diff --git a/bech32/README.md b/bech32/README.md
new file mode 100644
index 0000000..e6fa43f
--- /dev/null
+++ b/bech32/README.md
@@ -0,0 +1,29 @@
+bech32
+==========
+
+[![Build Status](http://img.shields.io/travis/btcsuite/btcutil.svg)](https://travis-ci.org/btcsuite/btcutil)
+[![ISC License](http://img.shields.io/badge/license-ISC-blue.svg)](http://copyfree.org)
+[![GoDoc](https://godoc.org/github.com/btcsuite/btcutil/bech32?status.png)](http://godoc.org/github.com/btcsuite/btcutil/bech32)
+
+Package bech32 provides a Go implementation of the bech32 format specified in
+[BIP 173](https://github.com/bitcoin/bips/blob/master/bip-0173.mediawiki).
+
+Test vectors from BIP 173 are added to ensure compatibility with the BIP.
+
+## Installation and Updating
+
+```bash
+$ go get -u github.com/btcsuite/btcutil/bech32
+```
+
+## Examples
+
+* [Bech32 decode Example](http://godoc.org/github.com/btcsuite/btcutil/bech32#example-Bech32Decode)
+  Demonstrates how to decode a bech32 encoded string.
+* [Bech32 encode Example](http://godoc.org/github.com/btcsuite/btcutil/bech32#example-BechEncode)
+  Demonstrates how to encode data into a bech32 string.
+
+## License
+
+Package bech32 is licensed under the [copyfree](http://copyfree.org) ISC
+License.
diff --git a/bech32/bech32.go b/bech32/bech32.go
new file mode 100644
index 0000000..8bda0a1
--- /dev/null
+++ b/bech32/bech32.go
@@ -0,0 +1,252 @@
+// Copyright (c) 2017 The btcsuite developers
+// Use of this source code is governed by an ISC
+// license that can be found in the LICENSE file.
+
+package bech32
+
+import (
+	"fmt"
+	"strings"
+)
+
+const charset = "qpzry9x8gf2tvdw0s3jn54khce6mua7l"
+
+var gen = []int{0x3b6a57b2, 0x26508e6d, 0x1ea119fa, 0x3d4233dd, 0x2a1462b3}
+
+// Decode decodes a bech32 encoded string, returning the human-readable
+// part and the data part excluding the checksum.
+func Decode(bech string) (string, []byte, error) {
+	// The maximum allowed length for a bech32 string is 90. It must also
+	// be at least 8 characters, since it needs a non-empty HRP, a
+	// separator, and a 6 character checksum.
+	if len(bech) < 8 || len(bech) > 90 {
+		return "", nil, fmt.Errorf("invalid bech32 string length %d",
+			len(bech))
+	}
+	// Only	ASCII characters between 33 and 126 are allowed.
+	for i := 0; i < len(bech); i++ {
+		if bech[i] < 33 || bech[i] > 126 {
+			return "", nil, fmt.Errorf("invalid character in "+
+				"string: '%c'", bech[i])
+		}
+	}
+
+	// The characters must be either all lowercase or all uppercase.
+	lower := strings.ToLower(bech)
+	upper := strings.ToUpper(bech)
+	if bech != lower && bech != upper {
+		return "", nil, fmt.Errorf("string not all lowercase or all " +
+			"uppercase")
+	}
+
+	// We'll work with the lowercase string from now on.
+	bech = lower
+
+	// The string is invalid if the last '1' is non-existent, it is the
+	// first character of the string (no human-readable part) or one of the
+	// last 6 characters of the string (since checksum cannot contain '1'),
+	// or if the string is more than 90 characters in total.
+	one := strings.LastIndexByte(bech, '1')
+	if one < 1 || one+7 > len(bech) {
+		return "", nil, fmt.Errorf("invalid index of 1")
+	}
+
+	// The human-readable part is everything before the last '1'.
+	hrp := bech[:one]
+	data := bech[one+1:]
+
+	// Each character corresponds to the byte with value of the index in
+	// 'charset'.
