diff --git a/lib/api.rb b/lib/api.rb
index 4fdc3273a0e..6882615244b 100644
--- a/lib/api.rb
+++ b/lib/api.rb
@@ -1,61 +1,12 @@
-require 'api/entities'
-require 'api/helpers'
+Dir["#{Rails.root}/lib/api/*.rb"].each {|file| require file}
 
 module Gitlab
   class API < Grape::API
     format :json
+    error_format :json
     helpers APIHelpers
 
-    # Users API
-    resource :users do
-      before { authenticate! }
-
-      # GET /users
-      get do
-        @users = User.all
-        present @users, :with => Entities::User
-      end
-
-      # GET /users/:id
-      get ":id" do
-        @user = User.find(params[:id])
-        present @user, :with => Entities::User
-      end
-    end
-
-    # GET /user
-    get "/user" do
-      authenticate!
-      present @current_user, :with => Entities::User
-    end
-
-    # Projects API
-    resource :projects do
-      before { authenticate! }
-
-      # GET /projects
-      get do
-        @projects = current_user.projects
-        present @projects, :with => Entities::Project
-      end
-
-      # GET /projects/:id
-      get ":id" do
-        @project = current_user.projects.find_by_code(params[:id])
-        present @project, :with => Entities::Project
-      end
-
-      # GET /projects/:id/repository/branches
-      get ":id/repository/branches" do
-        @project = current_user.projects.find_by_code(params[:id])
-        present @project.repo.heads.sort_by(&:name), :with => Entities::ProjectRepositoryBranches
-      end
-
-      # GET /projects/:id/repository/tags
-      get ":id/repository/tags" do
-        @project = current_user.projects.find_by_code(params[:id])
-        present @project.repo.tags.sort_by(&:name).reverse, :with => Entities::ProjectRepositoryTags
-      end
-    end
+    mount Users
+    mount Projects
   end
 end
diff --git a/lib/api/entities.rb b/lib/api/entities.rb
index 44a43985602..7129e761a52 100644
--- a/lib/api/entities.rb
+++ b/lib/api/entities.rb
@@ -19,5 +19,11 @@ module Gitlab
     class ProjectRepositoryTags < Grape::Entity
       expose :name, :commit
     end
+
+    class ProjectSnippet < Grape::Entity
+      expose :id, :title, :file_name
+      expose :author, :using => Entities::User
+      expose :expires_at, :updated_at, :created_at
+    end
   end
 end
diff --git a/lib/api/helpers.rb b/lib/api/helpers.rb
index cd2e39bf3a7..424a17b283c 100644
--- a/lib/api/helpers.rb
+++ b/lib/api/helpers.rb
@@ -5,7 +5,7 @@ module Gitlab
     end
 
