diff --git a/CHANGELOG.txt b/CHANGELOG.txt
index b489264..04d1b09 100644
--- a/CHANGELOG.txt
+++ b/CHANGELOG.txt
@@ -1,6 +1,11 @@
 Changelog
 =========
 
+0.4 (24.08.2015)
+~~~~~~~~~~~~~~~~
+ * Added support for custom functions (Alexandre Pocquet)
+ * Added a `static` function to generate paths to assets such as images and fonts (Alexandre Pocquet)
+
 0.3 (27.04.2015)
 ~~~~~~~~~~~~~~~~
  * Enabled source comments when DEBUG is True; can be overridden with the LIBSASS_SOURCE_COMMENTS setting
diff --git a/README.rst b/README.rst
index 482fa52..48297dd 100644
--- a/README.rst
+++ b/README.rst
@@ -45,7 +45,22 @@ The following settings can be used to control django-libsass's behaviour:
 
 * ``LIBSASS_SOURCE_COMMENTS`` - whether to enable SASS source comments (adds comments about source lines). Defaults to ``True`` when Django's ``DEBUG`` is ``True``, ``False`` otherwise.
 * ``LIBSASS_OUTPUT_STYLE`` - SASS output style. Options are ``'nested'``, ``'expanded'``, ``'compact'`` and ``'compressed'``, although as of libsass 3.0.2 only ``'nested'`` and ``'compressed'`` are implemented. Default is 'nested'. See `SASS documentation for output styles <http://sass-lang.com/documentation/file.SASS_REFERENCE.html#output_style>`_. Note that `django-compressor's settings <http://django-compressor.readthedocs.org/en/latest/settings/>`_ may also affect the formatting of the resulting CSS.
+* ``LIBSASS_CUSTOM_FUNCTIONS`` - A mapping of custom functions to be made available within the SASS compiler. By default, a ``static`` function is provided, analogous to Django's ``static`` template tag.
 
+Custom functions
+~~~~~~~~~~~~~~~~
+
+The SASS compiler can be extended with custom Python functions defined in the ``LIBSASS_CUSTOM_FUNCTIONS`` setting. By default, a ``static`` function is provided, for generating static paths to resources such as images and fonts::
+
+    .foo {
+        background: url(static("myapp/image/bar.png"));
+    }
+
+If your ``STATIC_URL`` is '/static/', this will be rendered as::
+
+    .foo {
+        background: url("/static/myapp/image/bar.png"));
+    }
 
 Why django-libsass?
 ~~~~~~~~~~~~~~~~~~~
diff --git a/django_libsass.py b/django_libsass.py
index b16599b..e08b308 100644
--- a/django_libsass.py
+++ b/django_libsass.py
@@ -1,11 +1,23 @@
 from django.conf import settings
 from django.contrib.staticfiles.finders import get_finders
+from django.templatetags.static import static as django_static
 
 import sass
 from compressor.filters.base import FilterBase
 
+
+def static(path):
+    """
+    Use the Django builtin static file resolver to return an absolute path
+    usable as CSS url() argument. Sass equivalent of the 'static' template
+    tag.
+    """
+    return '"{}"'.format(django_static(path))
+
+
 OUTPUT_STYLE = getattr(settings, 'LIBSASS_OUTPUT_STYLE', 'nested')
 SOURCE_COMMENTS = getattr(settings, 'LIBSASS_SOURCE_COMMENTS', settings.DEBUG)
+CUSTOM_FUNCTIONS = getattr(settings, 'LIBSASS_CUSTOM_FUNCTIONS', {'static': static})
 
 
 def get_include_paths():
@@ -35,6 +47,7 @@ def get_include_paths():
 
 INCLUDE_PATHS = None  # populate this on first call to 'compile'
 
+
 def compile(**kwargs):
     """Perform sass.compile, but with the appropriate include_paths for Django added"""
     global INCLUDE_PATHS
@@ -43,6 +56,11 @@ def compile(**kwargs):
 
     kwargs = kwargs.copy()
     kwargs['include_paths'] = (kwargs.get('include_paths') or []) + INCLUDE_PATHS
+
+    custom_functions = CUSTOM_FUNCTIONS.copy()
+    custom_functions.update(kwargs.get('custom_functions', {}))
+    kwargs['custom_functions'] = custom_functions
+
     return sass.compile(**kwargs)
 
 
@@ -59,4 +77,3 @@ def input(self, **kwargs):
         else:
             return compile(string=self.content,
                            output_style=OUTPUT_STYLE)
-
diff --git a/setup.py b/setup.py
index 5a8c649..7237863 100644
--- a/setup.py
+++ b/setup.py
@@ -7,7 +7,7 @@
 
 setup(
     name='django-libsass',
-    version='0.3',
+    version='0.4',
     description="A django-compressor filter to compile SASS files using libsass",
     author='Matt Westcott',
     author_email='matthew.westcott@torchbox.com',
@@ -28,6 +28,6 @@
     ],
     install_requires=[
         "django-compressor>=1.3",
-        "libsass>=0.3.0",
+        "libsass>=0.7.0",
     ],
 )