+	decoded, err := toBytes(data)
+	if err != nil {
+		return "", nil, fmt.Errorf("failed converting data to bytes: "+
+			"%v", err)
+	}
+
+	if !bech32VerifyChecksum(hrp, decoded) {
+		moreInfo := ""
+		checksum := bech[len(bech)-6:]
+		expected, err := toChars(bech32Checksum(hrp,
+			decoded[:len(decoded)-6]))
+		if err == nil {
+			moreInfo = fmt.Sprintf("Expected %v, got %v.",
+				expected, checksum)
+		}
+		return "", nil, fmt.Errorf("checksum failed. " + moreInfo)
+	}
+
+	// We exclude the last 6 bytes, which is the checksum.
+	return hrp, decoded[:len(decoded)-6], nil
+}
+
+// Encode encodes a byte slice into a bech32 string with the
+// human-readable part hrb. Note that the bytes must each encode 5 bits
+// (base32).
+func Encode(hrp string, data []byte) (string, error) {
+	// Calculate the checksum of the data and append it at the end.
+	checksum := bech32Checksum(hrp, data)
+	combined := append(data, checksum...)
+
+	// The resulting bech32 string is the concatenation of the hrp, the
+	// separator 1, data and checksum. Everything after the separator is
+	// represented using the specified charset.
+	dataChars, err := toChars(combined)
+	if err != nil {
+		return "", fmt.Errorf("unable to convert data bytes to chars: "+
+			"%v", err)
+	}
+	return hrp + "1" + dataChars, nil
+}
+
+// toBytes converts each character in the string 'chars' to the value of the
+// index of the correspoding character in 'charset'.
+func toBytes(chars string) ([]byte, error) {
+	decoded := make([]byte, 0, len(chars))
+	for i := 0; i < len(chars); i++ {
+		index := strings.IndexByte(charset, chars[i])
+		if index < 0 {
+			return nil, fmt.Errorf("invalid character not part of "+
+				"charset: %v", chars[i])
+		}
+		decoded = append(decoded, byte(index))
+	}
+	return decoded, nil
+}
+
+// toChars converts the byte slice 'data' to a string where each byte in 'data'
+// encodes the index of a character in 'charset'.
+func toChars(data []byte) (string, error) {
+	result := make([]byte, 0, len(data))
+	for _, b := range data {
+		if int(b) >= len(charset) {
+			return "", fmt.Errorf("invalid data byte: %v", b)
+		}
+		result = append(result, charset[b])
+	}
+	return string(result), nil
+}
+
+// ConvertBits converts a byte slice where each byte is encoding fromBits bits,
+// to a byte slice where each byte is encoding toBits bits.
+func ConvertBits(data []byte, fromBits, toBits uint8, pad bool) ([]byte, error) {
+	if fromBits < 1 || fromBits > 8 || toBits < 1 || toBits > 8 {
+		return nil, fmt.Errorf("only bit groups between 1 and 8 allowed")
+	}
+
+	// The final bytes, each byte encoding toBits bits.
+	var regrouped []byte
+
+	// Keep track of the next byte we create and how many bits we have
+	// added to it out of the toBits goal.
+	nextByte := byte(0)
+	filledBits := uint8(0)
+
+	for _, b := range data {
+
+		// Discard unused bits.
+		b = b << (8 - fromBits)
+
+		// How many bits remaining to extract from the input data.
+		remFromBits := fromBits
+		for remFromBits > 0 {
+			// How many bits remaining to be added to the next byte.
+			remToBits := toBits - filledBits
+
+			// The number of bytes to next extract is the minimum of
+			// remFromBits and remToBits.
+			toExtract := remFromBits
+			if remToBits < toExtract {
+				toExtract = remToBits
+			}
+
+			// Add the next bits to nextByte, shifting the already
+			// added bits to the left.
+			nextByte = (nextByte << toExtract) | (b >> (8 - toExtract))
+
+			// Discard the bits we just extracted and get ready for
+			// next iteration.
+			b = b << toExtract
+			remFromBits -= toExtract
+			filledBits += toExtract
+
+			// If the nextByte is completely filled, we add it to
+			// our regrouped bytes and start on the next byte.
+			if filledBits == toBits {
+				regrouped = append(regrouped, nextByte)
+				filledBits = 0
+				nextByte = 0
+			}
+		}
+	}
+
+	// We pad any unfinished group if specified.
