diff --git a/lib/event.js b/lib/event.js
index a6a8e8b..d1ebaeb 100644
--- a/lib/event.js
+++ b/lib/event.js
@@ -61,12 +61,23 @@ VEvent.prototype.setDescription = function(desc) {
     this.addProperty('DESCRIPTION', desc);
 }
 
-VEvent.prototype.setDate = function(start, end) {
-    this.addProperty('DTSTART', start);
-    if(end instanceof Date)
-        this.addProperty('DTEND', end);
-    else
+VEvent.prototype.setDate = function(start, end, fullday) {
+    var startProperty = this.addProperty('DTSTART', start);
+    if (fullday) {
+      startProperty.setParameter('VALUE', 'DATE');
+      startProperty.type = 'DATE';
+    }
+
+    if(end instanceof Date) {
+        var endProperty = this.addProperty('DTEND', end);
+        if (fullday) {
+          endProperty.setParameter('VALUE', 'DATE');
+          endProperty.type = 'DATE';
+        }
+    }
+    else {
         this.addProperty('DURATION', end);
+    }
 }
 
 VEvent.prototype.rrule = function() {
diff --git a/spec/icalendar-spec.js b/spec/icalendar-spec.js
index 6399822..0918c18 100644
--- a/spec/icalendar-spec.js
+++ b/spec/icalendar-spec.js
@@ -78,6 +78,27 @@ describe("iCalendar", function() {
             'END:VCALENDAR\r\n', vevent.toString());
     });
 
+    it('Outputs full day VEvents correctly if setDate is used', function() {
+      // VEvent objects need to get a calendar wrapper...
+      var vevent = new icalendar.VEvent('testuid@daybilling.com');
+      vevent.setDate(new Date(Date.UTC(2011,10,12,00,00,00)),
+          new Date(Date.UTC(2011,10,13,00,00,00)), true);
+
+      var dtstamp = icalendar.format_value('DATE-TIME', vevent.getPropertyValue('DTSTAMP'));
+
+      assert.equal(
+          'BEGIN:VCALENDAR\r\n'+
+          'VERSION:2.0\r\n'+
+          'PRODID:'+icalendar.PRODID+'\r\n'+
+          'BEGIN:VEVENT\r\n'+
+          'DTSTAMP:'+dtstamp+'\r\n'+
+          'UID:testuid@daybilling.com\r\n'+
+          'DTSTART;VALUE=DATE:20111112\r\n'+
+          'DTEND;VALUE=DATE:20111113\r\n'+
+          'END:VEVENT\r\n'+
+          'END:VCALENDAR\r\n', vevent.toString());
+    });
+
     it('wraps long lines correctly', function() {
         var vevent = new icalendar.VEvent('testuid@daybilling.com');
         vevent.setDate(new Date(Date.UTC(2011,11,2,16,59,00)), 3600);