diff --git a/app/controllers/spree/admin/taxonomies_controller.rb b/app/controllers/spree/admin/taxonomies_controller.rb
new file mode 100644
index 0000000000..3010db2a52
--- /dev/null
+++ b/app/controllers/spree/admin/taxonomies_controller.rb
@@ -0,0 +1,21 @@
+module Spree
+  module Admin
+    class TaxonomiesController < ResourceController
+      respond_to :json, :only => [:get_children]
+
+      def get_children
+        @taxons = Taxon.find(params[:parent_id]).children
+      end
+
+      private
+
+      def location_after_save
+        if @taxonomy.created_at == @taxonomy.updated_at
+          edit_admin_taxonomy_url(@taxonomy)
+        else
+          admin_taxonomies_url
+        end
+      end
+    end
+  end
+end
diff --git a/app/controllers/spree/admin/taxons_controller.rb b/app/controllers/spree/admin/taxons_controller.rb
new file mode 100644
index 0000000000..57ae146d2a
--- /dev/null
+++ b/app/controllers/spree/admin/taxons_controller.rb
@@ -0,0 +1,118 @@
+module Spree
+  module Admin
+    class TaxonsController < Spree::Admin::BaseController
+      respond_to :html, :json, :js
+
+      def search
+        if params[:ids]
+          @taxons = Spree::Taxon.where(id: params[:ids].split(','))
+        else
+          @taxons = Spree::Taxon.limit(20).search(name_cont: params[:q]).result
+        end
+      end
+
+      def create
+        @taxonomy = Taxonomy.find(params[:taxonomy_id])
+        @taxon = @taxonomy.taxons.build(params[:taxon])
+        if @taxon.save
+          respond_with(@taxon) do |format|
+            format.json { render json: @taxon.to_json }
+          end
+        else
+          flash[:error] = Spree.t('errors.messages.could_not_create_taxon')
+          respond_with(@taxon) do |format|
+            format.html do
+              if redirect_to @taxonomy
+                edit_admin_taxonomy_url(@taxonomy)
+              else
+                admin_taxonomies_url
+              end
+            end
+          end
+        end
+      end
+
+      def edit
+        @taxonomy = Taxonomy.find(params[:taxonomy_id])
+        @taxon = @taxonomy.taxons.find(params[:id])
+        @permalink_part = @taxon.permalink.split("/").last
+      end
+
+      def update
+        @taxonomy = Taxonomy.find(params[:taxonomy_id])
+        @taxon = @taxonomy.taxons.find(params[:id])
+        parent_id = params[:taxon][:parent_id]
+        new_position = params[:taxon][:position]
+
+        if parent_id || new_position # taxon is being moved
+          new_parent = parent_id.nil? ? @taxon.parent : Taxon.find(parent_id.to_i)
+          new_position = new_position.nil? ? -1 : new_position.to_i
+
+          # Bellow is a very complicated way of finding where in nested set we
+          # should actually move the taxon to achieve sane results,
+          # JS is giving us the desired position, which was awesome for previous setup,
+          # but now it's quite complicated to find where we should put it as we have
+          # to differenciate between moving to the same branch, up down and into
+          # first position.
+          new_siblings = new_parent.children
+          if new_position <= 0 && new_siblings.empty?
+            @taxon.move_to_child_of(new_parent)
+          elsif new_parent.id != @taxon.parent_id
+            if new_position.zero?
+              @taxon.move_to_left_of(new_siblings.first)
+            else
+              @taxon.move_to_right_of(new_siblings[new_position - 1])
+            end
+          elsif new_position < new_siblings.index(@taxon)
+            @taxon.move_to_left_of(new_siblings[new_position]) # we move up
+          else
+            @taxon.move_to_right_of(new_siblings[new_position - 1]) # we move down
+          end
+          # Reset legacy position, if any extensions still rely on it
+          new_parent.children.reload.each{ |t| t.update_column(:position, t.position) }
+
+          if parent_id
+            @taxon.reload
+            @taxon.set_permalink
+            @taxon.save!
