diff --git a/CHANGELOG.markdown b/CHANGELOG.markdown
index d60c2b1819..53fc9188b5 100644
--- a/CHANGELOG.markdown
+++ b/CHANGELOG.markdown
@@ -1,9 +1,10 @@
 Next Release
 ============
 
+* [#248](https://github.com/intridea/grape/pull/248): Fix: API version returns version. - [@narkoz](https://github.com/narkoz).
 * [#242](https://github.com/intridea/grape/issues/242): Fix: permanent redirect status. - [@adamgotterer](https://github.com/adamgotterer).
 * [#236](https://github.com/intridea/grape/pull/236): Allow validation of nested parameters. - [@tim-vandecasteele](https://github.com/tim-vandecasteele).
-* [#201](https://github.com/intridea/grape/pull/201): Added custom exceptions to Grape. Updated validations to use ValidationError that can be rescued. - [@adamgotterer](https://github.com/adamgotterer).
+* [#221](https://github.com/intridea/grape/pull/221): Added custom exceptions to Grape. Updated validations to use ValidationError that can be rescued. - [@adamgotterer](https://github.com/adamgotterer).
 * [#211](https://github.com/intridea/grape/pull/211): Updates to validation and coercion: Fix #211 and force order of operations for presence and coercion - [@adamgotterer](https://github.com/adamgotterer).
 * [#210](https://github.com/intridea/grape/pull/210): Fix: `Endpoint#body_params` causing undefined method 'size' - [@adamgotterer](https://github.com/adamgotterer).
 * [#201](https://github.com/intridea/grape/pull/201): Rewritten `params` DSL, including support for coercion and validations - [@schmurfy](https://github.com/schmurfy).
diff --git a/lib/grape/api.rb b/lib/grape/api.rb
index dbd373b9e8..2b7a5e501a 100644
--- a/lib/grape/api.rb
+++ b/lib/grape/api.rb
@@ -10,7 +10,7 @@ module Grape
   # class in order to build an API.
   class API
     extend Validations::ClassMethods
-    
+
     class << self
       attr_reader :route_set
       attr_reader :versions
@@ -28,7 +28,7 @@ def logger(logger = nil)
           @logger ||= Logger.new($stdout)
         end
       end
-      
+
       def reset!
         @settings  = Grape::Util::HashStack.new
         @route_set = Rack::Mount::RouteSet.new
@@ -106,6 +106,8 @@ def version(*args, &block)
             set(:version_options, options)
           end
         end
+
+        @versions.last unless @versions.nil?
       end
 
       # Add a description to the next namespace or function.
@@ -124,7 +126,7 @@ def default_format(new_format = nil)
       def format(new_format = nil)
         new_format ? set(:format, new_format.to_sym) : settings[:format]
       end
-      
+
       # Specify the format for error messages.
       # May be `:json` or `:txt` (default).
       def error_format(new_format = nil)
@@ -291,7 +293,7 @@ def route(methods, paths = ['/'], route_options = {}, &block)
           :route_options => (@namespace_description || {}).deep_merge(@last_description || {}).deep_merge(route_options || {})
         }
         endpoints << Grape::Endpoint.new(settings.clone, endpoint_options, &block)
-        
+
         @last_description = nil
         reset_validations!
       end
@@ -299,7 +301,7 @@ def route(methods, paths = ['/'], route_options = {}, &block)
       def before(&block)
         imbue(:befores, [block])
       end
-      
+
       def after_validation(&block)
         imbue(:after_validations, [block])
       end
diff --git a/spec/grape/api_spec.rb b/spec/grape/api_spec.rb
index 2ab1860d01..03aecedb1f 100644
--- a/spec/grape/api_spec.rb
+++ b/spec/grape/api_spec.rb
@@ -21,6 +21,21 @@ def app; subject end
     end
   end
 
+  describe '.version' do
+    context 'when defined' do
+      it 'should return version value' do
+        subject.version 'v1'
+        subject.version.should == 'v1'
+      end
+    end
+
+    context 'when not defined' do
+      it 'should return nil' do
+        subject.version.should be_nil
+      end
+    end
+  end
+
   describe '.version using path' do
     it_should_behave_like 'versioning' do
       let(:macro_options) do
@@ -313,7 +328,7 @@ def app; subject end
       get '/'
       last_response.body.should eql 'first second'
     end
-    
+
     it 'should add a after_validation filter' do
       subject.after_validation { @foo = "first #{params[:id]}:#{params[:id].class}"  }
       subject.after_validation { @bar = 'second' }
@@ -687,7 +702,7 @@ def three
     it 'should not re-raise exceptions of type Grape::Exception::Base' do
       class CustomError < Grape::Exceptions::Base; end
       subject.get('/custom_exception'){ raise CustomError }
-      
+
       lambda{ get '/custom_exception' }.should_not raise_error
     end
 
@@ -911,6 +926,9 @@ class CommunicationError < RuntimeError; end
           end
         end
       end
+      it "should return the latest version set" do
+         subject.version.should == 'v2'
+      end
       it "should return versions" do
          subject.versions.should == [ 'v1', 'v2' ]
       end