diff --git a/src/.jshintrc b/src/.jshintrc
index 55414b5b3fb8..fdb544d3fc9b 100644
--- a/src/.jshintrc
+++ b/src/.jshintrc
@@ -34,6 +34,7 @@
     "nextUid": false,
     "setHashKey": false,
     "extend": false,
+    "merge": false,
     "int": false,
     "inherit": false,
     "noop": false,
diff --git a/src/Angular.js b/src/Angular.js
index 80a9eadb9795..5d217c8f25d2 100644
--- a/src/Angular.js
+++ b/src/Angular.js
@@ -323,6 +323,30 @@ function setHashKey(obj, h) {
   }
 }
 
+
+function baseExtend(dst, objs, deep) {
+  for (var i = 0, ii = objs.length; i < ii; ++i) {
+    var obj = objs[i];
+    if (!isObject(obj) && !isFunction(obj)) continue;
+    var keys = Object.keys(obj);
+    for (var j = 0, jj = keys.length; j < jj; j++) {
+      var key = keys[j];
+      if (key === '$$hashKey') continue;
+      var src = obj[key];
+
+      if (deep && isObject(src)) {
+        if (!isObject(dst[key])) dst[key] = isArray(src) ? [] : {};
+        baseExtend(dst[key], [src], true);
+      } else {
+        dst[key] = src;
+      }
+    }
+  }
+
+  return dst;
+}
+
+
 /**
  * @ngdoc function
  * @name angular.extend
@@ -333,28 +357,36 @@ function setHashKey(obj, h) {
  * Extends the destination object `dst` by copying own enumerable properties from the `src` object(s)
  * to `dst`. You can specify multiple `src` objects. If you want to preserve original objects, you can do so
  * by passing an empty object as the target: `var object = angular.extend({}, object1, object2)`.
- * Note: Keep in mind that `angular.extend` does not support recursive merge (deep copy).
  *
  * @param {Object} dst Destination object.
  * @param {...Object} src Source object(s).
  * @returns {Object} Reference to `dst`.
  */
 function extend(dst) {
-  var h = dst.$$hashKey;
+  return baseExtend(dst, slice.call(arguments, 1), false);
+}
 
-  for (var i = 1, ii = arguments.length; i < ii; i++) {
-    var obj = arguments[i];
-    if (obj) {
-      var keys = Object.keys(obj);
-      for (var j = 0, jj = keys.length; j < jj; j++) {
-        var key = keys[j];
-        dst[key] = obj[key];
-      }
-    }
-  }
 
-  setHashKey(dst, h);
-  return dst;
+/**
+* @ngdoc function
+* @name angular.merge
+* @module ng
+* @kind function
+*
+* @description
+* Deeply extends the destination object `dst` by copying own enumerable properties from the `src` object(s)
+* to `dst`. You can specify multiple `src` objects. If you want to preserve original objects, you can do so
+* by passing an empty object as the target: `var object = angular.merge({}, object1, object2)`.
+*
+* Unlike {@link angular.extend extend()}, `merge()` recursively descends into object properties of source
+* objects, performing a deep copy.
+*
+* @param {Object} dst Destination object.
+* @param {...Object} src Source object(s).
+* @returns {Object} Reference to `dst`.
+*/
+function merge(dst) {
+  return baseExtend(dst, slice.call(arguments, 1), true);
 }
 
 function int(str) {
diff --git a/src/AngularPublic.js b/src/AngularPublic.js
index b81257b9fff7..db9e2be0141c 100644
--- a/src/AngularPublic.js
+++ b/src/AngularPublic.js
@@ -116,6 +116,7 @@ function publishExternalAPI(angular) {
     'bootstrap': bootstrap,
     'copy': copy,
     'extend': extend,
+    'merge': merge,
     'equals': equals,
     'element': jqLite,
     'forEach': forEach,
diff --git a/test/.jshintrc b/test/.jshintrc
index 6bca8382f2d9..87d775ae7f03 100644
--- a/test/.jshintrc
+++ b/test/.jshintrc
@@ -31,6 +31,7 @@
     "nextUid": false,
     "setHashKey": false,
     "extend": false,
+    "merge": false,
     "int": false,
     "inherit": false,
     "noop": false,
diff --git a/test/AngularSpec.js b/test/AngularSpec.js
index e63789100947..3800b4c01c30 100644
--- a/test/AngularSpec.js
+++ b/test/AngularSpec.js
@@ -225,6 +225,74 @@ describe('angular', function() {
     });
   });
 
+
+  describe('merge', function() {
+    it('should recursively copy objects into dst from left to right', function() {
+      var dst = { foo: { bar: 'foobar' }};
+      var src1 = { foo: { bazz: 'foobazz' }};
+      var src2 = { foo: { bozz: 'foobozz' }};
+      merge(dst, src1, src2);
+      expect(dst).toEqual({
+        foo: {
+          bar: 'foobar',
+          bazz: 'foobazz',
+          bozz: 'foobozz'
+        }
+      });
+    });
+
+
+    it('should replace primitives with objects', function() {
+      var dst = { foo: "bloop" };
+      var src = { foo: { bar: { baz: "bloop" }}};
+      merge(dst, src);
+      expect(dst).toEqual({
+        foo: {
+          bar: {
+            baz: "bloop"
+          }
+        }
+      });
+    });
+
+
+    it('should replace null values in destination with objects', function() {
+      var dst = { foo: null };
+      var src = { foo: { bar: { baz: "bloop" }}};
+      merge(dst, src, true);
+      expect(dst).toEqual({
+        foo: {
+          bar: {
+            baz: "bloop"
+          }
+        }
+      });
+    });
+
+
+    it('should copy references to functions by value rather than merging', function() {
+      function fn() {}
+      var dst = { foo: 1 };
+      var src = { foo: fn };
+      merge(dst, src);
+      expect(dst).toEqual({
+        foo: fn
+      });
+    });
+
+
+    it('should create a new array if destination property is a non-object and source property is an array', function() {
+      var dst = { foo: NaN };
+      var src = { foo: [1,2,3] };
+      merge(dst, src, true);
+      expect(dst).toEqual({
+        foo: [1,2,3]
+      });
+      expect(dst.foo).not.toBe(src.foo);
+    });
+  });
+
+
   describe('shallow copy', function() {
     it('should make a copy', function() {
       var original = {key:{}};