diff --git a/.gitignore b/.gitignore
index 0e17dd1..3e02977 100644
--- a/.gitignore
+++ b/.gitignore
@@ -2,6 +2,6 @@
 /dist/*
 /sass.egg-info/*
 /sass.so
-/test.pyc
 /sass.c
 build
+*.pyc
diff --git a/libsass b/libsass
index 0388a62..1122ead 160000
--- a/libsass
+++ b/libsass
@@ -1 +1 @@
-Subproject commit 0388a62b764c062bbcd45782ec09476c4673efcd
+Subproject commit 1122ead208a8d1c438daaca70041ef6dd2361fa0
diff --git a/sass.pyx b/sass.pyx
index dafe285..c61bd8f 100644
--- a/sass.pyx
+++ b/sass.pyx
@@ -20,6 +20,7 @@ SASS_STYLE_COMPRESSED = 3
 
 __version__ = '2.2+libsass1.0.1'
 
+
 cdef extern from "libsass/sass_interface.h":
 
     cdef struct sass_options:
@@ -39,6 +40,8 @@ cdef extern from "libsass/sass_interface.h":
     cdef struct sass_file_context:
         char* input_path
         char* output_string
+        char* source_map_string
+        char* source_map_file
         sass_options options
         int error_status
         char* error_message
@@ -74,14 +77,16 @@ def compile_string(bytes s, include_paths=None, image_path=None, int output_styl
         sass_free_context(ctx)
 
 
-def compile_file(bytes path, include_paths=None, int output_style=SASS_STYLE_NESTED):
+def compile_file(bytes path, include_paths=None, image_path=None, int output_style=SASS_STYLE_NESTED):
     """Compiles SASS file to CSS string"""
 
     include_paths = include_paths or b''
+    image_path = image_path or b''
     cdef sass_file_context* ctx = sass_new_file_context()
     try:
         ctx.input_path = path
         ctx.options.include_paths = include_paths
+        ctx.options.image_path = image_path
         ctx.options.output_style = output_style
         sass_compile_file(ctx)
         if ctx.error_status:
diff --git a/setup.py b/setup.py
old mode 100644
new mode 100755
index f121497..6b67ea5
--- a/setup.py
+++ b/setup.py
@@ -1,13 +1,14 @@
+#!/usr/bin/env python
 #   Copyright 2012 Sergey Kirillov
 #
-#   Licensed under the Apache License, Version 2.0 (the "License");
+#   Licensed under the Apache License, Version 2.0 (the 'License');
 #   you may not use this file except in compliance with the License.
 #   You may obtain a copy of the License at
 #
 #       http://www.apache.org/licenses/LICENSE-2.0
 #
 #   Unless required by applicable law or agreed to in writing, software
-#   distributed under the License is distributed on an "AS IS" BASIS,
+#   distributed under the License is distributed on an 'AS IS' BASIS,
 #   WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 #   See the License for the specific language governing permissions and
 #   limitations under the License.
@@ -19,10 +20,11 @@
 try:
     from Cython.Distutils import build_ext
 except ImportError:
-    print("No Cython installed. Building from pregenerated C source.")
+    print('No Cython installed. Building from pregenerated C source.')
     build_ext = None
 
 import os.path
+
 here = os.path.dirname(os.path.abspath(__file__))
 
 libsass_sources = [
@@ -53,35 +55,32 @@
 ]
 
 if build_ext:
-    sources = libsass_sources + ["sass.pyx"]
+    sources = libsass_sources + ['sass.pyx']
     cmdclass = {'build_ext': build_ext}
 else:
-    sources = libsass_sources + ["sass.cpp"]
+    sources = libsass_sources + ['sass.cpp']
     cmdclass = {}
 
-ext_modules = [Extension("sass", 
-               sources,
-               libraries=['stdc++'],
-               library_dirs=['./libsass'],
-               include_dirs=['.', 'libsass'],
-               language='c++'
-)]
+ext_modules = [
+    Extension('sass', sources, libraries=['stdc++'], library_dirs=['./libsass'],
+              include_dirs=['.', 'libsass'], language='c++')]
 
 setup(
-  name = 'sass',
-  cmdclass = cmdclass,
-  ext_modules = ext_modules,
-  version = '2.2',
-  author = 'Sergey Kirilov',
-  author_email = 'sergey.kirillov@gmail.com',
-  url='https://github.com/pistolero/python-scss', 
-  install_requires=[],
-  extras_require = {
-#    'develop': ['Cython']
-  },
-  tests_require = ['nose'],
-  license="Apache License 2.0",   
-  keywords="sass scss libsass",  
-  description='Python bindings for libsass',
-  long_description=open(os.path.join(here, 'README.rst'), 'rb').read().decode('utf-8')
+    name='sass',
+    cmdclass=cmdclass,
+    ext_modules=ext_modules,
+    version='2.2',
+    author='Sergey Kirilov',
+    author_email='sergey.kirillov@gmail.com',
+    url='https://github.com/pistolero/python-scss',
+    install_requires=[],
+    extras_require={
+        #    'develop': ['Cython']
+    },
+    tests_require=['nose'],
+    test_suite='test',
+    license='Apache License 2.0',
+    keywords='sass scss libsass',
+    description='Python bindings for libsass',
+    long_description=open(os.path.join(here, 'README.rst'), 'rb').read().decode('utf-8')
 )
diff --git a/test.py b/test/__init__.py
similarity index 51%
rename from test.py
rename to test/__init__.py
index 965b2e7..852dae6 100644
--- a/test.py
+++ b/test/__init__.py
@@ -12,33 +12,15 @@
 #   See the License for the specific language governing permissions and
 #   limitations under the License.
 #
+from __future__ import unicode_literals
 
-import sass
-from nose.tools import eq_, assert_equal, raises
-
-@raises(sass.CompileError)
-def test1():
-	result = sass.compile_string(b'asd', '', sass.SASS_STYLE_NESTED)
-	eq_(result, b'asd')
-
+from unittest import TestCase
+from os import path
 
-def test2():
-	result = sass.compile_string(b'''table.hl {
-  margin: 2em 0;
-  td.ln {
-    text-align: right;
-  }
-}
+import sass
 
-li {
-  font: {
-    family: serif;
-    weight: bold;
-    size: 1.2em;
-  }
-}''', '', sass.SASS_STYLE_NESTED)
-
-	expected = b'''table.hl {
+scss_test_file = str(path.normpath(path.join(path.dirname(__file__), 'test.scss')))
+compiled_result = b'''table.hl {
   margin: 2em 0; }
   table.hl td.ln {
     text-align: right; }
@@ -49,4 +31,17 @@ def test2():
   font-size: 1.2em; }
 '''
 
-	assert_equal(result, expected)
+
+class SASSTest(TestCase):
+
+    def test_compile_string_with_bad_string(self):
+        self.assertRaises(sass.CompileError, lambda: sass.compile_string(b'bad string'))
+
+    def test_compile_string(self):
+        with file(scss_test_file, 'rb') as scss_file:
+            result = sass.compile_string(scss_file.read())
+        self.assertEqual(result, compiled_result)
+
+    def test_compile_file(self):
+        result = sass.compile_file(scss_test_file)
+        self.assertEqual(result, compiled_result)
diff --git a/test/test.scss b/test/test.scss
new file mode 100644
index 0000000..d3300ea
--- /dev/null
+++ b/test/test.scss
@@ -0,0 +1,14 @@
+table.hl {
+  margin: 2em 0;
+  td.ln {
+    text-align: right;
+  }
+}
+
+li {
+  font: {
+    family: serif;
+    weight: bold;
+    size: 1.2em;
+  }
+}