diff --git a/lib/em-http/client.rb b/lib/em-http/client.rb
index 93819bcd..311183d2 100644
--- a/lib/em-http/client.rb
+++ b/lib/em-http/client.rb
@@ -155,6 +155,9 @@ def build_request
       # Set the User-Agent if it hasn't been specified
       head['user-agent'] ||= "EventMachine HttpClient"
 
+      # Set the auth from the URI if given
+      head['Authorization'] = @req.uri.userinfo.split(/:/, 2) if @req.uri.userinfo
+
       head
     end
 
diff --git a/spec/client_spec.rb b/spec/client_spec.rb
index 9ca9d004..04a799b0 100644
--- a/spec/client_spec.rb
+++ b/spec/client_spec.rb
@@ -258,7 +258,20 @@ def failed(http=nil)
   it "should perform basic auth" do
     EventMachine.run {
 
-      http = EventMachine::HttpRequest.new('http://127.0.0.1:8090/').get :head => {'authorization' => ['user', 'pass']}
+      http = EventMachine::HttpRequest.new('http://127.0.0.1:8090/authtest').get :head => {'authorization' => ['user', 'pass']}
+
+      http.errback { failed(http) }
+      http.callback {
+        http.response_header.status.should == 200
+        EventMachine.stop
+      }
+    }
+  end
+
+  it "should perform basic auth via the URL" do
+    EventMachine.run {
+
+      http = EventMachine::HttpRequest.new('http://user:pass@127.0.0.1:8090/authtest').get
 
       http.errback { failed(http) }
       http.callback {
diff --git a/spec/stallion.rb b/spec/stallion.rb
index 198d43f7..3fc25672 100644
--- a/spec/stallion.rb
+++ b/spec/stallion.rb
@@ -194,19 +194,16 @@ def self.call(env)
     elsif stable.request.env["HTTP_IF_NONE_MATCH"]
       stable.response.status = 304
 
-    elsif stable.request.env["HTTP_AUTHORIZATION"]
-      if stable.request.path_info == '/auth'
+    elsif stable.request.path_info == '/auth' && stable.request.env["HTTP_AUTHORIZATION"]
+      stable.response.status = 200
+      stable.response.write stable.request.env["HTTP_AUTHORIZATION"]
+    elsif stable.request.path_info == '/authtest'
+      auth = "Basic %s" % Base64.encode64(['user', 'pass'].join(':')).split.join
+      if auth == stable.request.env["HTTP_AUTHORIZATION"]
         stable.response.status = 200
-        stable.response.write stable.request.env["HTTP_AUTHORIZATION"]
+        stable.response.write 'success'
       else
-        auth = "Basic %s" % Base64.encode64(['user', 'pass'].join(':')).split.join
-
-        if auth == stable.request.env["HTTP_AUTHORIZATION"]
-          stable.response.status = 200
-          stable.response.write 'success'
-        else
-          stable.response.status = 401
-        end
+        stable.response.status = 401
       end
     elsif stable.request.path_info == '/relative-location'
       stable.response.status = 301