::String.new('horizontal'), "repeat_x_three_repeat" => Sass::Script::String.new('repeat-y'), "repeat_x_four_repeat" => Sass::Script::String.new('repeat-y')}
+    map = sprite_map_test(@options.merge(opts), 'repeat_x/*.png')
+    assert_equal [[0, 0], [0, 5], [0, 9], [0, 10], [0, 13], [4, 5], [8, 5], [3, 10], [6, 10], [9, 10]], map.images.map { |img| [img.top, img.left] }
+  end
+
   # VERTICAL LAYOUT
 
   it "should have a vertical layout" do