diff --git a/ipc/nano/Cargo.toml b/ipc/nano/Cargo.toml
index e941b1afc..87387f659 100644
--- a/ipc/nano/Cargo.toml
+++ b/ipc/nano/Cargo.toml
@@ -7,6 +7,8 @@ license = "GPL-3.0"
 [features]
 
 [dependencies]
+jsonrpc-core = "2.0"
 "ethcore-ipc" = { path = "../rpc" }
 nanomsg = { git = "https://github.com/ethcore/nanomsg.rs.git" }
 log = "0.3"
+
diff --git a/ipc/nano/src/lib.rs b/ipc/nano/src/lib.rs
index 624de776b..fdcf1f1f2 100644
--- a/ipc/nano/src/lib.rs
+++ b/ipc/nano/src/lib.rs
@@ -19,10 +19,13 @@
 extern crate ethcore_ipc as ipc;
 extern crate nanomsg;
 #[macro_use] extern crate log;
+extern crate jsonrpc_core;
+use jsonrpc_core::IoHandler;
 
 pub use ipc::{WithSocket, IpcInterface, IpcConfig};
 
 use std::sync::*;
+use std::sync::atomic::*;
 use nanomsg::{Socket, Protocol, Error, Endpoint, PollRequest, PollFd, PollInOut};
 use std::ops::Deref;
 
@@ -199,14 +202,149 @@ impl<S> Worker<S> where S: IpcInterface<S> {
 	}
 }
 
+/// Error in handling JSON RPC request
+pub enum IoHandlerError {
+	BadRequest,
+	HandlerError,
+}
+
+/// Worker to handle JSON RPC requests
+pub struct IoHandlerWorker {
+	handler: Arc<IoHandler>,
+	socket: Socket,
+	_endpoint: Endpoint,
+	poll: Vec<PollFd>,
+	buf: Vec<u8>,
+}
+
+/// IPC server for json-rpc handler (single thread)
+pub struct IoHandlerServer {
+	is_stopping: Arc<AtomicBool>,
+	is_stopped: Arc<AtomicBool>,
+	handler: Arc<IoHandler>,
+	socket_addr: String,
+}
+
+impl IoHandlerServer {
+	/// New IPC server for JSON RPC `handler` and ipc socket address `socket_addr`
+	pub fn new(handler: &Arc<IoHandler>, socket_addr: &str) -> IoHandlerServer {
+		IoHandlerServer {
+			handler: handler.clone(),
+			is_stopping: Arc::new(AtomicBool::new(false)),
+			is_stopped: Arc::new(AtomicBool::new(true)),
+			socket_addr: socket_addr.to_owned(),
+		}
+	}
+
+	/// IPC Server starts (non-blocking, in seprate thread)
+	pub fn start(&self) -> Result<(), SocketError> {
+		let mut worker = try!(IoHandlerWorker::new(&self.handler, &self.socket_addr));
+		self.is_stopping.store(false, Ordering::Relaxed);
+		let worker_is_stopping = self.is_stopping.clone();
+		let worker_is_stopped = self.is_stopped.clone();
+
+		::std::thread::spawn(move || {
+			worker_is_stopped.store(false, Ordering::Relaxed);
+			while !worker_is_stopping.load(Ordering::Relaxed) {
+				worker.poll()
+			}
+			worker_is_stopped.store(true, Ordering::Relaxed);
+		});
+
+		Ok(())
+	}
+
+	/// IPC server stop (func will wait until effective stop)
+	pub fn stop(&self) {
+		self.is_stopping.store(true, Ordering::Relaxed);
+		while !self.is_stopped.load(Ordering::Relaxed) {
+			std::thread::sleep(std::time::Duration::from_millis(50));
+		}
+	}
+}
+
+impl Drop for IoHandlerServer {
+	fn drop(&mut self) {
+		self.stop()
+	}
+}
+
+impl IoHandlerWorker {
+	pub fn new(handler: &Arc<IoHandler>, socket_addr: &str) -> Result<IoHandlerWorker, SocketError> {
+		let mut socket = try!(Socket::new(Protocol::Rep).map_err(|e| {
+			warn!(target: "ipc", "Failed to create ipc socket: {:?}", e);
+			SocketError::RequestLink
+		}));
+
+		let endpoint = try!(socket.bind(socket_addr).map_err(|e| {
+			warn!(target: "ipc", "Failed to bind socket to address '{}': {:?}", socket_addr, e);
+			SocketError::RequestLink
+		}));
+
+		let poll = vec![socket.new_pollfd(PollInOut::In)];
+
+		Ok(IoHandlerWorker {
+			handler: handler.clone(),
+			socket: socket,
+			_endpoint: endpoint,
+			poll: poll,
+			buf: Vec::with_capacity(1024),
+		})
+	}
+
+	pub fn poll(&mut self) {
+		let mut request = PollRequest::new(&mut self.poll[..]);
+ 		let _result_guard = Socket::poll(&mut request, POLL_TIMEOUT);
+		let fd = request.get_fds()[0]; 	// guaranteed to exist and be the only one
+										// because contains only immutable socket field as a member
+		if !fd.can_read() {
+			return;
+		}
+
+		unsafe { self.buf.set_len(0); }
+		match self.socket.nb_read_to_end(&mut self.buf) {
+			Ok(0) => {
+				warn!(target: "ipc", "RPC empty message received");
+				return;
+			},
+			Ok(_) => {
+				let rpc_msg = match String::from_utf8(self.buf.clone()) {
+					Ok(val) => val,
+					Err(e) => {
+						warn!(target: "ipc", "RPC decoding error (utf-8): {:?}", e);
+						return;
+					}
+				};
+				let response: Option<String> = self.handler.handle_request(&rpc_msg);
+				if let Some(response_str) = response {
+					let response_bytes = response_str.into_bytes();
+					if let Err(e) = self.socket.nb_write(&response_bytes) {
+						warn!(target: "ipc", "Failed to write response: {:?}", e);
+					}
+				}
+			},
+			Err(Error::TryAgain) => {
+				// no data
+			},
+			Err(x) => {
+				warn!(target: "ipc", "Error polling connections {:?}", x);
+				panic!("IPC RPC fatal error");
+			},
+		}
+	}
+
+}
+
 #[cfg(test)]
 mod service_tests {
 