     def authenticate!
-      error!('401 Unauthorized', 401) unless current_user
+      error!({'message' => '401 Unauthorized'}, 401) unless current_user
     end
   end
 end
diff --git a/lib/api/projects.rb b/lib/api/projects.rb
new file mode 100644
index 00000000000..815092f4de5
--- /dev/null
+++ b/lib/api/projects.rb
@@ -0,0 +1,103 @@
+module Gitlab
+  # Projects API
+  class Projects < Grape::API
+    before { authenticate! }
+
+    resource :projects do
+      # Get a projects list for authenticated user
+      #
+      # Example Request:
+      #   GET /projects
+      get do
+        @projects = current_user.projects
+        present @projects, :with => Entities::Project
+      end
+
+      # Get a single project
+      #
+      # Parameters:
+      #   id (required) - The code of a project
+      # Example Request:
+      #   GET /projects/:id
+      get ":id" do
+        @project = current_user.projects.find_by_code(params[:id])
+        present @project, :with => Entities::Project
+      end
+
+      # Get a project repository branches
+      #
+      # Parameters:
+      #   id (required) - The code of a project
+      # Example Request:
+      #   GET /projects/:id/repository/branches
+      get ":id/repository/branches" do
+        @project = current_user.projects.find_by_code(params[:id])
+        present @project.repo.heads.sort_by(&:name), :with => Entities::ProjectRepositoryBranches
+      end
+
+      # Get a project repository tags
+      #
+      # Parameters:
+      #   id (required) - The code of a project
+      # Example Request:
+      #   GET /projects/:id/repository/tags
+      get ":id/repository/tags" do
+        @project = current_user.projects.find_by_code(params[:id])
+        present @project.repo.tags.sort_by(&:name).reverse, :with => Entities::ProjectRepositoryTags
+      end
+
+      # Get a project snippet
+      #
+      # Parameters:
+      #   id (required) - The code of a project
+      #   snippet_id (required) - The ID of a project snippet
+      # Example Request:
+      #   GET /projects/:id/snippets/:snippet_id
+      get ":id/snippets/:snippet_id" do
+        @project = current_user.projects.find_by_code(params[:id])
+        @snippet = @project.snippets.find(params[:snippet_id])
+        present @snippet, :with => Entities::ProjectSnippet
+      end
+
+      # Create a new project snippet
+      #
+      # Parameters:
+      #   id (required) - The code name of a project
+      #   title (required) - The title of a snippet
+      #   file_name (required) - The name of a snippet file
+      #   lifetime (optional) - The expiration date of a snippet
+      #   code (required) - The content of a snippet
+      # Example Request:
+      #   POST /projects/:id/snippets
+      post ":id/snippets" do
+        @project = current_user.projects.find_by_code(params[:id])
+        @snippet = @project.snippets.new(
+          :title      => params[:title],
+          :file_name  => params[:file_name],
+          :expires_at => params[:lifetime],
+          :content    => params[:code]
+        )
+        @snippet.author = current_user
+
+        if @snippet.save
+          present @snippet, :with => Entities::ProjectSnippet
+        else
+          error!({'message' => '404 Not found'}, 404)
+        end
+      end
+
+      # Delete a project snippet
+      #
+      # Parameters:
+      #   id (required) - The code of a project
+      #   snippet_id (required) - The ID of a project snippet
+      # Example Request:
+      #   DELETE /projects/:id/snippets/:snippet_id
+      delete ":id/snippets/:snippet_id" do
+        @project = current_user.projects.find_by_code(params[:id])
+        @snippet = @project.snippets.find(params[:snippet_id])
+        @snippet.destroy
+      end
+    end
+  end
+end
diff --git a/lib/api/users.rb b/lib/api/users.rb
new file mode 100644
index 00000000000..ef3762f30fc
--- /dev/null
+++ b/lib/api/users.rb
@@ -0,0 +1,36 @@
+module Gitlab
+  # Users API
+  class Users < Grape::API
+    before { authenticate! }
+
+    resource :users do
+      # Get a users list
+      #
+      # Example Request:
+      #  GET /users
+      get do
+        @users = User.all
+        present @users, :with => Entities::User
+      end
+
+      # Get a single user
+      #
+      # Parameters:
+      #   id (required) - The ID of a user
+      # Example Request:
+      #   GET /users/:id
+      get ":id" do
+        @user = User.find(params[:id])
+        present @user, :with => Entities::User
+      end
+    end
+
+    # Get currently authenticated user
+    #
+    # Example Request:
+    #   GET /user
+    get "/user" do
+      present @current_user, :with => Entities::User
+    end
+  end
+end
diff --git a/spec/api/projects_spec.rb b/spec/api/projects_spec.rb
index e4835736b8c..0fabb7a65b3 100644
--- a/spec/api/projects_spec.rb
+++ b/spec/api/projects_spec.rb
@@ -3,6 +3,7 @@ require 'spec_helper'
 describe Gitlab::API do
   let(:user) { Factory :user }
   let!(:project) { Factory :project, :owner => user }
+  let!(:snippet) { Factory :snippet, :author => user, :project => project }
   before { project.add_access(user, :read) }
 
   describe "GET /projects" do
@@ -52,4 +53,31 @@ describe Gitlab::API do
       json.first['name'].should == project.repo.tags.sort_by(&:name).reverse.first.name
     end
   end
+
+  describe "GET /projects/:id/snippets/:snippet_id" do
+    it "should return a project snippet" do
+      get "/api/projects/#{project.code}/snippets/#{snippet.id}?private_token=#{user.private_token}"
+      response.status.should == 200
+      json = JSON.parse(response.body)
+      json['title'].should == snippet.title
+    end
+  end
+
+  describe "POST /projects/:id/snippets" do
+    it "should create a new project snippet" do
+      post "/api/projects/#{project.code}/snippets?private_token=#{user.private_token}",
+        :title => 'api test', :file_name => 'sample.rb', :code => 'test'
+      response.status.should == 201
+      json = JSON.parse(response.body)
+      json['title'].should == 'api test'
+    end
+  end
+
+  describe "DELETE /projects/:id/snippets/:snippet_id" do
+    it "should create a new project snippet" do
+      expect {
+        delete "/api/projects/#{project.code}/snippets/#{snippet.id}?private_token=#{user.private_token}"
+      }.should change { Snippet.count }.by(-1)
+    end
+  end
 end