diff --git a/GITLAB_WORKHORSE_VERSION b/GITLAB_WORKHORSE_VERSION
index 2b7c5ae0184..8f0916f768f 100644
--- a/GITLAB_WORKHORSE_VERSION
+++ b/GITLAB_WORKHORSE_VERSION
@@ -1 +1 @@
-0.4.2
+0.5.0
diff --git a/doc/install/installation.md b/doc/install/installation.md
index f8116a8a31c..d4b5c01f72d 100644
--- a/doc/install/installation.md
+++ b/doc/install/installation.md
@@ -348,7 +348,7 @@ GitLab Shell is an SSH access and repository management software developed speci
     cd /home/git
     sudo -u git -H git clone https://gitlab.com/gitlab-org/gitlab-workhorse.git
     cd gitlab-workhorse
-    sudo -u git -H git checkout 0.4.2
+    sudo -u git -H git checkout 0.5.0
     sudo -u git -H make
 
 ### Initialize Database and Activate Advanced Features
diff --git a/doc/update/8.2-to-8.3.md b/doc/update/8.2-to-8.3.md
index e69c4f7ed3c..8ea2b674a1c 100644
--- a/doc/update/8.2-to-8.3.md
+++ b/doc/update/8.2-to-8.3.md
@@ -78,7 +78,7 @@ which should already be on your system from GitLab 8.1.
 ```bash
 cd /home/git/gitlab-workhorse
 sudo -u git -H git fetch --all
-sudo -u git -H git checkout 0.4.2
+sudo -u git -H git checkout 0.5.0
 sudo -u git -H make
 ```
 
@@ -115,6 +115,12 @@ git diff origin/8-2-stable:config/gitlab.yml.example origin/8-3-stable:config/gi
 
 #### Nginx configuration
 
+GitLab 8.3 introduces major changes in the NGINX configuration.
+Because all HTTP requests pass through gitlab-workhorse now a lot of
+directives need to be removed from NGINX. During future upgrades there
+should be much less changes in the NGINX configuration because of
+this.
+
 View changes between the previous recommended Nginx configuration and the
 current one:
 
@@ -134,6 +140,18 @@ via [/etc/default/gitlab].
 [Apache templates]: https://gitlab.com/gitlab-org/gitlab-recipes/tree/master/web-server/apache
 [/etc/default/gitlab]: https://gitlab.com/gitlab-org/gitlab-ce/blob/8-3-stable/lib/support/init.d/gitlab.default.example#L34
 
+#### Init script
+
+We updated the init script for GitLab in order to pass new
+configuration options to gitlab-workhorse. We let gitlab-workhorse
+connect to the Rails application via a Unix domain socket and we tell
+it where the 'public' directory of GitLab is.
+
+```
+cd /home/git/gitlab
+sudo cp lib/support/init.d/gitlab /etc/init.d/gitlab
+```
+
 ### 8. Use Redis v2.8.0+
 
 Previous versions of GitLab allowed Redis versions >= 2.0 to be used, but
diff --git a/lib/support/init.d/gitlab b/lib/support/init.d/gitlab
index 43fda6fa92e..aa2da92c138 100755
--- a/lib/support/init.d/gitlab
+++ b/lib/support/init.d/gitlab
@@ -33,12 +33,13 @@ app_user="git"
 app_root="/home/$app_user/gitlab"
 pid_path="$app_root/tmp/pids"
 socket_path="$app_root/tmp/sockets"
+rails_socket="$socket_path/gitlab.socket"
 web_server_pid_path="$pid_path/unicorn.pid"
 sidekiq_pid_path="$pid_path/sidekiq.pid"
 mail_room_enabled=false
 mail_room_pid_path="$pid_path/mail_room.pid"
 gitlab_workhorse_pid_path="$pid_path/gitlab-workhorse.pid"
-gitlab_workhorse_options="-listenUmask 0 -listenNetwork unix -listenAddr $socket_path/gitlab-workhorse.socket -authBackend http://127.0.0.1:8080"
+gitlab_workhorse_options="-listenUmask 0 -listenNetwork unix -listenAddr $socket_path/gitlab-workhorse.socket -authBackend http://127.0.0.1:8080 -authSocket $rails_socket -documentRoot $app_root/public"
 gitlab_workhorse_log="$app_root/log/gitlab-workhorse.log"
 shell_path="/bin/bash"
 
