diff --git a/ctaocrypt/include/pwdbased.h b/ctaocrypt/include/pwdbased.h
index 431948975..4c9817278 100644
--- a/ctaocrypt/include/pwdbased.h
+++ b/ctaocrypt/include/pwdbased.h
@@ -36,6 +36,8 @@
 
 int PBKDF1(byte* output, const byte* passwd, int pLen, const byte* salt,
            int sLen, int iterations, int kLen, int hashType);
+int PBKDF2(byte* output, const byte* passwd, int pLen, const byte* salt,
+           int sLen, int iterations, int kLen, int hashType);
 
 
 
diff --git a/ctaocrypt/src/pwdbased.c b/ctaocrypt/src/pwdbased.c
index 2cd380f08..8585e5b22 100644
--- a/ctaocrypt/src/pwdbased.c
+++ b/ctaocrypt/src/pwdbased.c
@@ -23,6 +23,26 @@
 #ifndef NO_PWDBASED
 
 #include "pwdbased.h"
+#include "ctc_hmac.h"
+#ifdef CYASSL_SHA512
+    #include "sha512.h"
+#endif
+#ifdef NO_INLINE
+    #include "misc.h"
+#else
+    #include "misc.c"
+#endif
+
+
+
+#ifndef min
+
+    static INLINE word32 min(word32 a, word32 b)
+    {
+        return a > b ? b : a;
+    }
+
+#endif /* min */
 
 
 int PBKDF1(byte* output, const byte* passwd, int pLen, const byte* salt,
@@ -72,5 +92,61 @@ int PBKDF1(byte* output, const byte* passwd, int pLen, const byte* salt,
 }
 
 
+int PBKDF2(byte* output, const byte* passwd, int pLen, const byte* salt,
+           int sLen, int iterations, int kLen, int hashType)
+{
+    word32 i = 1;
+    int    hLen;
+    int    j;
+    Hmac   hmac;
+    byte   buffer[INNER_HASH_SIZE];  /* max size */
+
+    if (hashType == MD5) {
+        hLen = MD5_DIGEST_SIZE;
+    }
+    else if (hashType == SHA) {
+        hLen = SHA_DIGEST_SIZE;
+    }
+    else if (hashType == SHA256) {
+        hLen = SHA256_DIGEST_SIZE;
+    }
+#ifdef CYASSL_SHA512
+    else if (hashType == SHA512) {
+        hLen = SHA512_DIGEST_SIZE;
+    }
+#endif
+    else
+        return -1;  /* bad HMAC hashType */
+
+    HmacSetKey(&hmac, hashType, passwd, pLen);
+
+    while (kLen) {
+        int currentLen;
+        HmacUpdate(&hmac, salt, sLen);
+
+        /* encode i */
+        for (j = 0; j < 4; j++) {
+            byte b = i >> ((3-j) * 8);
+            HmacUpdate(&hmac, &b, 1);
+        }
+        HmacFinal(&hmac, buffer);
+
+        currentLen = min(kLen, hLen);
+        XMEMCPY(output, buffer, currentLen);
+
+        for (j = 1; j < iterations; j++) {
+            HmacUpdate(&hmac, buffer, hLen);
+            HmacFinal(&hmac, buffer);
+            xorbuf(output, buffer, currentLen);
+        }
+
+        output += currentLen;
+        kLen   -= currentLen;
+        i++;
+    }
+
+    return 0;
+}
+
 #endif /* NO_PWDBASED */
 
diff --git a/ctaocrypt/test/test.c b/ctaocrypt/test/test.c
index 50fecd38c..46ca1032a 100644
--- a/ctaocrypt/test/test.c
+++ b/ctaocrypt/test/test.c
@@ -1653,6 +1653,7 @@ int pbkdf2_test()
     const byte salt[] = { 0x78, 0x57, 0x8E, 0x5a, 0x5d, 0x63, 0xcb, 0x06 };
     int   iterations = 2048;
     int   kLen = 24;
+    byte  derived[64];
 
     const byte verify[] = {
         0xBF, 0xDE, 0x6B, 0xE9, 0x4D, 0xF7, 0xE1, 0x1D, 0xD4, 0x09, 0xBC, 0xE2,
@@ -1660,6 +1661,12 @@ int pbkdf2_test()
 
     };
 
+    PBKDF2(derived, (byte*)passwd, strlen(passwd), salt, 8, iterations, kLen,
+           SHA);
+
+    if (memcmp(derived, verify, sizeof(verify)) != 0)
+        return -101;
+
     return 0;
 }
 
@@ -1689,7 +1696,8 @@ int pbkdf1_test()
 
 int pwdbased_test()
 {
-   return pbkdf1_test(); 
+   int ret =  pbkdf1_test();
+   return ret + pbkdf2_test(); 
 }
 
 #endif /* NO_PWDBASED */