diff --git a/.gitignore b/.gitignore
index 2b236dbd..2d7f9a47 100644
--- a/.gitignore
+++ b/.gitignore
@@ -6,3 +6,4 @@ Gemfile.lock
 misc
 gems/
 vendor/
+.idea
diff --git a/spec/client_spec.rb b/spec/client_spec.rb
index f4daf778..f510b6b1 100644
--- a/spec/client_spec.rb
+++ b/spec/client_spec.rb
@@ -214,7 +214,7 @@ def failed(http=nil)
       }
     }
   end
-  
+
   it "should set content-length to 0 on posts with empty bodies" do
     EventMachine.run {
       http = EventMachine::HttpRequest.new('http://127.0.0.1:8090/echo_content_length_from_header').post
@@ -362,18 +362,34 @@ def failed(http=nil)
   it "should detect gzip encoding" do
     EventMachine.run {
 
-      http = EventMachine::HttpRequest.new('http://127.0.0.1:8090/gzip').get :head => {
-      "accept-encoding" => "gzip, compressed"
-    }
+      http = EventMachine::HttpRequest.new('http://127.0.0.1:8090/gzip').get :head => {"accept-encoding" => "gzip, compressed"}
 
-    http.errback { failed(http) }
-    http.callback {
-      http.response_header.status.should == 200
-      http.response_header["CONTENT_ENCODING"].should == "gzip"
-      http.response.should == "compressed"
+      http.errback { failed(http) }
+      http.callback {
+        http.response_header.status.should == 200
+        http.response_header["CONTENT_ENCODING"].should == "gzip"
+        http.response.should == "compressed"
 
-      EventMachine.stop
+        EventMachine.stop
+      }
     }
+  end
+
+  it "should handle gzip responses larger than 2048 bytes" do
+    expected_response = Zlib::GzipReader.open(File.dirname(__FILE__) + "/fixtures/gzip-sample.gz") { |f| f.read }
+
+    EventMachine.run {
+
+      http = EventMachine::HttpRequest.new('http://127.0.0.1:8090/gzip-large').get :head => {"accept-encoding" => "gzip, compressed"}
+
+      http.errback { failed(http) }
+      http.callback {
+        http.response_header.status.should == 200
+        http.response_header["CONTENT_ENCODING"].should == "gzip"
+        http.response.should == expected_response
+
+        EventMachine.stop
+      }
     }
   end
 
diff --git a/spec/external_spec.rb b/spec/external_spec.rb
index 156709d1..53cda1ac 100644
--- a/spec/external_spec.rb
+++ b/spec/external_spec.rb
@@ -96,6 +96,22 @@
       }
     end
 
+    it "should detect gzip encoding" do
+      pending "need an endpoint which supports gzip"
+      EventMachine.run {
+        options = {:head => {"accept-encoding" => "gzip"}}
+        http = EventMachine::HttpRequest.new('https://stream.twitter.com/1/statuses/sample.json').get options
+
+        http.errback { failed(http) }
+        http.callback {
+          http.response_header.status.should == 200
+          http.response_header["CONTENT_ENCODING"].should == "gzip"
+
+          EventMachine.stop
+        }
+      }
+    end
+
     context "keepalive" do
       it "should default to non-keepalive" do
         EventMachine.run {
diff --git a/spec/fixtures/gzip-sample.gz b/spec/fixtures/gzip-sample.gz
new file mode 100644
index 00000000..a59aa595
Binary files /dev/null and b/spec/fixtures/gzip-sample.gz differ
diff --git a/spec/stallion.rb b/spec/stallion.rb
index 3fc25672..92fbdc4a 100644
--- a/spec/stallion.rb
+++ b/spec/stallion.rb
@@ -90,7 +90,7 @@ def self.call(env)
 
     elsif stable.request.path_info == '/echo_content_length_from_header'
       stable.response.write "content-length:#{stable.request.env["CONTENT_LENGTH"]}"
-    
+
     elsif stable.request.head? && stable.request.path_info == '/'
       stable.response.status = 200
 
@@ -180,6 +180,12 @@ def self.call(env)
       stable.response.write io.string
       stable.response["Content-Encoding"] = "gzip"
 
+    elsif stable.request.path_info == '/gzip-large'
+      contents = File.open(File.dirname(__FILE__) + "/fixtures/gzip-sample.gz", 'r') { |f| f.read }
+
+      stable.response.write contents
+      stable.response["Content-Encoding"] = "gzip"
+
     elsif stable.request.path_info == '/deflate'
       deflater = Zlib::Deflate.new(
         Zlib::DEFAULT_COMPRESSION,