diff --git a/lib/support/init.d/gitlab.default.example b/lib/support/init.d/gitlab.default.example
index 79ae8e0ae55..7fc495db545 100755
--- a/lib/support/init.d/gitlab.default.example
+++ b/lib/support/init.d/gitlab.default.example
@@ -36,7 +36,7 @@ gitlab_workhorse_pid_path="$pid_path/gitlab-workhorse.pid"
 # '-listenNetwork tcp -listenAddr localhost:8181'.
 # The -authBackend setting tells gitlab-workhorse where it can reach
 # Unicorn.
-gitlab_workhorse_options="-listenUmask 0 -listenNetwork unix -listenAddr $socket_path/gitlab-workhorse.socket -authBackend http://127.0.0.1:8080"
+gitlab_workhorse_options="-listenUmask 0 -listenNetwork unix -listenAddr $socket_path/gitlab-workhorse.socket -authBackend http://127.0.0.1:8080 -authSocket $socket_path/gitlab.socket -documentRoot $app_root/public"
 gitlab_workhorse_log="$app_root/log/gitlab-workhorse.log"
 
 # mail_room_enabled specifies whether mail_room, which is used to process incoming email, is enabled.
diff --git a/lib/support/nginx/gitlab b/lib/support/nginx/gitlab
index 2a79fbdcf93..fc5475c4eef 100644
--- a/lib/support/nginx/gitlab
+++ b/lib/support/nginx/gitlab
@@ -10,34 +10,12 @@
 ## If you change this file in a Merge Request, please also create
 ## a Merge Request on https://gitlab.com/gitlab-org/omnibus-gitlab/merge_requests
 ##
-##################################
-##        CHUNKED TRANSFER      ##
-##################################
-##
-## It is a known issue that Git-over-HTTP requires chunked transfer encoding [0]
-## which is not supported by Nginx < 1.3.9 [1]. As a result, pushing a large object
-## with Git (i.e. a single large file) can lead to a 411 error. In theory you can get
-## around this by tweaking this configuration file and either:
-## - installing an old version of Nginx with the chunkin module [2] compiled in, or
-## - using a newer version of Nginx.
-##
-## At the time of writing we do not know if either of these theoretical solutions works.
-## As a workaround users can use Git over SSH to push large files.
-##
-## [0] https://git.kernel.org/cgit/git/git.git/tree/Documentation/technical/http-protocol.txt#n99
-## [1] https://github.com/agentzh/chunkin-nginx-module#status
-## [2] https://github.com/agentzh/chunkin-nginx-module
-##
 ###################################
 ##         configuration         ##
 ###################################
 ##
 ## See installation.md#using-https for additional HTTPS configuration details.
 
-upstream gitlab {
-  server unix:/home/git/gitlab/tmp/sockets/gitlab.socket fail_timeout=0;
-}
-
 upstream gitlab-workhorse {
   server unix:/home/git/gitlab/tmp/sockets/gitlab-workhorse.socket fail_timeout=0;
 }
@@ -54,10 +32,6 @@ server {
   server_tokens off; ## Don't show the nginx version number, a security best practice
   root /home/git/gitlab/public;
 
-  ## Increase this if you want to upload large attachments
-  ## Or if you want to accept large git objects over http
-  client_max_body_size 20m;
-
   ## See app/controllers/application_controller.rb for headers set
 
   ## Individual nginx logs for this GitLab vhost
@@ -65,16 +39,8 @@ server {
   error_log   /var/log/nginx/gitlab_error.log;
 
   location / {
-    ## Serve static files from defined root folder.
-    ## @gitlab is a named location for the upstream fallback, see below.
-    try_files $uri /index.html $uri.html @gitlab;
-  }
-
-  ## We route uploads through GitLab to prevent XSS and enforce access control.
-  location /uploads/ {
-    ## If you use HTTPS make sure you disable gzip compression
-    ## to be safe against BREACH attack.
-    # gzip off;
+    client_max_body_size 0;
+    gzip off;
 
     ## https://github.com/gitlabhq/gitlabhq/issues/694
     ## Some requests take more than 30 seconds.
@@ -82,101 +48,7 @@ server {
     proxy_connect_timeout   300;
     proxy_redirect          off;
 
