diff --git a/org.springframework.jdbc/src/main/java/org/springframework/jdbc/config/EmbeddedDatabaseBeanDefinitionParser.java b/org.springframework.jdbc/src/main/java/org/springframework/jdbc/config/EmbeddedDatabaseBeanDefinitionParser.java
new file mode 100644
index 00000000000..ce0a842cf8e
--- /dev/null
+++ b/org.springframework.jdbc/src/main/java/org/springframework/jdbc/config/EmbeddedDatabaseBeanDefinitionParser.java
@@ -0,0 +1,65 @@
+package org.springframework.jdbc.config;
+
+import java.util.List;
+
+import org.springframework.beans.factory.config.BeanDefinition;
+import org.springframework.beans.factory.support.AbstractBeanDefinition;
+import org.springframework.beans.factory.support.BeanDefinitionBuilder;
+import org.springframework.beans.factory.xml.AbstractBeanDefinitionParser;
+import org.springframework.beans.factory.xml.ParserContext;
+import org.springframework.core.io.Resource;
+import org.springframework.jdbc.datasource.embedded.DatabasePopulator;
+import org.springframework.jdbc.datasource.embedded.EmbeddedDatabaseFactoryBean;
+import org.springframework.jdbc.datasource.embedded.ResourceDatabasePopulator;
+import org.springframework.util.StringUtils;
+import org.springframework.util.xml.DomUtils;
+import org.w3c.dom.Element;
+
+/**
+ * {@link org.springframework.beans.factory.xml.BeanDefinitionParser} that parses {@code embedded-database} element and
+ * creates a {@link BeanDefinition} for {@link EmbeddedDatabaseFactoryBean}. Picks up nested {@code script} elements and
+ * configures a {@link ResourceDatabasePopulator} for them.
+ * 
+ * @author Oliver Gierke
+ */
+public class EmbeddedDatabaseBeanDefinitionParser extends AbstractBeanDefinitionParser {
+
+	@Override
+	protected AbstractBeanDefinition parseInternal(Element element, ParserContext context) {
+		BeanDefinitionBuilder builder = BeanDefinitionBuilder.rootBeanDefinition(EmbeddedDatabaseFactoryBean.class);
+		setDatabaseType(element, builder);
+		setDatabasePopulator(element, context, builder);
+		return getSourcedBeanDefinition(builder, element, context);
+	}
+
+	private void setDatabaseType(Element element, BeanDefinitionBuilder builder) {
+		String type = element.getAttribute("type");
+		if (StringUtils.hasText(type)) {
+			builder.addPropertyValue("databaseType", type);
+		}
+	}
+
+	private void setDatabasePopulator(Element element, ParserContext context, BeanDefinitionBuilder builder) {
+		List<Element> scripts = DomUtils.getChildElementsByTagName(element, "script");
+		if (scripts.size() > 0) {
+			builder.addPropertyValue("databasePopulator", createDatabasePopulator(scripts, context));
+		}
+	}
+
+	private DatabasePopulator createDatabasePopulator(List<Element> scripts, ParserContext context) {
+		ResourceDatabasePopulator populator = new ResourceDatabasePopulator();
+		for (Element scriptElement : scripts) {
+			Resource script = context.getReaderContext().getResourceLoader().getResource(scriptElement.getAttribute("location"));
+			populator.addScript(script);
+		}
+		return populator;
+	}
+
+	private AbstractBeanDefinition getSourcedBeanDefinition(BeanDefinitionBuilder builder, Element source,
+			ParserContext context) {
+		AbstractBeanDefinition definition = builder.getBeanDefinition();
+		definition.setSource(context.extractSource(source));
+		return definition;
+	}
+
+}
diff --git a/org.springframework.jdbc/src/main/java/org/springframework/jdbc/config/JdbcNamespaceHandler.java b/org.springframework.jdbc/src/main/java/org/springframework/jdbc/config/JdbcNamespaceHandler.java
new file mode 100644
index 00000000000..b1821161088
--- /dev/null
+++ b/org.springframework.jdbc/src/main/java/org/springframework/jdbc/config/JdbcNamespaceHandler.java
@@ -0,0 +1,15 @@
+package org.springframework.jdbc.config;
+
+import org.springframework.beans.factory.xml.NamespaceHandler;
+import org.springframework.beans.factory.xml.NamespaceHandlerSupport;
+
+/**
+ * {@link NamespaceHandler} for JDBC configuration namespace.
