diff --git a/notebook/static/base/js/markdown.js b/notebook/static/base/js/markdown.js
new file mode 100644
index 0000000000..94b8850140
--- /dev/null
+++ b/notebook/static/base/js/markdown.js
@@ -0,0 +1,117 @@
+// Copyright (c) Jupyter Development Team.
+// Distributed under the terms of the Modified BSD License.
+
+define([
+    'jquery',
+    'base/js/utils',
+    'base/js/mathjaxutils',
+    'base/js/security',
+    'components/marked/lib/marked',
+    'codemirror/lib/codemirror',
+], function($, utils, mathjaxutils, security, marked, CodeMirror){
+    "use strict";
+
+    marked.setOptions({
+        gfm : true,
+        tables: true,
+        langPrefix: "cm-s-ipython language-",
+        highlight: function(code, lang, callback) {
+            if (!lang) {
+                // no language, no highlight
+                if (callback) {
+                    callback(null, code);
+                    return;
+                } else {
+                    return code;
+                }
+            }
+            utils.requireCodeMirrorMode(lang, function (spec) {
+                var el = document.createElement("div");
+                var mode = CodeMirror.getMode({}, spec);
+                if (!mode) {
+                    console.log("No CodeMirror mode: " + lang);
+                    callback(null, code);
+                    return;
+                }
+                try {
+                    CodeMirror.runMode(code, spec, el);
+                    callback(null, el.innerHTML);
+                } catch (err) {
+                    console.log("Failed to highlight " + lang + " code", err);
+                    callback(err, code);
+                }
+            }, function (err) {
+                console.log("No CodeMirror mode: " + lang);
+                console.log("Require CodeMirror mode error: " + err);
+                callback(null, code);
+            });
+        }
+    });
+
+    var mathjax_init_done = false;
+    function ensure_mathjax_init() {
+        if(!mathjax_init_done) {
+            mathjax_init_done = true;
+            mathjaxutils.init();
+        }
+    }
+
+    function render(markdown, options, callback) {
+        /**
+         * Find a readme in the current directory. Look for files with
+         * a name like 'readme.md' (case insensitive) or similar and
+         * mimetype 'text/markdown'.
+         * 
+         * @param markdown: the markdown text to parse
+         * @param options
+         *  Object with parameters:
+         *      with_math: the markdown can contain mathematics
+         *      clean_tables: prevent default inline styles for table cells
+         *      sanitize: remove dangerous html (like <script>)
+         * @param callback
+         *  A function with two arguments (err, html)
+         *      err: null or the error if there was one
+         *      html: the rendered html string, or if {sanitize: true} was used
+        *             a sanitized jQuery object
+         */
+        options = $.extend({
+            // Apply mathjax transformation
+            with_math: false,
+            // Prevent marked from returning inline styles for table cells
+            clean_tables: false,
+            // Apply sanitation, this will return a jQuery object.
+            sanitize: false,
+        }, options);
+        var renderer = new marked.Renderer();
+        if(options.clean_tables) {
+            renderer.tablecell = function (content, flags) {
+            var type = flags.header ? 'th' : 'td';
+            var style = flags.align == null ? '': ' style="text-align: ' + flags.align + '"';
+            var start_tag = '<' + type + style + '>';
+            var end_tag = '</' + type + '>\n';
+            return start_tag + content + end_tag;
+            };
+        }
+        var text = markdown;
+        var math = null;
+        if(options.with_math) {
+            ensure_mathjax_init();
+            var text_and_math = mathjaxutils.remove_math(markdown);
+            text = text_and_math[0];
+            math = text_and_math[1];
+        }
+        marked(text, { renderer: renderer }, function (err, html) {
+            if(!err) {
+                if(options.with_math) {
+                    html = mathjaxutils.replace_math(html, math);
+                }
+                if(options.sanitize) {
+                    html = $(security.sanitize_html_and_parse(html));
+                }
+            }
+            callback(err, html);
+        });
+    }
+
+    return {'render': render};
+});
diff --git a/notebook/static/notebook/js/mathjaxutils.js b/notebook/static/base/js/mathjaxutils.js
similarity index 100%
rename from notebook/static/notebook/js/mathjaxutils.js
rename to notebook/static/base/js/mathjaxutils.js
diff --git a/notebook/static/base/js/namespace.js b/notebook/static/base/js/namespace.js
index d82ff7b567..73ecef6a0a 100644
--- a/notebook/static/base/js/namespace.js
+++ b/notebook/static/base/js/namespace.js
@@ -32,13 +32,13 @@ define(function(){
     // expose modules
     