+            @update_children = true
+          end
+        end
+
+        if params.key? "permalink_part"
+          parent_permalink = @taxon.permalink.split("/")[0...-1].join("/")
+          parent_permalink += "/" if parent_permalink.present?
+          params[:taxon][:permalink] = parent_permalink + params[:permalink_part]
+        end
+        # check if we need to rename child taxons if parent name or permalink changes
+        if params[:taxon][:name] != @taxon.name || params[:taxon][:permalink] != @taxon.permalink
+          @update_children = true
+        end
+
+        if @taxon.update_attributes(params[:taxon])
+          flash[:success] = flash_message_for(@taxon, :successfully_updated)
+        end
+
+        # rename child taxons
+        if @update_children
+          @taxon.descendants.each do |taxon|
+            taxon.reload
+            taxon.set_permalink
+            taxon.save!
+          end
+        end
+
+        respond_with(@taxon) do |format|
+          format.html { redirect_to edit_admin_taxonomy_url(@taxonomy) }
+          format.json { render json: @taxon.to_json }
+        end
+      end
+
+      def destroy
+        @taxon = Taxon.find(params[:id])
+        @taxon.destroy
+        respond_with(@taxon) { |format| format.json { render json: '' } }
+      end
+    end
+  end
+end
diff --git a/app/helpers/spree/admin/taxons_helper.rb b/app/helpers/spree/admin/taxons_helper.rb
new file mode 100644
index 0000000000..87ee61dbd5
--- /dev/null
+++ b/app/helpers/spree/admin/taxons_helper.rb
@@ -0,0 +1,9 @@
+module Spree
+  module Admin
+    module TaxonsHelper
+      def taxon_path(taxon)
+        taxon.ancestors.reverse.collect(&:name).join( " >> ")
+      end
+    end
+  end
+end
diff --git a/app/views/spree/admin/taxonomies/_form.html.haml b/app/views/spree/admin/taxonomies/_form.html.haml
new file mode 100644
index 0000000000..81927c7c1a
--- /dev/null
+++ b/app/views/spree/admin/taxonomies/_form.html.haml
@@ -0,0 +1,7 @@
+.field.align-center
+  = f.field_container :name do
+    = f.label :name, t("spree.name")
+    %span.required *
+    %br/
+    = error_message_on :taxonomy, :name, class: 'fullwidth title'
+    = text_field :taxonomy, :name
diff --git a/app/views/spree/admin/taxonomies/_js_head.html.erb b/app/views/spree/admin/taxonomies/_js_head.html.erb
new file mode 100755
index 0000000000..e95f4bdeff
--- /dev/null
+++ b/app/views/spree/admin/taxonomies/_js_head.html.erb
@@ -0,0 +1,13 @@
+<% content_for :head do %>
+  <%= javascript_tag "var taxonomy_id = #{@taxonomy.id};
+    var loading = '#{escape_javascript t("spree.loading")}';
+    var new_taxon = '#{escape_javascript t("spree.new_taxon")}';
+    var server_error = '#{escape_javascript t("spree.server_error")}';
+    var taxonomy_tree_error = '#{escape_javascript t("spree.taxonomy_tree_error")}';
+
+    $(document).ready(function(){
+      setup_taxonomy_tree(taxonomy_id);
+    });
+    "
+  %>
+<% end %>
diff --git a/app/views/spree/admin/taxonomies/_list.html.haml b/app/views/spree/admin/taxonomies/_list.html.haml
new file mode 100644
index 0000000000..1574e8b718
--- /dev/null
+++ b/app/views/spree/admin/taxonomies/_list.html.haml
@@ -0,0 +1,19 @@