+	if pad && filledBits > 0 {
+		nextByte = nextByte << (toBits - filledBits)
+		regrouped = append(regrouped, nextByte)
+		filledBits = 0
+		nextByte = 0
+	}
+
+	// Any incomplete group must be <= 4 bits, and all zeroes.
+	if filledBits > 0 && (filledBits > 4 || nextByte != 0) {
+		return nil, fmt.Errorf("invalid incomplete group")
+	}
+
+	return regrouped, nil
+}
+
+// For more details on the checksum calculation, please refer to BIP 173.
+func bech32Checksum(hrp string, data []byte) []byte {
+	// Convert the bytes to list of integers, as this is needed for the
+	// checksum calculation.
+	integers := make([]int, len(data))
+	for i, b := range data {
+		integers[i] = int(b)
+	}
+	values := append(bech32HrpExpand(hrp), integers...)
+	values = append(values, []int{0, 0, 0, 0, 0, 0}...)
+	polymod := bech32Polymod(values) ^ 1
+	var res []byte
+	for i := 0; i < 6; i++ {
+		res = append(res, byte((polymod>>uint(5*(5-i)))&31))
+	}
+	return res
+}
+
+// For more details on the polymod calculation, please refer to BIP 173.
+func bech32Polymod(values []int) int {
+	chk := 1
+	for _, v := range values {
+		b := chk >> 25
+		chk = (chk&0x1ffffff)<<5 ^ v
+		for i := 0; i < 5; i++ {
+			if (b>>uint(i))&1 == 1 {
+				chk ^= gen[i]
+			}
+		}
+	}
+	return chk
+}
+
+// For more details on HRP expansion, please refer to BIP 173.
+func bech32HrpExpand(hrp string) []int {
+	v := make([]int, 0, len(hrp)*2+1)
+	for i := 0; i < len(hrp); i++ {
+		v = append(v, int(hrp[i]>>5))
+	}
+	v = append(v, 0)
+	for i := 0; i < len(hrp); i++ {
+		v = append(v, int(hrp[i]&31))
+	}
+	return v
+}
+
+// For more details on the checksum verification, please refer to BIP 173.
+func bech32VerifyChecksum(hrp string, data []byte) bool {
+	integers := make([]int, len(data))
+	for i, b := range data {
+		integers[i] = int(b)
+	}
+	concat := append(bech32HrpExpand(hrp), integers...)
+	return bech32Polymod(concat) == 1
+}
diff --git a/bech32/bech32_test.go b/bech32/bech32_test.go
new file mode 100644
index 0000000..1322386
--- /dev/null
+++ b/bech32/bech32_test.go
@@ -0,0 +1,69 @@
+// Copyright (c) 2017 The btcsuite developers
+// Use of this source code is governed by an ISC
+// license that can be found in the LICENSE file.
+
+package bech32_test
+
+import (
+	"strings"
+	"testing"
+
+	"github.com/btcsuite/btcutil/bech32"
+)
+
+func TestBech32(t *testing.T) {
+	tests := []struct {
+		str   string
+		valid bool
+	}{
+		{"A12UEL5L", true},
+		{"an83characterlonghumanreadablepartthatcontainsthenumber1andtheexcludedcharactersbio1tt5tgs", true},
+		{"abcdef1qpzry9x8gf2tvdw0s3jn54khce6mua7lmqqqxw", true},
+		{"11qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqc8247j", true},
+		{"split1checkupstagehandshakeupstreamerranterredcaperred2y9e3w", true},
+		{"split1checkupstagehandshakeupstreamerranterredcaperred2y9e2w", false},                                // invalid checksum
+		{"s lit1checkupstagehandshakeupstreamerranterredcaperredp8hs2p", false},                                // invalid character (space) in hrp
+		{"spl" + string(127) + "t1checkupstagehandshakeupstreamerranterredcaperred2y9e3w", false},              // invalid character (DEL) in hrp
+		{"split1cheo2y9e2w", false},                                                                            // invalid character (o) in data part
+		{"split1a2y9w", false},                                                                                 // too short data part
+		{"1checkupstagehandshakeupstreamerranterredcaperred2y9e3w", false},                                     // empty hrp
+		{"11qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqsqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqc8247j", false}, // too long
+	}
+
+	for _, test := range tests {
+		str := test.str
+		hrp, decoded, err := bech32.Decode(str)
+		if !test.valid {
+			// Invalid string decoding should result in error.
