diff --git a/eventlet/greenio.py b/eventlet/greenio.py
index 6829ab8..647fcbc 100644
--- a/eventlet/greenio.py
+++ b/eventlet/greenio.py
@@ -561,14 +561,25 @@ def wrap_ssl(sock, keyfile=None, certfile=None, server_side=False,
     pass
 
 
+class StopServe(Exception): pass
+
 def serve(sock, handle, concurrency=1000):
-    """Runs a server on the supplied socket.  Calls the function
-    *handle* in a separate greenthread for every incoming request.
-    This function blocks the calling greenthread; it won't return until
+    """Runs a server on the supplied socket.  Calls the function 
+    *handle* in a separate greenthread for every incoming request with
+    two arguments: the client socket object, and the client address::
+        
+        def myhandle(client_sock, client_addr):
+            print "client connected", client_addr
+        
+        eventlet.serve(eventlet.listen(('127.0.0.1', 9999)), myhandle)
+        
+    Returning from *handle* closes the client socket.
+     
+    :func:`serve` blocks the calling greenthread; it won't return until 
     the server completes.  If you desire an immediate return,
     spawn a new greenthread for :func:`serve`.
-
-    The *handle* function must raise an EndServerException to
+      
+    The *handle* function must raise a StopServe exception to 
     gracefully terminate the server -- that's the only way to get the
     server() function to return.  Any other uncaught exceptions raised
     in *handle* are raised as exceptions from :func:`serve`, so be
@@ -580,4 +591,24 @@ def serve(sock, handle, concurrency=1000):
     the server hits the concurrency limit, it stops accepting new
     connections until the existing ones complete.
     """
-    pass
+    from eventlet import greenpool
+    from eventlet import greenthread
+    pool = greenpool.GreenPool(concurrency)
+    server_thread = greenthread.getcurrent()
+ 
+    def stop_checker(t, server_thread, conn):
+        try:
+            t.wait()
+        except greenthread.greenlet.GreenletExit:
+            pass
+        except Exception:
+            conn.close()
+            server_thread.throw(*sys.exc_info())
+ 
+    while True:
+        try:
+            conn, addr = sock.accept()
+            pool.spawn(handle, conn, addr).link(stop_checker, server_thread, conn)
+            conn, addr = None, None
+        except StopServe:
+            return
diff --git a/tests/greenio_test.py b/tests/greenio_test.py
index cee6f27..7afda9c 100644
--- a/tests/greenio_test.py
+++ b/tests/greenio_test.py
@@ -524,5 +524,58 @@ class TestGreenIoLong(LimitedTestCase):
         self.assert_(len(results2) > 0)
 
 
+class TestServe(LimitedTestCase):
+    def setUp(self):
+        super(TestServe, self).setUp()
+        from eventlet import debug
+        debug.hub_exceptions(False)
+        
+    def tearDown(self):
+        super(TestServe, self).tearDown()
+        from eventlet import debug
+        debug.hub_exceptions(True)
+        
+    def test_exiting_server(self):
+        # tests that the server closes the client sock on handle() exit
+        def closer(sock,addr):
+            pass
+            
+        l = eventlet.listen(('localhost', 0))
+        gt = eventlet.spawn(greenio.serve, l, closer)
+        client = eventlet.connect(('localhost', l.getsockname()[1]))
+        client.sendall('a')
+        self.assertEqual('', client.recv(100))
+        gt.kill()
+
+
+    def test_excepting_server(self):
+        # tests that the server closes the client sock on handle() exception
+        def crasher(sock,addr):
+            x = sock.recv(1024)
+            0/0
+            
+        l = eventlet.listen(('localhost', 0))
+        gt = eventlet.spawn(greenio.serve, l, crasher)
+        client = eventlet.connect(('localhost', l.getsockname()[1]))
+        client.sendall('a')
+        self.assertRaises(ZeroDivisionError, gt.wait)
+        self.assertEqual('', client.recv(100))
+
+    def test_excepting_server_already_closed(self):
+        # tests that the server closes the client sock on handle() exception
+        def crasher(sock,addr):
+            x = sock.recv(1024)
+            sock.close()
+            0/0
+            
+        l = eventlet.listen(('localhost', 0))
+        gt = eventlet.spawn(greenio.serve, l, crasher)
+        client = eventlet.connect(('localhost', l.getsockname()[1]))
+        client.sendall('a')
+        self.assertRaises(ZeroDivisionError, gt.wait)
+        self.assertEqual('', client.recv(100))
+
+
+
 if __name__ == '__main__':
     main()