diff --git a/Lib/compiler/ast.py b/Lib/compiler/ast.py
index 94a6262..6953325 100644
--- a/Lib/compiler/ast.py
+++ b/Lib/compiler/ast.py
@@ -542,7 +542,6 @@
             self.kwargs = 1
 
 
-
     def getChildren(self):
         children = []
         children.append(self.decorators)
@@ -572,6 +571,7 @@
         self.argnames = ['.0']
         self.varargs = self.kwargs = None
 
+
     def getChildren(self):
         return self.code,
 
@@ -589,7 +589,6 @@
         self.lineno = lineno
         self.is_outmost = False
 
-
     def getChildren(self):
         children = []
         children.append(self.assign)
@@ -766,7 +765,6 @@
             self.kwargs = 1
 
 
-
     def getChildren(self):
         children = []
         children.append(self.argnames)
@@ -1091,6 +1089,22 @@
     def __repr__(self):
         return "RightShift((%s, %s))" % (repr(self.left), repr(self.right))
 
+class Set(Node):
+    def __init__(self, items, lineno=None):
+        self.items = items
+        self.lineno = lineno
+
+    def getChildren(self):
+        return tuple(flatten(self.items))
+
+    def getChildNodes(self):
+        nodelist = []
+        nodelist.extend(flatten_nodes(self.items))
+        return tuple(nodelist)
+
+    def __repr__(self):
+        return "Set(%s)" % (repr(self.items),)
+
 class Slice(Node):
     def __init__(self, expr, flags, lower, upper, lineno=None):
         self.expr = expr
diff --git a/Lib/compiler/pyassem.py b/Lib/compiler/pyassem.py
index 95f5c3e..542d704 100644
--- a/Lib/compiler/pyassem.py
+++ b/Lib/compiler/pyassem.py
@@ -793,6 +793,8 @@
         return -count+1
     def BUILD_LIST(self, count):
         return -count+1
+    def BUILD_SET(self, count):
+        return -count+1
     def CALL_FUNCTION(self, argc):
         hi, lo = divmod(argc, 256)
         return -(lo + hi * 2)
diff --git a/Lib/compiler/pycodegen.py b/Lib/compiler/pycodegen.py
index cc197e3..af99045 100644
--- a/Lib/compiler/pycodegen.py
+++ b/Lib/compiler/pycodegen.py
@@ -1241,6 +1241,12 @@
             self.visit(elt)
         self.emit('BUILD_LIST', len(node.nodes))
 
+    def visitSet(self, node):
+        self.set_lineno(node)
+        for elt in node.items:
+            self.visit(elt)
+        self.emit('BUILD_SET', len(node.items))
+
     def visitSliceobj(self, node):
         for child in node.nodes:
             self.visit(child)
diff --git a/Lib/compiler/transformer.py b/Lib/compiler/transformer.py
index b564300..42640e8 100644
--- a/Lib/compiler/transformer.py
+++ b/Lib/compiler/transformer.py
@@ -738,7 +738,7 @@
     def atom_lbrace(self, nodelist):
         if nodelist[1][0] == token.RBRACE:
             return Dict((), lineno=nodelist[0][2])
-        return self.com_dictmaker(nodelist[1])
+        return self.com_dictsetmaker(nodelist[1])
 
     def atom_backquote(self, nodelist):
         return Backquote(self.com_node(nodelist[1]))
@@ -1182,13 +1182,20 @@
             assert node[0] == symbol.gen_iter
             return node[1]
 
-    def com_dictmaker(self, nodelist):
-        # dictmaker: test ':' test (',' test ':' value)* [',']
+    def com_dictsetmaker(self, nodelist):
+        # dictsetmaker: (test ':' test (',' test ':' value)* [',']) | (test (',' test)* [','])
         items = []
-        for i in range(1, len(nodelist), 4):
-            items.append((self.com_node(nodelist[i]),
-                          self.com_node(nodelist[i+2])))
-        return Dict(items, lineno=items[0][0].lineno)
+        if nodelist[2] != ':':
+            # it's a set
+            for i in range(1, len(nodelist), 2):
+                items.append(self.com_node(nodelist[i]))
+            return Set(items, lineno=items[0].lineno)
+        else:
+            # it's a dict
+            for i in range(1, len(nodelist), 4):
+                items.append((self.com_node(nodelist[i]),
+                              self.com_node(nodelist[i+2])))
+            return Dict(items, lineno=items[0][0].lineno)
 
