diff --git a/lib/commands/install.js b/lib/commands/install.js
index 67cffe7..ff5938d 100644
--- a/lib/commands/install.js
+++ b/lib/commands/install.js
@@ -69,7 +69,8 @@ exports.run = function (settings, args) {
     var a = argParse(args, {
         'repository': {match: ['-r', '--repository'], value: true},
         'target_dir': {match: ['-d', '--package-dir'], value: true},
-        'baseurl': {match: ['-b', '--baseurl'], value: true}
+        'baseurl': {match: ['-b', '--baseurl'], value: true},
+        'save': {match: ['-S', '--save'], value: false}
     });
 
     var opt = a.options;
@@ -117,6 +118,8 @@ exports.run = function (settings, args) {
 
 
 exports.extendOptions = function (proj_dir, settings, cfg, opt) {
+    opt.proj_dir = proj_dir;
+
     if (!opt.target_dir) {
         if (cfg.jam && cfg.jam.packageDir) {
             opt.target_dir = path.resolve(proj_dir, cfg.jam.packageDir);
@@ -159,7 +162,6 @@ exports.reinstallPackages = function (cfg, opt, callback) {
             if (err) {
                 return logger.error(err);
             }
-            // TODO: write package.json if --save option provided
             project.updateRequireConfig(opt.target_dir, opt.baseurl,
                function (err) {
                     if (err) {
@@ -187,7 +189,6 @@ exports.installPackages = function (cfg, names, opt, callback) {
         if (err) {
             return callback(err);
         }
-        // TODO: write package.json if --save option provided
         project.updateRequireConfig(opt.target_dir, opt.baseurl, callback);
     });
 };
@@ -406,7 +407,45 @@ exports.installRepo = function (name, range, opt, callback) {
             if (err) {
                 return callback(err);
             }
-            exports.cpDir(name, v, from_cache, cdir, opt, callback);
+            if (opt.save) {
+                exports.cpDir(name, v, from_cache, cdir, opt, function(err) {
+                    var package;
+
+                    if (err) {
+                        return callback(err);
+                    }
+
+                    package = path.resolve(opt.proj_dir, 'package.json');
+
+                    fs.readFile(path.resolve(package), function(err, data) {
+                        try {
+                            data = JSON.parse(data.toString('utf8'));
+                        } catch(e) {
+                            err = e;
+                        }
+                        if (err) {
+                            return callback();
+                        }
+                        if (!data.dependencies && !data.jam) {
+                            data.jam = {};
+                        }
+                        // if jam namespace exists
+                        if (data.jam) {
+                            data.jam.dependencies = data.jam.dependencies || {};
+                            data.jam.dependencies[name] = v;
+                        } else {
+                            data.dependencies[name] = v;
+                        }
+
+                        data = JSON.stringify(data, null, 2) + '\n';
+                        fs.writeFile(package, data, function(err) {
+                            callback(err);
+                        });
+                    });
+                });
+            } else {
+                exports.cpDir(name, v, from_cache, cdir, opt, callback);
+            }
         }
     );
 };
diff --git a/package.json b/package.json
index 4c553e7..40f7900 100644
--- a/package.json
+++ b/package.json
@@ -34,5 +34,8 @@
     "bugs": {"url": "http://github.com/caolan/jam/issues"},
     "bin": {
         "jam": "./bin/jam.js"
+    },
+    "scripts": {
+        "test": "test/all.sh"
     }
 }
diff --git a/test/integration/test-install-save.js b/test/integration/test-install-save.js
new file mode 100644
index 0000000..b0e473c
--- /dev/null
+++ b/test/integration/test-install-save.js
@@ -0,0 +1,116 @@
+/**
+ * Test description
+ * ================
+ *
+ * Tests that jam install --save adds to package.json
+ *
+ * Starting with project with *ranged* deps in package.json
+ * - jam publish package-one @ 0.0.1
+ * - jam publish package-two @ 0.0.1
+ * - jam install package-one --save, test package.json updated
+ */
+
+
+var couchdb = require('../../lib/couchdb'),
+    logger = require('../../lib/logger'),
+    env = require('../../lib/env'),
+    utils = require('../utils'),
+    async = require('async'),
+    http = require('http'),
+    path = require('path'),
+    ncp = require('ncp').ncp,
+    fs = require('fs'),
+    _ = require('underscore');
+
+
+var pathExists = fs.exists || path.exists;
+
+
+logger.clean_exit = true;
+
+// CouchDB database URL to use for testing
+var TESTDB = process.env['JAM_TEST_DB'],
+    BIN = path.resolve(__dirname, '../../bin/jam.js'),
+    ENV = {JAM_TEST: 'true', JAM_TEST_DB: TESTDB};
+
+if (!TESTDB) {
+    throw 'JAM_TEST_DB environment variable not set';
+}
+
+// remove trailing-slash from TESTDB URL
+TESTDB = TESTDB.replace(/\/$/, '');
+
+
+exports.setUp = function (callback) {
+    // change to integration test directory before running test
+    this._cwd = process.cwd();
+    process.chdir(__dirname);
+
+    // recreate any existing test db
+    couchdb(TESTDB).deleteDB(function (err) {
+        if (err && err.error !== 'not_found') {
+            return callback(err);
+        }
+        // create test db
+        couchdb(TESTDB).createDB(callback);
+    });
+};
+
+exports.tearDown = function (callback) {
+    // change back to original working directory after running test
+    process.chdir(this._cwd);
+    // delete test db
+    couchdb(TESTDB).deleteDB(callback);
+};
+
+
+exports['project with ranged dependencies in package.json'] = {
+
+    setUp: function (callback) {
+        this.project_dir = path.resolve(env.temp, 'jamtest-' + Math.random());
+        // set current project to empty directory
+        ncp('./fixtures/project-rangedeps', this.project_dir, callback);
+    },
+
+    /*
+    tearDown: function (callback) {
+        var that = this;
+        // clear current project
+        //utils.myrimraf(that.project_dir, callback);
+    },
+    */
+
+    'publish, install, ls, remove': function (test) {
+        test.expect(1);
+        var that = this;
+        process.chdir(that.project_dir);
+
+        async.series([
+            async.apply(
+                utils.runJam,
+                ['publish', path.resolve(__dirname, 'fixtures', 'package-one')],
+                {env: ENV}
+            ),
+            async.apply(
+                utils.runJam,
+                ['publish', path.resolve(__dirname, 'fixtures', 'package-two')],
+                {env: ENV}
+            ),
+            async.apply(utils.runJam, ['install', 'package-one', '--save'], {env: ENV}),
+            function (cb) {
+                fs.readFile(path.resolve(that.project_dir, 'package.json'), function(err, data) {
+                    data = JSON.parse(data);
+
+                    test.same(data.jam.dependencies, {
+                        "package-one": "0.0.1",
+                        "package-two": "<=0.0.2"
+                    });
+                    cb();
+                });
+            }
+        ],
+        test.done);
+    }
+
+};
+