+ * @author Oliver Gierke
+ */
+public class JdbcNamespaceHandler extends NamespaceHandlerSupport {
+
+	public void init() {
+		registerBeanDefinitionParser("embedded-database", new EmbeddedDatabaseBeanDefinitionParser());
+	}
+}
diff --git a/org.springframework.jdbc/src/main/resources/META-INF/spring.handlers b/org.springframework.jdbc/src/main/resources/META-INF/spring.handlers
new file mode 100644
index 00000000000..3009fcedee4
--- /dev/null
+++ b/org.springframework.jdbc/src/main/resources/META-INF/spring.handlers
@@ -0,0 +1 @@
+http\://www.springframework.org/schema/jdbc=org.springframework.jdbc.config.JdbcNamespaceHandler
\ No newline at end of file
diff --git a/org.springframework.jdbc/src/main/resources/META-INF/spring.schemas b/org.springframework.jdbc/src/main/resources/META-INF/spring.schemas
new file mode 100644
index 00000000000..54ff8a5bbb8
--- /dev/null
+++ b/org.springframework.jdbc/src/main/resources/META-INF/spring.schemas
@@ -0,0 +1 @@
+http\://www.springframework.org/schema/jdbc/spring-jdbc-3.0.xsd=org/springframework/jdbc/config/spring-jdbc-3.0.xsd
\ No newline at end of file
diff --git a/org.springframework.jdbc/src/main/resources/org/springframework/jdbc/config/spring-jdbc-3.0.xsd b/org.springframework.jdbc/src/main/resources/org/springframework/jdbc/config/spring-jdbc-3.0.xsd
new file mode 100644
index 00000000000..d8adc7a453e
--- /dev/null
+++ b/org.springframework.jdbc/src/main/resources/org/springframework/jdbc/config/spring-jdbc-3.0.xsd
@@ -0,0 +1,64 @@
+<?xml version="1.0" encoding="UTF-8" ?>
+<xsd:schema xmlns="http://www.springframework.org/schema/jdbc"
+		xmlns:xsd="http://www.w3.org/2001/XMLSchema"
+		xmlns:beans="http://www.springframework.org/schema/beans"
+		xmlns:tool="http://www.springframework.org/schema/tool"
+		targetNamespace="http://www.springframework.org/schema/jdbc"
+		elementFormDefault="qualified"
+		attributeFormDefault="unqualified">
+
+	<xsd:import namespace="http://www.springframework.org/schema/beans" />
+	<xsd:import namespace="http://www.springframework.org/schema/tool" />
+
+	<xsd:element name="embedded-database">
+		<xsd:annotation>
+			<xsd:documentation source="java:org.springframework.jdbc.embedded.EmbeddedDataSourceFactoryBean"><![CDATA[
+	Creates an embedded database instance and makes it available to other beans as a javax.sql.DataSource.
+			]]></xsd:documentation>		
+			<xsd:appinfo>
+				<tool:annotation>
+					<tool:exports type="javax.sql.DataSource" />
+				</tool:annotation>
+			</xsd:appinfo>
+		</xsd:annotation>
+		<xsd:complexType>
+			<xsd:complexContent>
+				<xsd:extension base="beans:identifiedType">
+					<xsd:sequence>
+						<xsd:element name="script" type="scriptType" minOccurs="0" maxOccurs="unbounded">
+							<xsd:annotation>
+								<xsd:documentation><![CDATA[
+			A SQL script to execute during embedded database initialization.
