diff --git a/CHANGES b/CHANGES
index b98745900..5f5262702 100644
--- a/CHANGES
+++ b/CHANGES
@@ -120,6 +120,9 @@ New features added
   - The new ``html_link_suffix`` config value can be used to select
     the suffix of generated links between HTML files.
 
+  - #96: The LaTeX builder now supports figures wrapped by text, when
+    using the ``figwidth`` option and right/left alignment.
+
 * New translations:
   
   - Italian by Sandro Dentella.
diff --git a/sphinx/directives/__init__.py b/sphinx/directives/__init__.py
index df86f9972..2de29010c 100644
--- a/sphinx/directives/__init__.py
+++ b/sphinx/directives/__init__.py
@@ -9,6 +9,19 @@
     :license: BSD, see LICENSE for details.
 """
 
+from docutils.parsers.rst import directives
+from docutils.parsers.rst.directives import images
+
+# import and register directives
 from sphinx.directives.desc import *
 from sphinx.directives.code import *
 from sphinx.directives.other import *
+
+
+# allow units for the figure's "figwidth"
+try:
+    images.Figure.option_spec['figwidth'] = \
+        directives.length_or_percentage_or_unitless
+except AttributeError:
+    images.figure.options['figwidth'] = \
+        directives.length_or_percentage_or_unitless
diff --git a/sphinx/texinputs/sphinx.sty b/sphinx/texinputs/sphinx.sty
index 367683088..0ce6b8637 100644
--- a/sphinx/texinputs/sphinx.sty
+++ b/sphinx/texinputs/sphinx.sty
@@ -17,11 +17,15 @@
 \RequirePackage{makeidx}
 \RequirePackage{framed}
 \RequirePackage{color}
+% For highlighted code.
 \RequirePackage{fancyvrb}
+% For table captions.
 \RequirePackage{threeparttable}
 % Handle footnotes in tables.
 \RequirePackage{footnote}
 \makesavenoteenv{tabulary}
+% For floating figures in the text.
+\RequirePackage{wrapfig}
 
 % Redefine these colors to your liking in the preamble.
 \definecolor{TitleColor}{rgb}{0.126,0.263,0.361}
diff --git a/sphinx/writers/latex.py b/sphinx/writers/latex.py
index 841a5ba14..2ff242036 100644
--- a/sphinx/writers/latex.py
+++ b/sphinx/writers/latex.py
@@ -850,17 +850,23 @@ class LaTeXTranslator(nodes.NodeVisitor):
         pass
 
     def visit_figure(self, node):
-        if (not node.attributes.has_key('align') or
-            node.attributes['align'] == 'center'):
-            # centering does not add vertical space like center.
-            align = '\n\\centering'
-            align_end = ''
+        if node.has_key('width') and node.get('align', '') in ('left', 'right'):
+            self.body.append('\\begin{wrapfigure}{%s}{%s}\n\\centering' %
+                             (node['align'] == 'right' and 'r' or 'l',
+                              node['width']))
+            self.context.append('\\end{wrapfigure}\n')
         else:
-            # TODO non vertical space for other alignments.
-            align = '\\begin{flush%s}' % node.attributes['align']
-            align_end = '\\end{flush%s}' % node.attributes['align']
-        self.body.append('\\begin{figure}[htbp]%s\n' % align)
-        self.context.append('%s\\end{figure}\n' % align_end)
+            if (not node.attributes.has_key('align') or
+                node.attributes['align'] == 'center'):
+                # centering does not add vertical space like center.
+                align = '\n\\centering'
+                align_end = ''
+            else:
+                # TODO non vertical space for other alignments.
+                align = '\\begin{flush%s}' % node.attributes['align']
+                align_end = '\\end{flush%s}' % node.attributes['align']
+            self.body.append('\\begin{figure}[htbp]%s\n' % align)
+            self.context.append('%s\\end{figure}\n' % align_end)
     def depart_figure(self, node):
         self.body.append(self.context.pop())