     jprop('utils','base/js/utils')
+    jprop('mathjaxutils','base/js/mathjaxutils');
     
     //Jupyter.load_extensions = Jupyter.utils.load_extensions;
     // 
     jprop('security','base/js/security');
     jprop('keyboard','base/js/keyboard');
     jprop('dialog','base/js/dialog');
-    jprop('mathjaxutils','notebook/js/mathjaxutils');
 
 
     //// exposed constructors
diff --git a/notebook/static/notebook/js/notebook.js b/notebook/static/notebook/js/notebook.js
index d2f4ba0b93..3b9b623020 100644
--- a/notebook/static/notebook/js/notebook.js
+++ b/notebook/static/notebook/js/notebook.js
@@ -12,6 +12,7 @@ define([
     'base/js/utils',
     'base/js/i18n',
     'base/js/dialog',
+    'base/js/markdown',
     './cell',
     './textcell',
     './codecell',
@@ -19,10 +20,9 @@ define([
     'services/config',
     'services/sessions/session',
     './celltoolbar',
-    'components/marked/lib/marked',
     'codemirror/lib/codemirror',
     'codemirror/addon/runmode/runmode',
-    './mathjaxutils',
+    'base/js/mathjaxutils',
     'base/js/keyboard',
     './tooltip',
     './celltoolbarpresets/default',
@@ -40,6 +40,7 @@ define([
     utils,
     i18n,
     dialog,
+    markdown,
     cellmod,
     textcell,
     codecell,
@@ -47,7 +48,6 @@ define([
     configmod,
     session,
     celltoolbar,
-    marked,
     CodeMirror,
     runMode,
     mathjaxutils,
@@ -116,46 +116,6 @@ define([
         
         mathjaxutils.init();
 
-        if (marked) {
-            marked.setOptions({
-                gfm : true,
-                tables: true,
-                // FIXME: probably want central config for CodeMirror theme when we have js config
-                langPrefix: "cm-s-ipython language-",
-                highlight: function(code, lang, callback) {
-                    if (!lang) {
-                        // no language, no highlight
-                        if (callback) {
-                            callback(null, code);
-                            return;
-                        } else {
-                            return code;
-                        }
-                    }
-                    utils.requireCodeMirrorMode(lang, function (spec) {
-                        var el = document.createElement("div");
-                        var mode = CodeMirror.getMode({}, spec);
-                        if (!mode) {
-                            console.log("No CodeMirror mode: " + lang);
-                            callback(null, code);
-                            return;
-                        }
-                        try {
-                            CodeMirror.runMode(code, spec, el);
-                            callback(null, el.innerHTML);
-                        } catch (err) {
-                            console.log("Failed to highlight " + lang + " code", err);
-                            callback(err, code);
-                        }
-                    }, function (err) {
-                        console.log("No CodeMirror mode: " + lang);
-                        console.log("Require CodeMirror mode error: " + err);
-                        callback(null, code);
-                    });
-                }
-            });
-        }
-
         this.element = $(selector);
         this.element.scroll();
         this.element.data("notebook", this);
diff --git a/notebook/static/notebook/js/outputarea.js b/notebook/static/notebook/js/outputarea.js
index da72caa5ea..0a04480b9d 100644
--- a/notebook/static/notebook/js/outputarea.js
+++ b/notebook/static/notebook/js/outputarea.js
@@ -7,10 +7,9 @@ define([
     'base/js/i18n',
     'base/js/security',
     'base/js/keyboard',
+    'base/js/markdown',
     'services/config',
-    'notebook/js/mathjaxutils',
-    'components/marked/lib/marked',
-], function($, utils, i18n, security, keyboard, configmod, mathjaxutils, marked) {
+], function($, utils, i18n, security, keyboard, markdown, configmod) {
     "use strict";
 
