diff --git a/docs/coffee.md b/docs/coffee.md
new file mode 100644
index 0000000..f658399
--- /dev/null
+++ b/docs/coffee.md
@@ -0,0 +1,35 @@
+## Server Files in Coffee-Script
+
+In order to create application files in coffee-script, you'll need to register the coffee-script extension:
+
+```javascript
+require('coffee-script/register');
+```
+
+You'll need to do this at any entry points for the app (e.g. the server.js file, mocha.opts, and gulp/grunt).  It is recommended to leave the entry point of the app (server.js by default, specified as 'main' in package.json) as a javascript file, and then register coffee-script, and proceed with any coffee-requires.
+
+## Client Files in Coffee-Script
+
+You can use the Coffeeify module to include Coffee files in your browser package.  Use a build script like this:
+
+
+```javascript
+// assuming you haven't done so already
+require('coffee-script/register');
+
+var b = browserify({
+  basedir: appDir,
+  extensions: ['.coffee'], //causes browserify to look for this extension
+  debug: true
+});
+
+b.transform('coffeeify'); //adds coffee compiler to the build pipeline
+
+b.require('./app.coffee', { expose: 'browser-app' }); //requiring your file will set the entry point
+boot.compileToBrowserify(appDir, b);
+
+var bundlePath = sandbox.resolve('browser-app-bundle.js'); //remember, the final result is still '.js'
+var out = fs.createWriteStream(bundlePath);
+
+b.bundle().pipe(out);
+```
diff --git a/lib/compiler.js b/lib/compiler.js
index 3e1df63..9d9f8d4 100644
--- a/lib/compiler.js
+++ b/lib/compiler.js
@@ -253,13 +253,14 @@ function findModelDefinitions(rootDir, sources) {
     }
 
     var files = tryReadDir(srcDir);
+
     files
       .filter(function(f) {
         return f[0] !== '_' && path.extname(f) === '.json';
       })
       .forEach(function(f) {
         var fullPath = path.resolve(srcDir, f);
-        var entry = loadModelDefinition(rootDir, fullPath);
+        var entry = loadModelDefinition(rootDir, fullPath, files);
         var modelName = entry.definition.name;
         if (!modelName) {
           debug('Skipping model definition without Model name: %s',
@@ -303,24 +304,29 @@ function resolveSourceDir(rootDir, sourceDir) {
   return undefined;
 }
 
-function loadModelDefinition(rootDir, jsonFile) {
+function loadModelDefinition(rootDir, jsonFile, allFiles) {
   var definition = require(jsonFile);
+  var basename = path.basename(jsonFile, path.extname(jsonFile));
 
-  var sourceFile = path.join(
-    path.dirname(jsonFile),
-    path.basename(jsonFile, path.extname(jsonFile)));
+  // find a matching file with `.js` or any other supported extension like `.coffee`
+  var base, ext, validFileType;
+  var sourceFile = allFiles
+    .filter(function(f) {
+      ext = path.extname(f);
+      base = path.basename(f, ext);
+      validFileType = (ext !== '.node') && (ext !== '.json') &&
+        ((typeof require.extensions[ext]) === 'function');
+      return validFileType && (base === basename);
+    })[0];
 
   try {
-    // resolve the file to `.js` or any other supported extension like `.coffee`
+    sourceFile = path.join(path.dirname(jsonFile), sourceFile);
     sourceFile = require.resolve(sourceFile);
   } catch (err) {
     debug('Model source code not found: %s - %s', sourceFile, err.code || err);
     sourceFile = undefined;
   }
 
-  if (sourceFile === jsonFile)
-    sourceFile = undefined;
-
   debug('Found model "%s" - %s %s', definition.name,
     path.relative(rootDir, jsonFile),
     sourceFile ? path.relative(rootDir, sourceFile) : '(no source file)');
diff --git a/package.json b/package.json
index 61d1219..847467c 100644
--- a/package.json
+++ b/package.json
@@ -34,6 +34,9 @@
   "devDependencies": {
     "browserify": "^6.1.0",
     "fs-extra": "^0.12.0",
+    "browserify": "^4.1.8",
+    "coffee-script": "^1.8.0",
+    "coffeeify": "^0.7.0",
     "jshint": "^2.5.6",
     "loopback": "^2.5.0",
     "mocha": "^1.19.0",
diff --git a/test/browser.test.js b/test/browser.test.js
index 87769d1..985c26f 100644
--- a/test/browser.test.js
+++ b/test/browser.test.js
@@ -6,6 +6,31 @@ var browserify = require('browserify');
 var sandbox = require('./helpers/sandbox');
 var vm = require('vm');
 
+var compileStrategies = {
+  'default': function(appDir) {
+    var b = browserify({
+      basedir: appDir,
+      debug: true
+    });
+
+    b.require('./app.js', { expose: 'browser-app' });
+    return b;
+  },
+
+  'coffee': function(appDir) {
+    var b = browserify({
+      basedir: appDir,
+      extensions: ['.coffee'],
+      debug: true
+    });
+
+    b.transform('coffeeify');
+
+    b.require('./app.coffee', { expose: 'browser-app' });
+    return b;
+  },
+};
+
 describe('browser support', function() {
   this.timeout(60000); // 60s to give browserify enough time to finish
 
