diff --git a/src/repository.c b/src/repository.c
index da3f4ba..5ff2311 100644
--- a/src/repository.c
+++ b/src/repository.c
@@ -575,13 +575,13 @@ Repository_create_blob(Repository *self, PyObject *args)
 }
 
 
-PyDoc_STRVAR(Repository_create_blob_fromfile__doc__,
-  "create_blob_fromfile(path) -> bytes\n"
+PyDoc_STRVAR(Repository_create_blob_fromworkdir__doc__,
+  "create_blob_fromworkdir(path) -> bytes\n"
   "\n"
-  "Create a new blob from file.");
+  "Create a new blob from a file within the working directory.");
 
 PyObject *
-Repository_create_blob_fromfile(Repository *self, PyObject *args)
+Repository_create_blob_fromworkdir(Repository *self, PyObject *args)
 {
     git_oid oid;
     const char* path;
@@ -598,6 +598,29 @@ Repository_create_blob_fromfile(Repository *self, PyObject *args)
 }
 
 
+PyDoc_STRVAR(Repository_create_blob_fromdisk__doc__,
+  "create_blob_fromdisk(path) -> bytes\n"
+  "\n"
+  "Create a new blob from file.");
+
+PyObject *
+Repository_create_blob_fromdisk(Repository *self, PyObject *args)
+{
+    git_oid oid;
+    const char* path;
+    int err;
+
+    if (!PyArg_ParseTuple(args, "s", &path))
+        return NULL;
+
+    err = git_blob_create_fromdisk(&oid, self->repo, path);
+    if (err < 0)
+        return Error_set(err);
+
+    return git_oid_to_python(oid.id);
+}
+
+
 PyDoc_STRVAR(Repository_create_commit__doc__,
   "create_commit(reference, author, committer, message, tree, parents[, encoding]) -> bytes\n"
   "\n"
@@ -1178,7 +1201,8 @@ Repository_lookup_note(Repository *self, PyObject* args)
 
 PyMethodDef Repository_methods[] = {
     METHOD(Repository, create_blob, METH_VARARGS),
-    METHOD(Repository, create_blob_fromfile, METH_VARARGS),
+    METHOD(Repository, create_blob_fromworkdir, METH_VARARGS),
+    METHOD(Repository, create_blob_fromdisk, METH_VARARGS),
     METHOD(Repository, create_commit, METH_VARARGS),
     METHOD(Repository, create_tag, METH_VARARGS),
     METHOD(Repository, TreeBuilder, METH_VARARGS),
diff --git a/test/test_blob.py b/test/test_blob.py
index 9123cbc..a5659a2 100644
--- a/test/test_blob.py
+++ b/test/test_blob.py
@@ -29,6 +29,7 @@
 
 from __future__ import absolute_import
 from __future__ import unicode_literals
+import os
 import unittest
 
 import pygit2
@@ -73,9 +74,9 @@ class BlobTest(utils.RepoTestCase):
         self.assertEqual(len(BLOB_NEW_CONTENT), blob.size)
         self.assertEqual(BLOB_NEW_CONTENT, blob.read_raw())
 
-    def test_create_blob_fromfile(self):
+    def test_create_blob_fromworkdir(self):
 
-        blob_oid = self.repo.create_blob_fromfile("bye.txt")
+        blob_oid = self.repo.create_blob_fromworkdir("bye.txt")
         blob = self.repo[blob_oid]
 
         self.assertTrue(isinstance(blob, pygit2.Blob))
@@ -90,5 +91,19 @@ class BlobTest(utils.RepoTestCase):
         self.assertEqual(len(BLOB_FILE_CONTENT), blob.size)
         self.assertEqual(BLOB_FILE_CONTENT, blob.read_raw())
 
+    def test_create_blob_outside_workdir(self):
+
+        path = os.path.join(os.path.dirname(__file__), 'data', self.repo_dir + '.tar')
+        self.assertRaises(KeyError, self.repo.create_blob_fromworkdir, path)
+
+    def test_create_blob_fromdisk(self):
+
+        path = os.path.join(os.path.dirname(__file__), 'data', self.repo_dir + '.tar')
+        blob_oid = self.repo.create_blob_fromdisk(path)
+        blob = self.repo[blob_oid]
+
+        self.assertTrue(isinstance(blob, pygit2.Blob))
+        self.assertEqual(pygit2.GIT_OBJ_BLOB, blob.type)
+
 if __name__ == '__main__':
     unittest.main()