diff --git a/History.txt b/History.txt
index 1fc6d2e2..9f6307a0 100644
--- a/History.txt
+++ b/History.txt
@@ -10,6 +10,7 @@
     * URL escape category names in URL generation (#360)
     * Fix error with limit_posts (#442)
     * Properly select dotfile during directory scan (#363, #431, #377)
+    * Allow setting of Kramdown smart_quotes (#482)
 
 == 0.11.2 / 2011-12-27
   * Bug Fixes
diff --git a/jekyll.gemspec b/jekyll.gemspec
index 970a8ddc..88655609 100644
--- a/jekyll.gemspec
+++ b/jekyll.gemspec
@@ -26,7 +26,7 @@ Gem::Specification.new do |s|
   s.add_runtime_dependency('classifier', "~> 1.3")
   s.add_runtime_dependency('directory_watcher', "~> 1.1")
   s.add_runtime_dependency('maruku', "~> 0.5")
-  s.add_runtime_dependency('kramdown', "~> 0.13")
+  s.add_runtime_dependency('kramdown', "~> 0.13.4")
   s.add_runtime_dependency('albino', "~> 1.3")
 
   s.add_development_dependency('rake', "~> 0.9")
diff --git a/lib/jekyll.rb b/lib/jekyll.rb
index 6d5afd85..cc6502e9 100644
--- a/lib/jekyll.rb
+++ b/lib/jekyll.rb
@@ -88,6 +88,7 @@ module Jekyll
       'footnote_nr'   => 1,
       'entity_output' => 'as_char',
       'toc_levels'    => '1..6',
+      'smart_quotes'  => 'lsquo,rsquo,ldquo,rdquo',
       'use_coderay'   => false,
 
       'coderay' => {
diff --git a/lib/jekyll/converters/markdown.rb b/lib/jekyll/converters/markdown.rb
index b5655476..78e313d9 100644
--- a/lib/jekyll/converters/markdown.rb
+++ b/lib/jekyll/converters/markdown.rb
@@ -97,6 +97,7 @@ module Jekyll
               :footnote_nr   => @config['kramdown']['footnote_nr'],
               :entity_output => @config['kramdown']['entity_output'],
               :toc_levels    => @config['kramdown']['toc_levels'],
+              :smart_quotes  => @config['kramdown']['smart_quotes'],
 
               :coderay_wrap               => @config['kramdown']['coderay']['coderay_wrap'],
               :coderay_line_numbers       => @config['kramdown']['coderay']['coderay_line_numbers'],
@@ -111,7 +112,8 @@ module Jekyll
               :auto_ids      => @config['kramdown']['auto_ids'],
               :footnote_nr   => @config['kramdown']['footnote_nr'],
               :entity_output => @config['kramdown']['entity_output'],
-              :toc_levels    => @config['kramdown']['toc_levels']
+              :toc_levels    => @config['kramdown']['toc_levels'],
+              :smart_quotes  => @config['kramdown']['smart_quotes']
             }).to_html
           end
         when 'rdiscount'
diff --git a/test/test_kramdown.rb b/test/test_kramdown.rb
index 99a7b454..043752c3 100644
--- a/test/test_kramdown.rb
+++ b/test/test_kramdown.rb
@@ -3,21 +3,31 @@ require 'helper'
 class TestKramdown < Test::Unit::TestCase
   context "kramdown" do
     setup do
-      config = {
+      @config = {
         'markdown' => 'kramdown',
         'kramdown' => {
           'auto_ids'      => false,
           'footnote_nr'   => 1,
           'entity_output' => 'as_char',
-          'toc_levels'    => '1..6'
+          'toc_levels'    => '1..6',
+          'smart_quotes'  => 'lsquo,rsquo,ldquo,rdquo'
         }
       }
-      @markdown = MarkdownConverter.new config
     end
 
     # http://kramdown.rubyforge.org/converter/html.html#options
     should "pass kramdown options" do
-      assert_equal "<h1>Some Header</h1>", @markdown.convert('# Some Header #').strip
+      markdown = MarkdownConverter.new(@config)
+      assert_equal "<h1>Some Header</h1>", markdown.convert('# Some Header #').strip
+    end
+
+    should "convert quotes to smart quotes" do
+      markdown = MarkdownConverter.new(@config)
+      assert_equal "<p>&ldquo;Pit&rsquo;hy&rdquo;</p>", markdown.convert(%{"Pit'hy"}).strip
+
+      override = { 'kramdown' => { 'smart_quotes' => 'lsaquo,rsaquo,laquo,raquo' } }
+      markdown = MarkdownConverter.new(@config.deep_merge(override))
+      assert_equal "<p>&laquo;Pit&rsaquo;hy&raquo;</p>", markdown.convert(%{"Pit'hy"}).strip
     end
   end
 end
diff --git a/test/test_tags.rb b/test/test_tags.rb
index 1af5d58c..ab0f3188 100644
--- a/test/test_tags.rb
+++ b/test/test_tags.rb
@@ -6,7 +6,7 @@ class TestTags < Test::Unit::TestCase
 
   def create_post(content, override = {}, converter_class = Jekyll::MarkdownConverter)
     stub(Jekyll).configuration do
-      Jekyll::DEFAULTS.merge({'pygments' => true}).merge(override)
+      Jekyll::DEFAULTS.deep_merge({'pygments' => true}).deep_merge(override)
     end
     site = Site.new(Jekyll.configuration)