diff --git a/setup.py b/setup.py
index be07821..9cb19d6 100644
--- a/setup.py
+++ b/setup.py
@@ -6,7 +6,7 @@ with open('README.rst') as f:
 
 setup(
     name="shadowsocks",
-    version="2.1.0",
+    version="2.2.0",
     license='MIT',
     description="A fast tunnel proxy that help you get through firewalls",
     author='clowwindy',
diff --git a/shadowsocks/encrypt.py b/shadowsocks/encrypt.py
index 952fd72..1156d89 100644
--- a/shadowsocks/encrypt.py
+++ b/shadowsocks/encrypt.py
@@ -27,6 +27,7 @@ import string
 import struct
 import logging
 import encrypt_salsa20
+import encrypt_rc4_sha256
 
 
 def random_string(length):
@@ -115,6 +116,7 @@ method_supported = {
     'idea-cfb': (16, 8),
     'rc2-cfb': (16, 8),
     'rc4': (16, 0),
+    'rc4-sha256': (32, 16),
     'seed-cfb': (16, 16),
     'salsa20-ctr': (32, 8),
 }
@@ -156,13 +158,15 @@ class Encryptor(object):
             if op == 1:
                 # this iv is for cipher not decipher
                 self.cipher_iv = iv[:m[1]]
-            if method != 'salsa20-ctr':
+            if method == 'salsa20-ctr':
+                return encrypt_salsa20.Salsa20Cipher(method, key, iv, op)
+            elif method == 'rc4-sha256':
+                return encrypt_rc4_sha256.create_cipher(method, key, iv, op)
+            else:
                 import M2Crypto.EVP
                 return M2Crypto.EVP.Cipher(method.replace('-', '_'), key, iv,
                                            op, key_as_bytes=0, d='md5',
                                            salt=None, i=1, padding=1)
-            else:
-                return encrypt_salsa20.Salsa20Cipher(method, key, iv, op)
 
         logging.error('method %s not supported' % method)
         sys.exit(1)
@@ -217,11 +221,13 @@ def encrypt_all(password, method, op, data):
         else:
             iv = data[:iv_len]
             data = data[iv_len:]
-        if method != 'salsa20-ctr':
+        if method == 'salsa20-ctr':
+            cipher = encrypt_salsa20.Salsa20Cipher(method, key, iv, op)
+        elif method == 'rc4-sha256':
+            return encrypt_rc4_sha256.create_cipher(method, key, iv, op)
+        else:
             cipher = M2Crypto.EVP.Cipher(method.replace('-', '_'), key, iv,
                                          op, key_as_bytes=0, d='md5',
                                          salt=None, i=1, padding=1)
-        else:
-            cipher = encrypt_salsa20.Salsa20Cipher(method, key, iv, op)
         result.append(cipher.update(data))
         return ''.join(result)
diff --git a/shadowsocks/encrypt_rc4_sha256.py b/shadowsocks/encrypt_rc4_sha256.py
new file mode 100644
index 0000000..968f3e2
--- /dev/null
+++ b/shadowsocks/encrypt_rc4_sha256.py
@@ -0,0 +1,35 @@
+#!/usr/bin/env python
+
+# Copyright (c) 2014 clowwindy
+#
+# Permission is hereby granted, free of charge, to any person obtaining a copy
+# of this software and associated documentation files (the "Software"), to deal
+# in the Software without restriction, including without limitation the rights
+# to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
+# copies of the Software, and to permit persons to whom the Software is
+# furnished to do so, subject to the following conditions:
+#
+# The above copyright notice and this permission notice shall be included in
+# all copies or substantial portions of the Software.
+#
+# THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+# IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+# FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
+# AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
+# LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
+# OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
+# SOFTWARE.
+
+import hashlib
+
+
+def create_cipher(alg, key, iv, op, key_as_bytes=0, d=None, salt=None,
+                  i=1, padding=1):
+    sha256 = hashlib.sha256()
+    sha256.update(key)
+    sha256.update(iv)
+    rc4_key = sha256.digest()
+
+    import M2Crypto.EVP
+    return M2Crypto.EVP.Cipher('rc4', rc4_key, '', op, key_as_bytes=0,
+                               d='md5', salt=None, i=1, padding=1)
diff --git a/shadowsocks/encrypt_salsa20.py b/shadowsocks/encrypt_salsa20.py
index 823ae65..be8cb8b 100644
--- a/shadowsocks/encrypt_salsa20.py
+++ b/shadowsocks/encrypt_salsa20.py
@@ -1,4 +1,24 @@
-#!/usr/bin/python
+#!/usr/bin/env python
+
+# Copyright (c) 2014 clowwindy
+#
+# Permission is hereby granted, free of charge, to any person obtaining a copy
+# of this software and associated documentation files (the "Software"), to deal
+# in the Software without restriction, including without limitation the rights
+# to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
+# copies of the Software, and to permit persons to whom the Software is
+# furnished to do so, subject to the following conditions:
+#
+# The above copyright notice and this permission notice shall be included in
+# all copies or substantial portions of the Software.
+#
+# THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+# IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+# FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
+# AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
+# LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
+# OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
+# SOFTWARE.
 
 import time
 import struct
diff --git a/tests/rc4-sha256.json b/tests/rc4-sha256.json
new file mode 100644
index 0000000..7119c09
--- /dev/null
+++ b/tests/rc4-sha256.json
@@ -0,0 +1,10 @@
+{
+    "server":"127.0.0.1",
+    "server_port":8388,
+    "local_port":1081,
+    "password":"aes_password",
+    "timeout":60,
+    "method":"rc4-sha256",
+    "local_address":"127.0.0.1",
+    "fast_open":false
+}