diff --git a/src/zepto.js b/src/zepto.js
index 359b6644a..c2079f024 100644
--- a/src/zepto.js
+++ b/src/zepto.js
@@ -162,6 +162,14 @@ var Zepto = (function() {
         }
       })
     },
+    replaceWith: function(newContent) {
+      return this.each(function() {
+        var element = $(this),
+            prev = element.prev();
+        element.remove();
+        prev.after(newContent);
+      });
+    },
     hide: function(){
       return this.css("display", "none")
     },
diff --git a/test/zepto.html b/test/zepto.html
index 276ac1b4d..101f396b9 100644
--- a/test/zepto.html
+++ b/test/zepto.html
@@ -35,6 +35,11 @@ <h1>Zepto DOM unit tests</h1>
 
   <div id="attr_1" data-id="someId1" data-name="someName1"></div>
   <div id="attr_2" data-id="someId2" data-name="someName2"></div>
+  <div class="replacewith">
+    <div class="inner first">Hello</div>
+    <div class="inner second">And</div>
+    <div class="inner third">Goodbye</div>
+  </div>
 
   <div id="data_attr" data-blah="whatever"></div>
 
@@ -138,6 +143,8 @@ <h1>Zepto DOM unit tests</h1>
   <input type="text" id="BooleanInput" required />
 
   <form id="some_form"></form>
+  
+  <div class="replace_test_div">test</div>
 
   <script>
 
@@ -507,6 +514,19 @@ <h1>Zepto DOM unit tests</h1>
         t.assertEqual("1",$("span.c",el).text());
       },
 
+      testReplaceWith: function(t) {
+        $('div.second').replaceWith('<h2 id="replace_test">New heading</h2>');
+        
+        t.assertUndefined($('div.second').get(0));
+        t.assert(document.getElementById("replace_test").nodeType);
+        t.assertEqual($('.replacewith h2#replace_test').get(0), document.getElementById("replace_test"));
+        
+        $('#replace_test').replaceWith($('#replace_test_div'));
+        t.assertUndefined($('#replace_test').get(0));
+        t.assert(document.getElementsByClassName("replace_test_div")[0].nodeType);
+        t.assertEqual($('.replacewith h2#replace_test').get(0), document.getElementsByClassName("replace_test")[0]);
+      },
+
       testFind: function(t){
         var found = $('p#find1').find('span.findme');
         t.assertLength(4, found);