+%table#listing_taxonomies.index.sortable{"data-sortable-link" => update_positions_admin_taxonomies_url}
+  %colgroup
+    %col{style: "width: 85%"}/
+    %col{style: "width: 15%"}/
+  %thead
+    %tr
+      %th= t("spree.name")
+      %th.actions
+  %tbody
+    - @taxonomies.each do |taxonomy|
+      - tr_class = cycle('odd', 'even')
+      - tr_id = spree_dom_id(taxonomy)
+      %tr{class: tr_class, id: tr_id}
+        %td
+          %span.handle
+          = taxonomy.name
+        %td.actions
+          = link_to_edit taxonomy.id, no_text: true
+          = link_to_delete taxonomy, no_text: true
diff --git a/app/views/spree/admin/taxonomies/_taxon.html.haml b/app/views/spree/admin/taxonomies/_taxon.html.haml
new file mode 100644
index 0000000000..6c5e5273b9
--- /dev/null
+++ b/app/views/spree/admin/taxonomies/_taxon.html.haml
@@ -0,0 +1,7 @@
+- if taxon.children.length != 0
+  %ul
+    - taxon.children.each do |child|
+      %li{id: "#{child.id}", rel: "taxon"}
+        %a{href: "#", style: "background-image: url(#{child.icon.url});"}= child.name
+        - if child.children.length > 0
+          = render partial: 'taxon', locals: { taxon: child }
diff --git a/app/views/spree/admin/taxonomies/edit.haml b/app/views/spree/admin/taxonomies/edit.haml
new file mode 100755
index 0000000000..3deb328999
--- /dev/null
+++ b/app/views/spree/admin/taxonomies/edit.haml
@@ -0,0 +1,32 @@
+= render partial: 'spree/admin/shared/configuration_menu'
+
+= render partial: 'js_head'
+
+- content_for :page_title do
+  = t("spree.taxonomy_edit")
+
+- content_for :page_actions do
+  %li
+    = button_link_to t("spree.back_to_taxonomies_list"), spree.admin_taxonomies_path, icon: 'icon-arrow-left'
+
+#ajax_error.errorExplanation{style: "display:none;"}
+= form_for [:admin, @taxonomy] do |f|
+  %fieldset.no-border-top
+    = render partial: 'form', locals: { f: f }
+    %div
+      = label_tag nil, t("spree.tree")
+      %br/
+      :javascript
+        Spree.routes.taxonomy_taxons_path = "#{spree.api_taxonomy_taxons_path(@taxonomy)}";
+        Spree.routes.admin_taxonomy_taxons_path = "#{spree.admin_taxonomy_taxons_path(@taxonomy)}";
+      #taxonomy_tree.tree
+    #progress{style: "display:none;"}
+      = image_tag 'select2-spinner.gif', title: 'Spinner', style: "vertical-align:bottom;"
+      = t("spree.updating")
+      \..
+    .info= t("spree.taxonomy_tree_instruction")
+    %br/
+    .filter-actions.actions
+      = button t('spree.actions.update'), 'icon-refresh'
+      %span.or= t("spree.or")
+      = button_link_to t('spree.actions.cancel'), admin_taxonomies_path, icon: 'icon-remove'
diff --git a/app/views/spree/admin/taxonomies/index.html.haml b/app/views/spree/admin/taxonomies/index.html.haml
new file mode 100644
index 0000000000..63041138d1
--- /dev/null
+++ b/app/views/spree/admin/taxonomies/index.html.haml
@@ -0,0 +1,11 @@
+= render partial: 'spree/admin/shared/configuration_menu'
+
+- content_for :page_title do
+  = t("spree.taxonomies")
+
+- content_for :page_actions do
+  %li
+    = button_link_to t("spree.new_taxonomy"), spree.new_admin_taxonomy_url, icon: 'icon-plus', id: 'admin_new_taxonomy_link'
+
+#list-taxonomies
+  = render partial: 'list'
diff --git a/app/views/spree/admin/taxonomies/new.html.haml b/app/views/spree/admin/taxonomies/new.html.haml
new file mode 100644
index 0000000000..a84338ddf1
--- /dev/null
+++ b/app/views/spree/admin/taxonomies/new.html.haml
@@ -0,0 +1,15 @@
+= render partial: 'spree/admin/shared/configuration_menu'
+
+- content_for :page_title do
+  = t("spree.new_taxonomy")
+
+- content_for :page_actions do
+  %li
+    = button_link_to t("spree.back_to_taxonomies_list"), spree.admin_taxonomies_path, icon: 'icon-arrow-left'
+
+= form_for [:admin, @taxonomy] do |f|
+  = render partial: 'form', locals: { f: f }
+  %fieldset.no-border-top
+    %br/
+    .filter-actions.actions
+      = button t("spree.create"), 'icon-ok'
diff --git a/app/views/spree/admin/taxons/_form.html.haml b/app/views/spree/admin/taxons/_form.html.haml
index 19a8af5936..72ba498a4d 100644
--- a/app/views/spree/admin/taxons/_form.html.haml
+++ b/app/views/spree/admin/taxons/_form.html.haml
@@ -1,11 +1,11 @@
-.row{"data-hook" => "admin_inside_taxon_form"}
+.row
   .alpha.five.columns
     = f.field_container :name do
       = f.label :name, t(:name)
       %span.required *
       %br/
-      = error_message_on :taxon, :name, :class => 'fullwidth title'
-      = text_field :taxon, :name, :class => 'fullwidth'
+      = error_message_on :taxon, :name, class: 'fullwidth title'
+      = text_field :taxon, :name, class: 'fullwidth'
     = f.field_container :permalink_part do
       = f.label :permalink_part, t(:permalink)
       %span.required *
@@ -20,17 +20,17 @@
     = f.field_container :meta_title do
       = f.label :meta_title, t(:meta_title)
       %br/
-      = f.text_field :meta_title, :class => 'fullwidth', :rows => 6
+      = f.text_field :meta_title, class: 'fullwidth', rows: 6
     = f.field_container :meta_description do
       = f.label :meta_description, t(:meta_description)
       %br/
-      = f.text_field :meta_description, :class => 'fullwidth', :rows => 6
+      = f.text_field :meta_description, class: 'fullwidth', rows: 6
     = f.field_container :meta_description do
       = f.label :meta_keywords, t(:meta_keywords)
       %br/
-      = f.text_field :meta_keywords, :class => 'fullwidth', :rows => 6
+      = f.text_field :meta_keywords, class: 'fullwidth', rows: 6
   .omega.seven.columns
     = f.field_container :description do
       = f.label :description, t(:description)
       %br/
-      = f.text_area :description, :class => 'fullwidth', :rows => 6
+      = f.text_area :description, class: 'fullwidth', rows: 6
diff --git a/app/views/spree/admin/taxons/_taxon_table.html.haml b/app/views/spree/admin/taxons/_taxon_table.html.haml
new file mode 100644
index 0000000000..7917db0c97
--- /dev/null
+++ b/app/views/spree/admin/taxons/_taxon_table.html.haml
@@ -0,0 +1,20 @@
+%table.index
+  %thead
+    %tr
+      %th= t("spree.name")
+      %th= t("spree.path")
+      %th
+  %tbody
+    - taxons.each do |taxon|
+      - tr_class = cycle('odd', 'even')
+      - tr_id = spree_dom_id(taxon)
+      %tr{class: tr_class, id: tr_id}    
+        %td= taxon.name
+        %td= taxon_path taxon
+        %td.actions
+          = link_to_delete taxon, url: remove_admin_product_taxon_url(@product, taxon), name: icon('delete') + ' ' + t("spree.remove")
+    - if taxons.empty?
+      %tr
+        %td{colspan: "3"}
+          = t("spree.none")
+          \.
diff --git a/app/views/spree/admin/taxons/edit.html.haml b/app/views/spree/admin/taxons/edit.html.haml
new file mode 100644
index 0000000000..7e1e0a45e4
--- /dev/null
+++ b/app/views/spree/admin/taxons/edit.html.haml
@@ -0,0 +1,17 @@
+= render partial: 'spree/admin/shared/configuration_menu'
+
+- content_for :page_title do
+  = t("spree.taxon_edit")
+
+- content_for :page_actions do
+  %li
+    = button_link_to t("spree.back_to_taxonomies_list"), spree.admin_taxonomies_path, icon: 'icon-arrow-left'
+
+- # Because otherwise the form would attempt to use to_param of @taxon
+- form_url = admin_taxonomy_taxon_path(@taxonomy.id, @taxon.id)
+= form_for [:admin, @taxonomy, @taxon], method: :put, url: form_url, html: { multipart: true } do |f|
+  = render partial: 'form', locals: { f: f }
+  .form-buttons
+    = button t('spree.actions.update'), 'icon-refresh'
+    = t("spree.or")
+    = button_link_to t('spree.actions.cancel'), edit_admin_taxonomy_url(@taxonomy), icon: "icon-remove"
diff --git a/app/views/spree/admin/taxons/search.rabl b/app/views/spree/admin/taxons/search.rabl
new file mode 100644
index 0000000000..5214337d12
--- /dev/null
+++ b/app/views/spree/admin/taxons/search.rabl
@@ -0,0 +1,4 @@
+object false
+child(@taxons => :taxons) do
+  attributes :name, :pretty_name, :id
+end
diff --git a/config/routes/spree.rb b/config/routes/spree.rb
index c732615e87..68a1dd9dda 100644
--- a/config/routes/spree.rb
+++ b/config/routes/spree.rb
@@ -89,6 +89,23 @@ Spree::Core::Engine.routes.prepend do
       end
     end
 
+    # Configuration section
+    resources :taxonomies do
+      collection do
+        post :update_positions
+      end
+      member do
+        get :get_children
+      end
+      resources :taxons
+    end
+
+    resources :taxons, :only => [] do
+      collection do
+        get :search
+      end
+    end
+
     resources :tax_rates
     resource  :tax_settings
     resources :tax_categories
diff --git a/spec/features/admin/configuration/taxonomies_spec.rb b/spec/features/admin/configuration/taxonomies_spec.rb
new file mode 100644
index 0000000000..7eb592587f
--- /dev/null
+++ b/spec/features/admin/configuration/taxonomies_spec.rb
@@ -0,0 +1,53 @@
+require 'spec_helper'
+
+describe "Taxonomies" do
+  include AuthenticationWorkflow
+
+  before(:each) do
+    quick_login_as_admin
+    visit spree.admin_path
+    click_link "Configuration"
+  end
+
+  context "show" do
+    it "should display existing taxonomies" do
+      create(:taxonomy, name: 'Brand')
+      create(:taxonomy, name: 'Categories')
+      click_link "Taxonomies"
+      within_row(1) { expect(page).to have_content("Brand") }
+      within_row(2) { expect(page).to have_content("Categories") }
+    end
+  end
+
+  context "create" do
+    before(:each) do
+      click_link "Taxonomies"
+      click_link "admin_new_taxonomy_link"
+    end
+
+    it "should allow an admin to create a new taxonomy" do
+      expect(page).to have_content("New Taxonomy")
+      fill_in "taxonomy_name", with: "sports"
+      click_button "Create"
+      expect(page).to have_content("successfully created!")
+    end
+
+    it "should display validation errors" do
+      fill_in "taxonomy_name", with: ""
+      click_button "Create"
+      expect(page).to have_content("can't be blank")
+    end
+  end
+
+  context "edit" do
+    it "should allow an admin to update an existing taxonomy" do
+      create(:taxonomy)
+      click_link "Taxonomies"
+      within_row(1) { click_icon :edit }
+      fill_in "taxonomy_name", with: "sports 99"
+      click_button "Update"
+      expect(page).to have_content("successfully updated!")
+      expect(page).to have_content("sports 99")
+    end
+  end
+end