     /**
@@ -722,25 +721,15 @@ define([
     };
 
 
-    var append_markdown = function(markdown, md, element) {
+    var append_markdown = function(text, md, element) {
         var type = MIME_MARKDOWN;
         var toinsert = this.create_output_subarea(md, "output_markdown rendered_html", type);
-        var text_and_math = mathjaxutils.remove_math(markdown);
-        var text = text_and_math[0];
-        var math = text_and_math[1];
-        // Prevent marked from returning inline styles for table cells
-        var renderer = new marked.Renderer();
-        renderer.tablecell = function (content, flags) {
-          var type = flags.header ? 'th' : 'td';
-          var style = flags.align == null ? '': ' style="text-align: ' + flags.align + '"';
-          var start_tag = '<' + type + style + '>';
-          var end_tag = '</' + type + '>\n';
-          return start_tag + content + end_tag;
-        };
-        marked(text, { renderer: renderer }, function (err, html) {
-            html = mathjaxutils.replace_math(html, math);
+        markdown.render(text, {
+            with_math: true,
+            clean_tables: true
+        }, function (err, html) {
             toinsert.append(html);
-        });
+        })
         dblclick_to_reset_size(toinsert.find('img'));
         element.append(toinsert);
         return toinsert;
diff --git a/notebook/static/notebook/js/textcell.js b/notebook/static/notebook/js/textcell.js
index c844d50848..2658ec4a8e 100644
--- a/notebook/static/notebook/js/textcell.js
+++ b/notebook/static/notebook/js/textcell.js
@@ -6,11 +6,9 @@ define([
     'base/js/utils',
     'base/js/i18n',
     'notebook/js/cell',
-    'base/js/security',
+    'base/js/markdown',
     'services/config',
-    'notebook/js/mathjaxutils',
     'notebook/js/celltoolbar',
-    'components/marked/lib/marked',
     'codemirror/lib/codemirror',
     'codemirror/mode/gfm/gfm',
     'notebook/js/codemirror-ipythongfm'
@@ -19,11 +17,9 @@ define([
     utils,
     i18n,
     cell,
-    security,
+    markdown,
     configmod,
-    mathjaxutils,
     celltoolbar,
-    marked,
     CodeMirror,
     gfm,
     ipgfm
@@ -65,7 +61,6 @@ define([
                     events: this.events}]);
 
         this.cell_type = this.cell_type || 'text';
-        mathjaxutils = mathjaxutils;
         this.rendered = false;
     };
 
