diff --git a/js/jquery.nice-select.js b/js/jquery.nice-select.js
index f1f9d0d..1894cdc 100644
--- a/js/jquery.nice-select.js
+++ b/js/jquery.nice-select.js
@@ -25,17 +25,20 @@
         
         var $dropdown = $select.next();
         var $options = $select.find('option');
+        var $optgroups = $select.find('optgroup');
         var $selected = $select.find('option:selected');
         
-        $dropdown.find('.current').html($selected.data('display') || $selected.text());
+        $dropdown.find('.current').html($selected.data('display') || $selected.text());
         
         $options.each(function(i) {
           var $option = $(this);
           var display = $option.data('display');
+          var group = $option.parents('optgroup').data('i');
 
           $dropdown.find('ul').append($('<li></li>')
             .attr('data-value', $option.val())
             .attr('data-display', (display || null))
+            .attr('data-group', (group || null))
             .addClass('option' +
               ($option.is(':selected') ? ' selected' : '') +
               ($option.is(':disabled') ? ' disabled' : ''))
@@ -43,6 +46,15 @@
           );
           
         });
+        $optgroups.each(function(i, g) {
+          label = $(g).attr('label')
+          $dropdown.find('ul li').filter(function() {
+            return $(this).data('group') == $(g).data('i')
+          })
+          .wrapAll('<div class="optgroup"/>')
+          .parent()
+          .prepend('<span class="label">' + label + '</span>')
+        });
       }
     });
     
@@ -147,4 +159,4 @@
 
   };
 
-}(jQuery));
\ No newline at end of file
+}(jQuery));