diff --git a/src/shell/shell.js b/src/shell/shell.js
index c619270..f7e9439 100644
--- a/src/shell/shell.js
+++ b/src/shell/shell.js
@@ -527,6 +527,7 @@ define(function(require) {
 
   Shell.prototype.zip = function(zipfile, paths, options, callback) {
     var fs = this.fs;
+    var sh = this;
     if(typeof options === 'function') {
       callback = options;
       options = {};
@@ -551,7 +552,7 @@ define(function(require) {
       return new TextEncoder('utf8').encode(s);
     }
 
-    function add(path, callback) {
+    function addFile(path, callback) {
       fs.readFile(path, function(err, data) {
         if(err) return callback(err);
 
@@ -562,12 +563,52 @@ define(function(require) {
       });
     }
 
-    var zip = new Zlib.Zip();
-    async.eachSeries(paths, add, function(err) {
-      if(err) return callback(err);
+    function addDir(path, callback) {
+      fs.readdir(path, function(err, list) {
+        // Add the directory itself (with no data) and a trailing /
+        zip.addFile([], {
+          filename: encode(path + '/'),
+          compressionMethod: Zlib.Zip.CompressionMethod.STORE
+        });
 
-      var compressed = zip.compress();
-      fs.writeFile(zipfile, compressed, callback);
+        if(!options.recursive) {
+          callback();
+        }
+
+        // Add all children of this dir, too
+        async.eachSeries(list, function(entry, callback) {
+          add(Path.join(path, entry), callback);
+        }, callback);
+      });
+    }
+
+    function add(path, callback) {
+      path = Path.resolve(sh.cwd, path);
+      fs.stat(path, function(err, stats) {
+        if(err) return callback(err);
+
+        if(stats.isDirectory()) {
+          addDir(path, callback);
+        } else {
+          addFile(path, callback);
+        }
+      });
+    }
+
+    var zip = new Zlib.Zip();
+
+    // Make sure the zipfile doesn't already exist.
+    fs.stat(zipfile, function(err, stats) {
+      if(stats) {
+        return callback(new Errors.EEXIST('zipfile already exists'));
+      }
+
+      async.eachSeries(paths, add, function(err) {
+        if(err) return callback(err);
+
+        var compressed = zip.compress();
+        fs.writeFile(zipfile, compressed, callback);
+      });
     });
   };
 
diff --git a/tests/spec/shell/unzip.spec.js b/tests/spec/shell/unzip.spec.js
index 7befeb5..c8cd669 100644
--- a/tests/spec/shell/unzip.spec.js
+++ b/tests/spec/shell/unzip.spec.js
@@ -1,11 +1,12 @@
 define(["Filer", "util"], function(Filer, util) {
 
-  describe('FileSystemShell.unzip', function() {
+  describe('FileSystemShell.zip() and unzip()', function() {
     beforeEach(util.setup);
     afterEach(util.cleanup);
 
     it('should be a function', function() {
       var shell = util.shell();
+      expect(shell.zip).to.be.a('function');
       expect(shell.unzip).to.be.a('function');
     });
 
@@ -49,6 +50,40 @@ define(["Filer", "util"], function(Filer, util) {
       });
     });
 
+    it('should download and unzip the contents of a zip file with a specified destination', function(done) {
+      var fs = util.fs();
+      var shell = fs.Shell();
+      var Path = Filer.Path;
+      var url = "test-file.txt.zip";
+      var contents = "This is a test file used in some of the tests.\n";
+
+      fs.writeFile('/original', contents, function(err) {
+        if(err) throw err;
+
+        shell.wget(url, {filename: url}, function(err, path) {
+          if(err) throw err;
+
+          shell.tempDir(function(err, tmp) {
+            if (err) throw err;
+
+            shell.unzip(path, { destination: tmp }, function(err) {
+              if(err) throw err;
+
+              fs.readFile('/original', function(err, originalData) {
+                if(err) throw err;
+
+                fs.readFile(Path.join(tmp, 'test-file.txt'), function(err, data) {
+                  if(err) throw err;
+                  expect(util.typedArrayEqual(data, originalData)).to.be.true;
+                  done();
+                });
+              });
+            });
+          });
+        });
+      });
+    });
+
     it('should be able to zip and unzip a file', function(done) {
       var fs = util.fs();
       var file = '/test-file.txt';
@@ -150,5 +185,98 @@ define(["Filer", "util"], function(Filer, util) {
       });
     });
 
+    it('should be able to re-create (unzip/zip) a deep tree structure in a zip', function(done) {
+      // test-dir.zip has the following structure:
+      //
+      // test-dir/
+      // ├── test-dir2
+      // │   └── test-file.txt
+      // ├── test-file.txt
+      // └── test-file2.txt
+
+      var fs = util.fs();
+      var shell = fs.Shell();
+      var url = "test-dir.zip";
+      var Path = Filer.Path;
+      var contents = "This is a test file used in some of the tests.\n";
+
+      function confirmFile(filename, callback) {
+        filename = Path.join('/unzipped', filename);
+        fs.readFile(filename, 'utf8', function(err, data) {
+          if(err) {
+            console.error('Expected ' + filename + ' to exist.');
+            expect(false).to.be.true;
+            return callback(err);
+          }
+          expect(data).to.equal(contents);
+          callback();
+        });
+      }
+
+      function confirmDir(dirname, callback) {
+        dirname = Path.join('/unzipped', dirname);
+        fs.stat(dirname, function(err, stats) {
+          if(err) {
+            console.error('Expected ' + dirname + ' to exist.');
+            expect(false).to.be.true;
+            return callback(err);
+          }
+          expect(stats.isDirectory()).to.be.true;
+          callback();
+        });
+      }
+
+      shell.wget(url, {filename: url}, function(err, path) {
+        if(err) throw err;
+
+        shell.unzip(path, function(err) {
+          if(err) throw err;
+
+          shell.zip('/test-dir2.zip', '/test-dir', { recursive: true }, function(err) {
+            if(err) throw err;
+
+            shell.mkdirp('/unzipped', function(err) {
+              if(err) throw err;
+
+              shell.unzip('/test-dir2.zip', { destination: '/unzipped' }, function(err) {
+                if(err) throw err;
+
+                // Forgive the crazy indenting, trying to match tree structure ;)
+                confirmDir('test-dir', function() {
+                  confirmDir('test-dir/test-dir2', function() {
+                    confirmFile('test-dir/test-dir2/test-file.txt', function() {
+                  confirmFile('test-dir/test-file.txt', function() {
+                  confirmFile('test-dir/test-file2.txt', function() {
+                    done();
+                });});});});});
+
+              });
+            });
+          });
+        });
+      });
+    });
+
+    it('should fail if the zipfile already exists', function(done) {
+      var fs = util.fs();
+      var shell = fs.Shell();
+      var file = "/file";
+      var zipfile = "/zipfile.zip";
+      var contents = "This is a test file used in some of the tests.\n";
+
+      fs.writeFile(file, contents, function(err) {
+        if(err) throw err;
+
+        shell.zip(zipfile, file, function(err) {
+          if(err) throw err;
+          shell.zip(zipfile, file, function(err) {
+            expect(err).to.exist;
+            expect(err.code).to.equal('EEXIST');
+            done();
+          });
+        });
+      });
+    });
+
   });
 });