     def com_apply_trailer(self, primaryNode, nodelist):
         t = nodelist[1][0]
diff --git a/Lib/opcode.py b/Lib/opcode.py
index c2d7a59..cf8d909 100644
--- a/Lib/opcode.py
+++ b/Lib/opcode.py
@@ -137,12 +137,13 @@
 name_op('LOAD_NAME', 101)       # Index in name list
 def_op('BUILD_TUPLE', 102)      # Number of tuple items
 def_op('BUILD_LIST', 103)       # Number of list items
-def_op('BUILD_MAP', 104)        # Always zero for now
-name_op('LOAD_ATTR', 105)       # Index in name list
-def_op('COMPARE_OP', 106)       # Comparison operator
-hascompare.append(106)
-name_op('IMPORT_NAME', 107)     # Index in name list
-name_op('IMPORT_FROM', 108)     # Index in name list
+def_op('BUILD_SET', 104)        # Number of set items
+def_op('BUILD_MAP', 105)        # Always zero for now
+name_op('LOAD_ATTR', 106)       # Index in name list
+def_op('COMPARE_OP', 107)       # Comparison operator
+hascompare.append(107)
+name_op('IMPORT_NAME', 108)     # Index in name list
+name_op('IMPORT_FROM', 109)     # Index in name list
 
 jrel_op('JUMP_FORWARD', 110)    # Number of bytes to skip
 jrel_op('JUMP_IF_FALSE', 111)   # ""
diff --git a/Lib/test/test_grammar.py b/Lib/test/test_grammar.py
index 331d527..93dc9ec 100644
--- a/Lib/test/test_grammar.py
+++ b/Lib/test/test_grammar.py
@@ -685,8 +685,8 @@
 
 
 print 'atoms'
-### atom: '(' [testlist] ')' | '[' [testlist] ']' | '{' [dictmaker] '}' | NAME | NUMBER | STRING
-### dictmaker: test ':' test (',' test ':' test)* [',']
+### atom: '(' [testlist] ')' | '[' [testlist] ']' | '{' [dictsetmaker] '}' | NAME | NUMBER | STRING
+### dictsetmaker: (test ':' test (',' test ':' test)* [',']) | (test (',' test)* [','])
 
 x = (1)
 x = (1 or 2 or 3)
@@ -706,6 +706,11 @@
 x = {'one': 1, 'two': 2,}
 x = {'one': 1, 'two': 2, 'three': 3, 'four': 4, 'five': 5, 'six': 6}
 
+x = {'one'}
+x = {'one', 1,}
+x = {'one', 'two', 'three'}
+x = {2, 3, 4,}
+
 x = x
 x = 'x'
 x = 123
diff --git a/Lib/test/test_set.py b/Lib/test/test_set.py
index 23926be..556e390 100644
--- a/Lib/test/test_set.py
+++ b/Lib/test/test_set.py
@@ -261,6 +261,11 @@
         t = self.thetype(s)
         self.assertNotEqual(id(s), id(t))
 
+    def test_set_literal(self):
+        s = set([1,2,3])
+        t = {1,2,3}
+        self.assertEqual(s, t)
+
     def test_hash(self):
         self.assertRaises(TypeError, hash, self.s)
 
@@ -626,7 +631,7 @@
         self.set    = set(self.values)
         self.dup    = set(self.values)
         self.length = 0
-        self.repr   = "set([])"
+        self.repr   = "{}"
 
 #------------------------------------------------------------------------------
 
@@ -637,7 +642,7 @@
         self.set    = set(self.values)
         self.dup    = set(self.values)
         self.length = 1
-        self.repr   = "set([3])"
+        self.repr   = "{3}"
 
     def test_in(self):
         self.failUnless(3 in self.set)
@@ -654,7 +659,7 @@
         self.set    = set(self.values)
         self.dup    = set(self.values)
         self.length = 1
-        self.repr   = "set([(0, 'zero')])"
+        self.repr   = "{(0, 'zero')}"
 
     def test_in(self):
         self.failUnless((0, "zero") in self.set)