@@ -247,8 +242,9 @@ define([
                 // can reference an image in markdown (using []() or a
                 // HTML <img>)
                 var text = this.get_text();
-                marked(text, function (err, html) {
-                    html = $(security.sanitize_html_and_parse(html));
+                markdown.render(text, {
+                    sanitize: true,
+                }, function (err, html) {
                     html.find('img[src^="attachment:"]').each(function (i, h) {
                         h = $(h);
                         var key = h.attr('src').replace(/^attachment:/, '');
@@ -388,21 +384,11 @@ define([
             var text = this.get_text();
             var math = null;
             if (text === "") { text = this.placeholder; }
-            var text_and_math = mathjaxutils.remove_math(text);
-            text = text_and_math[0];
-            math = text_and_math[1];
-            // Prevent marked from returning inline styles for table cells
-            var renderer = new marked.Renderer();
-            renderer.tablecell = function (content, flags) {
-              var type = flags.header ? 'th' : 'td';
-              var style = flags.align == null ? '': ' style="text-align: ' + flags.align + '"';
-              var start_tag = '<' + type + style + '>';
-              var end_tag = '</' + type + '>\n';
-              return start_tag + content + end_tag;
-            };
-            marked(text, { renderer: renderer }, function (err, html) {
-                html = mathjaxutils.replace_math(html, math);
-                html = $(security.sanitize_html_and_parse(html));
+            markdown.render(text, {
+                with_math: true,
+                clean_tables: true,
+                sanitize: true,
+            }, function (err, html) {
                 // add anchors to headings
                 html.find(":header").addBack(":header").each(function (i, h) {
                     h = $(h);
diff --git a/notebook/static/tree/js/directoryreadme.js b/notebook/static/tree/js/directoryreadme.js
new file mode 100644
index 0000000000..2c17f55618
--- /dev/null
+++ b/notebook/static/tree/js/directoryreadme.js
@@ -0,0 +1,185 @@
+// Copyright (c) Jupyter Development Team.
+// Distributed under the terms of the Modified BSD License.
+
+define([
+    'jquery',
+    'base/js/utils',
+    'base/js/events',
+    'base/js/markdown',
+], function ($, utils, events, markdown) {
+    "use strict";
+
+    function endsWith(haystack, needle) {
+        if(haystack.endsWith) return haystack.endsWith(needle);
+        return haystack.substring(
+            haystack.length - needle.length, haystack.length) === needle;
+    }
+
+    var DirectoryReadme = function (selector, notebook_list) {
+        /**
+         * Constructor
+         *
+         * Parameters:
+         *  selector: string
+         *  notebook_list: NotebookList
+         *      Used to obtain a file listing of the active directory.
+         */
+        this.selector = selector;
+        this.element = $(selector);
+        this.notebook_list = notebook_list;
+        this.drawn_readme = null;
+        this.readme_order = [
+            /^readme\.(md|markdown)$/i,
+            /^about\.(md|markdown)$/i,
+            /^readme(\.[^\.]*)?$/i,
+            /^about(\.[^\.]*)?$/i,
+        ]
+
+        this.init_readme();
+        this.bind_events();
+    };
+
+    DirectoryReadme.prototype.find_readme = function() {
+        /**
+         * Find a readme in the current directory. Look for files with
+         * a name matching a pattern in this.readme_order.
+         * 
+         * 
+         * @return null or { name, path, last_modified... }
+         */
+        var files_in_directory = this.notebook_list.model_list.content;
+
+
+        for(var j = 0; j < this.readme_order.length; ++j) {
+            var readme_name = this.readme_order[j];
+            for (var i = 0; i < files_in_directory.length; ++i) {
+                var file = files_in_directory[i];
+                if(file.type === "file"
+                    && file.name.match(readme_name)
+                ){
+                    return file;
+                }
+            }
+        }
+        return null;
+    }
+
+    DirectoryReadme.prototype.needs_update = function(readme) {
+        /**
+         * Checks if readme is newer or different from the current drawn readme.
+         * 
+         * @private
+         * @return if a redraw should happen
+         */
+        if(this.drawn_readme === readme) return false;
+        if(this.drawn_readme === null || readme === null) return true;
+        if(this.drawn_readme.path !== readme.path) return true;
+        if(this.draw_readme.last_modified < readme.last_modified) return true;
+        return false;
+    }
+
+
+    DirectoryReadme.prototype.fetch_readme = function() {
+        /**
+         * Find and fetch a readme file, and if necessary trigger a redraw.
+         */
+        var readme = this.find_readme();