-    proxy_set_header    Host                $http_host;
-    proxy_set_header    X-Real-IP           $remote_addr;
-    proxy_set_header    X-Forwarded-For     $proxy_add_x_forwarded_for;
-    proxy_set_header    X-Forwarded-Proto   $scheme;
-    proxy_set_header    X-Frame-Options     SAMEORIGIN;
-
-    proxy_pass http://gitlab;
-  }
-
-  ## If a file, which is not found in the root folder is requested,
-  ## then the proxy passes the request to the upsteam (gitlab unicorn).
-  location @gitlab {
-    ## If you use HTTPS make sure you disable gzip compression
-    ## to be safe against BREACH attack.
-    # gzip off;
-
-    ## https://github.com/gitlabhq/gitlabhq/issues/694
-    ## Some requests take more than 30 seconds.
-    proxy_read_timeout      300;
-    proxy_connect_timeout   300;
-    proxy_redirect          off;
-
-    proxy_set_header    Host                $http_host;
-    proxy_set_header    X-Real-IP           $remote_addr;
-    proxy_set_header    X-Forwarded-For     $proxy_add_x_forwarded_for;
-    proxy_set_header    X-Forwarded-Proto   $scheme;
-    proxy_set_header    X-Frame-Options     SAMEORIGIN;
-
-    proxy_pass http://gitlab;
-  }
-
-  location ~ ^/[\w\.-]+/[\w\.-]+/gitlab-lfs/objects {
-    client_max_body_size 0;
-    # 'Error' 418 is a hack to re-use the @gitlab-workhorse block
-    error_page 418 = @gitlab-workhorse;
-    return 418;
-  }
-
-  location ~ ^/[\w\.-]+/[\w\.-]+/(info/refs|git-upload-pack|git-receive-pack)$ {
-    client_max_body_size 0;
-    # 'Error' 418 is a hack to re-use the @gitlab-workhorse block
-    error_page 418 = @gitlab-workhorse;
-    return 418;
-  }
-
-  location ~ ^/[\w\.-]+/[\w\.-]+/repository/archive {
-    client_max_body_size 0;
-    # 'Error' 418 is a hack to re-use the @gitlab-workhorse block
-    error_page 418 = @gitlab-workhorse;
-    return 418;
-  }
-
-  location ~ ^/api/v3/projects/.*/repository/archive {
-    client_max_body_size 0;
-    # 'Error' 418 is a hack to re-use the @gitlab-workhorse block
-    error_page 418 = @gitlab-workhorse;
-    return 418;
-  }
-
-  # Build artifacts should be submitted to this location
-  location ~ ^/[\w\.-]+/[\w\.-]+/builds/download {
-    client_max_body_size 0;
-    # 'Error' 418 is a hack to re-use the @gitlab-workhorse block
-    error_page 418 = @gitlab-workhorse;
-    return 418;
-  }
-
-  # Build artifacts should be submitted to this location
-  location ~ /ci/api/v1/builds/[0-9]+/artifacts {
-    client_max_body_size 0;
-    # 'Error' 418 is a hack to re-use the @gitlab-workhorse block
-    error_page 418 = @gitlab-workhorse;
-    return 418;
-  }
-
-  location @gitlab-workhorse {
-    client_max_body_size 0;
-    ## If you use HTTPS make sure you disable gzip compression
-    ## to be safe against BREACH attack.
-    # gzip off;
-
-    ## https://github.com/gitlabhq/gitlabhq/issues/694
-    ## Some requests take more than 30 seconds.
-    proxy_read_timeout      300;
-    proxy_connect_timeout   300;
-    proxy_redirect          off;
-
-    # Do not buffer Git HTTP responses
-    proxy_buffering off;
-
-    # The following settings only work with NGINX 1.7.11 or newer
-    #
-    # # Pass chunked request bodies to gitlab-workhorse as-is
-    # proxy_request_buffering off;
-    # proxy_http_version 1.1;
+    proxy_http_version 1.1;
 
     proxy_set_header    Host                $http_host;
     proxy_set_header    X-Real-IP           $remote_addr;
@@ -185,18 +57,4 @@ server {
 
