diff --git a/lib/api.rb b/lib/api.rb
index 3ff3b3836f4..be04701c25d 100644
--- a/lib/api.rb
+++ b/lib/api.rb
@@ -16,5 +16,6 @@ module Gitlab
     mount Users
     mount Projects
     mount Issues
+    mount Milestones
   end
 end
diff --git a/lib/api/issues.rb b/lib/api/issues.rb
index 2abc20ad34e..836c2818544 100644
--- a/lib/api/issues.rb
+++ b/lib/api/issues.rb
@@ -95,7 +95,7 @@ module Gitlab
         end
       end
 
-      # Delete a project issue
+      # Delete a project issue (deprecated)
       #
       # Parameters:
       #   id (required) - The ID or code name of a project
@@ -103,8 +103,7 @@ module Gitlab
       # Example Request:
       #   DELETE /projects/:id/issues/:issue_id
       delete ":id/issues/:issue_id" do
-        @issue = user_project.issues.find(params[:issue_id])
-        @issue.destroy
+        error!({'message' => 'method not allowed'}, 405)
       end
     end
   end
diff --git a/lib/api/milestones.rb b/lib/api/milestones.rb
new file mode 100644
index 00000000000..1ddcd1f8c89
--- /dev/null
+++ b/lib/api/milestones.rb
@@ -0,0 +1,81 @@
+module Gitlab
+  # Milestones API
+  class Milestones < Grape::API
+    before { authenticate! }
+
+    resource :projects do
+      # Get a list of project milestones
+      #
+      # Parameters:
+      #   id (required) - The ID or code name of a project
+      # Example Request:
+      #   GET /projects/:id/milestones
+      get ":id/milestones" do
+        present user_project.milestones, with: Entities::Milestone
+      end
+
+      # Get a single project milestone
+      #
+      # Parameters:
+      #   id (required) - The ID or code name of a project
+      #   milestone_id (required) - The ID of a project milestone
+      # Example Request:
+      #   GET /projects/:id/milestones/:milestone_id
+      get ":id/milestones/:milestone_id" do
+        @milestone = user_project.milestones.find(params[:milestone_id])
+        present @milestone, with: Entities::Milestone
+      end
+
+      # Create a new project milestone
+      #
+      # Parameters:
+      #   id (required) - The ID or code name of the project
+      #   title (required) - The title of the milestone
+      #   description (optional) - The description of the milestone
+      #   due_date (optional) - The due date of the milestone
+      #   closed (optional) - The status of the milestone
+      # Example Request:
+      #   POST /projects/:id/milestones
+      post ":id/milestones" do
+        @milestone = user_project.milestones.new(
+          title: params[:title],
+          description: params[:description],
+          due_date: params[:due_date],
+          closed: (params[:closed] || false)
+        )
+
+        if @milestone.save
+          present @milestone, with: Entities::Milestone
+        else
+          error!({'message' => '404 Not found'}, 404)
+        end
+      end
+
+      # Update an existing project milestone
+      #
+      # Parameters:
+      #   id (required) - The ID or code name of a project
+      #   title (optional) - The title of a milestone
+      #   description (optional) - The description of a milestone
+      #   due_date (optional) - The due date of a milestone
+      #   closed (optional) - The status of the milestone
+      # Example Request:
+      #   PUT /projects/:id/milestones/:milestone_id
+      put ":id/milestones/:milestone_id" do
+        @milestone = user_project.milestones.find(params[:milestone_id])
+        parameters = {
+          title: (params[:title] || @milestone.title),
+          description: (params[:description] || @milestone.description),
+          due_date: (params[:due_date] || @milestone.due_date),
+          closed: (params[:closed] || @milestone.closed)
+        }
+
+        if @milestone.update_attributes(parameters)
+          present @milestone, with: Entities::Milestone
+        else
+          error!({'message' => '404 Not found'}, 404)
+        end
+      end
+    end
+  end
+end
diff --git a/spec/api/milestones_spec.rb b/spec/api/milestones_spec.rb
new file mode 100644
index 00000000000..ba1d15cc842
--- /dev/null
+++ b/spec/api/milestones_spec.rb
@@ -0,0 +1,45 @@
+require 'spec_helper'
+
+describe Gitlab::API do
+  let(:user) { Factory :user }
+  let!(:project) { Factory :project, owner: user }
+  let!(:milestone) { Factory :milestone, project: project }
+
+  before { project.add_access(user, :read) }
+
+  describe "GET /projects/:id/milestones" do
+    it "should return project milestones" do
+      get "#{api_prefix}/projects/#{project.code}/milestones?private_token=#{user.private_token}"
+      response.status.should == 200
+      json_response.should be_an Array
+      json_response.first['title'].should == milestone.title
+    end
+  end
+
+  describe "GET /projects/:id/milestones/:milestone_id" do
+    it "should return a project milestone by id" do
+      get "#{api_prefix}/projects/#{project.code}/milestones/#{milestone.id}?private_token=#{user.private_token}"
+      response.status.should == 200
+      json_response['title'].should == milestone.title
+    end
+  end
+
+  describe "POST /projects/:id/milestones" do
+    it "should create a new project milestone" do
+      post "#{api_prefix}/projects/#{project.code}/milestones?private_token=#{user.private_token}",
+        title: 'new milestone'
+      response.status.should == 201
+      json_response['title'].should == 'new milestone'
+      json_response['description'].should be_nil
+    end
+  end
+
+  describe "PUT /projects/:id/milestones/:milestone_id" do
+    it "should update a project milestone" do
+      put "#{api_prefix}/projects/#{project.code}/milestones/#{milestone.id}?private_token=#{user.private_token}",
+        title: 'updated title'
+      response.status.should == 200
+      json_response['title'].should == 'updated title'
+    end
+  end
+end
diff --git a/spec/requests/api/issues_spec.rb b/spec/requests/api/issues_spec.rb
index c00a056d079..4c680425d48 100644
--- a/spec/requests/api/issues_spec.rb
+++ b/spec/requests/api/issues_spec.rb
@@ -65,9 +65,8 @@ describe Gitlab::API do
 
   describe "DELETE /projects/:id/issues/:issue_id" do
     it "should delete a project issue" do
-      expect {
-        delete api("/projects/#{project.code}/issues/#{issue.id}", user)
-      }.to change { Issue.count }.by(-1)
+      delete "#{api_prefix}/projects/#{project.code}/issues/#{issue.id}?private_token=#{user.private_token}"
+      response.status.should == 405
     end
   end
 end