diff --git a/app/assets/javascripts/angularjs/controllers/project_branches_controller.js b/app/assets/javascripts/angularjs/controllers/project_branches_controller.js
index d181dbb33..8435a51f3 100644
--- a/app/assets/javascripts/angularjs/controllers/project_branches_controller.js
+++ b/app/assets/javascripts/angularjs/controllers/project_branches_controller.js
@@ -43,6 +43,22 @@ RosaABF.controller('ProjectBranchesController', ['$scope', '$http', 'ApiProject'
     $scope.singleton.project.branches_count = $scope.branches.length;
   }
 
+  $scope.create = function(branch) {
+    branch.ui_container = false;
+    $scope.project_resource.$create_branch(
+      {
+        owner:    $scope.project.owner.uname,
+        project:  $scope.project.name,
+        from_ref: branch.ref,
+        new_ref:  branch.new_ref
+      }, function() { // on success
+        $scope.getRefs();
+      }, function () { // on error
+        $scope.getRefs();
+      }
+    );
+  }
+
   $scope.destroy = function(branch) {
     $scope.project_resource.$delete_branch(
       {owner: $scope.project.owner.uname, project: $scope.project.name, ref: branch.ref},
diff --git a/app/assets/javascripts/angularjs/models/project_ref.js b/app/assets/javascripts/angularjs/models/project_ref.js
index b13b40dc9..8e8258374 100644
--- a/app/assets/javascripts/angularjs/models/project_ref.js
+++ b/app/assets/javascripts/angularjs/models/project_ref.js
@@ -11,6 +11,7 @@ var ProjectRef = function(atts) {
 
   //with some logic...
   self.isTag = self.object.type == 'tag';
+  self.ui_container = false;
 
   self.path = function(project) {
     return '/' + project.fullname + '/tree/' + self.ref;
diff --git a/app/assets/javascripts/angularjs/services/project.js b/app/assets/javascripts/angularjs/services/project.js
index 1db0de864..851a95a98 100644
--- a/app/assets/javascripts/angularjs/services/project.js
+++ b/app/assets/javascripts/angularjs/services/project.js
@@ -23,6 +23,11 @@ RosaABF.factory("ApiProject", ['$resource', function($resource) {
         url:    '/:owner/:project/branches/:ref', // ?sha=<sha>
         method: 'PUT',
         isArray : false
+      },
+      create_branch: {
+        url:    '/:owner/:project/branches', // ?new_ref=<new_ref>&from_ref=<from_ref>
+        method: 'POST',
+        isArray : false
       }
     }
   );
diff --git a/app/assets/stylesheets/design/custom.scss b/app/assets/stylesheets/design/custom.scss
index 76a7224b2..7d5e43824 100644
--- a/app/assets/stylesheets/design/custom.scss
+++ b/app/assets/stylesheets/design/custom.scss
@@ -75,7 +75,10 @@ header menu ul li a {
     td.actions ul {
         float: right;
     }
-    .text { font-size: 12px; }
+    .text {
+        font-size: 12px;
+        padding-top: 2px;
+    }
     td {
         border-bottom: 1px solid #a9c6dd;
         padding: 0 20px;
diff --git a/app/controllers/projects/git/trees_controller.rb b/app/controllers/projects/git/trees_controller.rb
index 8a6ed88be..c675a35c2 100644
--- a/app/controllers/projects/git/trees_controller.rb
+++ b/app/controllers/projects/git/trees_controller.rb
@@ -4,8 +4,8 @@ class Projects::Git::TreesController < Projects::Git::BaseController
   skip_before_filter :set_branch_and_tree, :set_treeish_and_path, :only => :archive
   before_filter lambda { raise Grit::NoSuchPathError if params[:treeish] != @branch.try(:name) }, :only => [:branch, :destroy]
 
-  skip_authorize_resource :project,                       :only => [:destroy, :restore_branch]
-  before_filter lambda { authorize!(:write, @project) },  :only => [:destroy, :restore_branch]
+  skip_authorize_resource :project,                       :only => [:destroy, :restore_branch, :create]
+  before_filter lambda { authorize!(:write, @project) },  :only => [:destroy, :restore_branch, :create]
 
   def show
     unless request.xhr?
@@ -41,8 +41,13 @@ class Projects::Git::TreesController < Projects::Git::BaseController
   end
 
   def restore_branch
-    @project.restore_branch @treeish, params[:sha] if @treeish.present? && params[:sha].present?
-    render :nothing => true
+    status = @project.create_branch(@treeish, params[:sha], current_user) ? 200 : 422
+    render :nothing => true, :status => status
+  end
+
+  def create
+    status = @project.create_branch(params[:new_ref], params[:from_ref], current_user) ? 200 : 422
+    render :nothing => true, :status => status
   end
 
   def destroy
diff --git a/app/helpers/diff_helper.rb b/app/helpers/diff_helper.rb
index 2c522e519..6974ca1ad 100644
--- a/app/helpers/diff_helper.rb
+++ b/app/helpers/diff_helper.rb
@@ -37,7 +37,7 @@ module DiffHelper
            end
     prepare(args.merge({:filepath => filepath, :comments => comments, :in_discussion => in_discussion}))
 