+								]]></xsd:documentation>
+					</xsd:annotation>	
+						</xsd:element>
+					</xsd:sequence>
+					<xsd:attribute name="type" type="databaseType">
+						<xsd:annotation>
+							<xsd:documentation><![CDATA[
+			The type of embedded database to create, such as HSQL or H2.
+							]]></xsd:documentation>
+						</xsd:annotation>			
+					</xsd:attribute>
+				</xsd:extension>
+			</xsd:complexContent>
+		</xsd:complexType>
+	</xsd:element>
+
+	<xsd:complexType name="scriptType">
+		<xsd:attribute name="location" type="xsd:string">
+			<xsd:annotation>
+				<xsd:documentation source="java:org.springframework.core.io.Resource"><![CDATA[
+	The resource location of the SQL script to execute.
+				]]></xsd:documentation>
+			</xsd:annotation>		
+		</xsd:attribute>
+	</xsd:complexType>
+
+	<xsd:simpleType name="databaseType">
+		<xsd:restriction base="xsd:string">
+			<xsd:enumeration value="HSQL" />
+		</xsd:restriction>
+	</xsd:simpleType>
+
+</xsd:schema>
\ No newline at end of file
diff --git a/org.springframework.jdbc/src/test/java/org/springframework/jdbc/config/JdbcNamespaceIntegrationTest.java b/org.springframework.jdbc/src/test/java/org/springframework/jdbc/config/JdbcNamespaceIntegrationTest.java
new file mode 100644
index 00000000000..cddcff52c25
--- /dev/null
+++ b/org.springframework.jdbc/src/test/java/org/springframework/jdbc/config/JdbcNamespaceIntegrationTest.java
@@ -0,0 +1,20 @@
+package org.springframework.jdbc.config;
+
+import static org.junit.Assert.assertEquals;
+
+import javax.sql.DataSource;
+
+import org.junit.Test;
+import org.springframework.context.support.ClassPathXmlApplicationContext;
+import org.springframework.jdbc.core.JdbcTemplate;
+
+public class JdbcNamespaceIntegrationTest {
+
+	@Test
+	public void testCreateEmbeddedDatabase() throws Exception {
+		ClassPathXmlApplicationContext context = new ClassPathXmlApplicationContext("org/springframework/jdbc/config/jdbc-config.xml");
+		DataSource ds = context.getBean("dataSource", DataSource.class);
+		JdbcTemplate t = new JdbcTemplate(ds);
+		assertEquals(1, t.queryForInt("select count(*) from T_TEST"));
+	}
+}
diff --git a/org.springframework.jdbc/src/test/java/org/springframework/jdbc/config/jdbc-config.xml b/org.springframework.jdbc/src/test/java/org/springframework/jdbc/config/jdbc-config.xml
new file mode 100644
index 00000000000..5ac4fa8773c
--- /dev/null
+++ b/org.springframework.jdbc/src/test/java/org/springframework/jdbc/config/jdbc-config.xml
@@ -0,0 +1,13 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<beans xmlns="http://www.springframework.org/schema/beans"
+    xmlns:jdbc="http://www.springframework.org/schema/jdbc"
+	xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+	xsi:schemaLocation="http://www.springframework.org/schema/beans http://www.springframework.org/schema/beans/spring-beans.xsd
+		http://www.springframework.org/schema/jdbc http://www.springframework.org/schema/jdbc/spring-jdbc-3.0.xsd">
+
+	<jdbc:embedded-database id="dataSource" type="HSQL">
+		<jdbc:script location="classpath:org/springframework/jdbc/datasource/embedded/db-schema.sql"/>
+		<jdbc:script location="classpath:org/springframework/jdbc/datasource/embedded/db-test-data.sql"/>
+	</jdbc:embedded-database>
+	
+</beans>