diff --git a/dj_database_url.py b/dj_database_url.py
index 37975fc..ef8afb1 100644
--- a/dj_database_url.py
+++ b/dj_database_url.py
@@ -66,9 +66,8 @@ def parse(url, engine=None, conn_max_age=0):
 
     url = urlparse.urlparse(url)
 
-    # Remove query strings.
-    path = url.path[1:]
-    path = path.split('?', 2)[0]
+    # Path (without leading '/'), and with no query string
+    path = url.path[1:].split('?')[0]
 
     # If we are using sqlite and we have no path, then assume we
     # want an in-memory database (this is the behaviour of sqlalchemy)
@@ -90,6 +89,14 @@ def parse(url, engine=None, conn_max_age=0):
         'CONN_MAX_AGE': conn_max_age,
     })
 
+    # Parse the query string into OPTIONS.
+    qs = urlparse.parse_qs(url.query)
+    options = {}
+    for key, values in qs.iteritems():
+        options[key] = values[-1]
+    if options:
+        config['OPTIONS'] = options
+
     if engine:
         config['ENGINE'] = engine
     elif url.scheme in SCHEMES:
diff --git a/test_dj_database_url.py b/test_dj_database_url.py
index d4c6c44..4bda93a 100644
--- a/test_dj_database_url.py
+++ b/test_dj_database_url.py
@@ -125,5 +125,27 @@ class DatabaseTestSuite(unittest.TestCase):
 
         assert url['CONN_MAX_AGE'] == conn_max_age
 
+    def test_database_url_with_options(self):
+        # Test full options
+        os.environ['DATABASE_URL'] = 'postgres://uf07k1i6d8ia0v:wegauwhgeuioweg@ec2-107-21-253-135.compute-1.amazonaws.com:5431/d8r82722r2kuvn?sslrootcert=rds-combined-ca-bundle.pem&sslmode=verify-full'
+        url = dj_database_url.config()
+
+        assert url['ENGINE'] == 'django.db.backends.postgresql_psycopg2'
+        assert url['NAME'] == 'd8r82722r2kuvn'
+        assert url['HOST'] == 'ec2-107-21-253-135.compute-1.amazonaws.com'
+        assert url['USER'] == 'uf07k1i6d8ia0v'
+        assert url['PASSWORD'] == 'wegauwhgeuioweg'
+        assert url['PORT'] == 5431
+        assert url['OPTIONS'] == {
+            'sslrootcert': 'rds-combined-ca-bundle.pem',
+            'sslmode': 'verify-full'
+        }
+
+        # Test empty options
+        os.environ['DATABASE_URL'] = 'postgres://uf07k1i6d8ia0v:wegauwhgeuioweg@ec2-107-21-253-135.compute-1.amazonaws.com:5431/d8r82722r2kuvn?'
+        url = dj_database_url.config()
+        assert 'OPTIONS' not in url
+
+
 if __name__ == '__main__':
     unittest.main()