diff --git a/python/objToJSON.c b/python/objToJSON.c
index f836e78..0ae0504 100644
--- a/python/objToJSON.c
+++ b/python/objToJSON.c
@@ -61,6 +61,7 @@ typedef struct __TypeContext
     PyObject *itemValue;
     PyObject *itemName;
     PyObject *attrList;
+    PyObject *iterator;
 
     JSINT64 longValue;
 
@@ -212,6 +213,62 @@ char *Tuple_iterGetName(JSOBJ obj, JSONTypeContext *tc, size_t *outLen)
     return NULL;
 }
 
+//=============================================================================
+// Iterator iteration functions 
+// itemValue is borrowed reference, no ref counting
+//=============================================================================
+void Iter_iterBegin(JSOBJ obj, JSONTypeContext *tc)
+{
+    GET_TC(tc)->itemValue = NULL;
+    GET_TC(tc)->iterator = PyObject_GetIter(obj);
+}
+
+int Iter_iterNext(JSOBJ obj, JSONTypeContext *tc)
+{
+    PyObject *item;
+    
+    if (GET_TC(tc)->itemValue)
+    {
+        Py_DECREF(GET_TC(tc)->itemValue);
+        GET_TC(tc)->itemValue = NULL;
+    }    
+
+    item = PyIter_Next(GET_TC(tc)->iterator);
+    
+    if (item == NULL)
+    {
+        return 0;
+    }
+    
+    GET_TC(tc)->itemValue = item;
+    return 1;
+}
+
+void Iter_iterEnd(JSOBJ obj, JSONTypeContext *tc)
+{
+    if (GET_TC(tc)->itemValue)
+    {
+        Py_DECREF(GET_TC(tc)->itemValue);
+        GET_TC(tc)->itemValue = NULL;
+    }
+
+    if (GET_TC(tc)->iterator)
+    {
+        Py_DECREF(GET_TC(tc)->iterator);
+        GET_TC(tc)->iterator = NULL;
+    }    
+}
+
+JSOBJ Iter_iterGetValue(JSOBJ obj, JSONTypeContext *tc)
+{
+    return GET_TC(tc)->itemValue;
+}
+
+char *Iter_iterGetName(JSOBJ obj, JSONTypeContext *tc, size_t *outLen)
+{
+    return NULL;
+}
+
 //=============================================================================
 // Dir iteration functions 
 // itemName ref is borrowed from PyObject_Dir (attrList). No refcount
@@ -481,6 +538,7 @@ void Object_beginTypeContext (JSOBJ _obj, JSONTypeContext *tc)
     
     if (PyIter_Check(obj))
     {
+        PRINTMARK();    
         goto ISITERABLE;
     }
 
@@ -564,7 +622,6 @@ void Object_beginTypeContext (JSOBJ _obj, JSONTypeContext *tc)
 
 
 ISITERABLE:
-
     if (PyDict_Check(obj))
     {
         PRINTMARK();
@@ -603,6 +660,19 @@ ISITERABLE:
         pc->iterGetName = Tuple_iterGetName;
         return;
     }
+    else
+    if (PyAnySet_Check(obj))
+    {
+        PRINTMARK();
+        tc->type = JT_ARRAY;
+        pc->iterBegin = Iter_iterBegin;
+        pc->iterEnd = Iter_iterEnd;
+        pc->iterNext = Iter_iterNext;
+        pc->iterGetValue = Iter_iterGetValue;
+        pc->iterGetName = Iter_iterGetName;
+        return;
+       
+    }
 
 
     toDictFunc = PyObject_GetAttrString(obj, "toDict");
@@ -640,7 +710,8 @@ ISITERABLE:
     }
 
     PyErr_Clear();
-
+    
+    PRINTMARK();    
     tc->type = JT_OBJECT;
     pc->iterBegin = Dir_iterBegin;
     pc->iterEnd = Dir_iterEnd;
diff --git a/python/version.h b/python/version.h
index 741c08b..76f1127 100644
--- a/python/version.h
+++ b/python/version.h
@@ -31,4 +31,4 @@ Copyright (c) 2007  Nick Galbreath -- nickg [at] modp [dot] com. All rights rese
 
 */
 
-#define UJSON_VERSION "1.26"
+#define UJSON_VERSION "1.27"
diff --git a/tests/tests.py b/tests/tests.py
index 066a772..6a30d30 100644
--- a/tests/tests.py
+++ b/tests/tests.py
@@ -830,6 +830,25 @@ class UltraJSONTests(TestCase):
         self.assertEquals(1.7893, ujson.loads("1.7893"))
         self.assertEquals(1.893, ujson.loads("1.893"))
         self.assertEquals(1.3, ujson.loads("1.3"))
+        
+    def test_encodeBigSet(self):
+        s = set()
+        for x in xrange(0, 100000):
+            s.add(x)
+        ujson.encode(s)
+    
+    def test_encodeEmptySet(self):
+        s = set()
+        self.assertEquals("[]", ujson.encode(s))
+
+    def test_encodeSet(self):
+        s = set([1,2,3,4,5,6,7,8,9])
+        enc = ujson.encode(s)   
+        dec = ujson.decode(enc)
+        
+        for v in dec:
+            self.assertTrue(v in s)
+        
             
 """
 def test_decodeNumericIntFrcOverflow(self):
@@ -857,8 +876,9 @@ raise NotImplementedError("Implement this test!")
 if __name__ == "__main__":
     unittest.main()
 
-"""
+
 # Use this to look for memory leaks
+"""
 if __name__ == '__main__':
     from guppy import hpy
     hp = hpy()
@@ -870,4 +890,4 @@ if __name__ == '__main__':
             pass
         heap = hp.heapu()
         print heap
-"""        
+"""