@@ -28,14 +53,38 @@ describe('browser support', function() {
       done();
     });
   });
+
+  it('supports coffee-script files', function(done) {
+    // add coffee-script to require.extensions
+    require('coffee-script/register');
+
+    var appDir = path.resolve(__dirname, './fixtures/coffee-app');
+
+    browserifyTestApp(appDir, 'coffee', function(err, bundlePath) {
+      if (err) return done(err);
+
+      var app = executeBundledApp(bundlePath);
+
+      // configured in fixtures/browser-app/boot/configure.coffee
+      expect(app.settings).to.have.property('custom-key', 'custom-value');
+      expect(Object.keys(app.models)).to.include('Customer');
+      expect(app.models.Customer.settings)
+        .to.have.property('_customized', 'Customer');
+      done();
+    });
+  });
 });
 
-function browserifyTestApp(appDir, next) {
-  var b = browserify({
-    basedir: appDir,
-    debug: true
-  });
-  b.require('./app.js', { expose: 'browser-app' });
+function browserifyTestApp(appDir, strategy, next) {
+  //set default args
+  if (((typeof strategy) === 'function') && !next) {
+    next = strategy;
+    strategy = undefined;
+  }
+  if (!strategy)
+    strategy = 'default';
+
+  var b = compileStrategies[strategy](appDir);
 
   boot.compileToBrowserify(appDir, b);
 
diff --git a/test/compiler.test.js b/test/compiler.test.js
index f902140..ba362bd 100644
--- a/test/compiler.test.js
+++ b/test/compiler.test.js
@@ -450,6 +450,31 @@ describe('compiler', function() {
         sourceFile: path.resolve(appdir.PATH, 'models', 'car.js')
       });
     });
+
+    it('loads coffeescript models from `./models`', function() {
+      // add coffee-script to require.extensions
+      require('coffee-script/register');
+
+      appdir.createConfigFilesSync({}, {}, {
+        Car: { dataSource: 'db' }
+      });
+      appdir.writeConfigFileSync('models/car.json', { name: 'Car' });
+      appdir.writeFileSync('models/car.coffee', '');
+
+      var instructions = boot.compile(appdir.PATH);
+
+      expect(instructions.models).to.have.length(1);
+      expect(instructions.models[0]).to.eql({
+        name: 'Car',
+        config: {
+          dataSource: 'db'
+        },
+        definition: {
+          name: 'Car'
+        },
+        sourceFile: path.resolve(appdir.PATH, 'models', 'car.coffee')
+      });
+    });
     
     it('supports `modelSources` option', function() {
       appdir.createConfigFilesSync({}, {}, {
diff --git a/test/fixtures/coffee-app/app.coffee b/test/fixtures/coffee-app/app.coffee
new file mode 100644
index 0000000..2c0b8dd
--- /dev/null
+++ b/test/fixtures/coffee-app/app.coffee
@@ -0,0 +1,5 @@
+loopback = require 'loopback'
+boot = require '../../../'
+
+module.exports = client = loopback()
+boot(client)
diff --git a/test/fixtures/coffee-app/boot/configure.coffee b/test/fixtures/coffee-app/boot/configure.coffee
new file mode 100644
index 0000000..5afa454
--- /dev/null
+++ b/test/fixtures/coffee-app/boot/configure.coffee
@@ -0,0 +1,2 @@
+module.exports = (app) ->
+  app.set 'custom-key', 'custom-value'
diff --git a/test/fixtures/coffee-app/datasources.json b/test/fixtures/coffee-app/datasources.json
new file mode 100644
index 0000000..618fd1f
--- /dev/null
+++ b/test/fixtures/coffee-app/datasources.json
@@ -0,0 +1,5 @@
+{
+  "db": {
+    "connector": "remote"
+  }
+}
diff --git a/test/fixtures/coffee-app/model-config.json b/test/fixtures/coffee-app/model-config.json
new file mode 100644
index 0000000..3566c55
--- /dev/null
+++ b/test/fixtures/coffee-app/model-config.json
@@ -0,0 +1,5 @@
+{
+  "Customer": {
+    "dataSource": "db"
+  }
+}
diff --git a/test/fixtures/coffee-app/models/customer.coffee b/test/fixtures/coffee-app/models/customer.coffee
new file mode 100644
index 0000000..2164665
--- /dev/null
+++ b/test/fixtures/coffee-app/models/customer.coffee
@@ -0,0 +1,3 @@
+module.exports = (Customer) ->
+  Customer.settings._customized = 'Customer'
+  Customer.base.settings._customized = 'Base'
diff --git a/test/fixtures/coffee-app/models/customer.json b/test/fixtures/coffee-app/models/customer.json
new file mode 100644
index 0000000..c1df7a5
--- /dev/null
+++ b/test/fixtures/coffee-app/models/customer.json
@@ -0,0 +1,4 @@
+{
+  "name": "Customer",
+  "base": "User"
+}