diff --git a/lib/bcoin/fullchain.js b/lib/bcoin/fullchain.js
index 2fd7af43..fad1f171 100644
--- a/lib/bcoin/fullchain.js
+++ b/lib/bcoin/fullchain.js
@@ -498,7 +498,7 @@ Chain.prototype.height = function height() {
   return this.getTip().height;
 };
 
-Chain.prototype.target = function target(last) {
+Chain.prototype.target = function target(last, block) {
   var proofOfWorkLimit = utils.toCompact(network.powLimit);
   var adjustmentInterval = network.powTargetTimespan / network.powTargetSpacing;
   var newBlockTs, heightFirst, first;
@@ -512,7 +512,7 @@ Chain.prototype.target = function target(last) {
   if ((last.height + 1) % adjustmentInterval) {
     if (network.powAllowMinDifficultyBlocks) {
       // Special behavior for testnet:
-      newBlockTs = utils.now();
+      newBlockTs = block ? block.ts : utils.now();
       if (newBlockTs > last.ts + network.powTargetSpacing * 2)
         return proofOfWorkLimit;
 
diff --git a/lib/bcoin/miner.js b/lib/bcoin/miner.js
new file mode 100644
index 00000000..2dbc25b8
--- /dev/null
+++ b/lib/bcoin/miner.js
@@ -0,0 +1,206 @@
+/**
+ * miner.js - simple miner for bcoin
+ * Copyright (c) 2014-2015, Fedor Indutny (MIT License)
+ * https://github.com/indutny/bcoin
+ */
+
+var bcoin = require('../bcoin');
+var network = bcoin.protocol.network;
+var constants = bcoin.protocol.constants;
+var utils = bcoin.utils;
+var bn = require('bn.js');
+var inherits = require('inherits');
+var EventEmitter = require('events').EventEmitter;
+var assert = utils.assert;
+
+/**
+ * Miner
+ */
+
+exports.miner = function miner(options, callback) {
+  var chain = bcoin.chain.global;
+  var e = new EventEmitter;
+  var fee = new bn(0);
+  var last = chain.getTip();
+  var nextBlock, timeout, blockChecker;
+
+  function addBlock(b) {
+    var block = b || chain.getTip();
+    if (block.height > last.height) {
+      last = block;
+      // Somebody found the next block before us,
+      // start over with new target.
+      stop();
+      start();
+    }
+  }
+
+  function addTX(tx) {
+    var s;
+    if (tx.height !== -1)
+      return;
+    s = tx.render().length;
+    if (block.size() + s > constants.blocks.maxSize)
+      return;
+    nextBlock.txs.push(tx);
+    fee.iadd(tx.getFee());
+    // Update coinbase value
+    updateCoinbase(nextBlock);
+    // Update merkle root for new coinbase and new tx
+    updateMerkle(nextBlock);
+  }
+
+  function newBlock() {
+    var coinbase, block, target;
+
+    coinbase = bcoin.tx();
+
+    coinbase.input({
+      out: {
+        hash: constants.zeroHash,
+        index: 0xffffffff
+      },
+      script: [
+        new bn(last.height + 1).toArray().reverse(),
+        [],
+        utils.ascii2array(options.msg || 'mined by bcoin')
+      ],
+      seq: 0xffffffff
+    });
+
+    coinbase.output({
+      address: options.address,
+      value: new bn(0)
+    });
+
+    target = chain.target(last);
+
+    block = {
+      version: 4,
+      prevBlock: last.verify ? last.hash('hex') : last.hash,
+      merkleRoot: constants.zeroHash.slice(),
+      ts: utils.now(),
+      bits: utils.toCompact(target),
+      nonce: 0
+    };
+
+    block = bcoin.block(block, 'block');
+    delete block.valid;
+    block.verify = block._verify;
+
+    block.target = target;
+    block.extraNonce = new bn(0);
+
+    block.txs.push(coinbase);
+
+    // Update coinbase since our coinbase was added.
+    updateCoinbase(block);
+    // Create our merkle root.
+    updateMerkle(block);
+
+    return block;
+  }
+
+  function updateCoinbase(block) {
+    var coinbase = block.txs[0];
+    coinbase.inputs[0].script[1] = block.extraNonce.toArray();
+    coinbase.outputs[0].value = bcoin.block.reward(last.height + 1).add(fee);
+  }
+
+  function updateMerkle(block) {
+    block.ts = utils.now();
+    block.merkleRoot = block.getMerkleRoot();
+  }
+
+  function iter(block) {
+    timeout = setTimeout(function() {
+      var hash, begin, hps;
+
+      begin = utils.now();
+
+      while (block.nonce <= 0xffffffff) {
+        if (utils.testTarget(block.target, block.hash())) {
+          e.emit('block', block);
+          last = block;
+          nextBlock = newBlock();
+          return iter(nextBlock);
+        }
+        block.nonce++;
+      }
+
+      hps = (0xffffffff / (utils.now() - begin)) * 2;
+
+      block.nonce = 0;
+      block.extraNonce.iaddn(1);
+
+      // We incremented the extraNonce, need to update coinbase.
+      updateCoinbase(block);
+      // We changed the coinbase, need to update merkleRoot.
+      updateMerkle(block);
+
+      e.emit('status', {
+        block: nextBlock,
+        extraNonce: block.extraNonce,
+        hps: hps,
+        target: block.bits
+      });
+
+      return iter(block);
+    }, 10);
+  }
+
+  function start() {
+    blockChecker = setInterval(addBlock, 1000);
+    nextBlock = newBlock();
+    iter(nextBlock);
+  }
+
+  function stop() {
+    if (!timeout)
+      return;
+    clearTimeout(timeout);
+    timeout = null;
+    clearInterval(blockChecker);
+    blockChecker = null;
+  }
+
+  e.addBlock = addBlock;
+  e.add = e.addTX = addTX;
+  e.start = start;
+  e.stop = stop;
+
+  return e;
+};
+
+module.exports = function mine(pool, options) {
+  var options, miner;
+
+  options = {
+    address: options.address,
+    msg: options.msg || 'mined by bcoin',
+    log: options.log
+  };
+
+  miner = exports.miner(options);
+
+  pool.on('tx', function(tx) {
+    miner.addTX(tx);
+  });
+
+  pool.on('block', function(block) {
+    miner.addBlock(block);
+  });
+
+  miner.on('block', function(block) {
+    pool.sendBlock(block);
+  });
+
+  miner.on('status', function(stat) {
+    if (options.log)
+      console.log('Hashes per second: %s', stat.hps);
+  });
+
+  miner.start();
+
+  return miner;
+};