+
+        if(this.needs_update(readme)) {
+            if(readme === null) {
+                this.clear_readme();
+            } else {
+                var that = this;
+                this.notebook_list.contents.get(readme.path, {type: 'file'}).then(
+                    function(file) {
+                        if(file.format !== "text") {
+                            that.clear_readme(file);
+                        } else {
+                            that.draw_readme(file);
+                        }
+                    },
+                    function() {
+                        that.clear_readme();
+                    }
+                );
+            }
+        }
+    }
+
+    DirectoryReadme.prototype.bind_events = function () {
+        /**
+         * When the notebook_list fires a draw_notebook event, fetch the readme. 
+         */
+        events.on("draw_notebook_list.NotebookList", $.proxy(this.fetch_readme, this));
+
+        var that = this;
+        events.on("notebook_deleted.NotebookList", function(event, path) {
+            if(that.drawn_readme.path === path) {
+                that.clear_readme();
+            }
+        });
+    }
+    
+    DirectoryReadme.prototype.init_readme = function() {
+        /**
+         * Build the DOM.
+         */
+        var element = this.element;
+        element.hide().addClass("list_container");
+
+        this.title = $("<a />");
+        $("<div/>")
+        .addClass("list_header row readme_header")
+        .html([
+            $('<i/>')
+            .addClass('item_icon file_icon'),
+            this.title
+        ]).appendTo(element);
+
+
+        this.page = $("<div/>")
+        .addClass("readme_content")
+        .appendTo(element);
+    } 
+
+    DirectoryReadme.prototype.clear_readme = function (drawn_readme) {
+        /**
+         * If no readme is found, hide.
+         */
+        this.drawn_readme = drawn_readme || null;
+        this.element.hide();
+    }
+    
+    DirectoryReadme.prototype.draw_readme = function (file) {
+        /**
+         * Draw the given readme file. This function is used by fetch_readme.
+         * 
+         * @param file: {name, path, content}
+         */
+        this.drawn_readme = file;
+        this.element.show();
+        this.title
+        .attr("href", 
+            utils.url_path_join(
+                this.notebook_list.base_url,
+                "edit",
+                utils.encode_uri_components(file.path)
+            ))
+        .text(file.name);
+
+        var page = this.page;
+        if(endsWith(file.name.toLowerCase(), ".md") || endsWith(file.name.toLowerCase(), ".markdown")){
+            markdown.render(file.content, {
+                with_math: true,
+                sanitize: true
+            }, function(err, html) {
+                page.html(html);
+                utils.typeset(page);
+            });
+        } else {
+            page.html($("<pre>").text(file.content.replace(/\r\n/g,'\n')));
+        }
+    };
+    
+    return {'DirectoryReadme': DirectoryReadme};
+});
diff --git a/notebook/static/tree/js/main.js b/notebook/static/tree/js/main.js
index d1952d60e6..93b50c91e0 100644
--- a/notebook/static/tree/js/main.js
+++ b/notebook/static/tree/js/main.js
@@ -36,6 +36,7 @@ requirejs([
     'tree/js/terminallist',
     'tree/js/newnotebook',
     'tree/js/shutdownbutton',
+    'tree/js/directoryreadme',
     'auth/js/loginwidget',
     'bidi/bidi',
 ], function(
@@ -54,6 +55,7 @@ requirejs([
     terminallist,
     newnotebook,
     shutdownbutton,
+    directoryreadme,
     loginwidget,
     bidi){
     "use strict";
@@ -100,7 +102,8 @@ requirejs([
     var kernel_list = new kernellist.KernelList('#running_list',  $.extend({
         session_list:  session_list},
         common_options));
-    
+    var directory_readme = new directoryreadme.DirectoryReadme('#directory_readme', notebook_list);
+
     var terminal_list;
     if (utils.get_body_data("terminalsAvailable") === "True") {
         terminal_list = new terminallist.TerminalList('#terminal_list', common_options);
diff --git a/notebook/static/tree/js/notebooklist.js b/notebook/static/tree/js/notebooklist.js
index c35f3d9f83..8e627828ed 100644
--- a/notebook/static/tree/js/notebooklist.js
+++ b/notebook/static/tree/js/notebooklist.js
@@ -1285,7 +1285,7 @@ define([
             var element = $(this);
             if (element.data("path") === path) {
                 element.remove();
-                events.trigger('notebook_deleted.NotebookList');
+                events.trigger('notebook_deleted.NotebookList', [path]);
                 that._selection_changed();
             }
         });
diff --git a/notebook/static/tree/less/tree.less b/notebook/static/tree/less/tree.less
index 27f7123f2d..a4c647cf12 100644
--- a/notebook/static/tree/less/tree.less
+++ b/notebook/static/tree/less/tree.less
@@ -15,6 +15,12 @@
 // The left padding of the selector button's contents.
 @dashboard-selectorbtn-lpad: 7px;
 