-    res = "<table class='diff inline' cellspacing='0' cellpadding='0'>"
+    res = "<table class='diff inline' cellspacing='0' cellpadding='0' ng-non-bindable>"
     res += "<tbody>"
     res += renderer diff_display.data #diff_display.render(Git::Diff::InlineCallback.new comments, path)
     res += tr_line_comments(comments) if in_discussion
diff --git a/app/views/projects/base/_repo_block.html.haml b/app/views/projects/base/_repo_block.html.haml
index 5bea6e279..e641613dc 100644
--- a/app/views/projects/base/_repo_block.html.haml
+++ b/app/views/projects/base/_repo_block.html.haml
@@ -42,7 +42,7 @@
       %li{:class => ('selected' if act == :index && contr == :commits )}
         = link_to t('project_menu.commits'), commits_path(project, treeish)
       %li{:class => ('selected' if act == :branches && contr == :trees )}
-        = link_to t('project_menu.branches', :count => '{{singleton.project.branches_count}}'), branches_path(project, branch)
+        = link_to t('project_menu.branches', :count => '{{singleton.project.branches_count}}'), branch_path(project, branch)
       %li.tags{:class => ('selected' if act == :tags && contr == :trees )}
         = link_to t('project_menu.tags', :count => project.repo.tags.count), tags_path(project)
 .both
diff --git a/app/views/projects/git/trees/branches.html.haml b/app/views/projects/git/trees/branches.html.haml
index b4a0a621d..304ce7515 100644
--- a/app/views/projects/git/trees/branches.html.haml
+++ b/app/views/projects/git/trees/branches.html.haml
@@ -21,13 +21,23 @@
           %a{'ng-href' => '{{branch.path(project)}}' } {{branch.ref}}
         %td.actions
           %ul.actions
-            %li.text{'ng-show' => 'branch.ref == current_ref'}
-              = t('layout.projects.base_branch')
             - if can?(:write, @project)
-              %li{'ng-hide' => 'branch.ref == current_ref'}
+              %li{'ng-hide' => 'branch.ref == current_ref || branch.ui_container'}
                 %a{:href => '', 'ng-click' => 'destroy(branch)'}
                   = t('layout.projects.delete_branch')
-            %li{'ng-hide' => 'branch.ref == current_ref'}
+              %li{'ng-hide' => 'branch.ui_container'}
+                %a{:href => '', 'ng-click' => 'branch.ui_container = true'}
+                  = t('layout.projects.new_branch')
+              %li{'ng-show' => 'branch.ui_container'}
+                %form{'ng-submit' => 'create(branch)'}
+                  %input{'ng-model' => 'branch.new_ref'}
+                  %input{:type => 'submit', :value =>t('layout.create')}
+                  %a{:href => '', 'ng-click' => 'branch.ui_container = false'}
+                    = t('layout.cancel')
+            %li{'ng-hide' => 'branch.ref == current_ref || branch.ui_container'}
               %a{'ng-href' => '{{branch.diff_path(project, current_ref)}}' }
                 = t('layout.projects.compare')
+            %li.text{'ng-show' => 'branch.ref == current_ref && !branch.ui_container'}
+              = t('layout.projects.base_branch')
+
 
diff --git a/config/locales/models/project.en.yml b/config/locales/models/project.en.yml
index 1492f8fb9..bf018c003 100644
--- a/config/locales/models/project.en.yml
+++ b/config/locales/models/project.en.yml
@@ -28,6 +28,7 @@ en:
       new_build_list: New build
       confirm_delete: Are you sure you want to delete this project?
       new: New project
+      new_branch: New branch
       location: Location
       git_repo_location: Path to git repo
       current_project_header: Current project
diff --git a/config/locales/models/project.ru.yml b/config/locales/models/project.ru.yml
index a647bb2b7..7f9cfc5fc 100644
--- a/config/locales/models/project.ru.yml
+++ b/config/locales/models/project.ru.yml
@@ -28,6 +28,7 @@ ru:
       new_build_list: Новая сборка
       confirm_delete: Вы уверены, что хотите удалить этот проект?
       new: Новый проект
+      new_branch: Новая ветка
       location: Расположение
       git_repo_location: Путь к git-репозиторию
       current_project_header: Текущий проект
diff --git a/config/routes.rb b/config/routes.rb
index 78807a1c6..f296ebe97 100644
--- a/config/routes.rb
+++ b/config/routes.rb
@@ -335,10 +335,11 @@ Rosa::Application.routes.draw do
           # Tags
           get '/tags' => "git/trees#tags", :as => :tags
           # Branches
-          get '/branches/:treeish' => "git/trees#branches", :as => :branches
           get '/branches' => "git/trees#branches", :as => :branches
-          delete '/branches/:treeish' => "git/trees#destroy", :as => :branches
-          put '/branches/:treeish' => "git/trees#restore_branch", :as => :branches
+          get '/branches/:treeish' => "git/trees#branches", :as => :branch
+          delete '/branches/:treeish' => "git/trees#destroy", :as => :branch
+          put '/branches/:treeish' => "git/trees#restore_branch", :as => :branch
+          post '/branches' => "git/trees#create", :as => :branches
           # Commits
           get '/commits/:treeish(/*path)' => "git/commits#index", :as => :commits, :format => false
           get '/commit/:id(.:format)' => "git/commits#show", :as => :commit
diff --git a/lib/modules/models/git.rb b/lib/modules/models/git.rb
index 2de1d4b58..032d8bb57 100644
--- a/lib/modules/models/git.rb
+++ b/lib/modules/models/git.rb
@@ -33,16 +33,22 @@ module Modules
         repo.tags.map(&:name) + repo.branches.map(&:name)
       end
 
