diff --git a/lib/datastore.js b/lib/datastore.js
index e93830d..2af3da3 100644
--- a/lib/datastore.js
+++ b/lib/datastore.js
@@ -2,6 +2,7 @@
  * The datastore itself
  * TODO
  * Queue operations
+ * Enable upserts
  * Update and removes should only modify the corresponding part of the database
  */
 
@@ -9,6 +10,7 @@ var fs = require('fs')
   , path = require('path')
   , customUtils = require('./customUtils')
   , model = require('./model')
+  , async = require('async')
   ;
 
 
@@ -107,11 +109,6 @@ Datastore.match = function (obj, query) {
     //, queryKeys = Object.keys(query)
     , i, k;
 
-  //for (i = 0; i < queryKeys.length; i += 1) {
-    //k = queryKeys[i]
-    //if (obj[k] !== query[k]) { match = false; }
-  //}
-
   Object.keys(query).forEach(function (k) {
     if (obj[k] !== query[k]) { match = false; }
   });
@@ -206,33 +203,54 @@ Datastore.modify = function (obj, updateQuery) {
  * @param {Object} newDoc Will replace the former docs
  * @param {Object} options Optional options
  *                 options.multi If true, can update multiple documents (defaults to false)
- * @param {Function} cb Optional callback, signature: err, numReplaced
+ *                 options.upsert If true, document is inserted if the query doesn't match anything
+ * @param {Function} cb Optional callback, signature: err, numReplaced, upsert (set to true if the update was in fact an upsert)
  */
 Datastore.prototype.update = function (query, newDoc, options, cb) {
   var callback
     , self = this
     , numReplaced = 0
-    , multi
+    , multi, upsert
     , newData = [];
 
   if (typeof options === 'function') { cb = options; options = {}; }
   callback = cb || function () {};
   multi = options.multi !== undefined ? options.multi : false;
+  upsert = options.upsert !== undefined ? options.upsert : false;
 
-  self.data.forEach(function (d) {
-    if (Datastore.match(d, query) && (multi || numReplaced === 0)) {
-      numReplaced += 1;
-      newData.push(Datastore.modify(d, newDoc));
-    } else {
-      newData.push(d);
-    }
-  });
+  async.waterfall([
+  function (cb) {   // If upsert option is set, check whether we need to insert the doc
+    if (!upsert) { return cb(); }
 
-  self.persistWholeDatabase(newData, function (err) {
-    if (err) { return callback(err); }
-    self.data = newData;
-    return callback(null, numReplaced);
-  });
+    self.findOne(query, function (err, doc) {
+      if (err) { return callback(err); }
+      if (doc) {
+        return cb();
+      } else {
+        return self.insert(newDoc, function (err) {
+          if (err) { return callback(err); }
+          return callback(null, 1, true);
+        });
+      }
+    });
+  }
+  , function () {   // Perform the update
+    self.data.forEach(function (d) {
+      if (Datastore.match(d, query) && (multi || numReplaced === 0)) {
+        numReplaced += 1;
+        newData.push(Datastore.modify(d, newDoc));
+      } else {
+        newData.push(d);
+      }
+    });
+
+    self.persistWholeDatabase(newData, function (err) {
+      if (err) { return callback(err); }
+      self.data = newData;
+      return callback(null, numReplaced);
+    });
+  }
+  ]);
 };
 
 
diff --git a/package.json b/package.json
index 4823b6c..04b053e 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "nedb",
-  "version": "0.0.3",
+  "version": "0.0.4",
   "author": {
     "name": "tldr.io",
     "email": "hello@tldr.io"
diff --git a/test/db.test.js b/test/db.test.js
index 3a2959a..2606998 100644
--- a/test/db.test.js
+++ b/test/db.test.js
@@ -355,6 +355,31 @@ describe('Database', function () {
       ], done);
     });
 
+    it('Can perform upserts if needed', function (done) {
+      d.update({ impossible: 'db is empty anyway' }, { newDoc: true }, {}, function (err, nr, upsert) {
+        assert.isNull(err);
+        nr.should.equal(0);
+        assert.isUndefined(upsert);
+
+        d.find({}, function (err, docs) {
+          docs.length.should.equal(0);   // Default option for upsert is false
+
+          d.update({ impossible: 'db is empty anyway' }, { newDoc: true }, { upsert: true }, function (err, nr, upsert) {
+            assert.isNull(err);
+            nr.should.equal(1);
+            upsert.should.equal(true);
+
+            d.find({}, function (err, docs) {
+              docs.length.should.equal(1);   // Default option for upsert is false
+              docs[0].newDoc.should.equal(true);
+
+              done();
+            });
+          });
+        });
+      });
+    });
+
   });   // ==== End of 'Update' ==== //