diff --git a/.travis.yml b/.travis.yml
index 507c99b..8d9554e 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -1,8 +1,9 @@
 language: python
 python:
-    - 2.6
-    - 2.7
-
+    - "2.6"
+    - "2.7"
+    - "3.2"
+    - "3.3"
 install:
     - python setup.py install
 script:
diff --git a/bcrypt/__init__.py b/bcrypt/__init__.py
index d755736..d4f2b2d 100644
--- a/bcrypt/__init__.py
+++ b/bcrypt/__init__.py
@@ -23,7 +23,7 @@
 """
 
 import os
-from _bcrypt import *
+from bcrypt._bcrypt import *
 
 def gensalt(log_rounds = 12):
 	"""Generate a random text salt for use with hashpw(). "log_rounds"
diff --git a/bcrypt/bcrypt_python.c b/bcrypt/bcrypt_python.c
index 6aea090..a8e1490 100644
--- a/bcrypt/bcrypt_python.c
+++ b/bcrypt/bcrypt_python.c
@@ -13,9 +13,11 @@
  * ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING OUT OF
  * OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.
  */
-
+#define PY_SSIZE_T_CLEAN
 #include "Python.h"
 
+#define PYBCRYPT_VERSION "0.4"
+
 #if defined(_WIN32)
 typedef unsigned __int8		u_int8_t;
 typedef unsigned __int16	u_int16_t;
@@ -23,7 +25,6 @@ typedef unsigned __int32	u_int32_t;
 #define strdup _strdup /* strdup is not ANSI C. _strdup */
 #endif
 
-/* $Id$ */
 
 /* Import */
 int pybc_bcrypt(const char *, const char *, char *, size_t);
@@ -39,7 +40,7 @@ bcrypt_encode_salt(PyObject *self, PyObject *args, PyObject *kw_args)
 {
 	static char *keywords[] = { "csalt", "log_rounds", NULL };
 	char *csalt = NULL;
-	int csaltlen = -1;
+    Py_ssize_t csaltlen = -1;
 	long log_rounds = -1;
 	char ret[64];
 
@@ -54,8 +55,12 @@ bcrypt_encode_salt(PyObject *self, PyObject *args, PyObject *kw_args)
 		PyErr_SetString(PyExc_ValueError, "Invalid number of rounds");
 		return NULL;
 	}
-	encode_salt(ret, csalt, csaltlen, log_rounds);
-	return PyString_FromString(ret);
+    encode_salt(ret, (u_int8_t *) csalt, csaltlen, log_rounds);
+#if PY_MAJOR_VERSION >= 3
+    return PyUnicode_FromString(ret);
+#else
+    return PyString_FromString(ret);
+#endif
 }
 
 PyDoc_STRVAR(bcrypt_hashpw_doc,
@@ -72,7 +77,7 @@ bcrypt_hashpw(PyObject *self, PyObject *args, PyObject *kw_args)
 	int ret;
 	char *password_copy;
 	char *salt_copy;
-	if (!PyArg_ParseTupleAndKeywords(args, kw_args, "ss:hashpw", keywords,
+    if (!PyArg_ParseTupleAndKeywords(args, kw_args, "ss:hashpw", keywords,
 	    &password, &salt))
                 return NULL;
 
@@ -93,8 +98,11 @@ bcrypt_hashpw(PyObject *self, PyObject *args, PyObject *kw_args)
 		PyErr_SetString(PyExc_ValueError, "Invalid salt");
 		return NULL;
 	}
-
+#if PY_MAJOR_VERSION >= 3
+    return PyUnicode_FromString(hashed);
+#else
 	return PyString_FromString(hashed);
+#endif
 }
 
 static PyMethodDef bcrypt_methods[] = {
@@ -107,12 +115,38 @@ static PyMethodDef bcrypt_methods[] = {
 
 PyDoc_STRVAR(module_doc, "Internal module used by bcrypt.\n");
 
-PyMODINIT_FUNC
-init_bcrypt(void)
-{
-	PyObject *m;
-
-	m = Py_InitModule3("bcrypt._bcrypt", bcrypt_methods, module_doc);
-	PyModule_AddStringConstant(m, "__version__", "0.3.1");
-}
-
+#if PY_MAJOR_VERSION >= 3
+    static struct PyModuleDef bcrypt_module = {
+        PyModuleDef_HEAD_INIT,
+        "bcrypt._bcrypt",    /* m_name */
+        module_doc,          /* m_doc */
+        -1,                  /* m_size */
+        bcrypt_methods,      /* m_methods */
+        NULL,                /* m_reload */
+        NULL,                /* m_traverse */
+        NULL,                /* m_clear */
+        NULL,                /* m_free */
+    };
+
+    PyMODINIT_FUNC
+    PyInit__bcrypt(void)
+    {
+        PyObject *m;
+
+        m = PyModule_Create(&bcrypt_module);
+        PyModule_AddStringConstant(m, "__version__", PYBCRYPT_VERSION);
+        return m;
+    }
+
+#else
+
+
+    PyMODINIT_FUNC
+    init_bcrypt(void)
+    {
+        PyObject *m;
+
+        m = Py_InitModule3("bcrypt._bcrypt", bcrypt_methods, module_doc);
+        PyModule_AddStringConstant(m, "__version__", PYBCRYPT_VERSION);
+    }
+#endif
diff --git a/test/test.py b/test/test.py
index 525dd6c..63543d6 100644
--- a/test/test.py
+++ b/test/test.py
@@ -17,8 +17,13 @@
 # $Id$
 
 import bcrypt
-
 import unittest
+import sys
+
+PY3 = (sys.version_info >= (3,0))
+
+def enc(s):
+    return s.encode("latin-1") if PY3 else s
 
 test_vectors = [
 	[ '', '$2a$06$DCq7YPn5Rq63x1Lad4cll.',
@@ -61,8 +66,20 @@
 	  '$2a$10$LgfYWkbzEvQ4JakH7rOvHe0y8pHKF9OaFgwUZ2q7W2FFZmZzJYlfS' ],
 	[ '~!@#$%^&*()      ~!@#$%^&*()PNBFRD', '$2a$12$WApznUOJfkEGSmYRfnkrPO',
 	  '$2a$12$WApznUOJfkEGSmYRfnkrPOr466oFDCaj4b6HY3EXGvfxm43seyhgC' ],
+    # [ enc('\xa3'), '$2a$05$CCCCCCCCCCCCCCCCCCCCC.', # latin-1 POUND SIGN
+    #   '$2a$05$CCCCCCCCCCCCCCCCCCCCC.BvtRGGx3p8o0C5C36uS442Qqnrwofrq' ],
+    # [ enc('\xc2\xa3'), '$2a$05$CCCCCCCCCCCCCCCCCCCCC.', # utf-8 POUND SIGN
+    #   '$2a$05$CCCCCCCCCCCCCCCCCCCCC.CAzSxlf0FLW7g1A5q7W/ZCj1xsN6A.e' ],
 ]
 
+
+if PY3:
+    # add 8-bit unicode test as well; to verify PY3 encodes it as UTF-8.
+    test_vectors.append(
+        [ '\u00A3', '$2a$05$CCCCCCCCCCCCCCCCCCCCC.', # unicode POUND SIGN
+          '$2a$05$CCCCCCCCCCCCCCCCCCCCC.CAzSxlf0FLW7g1A5q7W/ZCj1xsN6A.e' ],
+    )
+
 class TestRadix(unittest.TestCase):
 	def test_00__test_vectors(self):
 		for plain, salt, expected in test_vectors: