diff --git a/src/extras/ribbon.js b/src/extras/ribbon.js
new file mode 100644
index 000000000..ca1a2f39e
--- /dev/null
+++ b/src/extras/ribbon.js
@@ -0,0 +1,128 @@
+/**
+ * @license
+ * Copyright 2015 Petr Shevtsov (petr.shevtsov@gmail.com)
+ * MIT-licensed (http://opensource.org/licenses/MIT)
+ *
+ * Ribbon is a horizontal band of colors that runs through the chart. It can be useful
+ * to visualize categorical variables (http://en.wikipedia.org/wiki/Categorical_variable)
+ * that change over time (along the x-axis). For example multiple states of economy
+ * like "bust", "recession", "recovery", "boom" can be encoded as [0, 1, 2, 3]
+ * respectively (or normalized as [0, 0.33, 0.66, 1]) and assigned colors
+ * ["red","orange","green","purple"].
+ *
+ * Plugin options:
+ *
+ * `data`: Array of numeric values in the range from 0 to 1. Ribbon data array
+ * must be of same length as number of rows of Dygraph raw data table.
+ * Each of the values (0-1) scales to a position in the palette array scale
+ * (see palette argument below). For example, if palette is defined as
+ * ["transparent", "#ef2929", "#8ae234"], then 0 is the leftmost position ("#ef2929")
+ * on the palette scale, 1 is the rightmost position ("#8ae234") and 0.5 is the middle
+ * position ("#ef2929").
+ *
+ * `parser`: Function (function (data, dygraph)) returning the array of numeric values.
+ * Function arguments: raw data, dygraph instance. Provide it if the ribbon data,
+ * i.e. encodings are part of the dygraph raw data table rather than supplied separately
+ * through ribbon data argument.
+ *
+ * `options`: Object with the following properties:
+ *
+ *  - `palette`: array of hexadecimal color codes.
+ *    Default: ["transparent", "#ef2929", "#8ae234"].
+ *    Pick colors from e.g. http://www.w3schools.com/tags/ref_colorpicker.asp
+ *
+ *  - `top`: vertical position of the top edge of the ribbon relative to chart height.
+ *    Value in the range from 0 (bottom edge of the chart) to 1 (top edge of the chart).
+ *    E.g. 0.5 places the top edge of the ribbon at the 50% height of the chart.
+ *
+ *  - `bottom`: vertical position of the bottom edge of the ribbon relative to chart
+ *    height. See top.
+ */
+
+/*global Dygraph:false */
+
+Dygraph.Plugins.Ribbon = (function() {
+  "use strict";
+
+  var ribbon = function(options) {
+    options = options || {};
+
+    this.ribbonData_ = options.data || null;
+    this.ribbonDataParser_ = options.parser || null;
+    this.ribbonOptions_ = options.options || {};
+
+    var defaultOptions = {
+      palette: [
+        "transparent",
+        "#ef2929",
+        "#8ae234"
+      ],
+      top: 1,
+      bottom: 0
+    };
+
+    function update(self, o) {
+      if (typeof(o) != 'undefined' && o !== null) {
+        for (var k in o) {
+          if (o.hasOwnProperty(k)) {
+            self[k] = o[k];
+          }
+        }
+      }
+      return self;
+    }
+
+    this.ribbonOptions_ = update(defaultOptions, this.ribbonOptions_);
+    this.ribbonOptions_.top = Math.min(this.ribbonOptions_.top, 1);
+    this.ribbonOptions_.top = Math.max(this.ribbonOptions_.top, 0);
+    this.ribbonOptions_.bottom = Math.min(this.ribbonOptions_.bottom, 1);
+    this.ribbonOptions_.bottom = Math.max(this.ribbonOptions_.bottom, 0);
+
+    this.ribbonOptions_.top = Math.max(this.ribbonOptions_.top, this.ribbonOptions_.bottom);
+    this.ribbonOptions_.bottom = Math.min(this.ribbonOptions_.top, this.ribbonOptions_.bottom);
+  };
+
+  ribbon.prototype.toString = function() {
+    return "Ribbon Plugin";
+  };
+
+  ribbon.prototype.activate = function(g) {
+    if (this.ribbonData_ !== null || this.ribbonDataParser_ !== null) {
+      return {
+        willDrawChart: this.willDrawChart
+      };
+    }
+  };
+
+  ribbon.prototype.decodeColor = function(val) {
+    var max = Math.max.apply(null, this.ribbonData_);
+    val = val / max;
+    var idx = Math.ceil((this.ribbonOptions_.palette.length - 1) * val);
+
+    return this.ribbonOptions_.palette[idx];
+  };
+
+  ribbon.prototype.willDrawChart = function(e) {
+    var g = e.dygraph;
+    var layout = g.layout_;
+    var points = layout.points[0];
+    var area = layout.getPlotArea();
+    if (this.ribbonData_ === null) {
+      this.ribbonData_ = this.ribbonDataParser_(g.rawData_, g);
+    }
+    for (var i = 0; i < points.length; i++) {
+      var point = points[i];
+      var nextpoint = points[i + 1];
+
+      var left = g.toDomCoords(point.xval, 0)[0];
+      var right = (nextpoint === undefined) ? g.canvas_.width : g.toDomCoords(nextpoint.xval, 0)[0];
+      var color = this.decodeColor(this.ribbonData_[point.idx]);
+      var y = area.h * (1 - this.ribbonOptions_.top) + area.y;
+      var h = (area.h - area.h * this.ribbonOptions_.bottom) - y;
+      g.hidden_ctx_.fillStyle = color;
+      g.hidden_ctx_.fillRect(left, y, right - left, h);
+    }
+  };
+
+  return ribbon;
+})();
diff --git a/tests/ribbon.html b/tests/ribbon.html
new file mode 100644
index 000000000..87cf21424
--- /dev/null
+++ b/tests/ribbon.html
@@ -0,0 +1,143 @@
+<!DOCTYPE html>
+<html>
+  <head>
+    <title>Colored Ribbon demo</title>
+    <script type="text/javascript" src="../dist/dygraph.js"></script>
+    <script type="text/javascript" src="../src/extras/ribbon.js"></script>
+  </head>
+  <body>
+    <h1>Colored Ribbon demo</h1>
+
+    <h2>Colored Ribbon with default options</h2>
+    <div id="div_g1" style="width:600px; height:300px;"></div>
+
+    <h2>Colored Ribbon with Encoded colors in data column</h2>
+    <div id="div_g2" style="width:600px; height:300px;"></div>
+
+    <h2>Colored Ribbon with customized height</h2>
+    <div id="div_g3" style="width:600px; height:300px;"></div>
+
+    <h2>Colored Ribbon with customized position</h2>
+    <div id="div_g4" style="width:600px; height:300px;"></div>
+
+    <h2>Colored Ribbon with customized colors</h2>
+    <div id="div_g5" style="width:600px; height:300px;"></div>
+
+    <script type="text/javascript">
+      function data() {
+        return "Date,High,Low\n" +
+        "20070101,62,39\n" +
+        "20070102,62,44\n" +
+        "20070103,62,42\n" +
+        "20070104,57,45\n" +
+        "20070105,54,44\n" +
+        "20070106,55,36\n" +
+        "20070107,62,45\n" +
+        "20070108,66,48\n" +
+        "20070109,63,39\n" +
+        "20070110,57,37\n";
+      }
+
+      var ribbon = new Dygraph.Plugins.Ribbon({
+        data: [0, 0.5, 0.5, 1, 1, 1, 0, 0, 0, 0.5]
+      });
+
+      var g1 = new Dygraph(
+        document.getElementById("div_g1"),
+        data,
+        {
+          plugins: [ribbon]
+        }
+      );
+
+      function data_color() {
+        return "Date,High,Low,Color\n" +
+        "20070101,62,39,0\n" +
+        "20070102,62,44,0.5\n" +
+        "20070103,62,42,0.5\n" +
+        "20070104,57,45,1\n" +
+        "20070105,54,44,1\n" +
+        "20070106,55,36,1\n" +
+        "20070107,62,45,0\n" +
+        "20070108,66,48,0\n" +
+        "20070109,63,39,0\n" +
+        "20070110,57,37,0.5\n";
+      }
+
+      ribbon = new Dygraph.Plugins.Ribbon({
+        parser: function(data) {
+          var colorIdx = 3;
+          var colors = [];
+          for (var i = 0; i < data.length; i++) {
+            var row = data[i];
+            if (row[colorIdx]) {
+              colors.push(row[colorIdx]);
+            } else {
+              colors.push(0);
+            }
+          }
+          return colors;
+        }
+      });
+
+      var g2 = new Dygraph(
+        document.getElementById("div_g2"),
+        data_color,
+        {
+          visibility: [true, true, false], // Hide colors column
+          plugins: [ribbon]
+        }
+      );
+
+      ribbon = new Dygraph.Plugins.Ribbon({
+        data: [0, 0.5, 0.5, 1, 1, 1, 0, 0, 0, 0.5],
+        options: {
+          top: 0.75
+        }
+      });
+
+      var g3 = new Dygraph(
+        document.getElementById("div_g3"),
+        data,
+        {
+          plugins: [ribbon]
+        }
+      );
+
+      ribbon = new Dygraph.Plugins.Ribbon({
+        data: [0, 0.5, 0.5, 1, 1, 1, 0, 0, 0, 0.5],
+        options: {
+          top: 0.75,
+          bottom: 0.25
+        }
+      });
+
+      var g4 = new Dygraph(
+        document.getElementById("div_g4"),
+        data,
+        {
+          plugins: [ribbon]
+        }
+      );
+
+      ribbon = new Dygraph.Plugins.Ribbon({
+        data: [0, 0.5, 0.5, 1, 1, 1, 0, 0, 0, 0.5],
+        options: {
+          palette: [
+            "#ad7fa8",
+            "#75507b",
+            "#5c3566"
+          ]
+        }
+      });
+
+      var g5 = new Dygraph(
+        document.getElementById("div_g5"),
+        data,
+        {
+          plugins: [ribbon]
+        }
+      );
+    </script>
+  </body>
+</html>