-	use super::Worker;
+	use super::{Worker, IoHandlerServer};
 	use ipc::*;
 	use std::io::{Read, Write};
 	use std::sync::{Arc, RwLock};
 	use nanomsg::{Socket, Protocol, Endpoint};
+	use jsonrpc_core;
+	use jsonrpc_core::{IoHandler, Value, Params, MethodCommand};
 
 	struct TestInvoke {
 		method_num: u16,
@@ -246,6 +384,15 @@ mod service_tests {
 		(socket, endpoint)
 	}
 
+	fn dummy_request(addr: &str, buf: &[u8]) -> Vec<u8> {
+		let mut socket = Socket::new(Protocol::Req).unwrap();
+		let _endpoint = socket.connect(addr).unwrap();
+		socket.write(buf).unwrap();
+		let mut buf = Vec::new();
+		socket.read_to_end(&mut buf).unwrap();
+		buf
+	}
+
 	#[test]
 	fn can_create_worker() {
 		let worker = Worker::<DummyService>::new(&Arc::new(DummyService::new()));
@@ -299,4 +446,29 @@ mod service_tests {
 		assert_eq!(0, worker.service.methods_stack.read().unwrap()[0].method_num);
 		assert_eq!(vec![0u8; 1024*1024-2], worker.service.methods_stack.read().unwrap()[0].params);
 	}
+
+	#[test]
+	fn test_jsonrpc_handler() {
+		let url = "ipc:///tmp/parity-test50.ipc";
+
+		struct SayHello;
+		impl MethodCommand for SayHello {
+			fn execute(&self, _params: Params) -> Result<Value, jsonrpc_core::Error> {
+				Ok(Value::String("hello".to_string()))
+			}
+		}
+
+		let io = Arc::new(IoHandler::new());
+		io.add_method("say_hello", SayHello);
+
+		let request = r#"{"jsonrpc": "2.0", "method": "say_hello", "params": [42, 23], "id": 1}"#;
+		let response = r#"{"jsonrpc":"2.0","result":"hello","id":1}"#;
+
+		let server = IoHandlerServer::new(&io, url);
+		server.start().unwrap();
+
+		assert_eq!(String::from_utf8(dummy_request(url, request.as_bytes())).unwrap(), response.to_string());
+
+		server.stop();
+	}
 }
diff --git a/rpc/src/lib.rs b/rpc/src/lib.rs
index f79cbe828..d9f6af65c 100644
--- a/rpc/src/lib.rs
+++ b/rpc/src/lib.rs
@@ -57,7 +57,7 @@ impl RpcServer {
 		self.handler.add_delegate(delegate);
 	}
 
-	/// Start server asynchronously and returns result with `Server` handle on success or an error.
+	/// Start http server asynchronously and returns result with `Server` handle on success or an error.
 	pub fn start_http(&self, addr: &SocketAddr, cors_domain: Option<String>) -> Result<Server, RpcServerError> {
 		let cors_domain = cors_domain.to_owned();
 		Server::start(addr, self.handler.clone(), cors_domain.map(jsonrpc_http_server::AccessControlAllowOrigin::Value))