+// The horizontal padding of the readme.
+@dashboard_readme_lr_pad: 21px;
+// The vertical padding of the readme.
+@dashboard_readme_top_pad: 7px;
+@dashboard_readme_bottom_pad: 14px;
+
 ul#tabs {
     margin-bottom: @dashboard_tb_pad;
 }
@@ -410,3 +416,16 @@ ul#new-menu {
     display: inline-block;
     padding-top: @dashboard_tb_pad;
 }
+
+#directory_readme {
+    .readme_header {
+        padding-top: @dashboard_tb_pad;
+        padding-bottom: @dashboard_tb_pad;
+        padding-left: @dashboard_lr_pad;
+        padding-right: @dashboard_lr_pad;
+    }
+
+    .readme_content {
+        padding: @dashboard_readme_top_pad @dashboard_readme_lr_pad @dashboard_readme_bottom_pad;
+    }
+}
\ No newline at end of file
diff --git a/notebook/templates/tree.html b/notebook/templates/tree.html
index 815aee467b..1138b4d898 100644
--- a/notebook/templates/tree.html
+++ b/notebook/templates/tree.html
@@ -1,5 +1,22 @@
 {% extends "page.html" %}
 
+{% block stylesheet %}
+
+{% if mathjax_url %}
+<script type="text/javascript" src="{{mathjax_url}}?config={{mathjax_config}}&delayStartupUntil=configured" charset="utf-8"></script>
+{% endif %}
+<script type="text/javascript">
+// MathJax disabled, set as null to distinguish from *missing* MathJax,
+// where it will be undefined, and should prompt a dialog later.
+window.mathjax_url = "{{mathjax_url}}";
+</script>
+
+<link rel="stylesheet" href="{{ static_url("components/codemirror/lib/codemirror.css") }}">
+
+{{super()}}
+
+{% endblock %}
+
 {% block title %}{{page_title}}{% endblock %}
 
 
@@ -142,6 +159,7 @@
               </div>
             </div>
           </div>
+          <div id="directory_readme"></div>
         </div>
         <div id="running" class="tab-pane">
           <div id="running_toolbar" class="row">
diff --git a/notebook/tests/notebook/markdown.js b/notebook/tests/notebook/markdown.js
index 202379f0a0..c2341ccfb1 100644
--- a/notebook/tests/notebook/markdown.js
+++ b/notebook/tests/notebook/markdown.js
@@ -112,7 +112,7 @@ casper.notebook_test(function () {
     function mathjax_render_test(input_string, result, message){
       casper.thenEvaluate(function (text){
         window._test_result = null;
-        require(['notebook/js/mathjaxutils'],function(mathjaxutils){
+        require(['base/js/mathjaxutils'],function(mathjaxutils){
           window._test_result = mathjaxutils.remove_math(text);
         });
       }, {text: input_string});
diff --git a/notebook/tree/handlers.py b/notebook/tree/handlers.py
index bb4958d289..ea5a4ee3e1 100644
--- a/notebook/tree/handlers.py
+++ b/notebook/tree/handlers.py
@@ -51,7 +51,9 @@ def get(self, path=''):
                 breadcrumbs=breadcrumbs,
                 terminals_available=self.settings['terminals_available'],
                 server_root=self.settings['server_root_dir'],
-                shutdown_button=self.settings.get('shutdown_button', False)
+                shutdown_button=self.settings.get('shutdown_button', False),
+                mathjax_url=self.mathjax_url,
+                mathjax_config=self.mathjax_config
             ))
         elif cm.file_exists(path):
             # it's not a directory, we have redirecting to do