     proxy_pass http://gitlab-workhorse;
   }
-
-  ## Enable gzip compression as per rails guide:
-  ## http://guides.rubyonrails.org/asset_pipeline.html#gzip-compression
-  ## WARNING: If you are using relative urls remove the block below
-  ## See config/application.rb under "Relative url support" for the list of
-  ## other files that need to be changed for relative url support
-  location ~ ^/(assets)/ {
-    root /home/git/gitlab/public;
-    gzip_static on; # to serve pre-gzipped version
-    expires max;
-    add_header Cache-Control public;
-  }
-
-  error_page 502 /502.html;
 }
diff --git a/lib/support/nginx/gitlab-ssl b/lib/support/nginx/gitlab-ssl
index 79fe1474821..1e5f85413ec 100644
--- a/lib/support/nginx/gitlab-ssl
+++ b/lib/support/nginx/gitlab-ssl
@@ -14,34 +14,12 @@
 ## If you change this file in a Merge Request, please also create
 ## a Merge Request on https://gitlab.com/gitlab-org/omnibus-gitlab/merge_requests
 ##
-##################################
-##        CHUNKED TRANSFER      ##
-##################################
-##
-## It is a known issue that Git-over-HTTP requires chunked transfer encoding [0]
-## which is not supported by Nginx < 1.3.9 [1]. As a result, pushing a large object
-## with Git (i.e. a single large file) can lead to a 411 error. In theory you can get
-## around this by tweaking this configuration file and either:
-## - installing an old version of Nginx with the chunkin module [2] compiled in, or
-## - using a newer version of Nginx.
-##
-## At the time of writing we do not know if either of these theoretical solutions works.
-## As a workaround users can use Git over SSH to push large files.
-##
-## [0] https://git.kernel.org/cgit/git/git.git/tree/Documentation/technical/http-protocol.txt#n99
-## [1] https://github.com/agentzh/chunkin-nginx-module#status
-## [2] https://github.com/agentzh/chunkin-nginx-module
-##
 ###################################
 ##         configuration         ##
 ###################################
 ##
 ## See installation.md#using-https for additional HTTPS configuration details.
 
-upstream gitlab {
-  server unix:/home/git/gitlab/tmp/sockets/gitlab.socket fail_timeout=0;
-}
-
 upstream gitlab-workhorse {
   server unix:/home/git/gitlab/tmp/sockets/gitlab-workhorse.socket fail_timeout=0;
 }
@@ -61,7 +39,6 @@ server {
   error_log   /var/log/nginx/gitlab_error.log;
 }
 
-
 ## HTTPS host
 server {
   listen 0.0.0.0:443 ssl;
@@ -70,10 +47,6 @@ server {
   server_tokens off; ## Don't show the nginx version number, a security best practice
   root /home/git/gitlab/public;
 
-  ## Increase this if you want to upload large attachments
-  ## Or if you want to accept large git objects over http
-  client_max_body_size 20m;
-
   ## Strong SSL Security
   ## https://raymii.org/s/tutorials/Strong_SSL_Security_On_nginx.html & https://cipherli.st/
   ssl on;
@@ -110,15 +83,7 @@ server {
   error_log   /var/log/nginx/gitlab_error.log;
 
   location / {
-    ## Serve static files from defined root folder.
-    ## @gitlab is a named location for the upstream fallback, see below.
-    try_files $uri /index.html $uri.html @gitlab;
-  }
-
-  ## We route uploads through GitLab to prevent XSS and enforce access control.
-  location /uploads/ {
-    ## If you use HTTPS make sure you disable gzip compression
-    ## to be safe against BREACH attack.
+    client_max_body_size 0;
     gzip off;
 
     ## https://github.com/gitlabhq/gitlabhq/issues/694
@@ -127,103 +92,7 @@ server {
     proxy_connect_timeout   300;
     proxy_redirect          off;
 