-      # TODO: return something else instead of empty string on success and error
-      def restore_branch(branch, sha)
-        repo.git.native(:branch, {}, branch, sha)
+      def create_branch(new_ref, from_ref, user)
+        return false if new_ref.blank? || from_ref.blank? || !(from_commit = repo.commit(from_ref))
+        status, out, err = repo.git.native(:branch, {:process_info => true}, new_ref, from_commit.id)
+        if status == 0
+          Resque.enqueue(GitHook, owner.uname, name, from_commit.id, GitHook::ZERO, "refs/heads/#{new_ref}", 'commit', "user-#{user.id}", nil)
+          return true
+        end
+        return false
+
       end
 
       def delete_branch(branch, user)
         return false if default_branch == branch.name
         message = repo.git.native(:branch, {}, '-D', branch.name)
         if message.present?
-          Resque.enqueue(GitHook,owner.uname, name, GitHook::ZERO, branch.commit.id, "refs/heads/#{branch.name}", 'commit', "user-#{user.id}", message)
+          Resque.enqueue(GitHook, owner.uname, name, GitHook::ZERO, branch.commit.id, "refs/heads/#{branch.name}", 'commit', "user-#{user.id}", message)
         end
         return message.present?
       end
diff --git a/spec/controllers/projects/git/git_trees_controller_spec.rb b/spec/controllers/projects/git/git_trees_controller_spec.rb
index f2eb72079..aca37adfd 100644
--- a/spec/controllers/projects/git/git_trees_controller_spec.rb
+++ b/spec/controllers/projects/git/git_trees_controller_spec.rb
@@ -47,6 +47,11 @@ describe Projects::Git::TreesController do
       response.should_not be_success
     end
 
+    it 'should not be able to perform create action' do
+      post :create, @params.merge(:treeish => '', :from_ref => 'master', :new_ref => 'master-1')
+      response.should_not be_success
+    end
+
   end
 
   context 'for other user' do
@@ -80,6 +85,11 @@ describe Projects::Git::TreesController do
       response.should_not be_success
     end
 
+    it 'should not be able to perform create action' do
+      post :create, @params.merge(:treeish => '', :from_ref => 'master', :new_ref => 'master-1')
+      response.should_not be_success
+    end
+
     [:tags, :branches].each do |action|
       it "should be able to perform #{action} action" do
         get action, @params.merge(:treeish => 'master')
@@ -106,7 +116,12 @@ describe Projects::Git::TreesController do
     end
 
     it 'should be able to perform restore_branch action' do
-      put :restore_branch, @params.merge(:treeish => 'conflicts')
+      put :restore_branch, @params.merge(:treeish => 'master-1', :sha => 'master')
+      response.should be_success
+    end
+
+    it 'should be able to perform create action' do
+      post :create, @params.merge(:treeish => '', :from_ref => 'master', :new_ref => 'master-1')
       response.should be_success
     end
   end
diff --git a/spec/models/project_spec.rb b/spec/models/project_spec.rb
index e61151ab9..502f2ef89 100644
--- a/spec/models/project_spec.rb
+++ b/spec/models/project_spec.rb
@@ -117,21 +117,21 @@ describe Project do
       end
     end
 
-    context '#restore_branch' do
+    context '#create_branch' do
       before do
         project.delete_branch(branch, user)
       end
 
-      xit 'ensures that returns true on success' do
-        project.restore_branch(branch.name, branch.commit.id).should be_true
+      it 'ensures that returns true on success' do
+        project.create_branch(branch.name, branch.commit.id, user).should be_true
       end
 
-      it 'ensures that branch has been restored' do
-        lambda { project.restore_branch(branch.name, branch.commit.id) }.should change{ project.repo.branches.count }.by(1)
+      it 'ensures that branch has been created' do
+        lambda { project.create_branch(branch.name, branch.commit.id, user) }.should change{ project.repo.branches.count }.by(1)
       end
 
-      xit 'ensures that returns false on restore wrong branch' do
-        project.restore_branch(branch.name, GitHook::ZERO).should be_false
+      it 'ensures that returns false on create wrong branch' do
+        project.create_branch(branch.name, GitHook::ZERO, user).should be_false
       end
     end