+			if err == nil {
+				t.Error("expected decoding to fail for "+
+					"invalid string %v", test.str)
+			}
+			continue
+		}
+
+		// Valid string decoding should result in no error.
+		if err != nil {
+			t.Errorf("expected string to be valid bech32: %v", err)
+		}
+
+		// Check that it encodes to the same string
+		encoded, err := bech32.Encode(hrp, decoded)
+		if err != nil {
+			t.Errorf("encoding failed: %v", err)
+		}
+
+		if encoded != strings.ToLower(str) {
+			t.Errorf("expected data to encode to %v, but got %v",
+				str, encoded)
+		}
+
+		// Flip a bit in the string an make sure it is caught.
+		pos := strings.LastIndexAny(str, "1")
+		flipped := str[:pos+1] + string((str[pos+1] ^ 1)) + str[pos+2:]
+		_, _, err = bech32.Decode(flipped)
+		if err == nil {
+			t.Error("expected decoding to fail")
+		}
+	}
+}
diff --git a/bech32/doc.go b/bech32/doc.go
new file mode 100644
index 0000000..2d64fbe
--- /dev/null
+++ b/bech32/doc.go
@@ -0,0 +1,15 @@
+// Copyright (c) 2017 The btcsuite developers
+// Use of this source code is governed by an ISC
+// license that can be found in the LICENSE file.
+
+/*
+Package bech32 provides a Go implementation of the bech32 format specified in
+BIP 173.
+
+Bech32 strings consist of a human-readable part (hrp), followed by the
+separator 1, then a checksummed data part encoded using the 32 characters
+"qpzry9x8gf2tvdw0s3jn54khce6mua7l".
+
+More info: https://github.com/bitcoin/bips/blob/master/bip-0173.mediawiki
+*/
+package bech32
diff --git a/bech32/example_test.go b/bech32/example_test.go
new file mode 100644
index 0000000..515f0a9
--- /dev/null
+++ b/bech32/example_test.go
@@ -0,0 +1,49 @@
+// Copyright (c) 2017 The btcsuite developers
+// Use of this source code is governed by an ISC
+// license that can be found in the LICENSE file.
+
+package bech32_test
+
+import (
+	"encoding/hex"
+	"fmt"
+
+	"github.com/btcsuite/btcutil/bech32"
+)
+
+// This example demonstrates how to decode a bech32 encoded string.
+func ExampleDecode() {
+	encoded := "bc1pw508d6qejxtdg4y5r3zarvary0c5xw7kw508d6qejxtdg4y5r3zarvary0c5xw7k7grplx"
+	hrp, decoded, err := bech32.Decode(encoded)
+	if err != nil {
+		fmt.Println("Error:", err)
+	}
+
+	// Show the decoded data.
+	fmt.Println("Decoded human-readable part:", hrp)
+	fmt.Println("Decoded Data:", hex.EncodeToString(decoded))
+
+	// Output:
+	// Decoded human-readable part: bc
+	// Decoded Data: 010e140f070d1a001912060b0d081504140311021d030c1d03040f1814060e1e160e140f070d1a001912060b0d081504140311021d030c1d03040f1814060e1e16
+}
+
+// This example demonstrates how to encode data into a bech32 string.
+func ExampleEncode() {
+	data := []byte("Test data")
+	// Convert test data to base32:
+	conv, err := bech32.ConvertBits(data, 8, 5, true)
+	if err != nil {
+		fmt.Println("Error:", err)
+	}
+	encoded, err := bech32.Encode("customHrp!11111q", conv)
+	if err != nil {
+		fmt.Println("Error:", err)
+	}
+
+	// Show the encoded data.
+	fmt.Println("Encoded Data:", encoded)
+
+	// Output:
+	// Encoded Data: customHrp!11111q123jhxapqv3shgcgumastr
+}