-    proxy_set_header    Host                $http_host;
-    proxy_set_header    X-Real-IP           $remote_addr;
-    proxy_set_header    X-Forwarded-Ssl     on;
-    proxy_set_header    X-Forwarded-For     $proxy_add_x_forwarded_for;
-    proxy_set_header    X-Forwarded-Proto   $scheme;
-    proxy_set_header    X-Frame-Options     SAMEORIGIN;
-
-    proxy_pass http://gitlab;
-  }
-
-  ## If a file, which is not found in the root folder is requested,
-  ## then the proxy passes the request to the upsteam (gitlab unicorn).
-  location @gitlab {
-    ## If you use HTTPS make sure you disable gzip compression
-    ## to be safe against BREACH attack.
-    gzip off;
-
-    ## https://github.com/gitlabhq/gitlabhq/issues/694
-    ## Some requests take more than 30 seconds.
-    proxy_read_timeout      300;
-    proxy_connect_timeout   300;
-    proxy_redirect          off;
-
-    proxy_set_header    Host                $http_host;
-    proxy_set_header    X-Real-IP           $remote_addr;
-    proxy_set_header    X-Forwarded-Ssl     on;
-    proxy_set_header    X-Forwarded-For     $proxy_add_x_forwarded_for;
-    proxy_set_header    X-Forwarded-Proto   $scheme;
-    proxy_set_header    X-Frame-Options     SAMEORIGIN;
-
-    proxy_pass http://gitlab;
-  }
-
-  location ~ ^/[\w\.-]+/[\w\.-]+/gitlab-lfs/objects {
-    client_max_body_size 0;
-    # 'Error' 418 is a hack to re-use the @gitlab-workhorse block
-    error_page 418 = @gitlab-workhorse;
-    return 418;
-  }
-
-  location ~ ^/[\w\.-]+/[\w\.-]+/(info/refs|git-upload-pack|git-receive-pack)$ {
-    client_max_body_size 0;
-    # 'Error' 418 is a hack to re-use the @gitlab-workhorse block
-    error_page 418 = @gitlab-workhorse;
-    return 418;
-  }
-
-  location ~ ^/[\w\.-]+/[\w\.-]+/repository/archive {
-    client_max_body_size 0;
-    # 'Error' 418 is a hack to re-use the @gitlab-workhorse block
-    error_page 418 = @gitlab-workhorse;
-    return 418;
-  }
-
-  location ~ ^/api/v3/projects/.*/repository/archive {
-    client_max_body_size 0;
-    # 'Error' 418 is a hack to re-use the @gitlab-workhorse block
-    error_page 418 = @gitlab-workhorse;
-    return 418;
-  }
-
-  # Build artifacts should be submitted to this location
-  location ~ ^/[\w\.-]+/[\w\.-]+/builds/download {
-    client_max_body_size 0;
-    # 'Error' 418 is a hack to re-use the @gitlab-workhorse block
-    error_page 418 = @gitlab-workhorse;
-    return 418;
-  }
-
-  # Build artifacts should be submitted to this location
-  location ~ /ci/api/v1/builds/[0-9]+/artifacts {
-    client_max_body_size 0;
-    # 'Error' 418 is a hack to re-use the @gitlab-workhorse block
-    error_page 418 = @gitlab-workhorse;
-    return 418;
-  }
-
-  location @gitlab-workhorse {
-    client_max_body_size 0;
-    ## If you use HTTPS make sure you disable gzip compression
-    ## to be safe against BREACH attack.
-    gzip off;
-
-    ## https://github.com/gitlabhq/gitlabhq/issues/694
-    ## Some requests take more than 30 seconds.
-    proxy_read_timeout      300;
-    proxy_connect_timeout   300;
-    proxy_redirect          off;
-
-    # Do not buffer Git HTTP responses
-    proxy_buffering off;
-
-    # The following settings only work with NGINX 1.7.11 or newer
-    #
-    # # Pass chunked request bodies to gitlab-workhorse as-is
-    # proxy_request_buffering off;
-    # proxy_http_version 1.1;
+    proxy_http_version 1.1;
 
     proxy_set_header    Host                $http_host;
     proxy_set_header    X-Real-IP           $remote_addr;
@@ -232,18 +101,4 @@ server {
     proxy_set_header    X-Forwarded-Proto   $scheme;
     proxy_pass http://gitlab-workhorse;
   }
-
-  ## Enable gzip compression as per rails guide:
-  ## http://guides.rubyonrails.org/asset_pipeline.html#gzip-compression
-  ## WARNING: If you are using relative urls remove the block below
-  ## See config/application.rb under "Relative url support" for the list of
-  ## other files that need to be changed for relative url support
-  location ~ ^/(assets)/ {
-    root /home/git/gitlab/public;
-    gzip_static on; # to serve pre-gzipped version
-    expires max;
-    add_header Cache-Control public;
-  }
-
-  error_page 502 /502.html;
 }