diff --git a/CHANGES.md b/CHANGES.md
index fb4943be1..cdac5fa05 100644
--- a/CHANGES.md
+++ b/CHANGES.md
@@ -13,16 +13,18 @@
 
 * Added `ErrorHandlers` middleware
 
-* Router cannot parse Non-ASCII characters in URL #137
+* Fix router cannot parse Non-ASCII characters in URL #137
+
+* Fix client connection pooling
 
 * Fix long client urls #129
 
 * Fix panic on invalid URL characters #130
 
-* Fix client connection pooling
-
 * Fix logger request duration calculation #152
 
+* Fix prefix and static file serving #168
+
 * Add `signed` and `private` `CookieSessionBackend`s
 
 
diff --git a/src/application.rs b/src/application.rs
index 146150929..f6c126105 100644
--- a/src/application.rs
+++ b/src/application.rs
@@ -21,6 +21,7 @@ pub type Application<S> = App<S>;
 pub struct HttpApplication<S=()> {
     state: Rc<S>,
     prefix: String,
+    prefix_len: usize,
     router: Router,
     inner: Rc<UnsafeCell<Inner<S>>>,
     middlewares: Rc<Vec<Box<Middleware<S>>>>,
@@ -73,6 +74,7 @@ impl<S: 'static> HttpApplication<S> {
                         path.len() == prefix.len() ||
                             path.split_at(prefix.len()).1.starts_with('/'))
                 };
+
                 if m {
                     let path: &'static str = unsafe {
                         mem::transmute(&req.path()[inner.prefix+prefix.len()..]) };
@@ -106,8 +108,8 @@ impl<S: 'static> HttpHandler for HttpApplication<S> {
         let m = {
             let path = req.path();
             path.starts_with(&self.prefix) && (
-                path.len() == self.prefix.len() ||
-                    path.split_at(self.prefix.len()).1.starts_with('/'))
+                path.len() == self.prefix_len ||
+                    path.split_at(self.prefix_len).1.starts_with('/'))
         };
         if m {
             let mut req = req.with_state(Rc::clone(&self.state), self.router.clone());
@@ -420,8 +422,12 @@ impl<S> App<S> where S: 'static {
     pub fn handler<H: Handler<S>>(mut self, path: &str, handler: H) -> App<S>
     {
         {
-            let path = path.trim().trim_right_matches('/').to_owned();
+            let mut path = path.trim().trim_right_matches('/').to_owned();
+            if !path.is_empty() && !path.starts_with('/') {
+                path.insert(0, '/')
+            }
             let parts = self.parts.as_mut().expect("Use after finish");
+
             parts.handlers.push((path, Box::new(WrapHandler::new(handler))));
         }
         self
@@ -471,17 +477,22 @@ impl<S> App<S> where S: 'static {
     pub fn finish(&mut self) -> HttpApplication<S> {
         let parts = self.parts.take().expect("Use after finish");
         let prefix = parts.prefix.trim().trim_right_matches('/');
+        let (prefix, prefix_len) = if prefix.is_empty() {
+            ("/".to_owned(), 0)
+        } else {
+            (prefix.to_owned(), prefix.len())
+        };
 
         let mut resources = parts.resources;
         for (_, pattern) in parts.external {
             resources.push((pattern, None));
         }
 
-        let (router, resources) = Router::new(prefix, parts.settings, resources);
+        let (router, resources) = Router::new(&prefix, parts.settings, resources);
 
         let inner = Rc::new(UnsafeCell::new(
             Inner {
-                prefix: prefix.len(),
+                prefix: prefix_len,
                 default: parts.default,
                 encoding: parts.encoding,
                 handlers: parts.handlers,
@@ -491,9 +502,10 @@ impl<S> App<S> where S: 'static {
 
         HttpApplication {
             state: Rc::new(parts.state),
-            prefix: prefix.to_owned(),
             router: router.clone(),
             middlewares: Rc::new(parts.middlewares),
+            prefix,
+            prefix_len,
             inner,
         }
     }
@@ -670,6 +682,61 @@ mod tests {
         assert_eq!(resp.as_response().unwrap().status(), StatusCode::NOT_FOUND);
     }
 
