diff --git a/README.md b/README.md
index 76d013d..b5aac0c 100644
--- a/README.md
+++ b/README.md
@@ -14,6 +14,12 @@ Then start any containers you want proxied with an env var `VIRTUAL_HOST=subdoma
 
 Provided your DNS is setup to forward foo.bar.com to the a host running nginx-proxy, the request will be routed to a container with the VIRTUAL_HOST env var set.
 
+### Websockets support
+
+To proxy a websockets container, add an env var WEBSOCKETS=1
+
+    $ docker run -e VIRTUAL_HOST=foo.bar.com -e WEBSOCKETS=1  ...
+
 ### Multiple Ports
 
 If your container exposes multiple ports, nginx-proxy will default to the service running on port 80.  If you need to specify a different port, you can set a VIRTUAL_PORT env var to select a different one.  If your container only exposes one port and it has a VIRTUAL_HOST env var set, that port will be selected.
diff --git a/nginx.tmpl b/nginx.tmpl
index f0cae0d..7ad3cfd 100644
--- a/nginx.tmpl
+++ b/nginx.tmpl
@@ -45,6 +45,7 @@ upstream {{ $host }} {
 {{ end }}
 }
 
+{{ range $index, $value := $containers }}
 server {
 	gzip_types text/plain text/css application/json application/x-javascript text/xml application/xml application/xml+rss text/javascript;
 
@@ -62,7 +63,16 @@ server {
 
 		# HTTP 1.1 support
 		proxy_http_version 1.1;
-		proxy_set_header Connection "";
+
+		{{/* Only add the websockets Upgrade headers if a WEBSOCKETS env var is set. */}}
+                {{ if $value.Env.WEBSOCKETS }}
+	                proxy_set_header Upgrade $http_upgrade;
+	                proxy_set_header Connection "upgrade";
+                {{ else }}
+	                proxy_set_header Connection "";
+                {{ end }}
+                
 	}
+{{ end }}
 }
 {{ end }}