+    #[test]
+    fn test_handler2() {
+        let mut app = App::new()
+            .handler("test", |_| HttpResponse::Ok())
+            .finish();
+
+        let req = TestRequest::with_uri("/test").finish();
+        let resp = app.run(req);
+        assert_eq!(resp.as_response().unwrap().status(), StatusCode::OK);
+
+        let req = TestRequest::with_uri("/test/").finish();
+        let resp = app.run(req);
+        assert_eq!(resp.as_response().unwrap().status(), StatusCode::OK);
+
+        let req = TestRequest::with_uri("/test/app").finish();
+        let resp = app.run(req);
+        assert_eq!(resp.as_response().unwrap().status(), StatusCode::OK);
+
+        let req = TestRequest::with_uri("/testapp").finish();
+        let resp = app.run(req);
+        assert_eq!(resp.as_response().unwrap().status(), StatusCode::NOT_FOUND);
+
+        let req = TestRequest::with_uri("/blah").finish();
+        let resp = app.run(req);
+        assert_eq!(resp.as_response().unwrap().status(), StatusCode::NOT_FOUND);
+    }
+
+    #[test]
+    fn test_handler_with_prefix() {
+        let mut app = App::new()
+            .prefix("prefix")
+            .handler("/test", |_| HttpResponse::Ok())
+            .finish();
+
+        let req = TestRequest::with_uri("/prefix/test").finish();
+        let resp = app.run(req);
+        assert_eq!(resp.as_response().unwrap().status(), StatusCode::OK);
+
+        let req = TestRequest::with_uri("/prefix/test/").finish();
+        let resp = app.run(req);
+        assert_eq!(resp.as_response().unwrap().status(), StatusCode::OK);
+
+        let req = TestRequest::with_uri("/prefix/test/app").finish();
+        let resp = app.run(req);
+        assert_eq!(resp.as_response().unwrap().status(), StatusCode::OK);
+
+        let req = TestRequest::with_uri("/prefix/testapp").finish();
+        let resp = app.run(req);
+        assert_eq!(resp.as_response().unwrap().status(), StatusCode::NOT_FOUND);
+
+        let req = TestRequest::with_uri("/prefix/blah").finish();
+        let resp = app.run(req);
+        assert_eq!(resp.as_response().unwrap().status(), StatusCode::NOT_FOUND);
+    }
+
     #[test]
     fn test_route() {
         let mut app = App::new()
diff --git a/src/fs.rs b/src/fs.rs
index 2f8f4b4e6..8c6402621 100644
--- a/src/fs.rs
+++ b/src/fs.rs
@@ -476,6 +476,9 @@ impl<S: 'static> Handler<S> for StaticFiles<S> {
                         new_path.push_str(&el.to_string_lossy());
                         new_path.push('/');
                     }
+                    if !new_path.ends_with('/') {
+                        new_path.push('/');
+                    }
                     new_path.push_str(redir_index);
                     HttpResponse::Found()
                         .header(header::LOCATION, new_path.as_str())
@@ -500,7 +503,8 @@ impl<S: 'static> Handler<S> for StaticFiles<S> {
 #[cfg(test)]
 mod tests {
     use super::*;
-    use test::TestRequest;
+    use application::App;
+    use test::{self, TestRequest};
     use http::{header, Method, StatusCode};
 
     #[test]
@@ -603,4 +607,43 @@ mod tests {
         assert_eq!(resp.status(), StatusCode::FOUND);
         assert_eq!(resp.headers().get(header::LOCATION).unwrap(), "/examples/basics/Cargo.toml");
     }
+
+    #[test]
+    fn integration_redirect_to_index_with_prefix() {
+        let mut srv = test::TestServer::with_factory(
+            || App::new()
+                .prefix("public")
+                .handler("/", StaticFiles::new(".").index_file("Cargo.toml")));
+
+        let request = srv.get().uri(srv.url("/public")).finish().unwrap();
+        let response = srv.execute(request.send()).unwrap();
+        assert_eq!(response.status(), StatusCode::FOUND);
+        let loc = response.headers().get(header::LOCATION).unwrap().to_str().unwrap();
+        assert_eq!(loc, "/public/Cargo.toml");
+
+        let request = srv.get().uri(srv.url("/public/")).finish().unwrap();
+        let response = srv.execute(request.send()).unwrap();
+        assert_eq!(response.status(), StatusCode::FOUND);
+        let loc = response.headers().get(header::LOCATION).unwrap().to_str().unwrap();
+        assert_eq!(loc, "/public/Cargo.toml");
+    }
+
+    #[test]
+    fn integration_redirect_to_index() {
+        let mut srv = test::TestServer::with_factory(
+            || App::new()
+                .handler("test", StaticFiles::new(".").index_file("Cargo.toml")));
+
+        let request = srv.get().uri(srv.url("/test")).finish().unwrap();
+        let response = srv.execute(request.send()).unwrap();
+        assert_eq!(response.status(), StatusCode::FOUND);
+        let loc = response.headers().get(header::LOCATION).unwrap().to_str().unwrap();
+        assert_eq!(loc, "/test/Cargo.toml");
+
+        let request = srv.get().uri(srv.url("/test/")).finish().unwrap();
+        let response = srv.execute(request.send()).unwrap();
+        assert_eq!(response.status(), StatusCode::FOUND);
+        let loc = response.headers().get(header::LOCATION).unwrap().to_str().unwrap();
+        assert_eq!(loc, "/test/Cargo.toml");
+    }
 }