diff --git a/node/utils/Minify.js b/node/utils/Minify.js
index baeaee688..859ee07ae 100644
--- a/node/utils/Minify.js
+++ b/node/utils/Minify.js
@@ -213,6 +213,72 @@ function _handle(req, res, jsFilename, jsFiles) {
   }
 }
 
+// find all includes in ace.js and embed them.
+function getAceFile(callback) {
+  fs.readFile(JS_DIR + 'ace.js', "utf8", function(err, data) {
+    if(ERR(err, callback)) return;
+
+    // Find all includes in ace.js and embed them
+    var founds = data.match(/\$\$INCLUDE_[a-zA-Z_]+\([a-zA-Z0-9.\/_"-]+\)/gi);
+    if (!settings.minify) {
+      founds = [];
+    }
+    founds.push('$$INCLUDE_JS("../static/js/require-kernel.js")');
+
+    data += ';\n';
+    data += 'Ace2Editor.EMBEDED = Ace2Editor.EMBEDED || {};\n';
+
+    //go trough all includes
+    async.forEach(founds, function (item, callback) {
+      var filename = item.match(/"([^"]*)"/)[1];
+      var type = item.match(/INCLUDE_([A-Z]+)/)[1];
+      var shortFilename = (filename.match(/^..\/static\/js\/(.*)$/, '')||[])[1];
+
+      //read the included files
+      if (shortFilename) {
+        if (shortFilename == 'require-kernel.js') {
+          // the kernel isn’t actually on the file system.
+          handleEmbed(null, requireDefinition());
+        } else {
+          var contents = '';
+          tarCode(tar[shortFilename] || shortFilename
+          , function (content) {
+              contents += content;
+            }
+          , function () {
+              handleEmbed(null, contents);
+            }
+          );
+        }
+      } else {
+        fs.readFile(ROOT_DIR + filename, "utf8", handleEmbed);
+      }
+
+      function handleEmbed(error, data_) {
+        if (error) {
+          return; // Don't bother to include it.
+        }
+        if (settings.minify) {
+          if (type == "JS") {
+            try {
+              data_ = compressJS([data_]);
+            } catch (e) {
+              // Ignore, include uncompresseed, which will break in browser.
+            }
+          } else {
+            data_ = compressCSS([data_]);
+          }
+        }
+        data += 'Ace2Editor.EMBEDED[' + JSON.stringify(filename) + '] = '
+            + JSON.stringify(data_) + ';\n';
+        callback();
+      }
+    }, function(error) {
+      callback(error, data);
+    });
+  });
+}
+
 exports.requireDefinition = requireDefinition;
 function requireDefinition() {
   return 'var require = ' + RequireKernel.kernelSource + ';\n';
@@ -222,8 +288,12 @@ function tarCode(jsFiles, write, callback) {
   write('require.define({');
   var initialEntry = true;
   async.forEach(jsFiles, function (filename, callback){
-    fs.readFile(JS_DIR + filename, "utf8", handleFile);
-    
+    if (filename == 'ace.js') {
+      getAceFile(handleFile);
+    } else {
+      fs.readFile(JS_DIR + filename, "utf8", handleFile);
+    }
+
     function handleFile(err, data) {
       if(ERR(err, callback)) return;
       var srcPath = JSON.stringify('/' + filename);
diff --git a/static/js/ace.js b/static/js/ace.js
index 63b1e61fe..6c7bb84e2 100644
--- a/static/js/ace.js
+++ b/static/js/ace.js
@@ -133,6 +133,74 @@ function Ace2Editor()
     return info.ace_getUnhandledErrors();
   };
 
+
+
+  function sortFilesByEmbeded(files) {
+    var embededFiles = [];
+    var remoteFiles = [];
+
+    if (Ace2Editor.EMBEDED) {
+      for (var i = 0, ii = files.length; i < ii; i++) {
+        var file = files[i];
+        if (Object.prototype.hasOwnProperty.call(Ace2Editor.EMBEDED, file)) {
+          embededFiles.push(file);
+        } else {
+          remoteFiles.push(file);
+        }
+      }
+    } else {
+      remoteFiles = files;
+    }
+
+    return {embeded: embededFiles, remote: remoteFiles};
+  }
+  function pushRequireScriptTo(buffer) {
+    var KERNEL_SOURCE = '../static/js/require-kernel.js';
+    var KERNEL_BOOT = 'require.setRootURI("../minified/");\nrequire.setGlobalKeyPath("require");'
+    if (Ace2Editor.EMBEDED && Ace2Editor.EMBEDED[KERNEL_SOURCE]) {
+      buffer.push('<script type="text/javascript">');
+      buffer.push(Ace2Editor.EMBEDED[KERNEL_SOURCE]);
+      buffer.push(KERNEL_BOOT);
+      buffer.push('<\/script>');
+    }
+  }
+  function pushScriptsTo(buffer) {
+    /* Folling is for packaging regular expression. */
+    /* $$INCLUDE_JS("../static/js/ace2_inner.js"); */
+    var ACE_SOURCE = '../static/js/ace2_inner.js';
+    if (Ace2Editor.EMBEDED && Ace2Editor.EMBEDED[ACE_SOURCE]) {
+      buffer.push('<script type="text/javascript">');
+      buffer.push(Ace2Editor.EMBEDED[ACE_SOURCE]);
+      buffer.push('require("/ace2_inner");');
+      buffer.push('<\/script>');
+    } else {
+      file = ACE_SOURCE;
+      file = file.replace(/^\.\.\/static\/js\//, '../minified/');
+      buffer.push('<script type="application/javascript" src="' + file + '"><\/script>');
+      buffer.push('<script type="text/javascript">');
+      buffer.push('require("/ace2_inner");');
+      buffer.push('<\/script>');
+    }
+  }
+  function pushStyleTagsFor(buffer, files) {
+    var sorted = sortFilesByEmbeded(files);
+    var embededFiles = sorted.embeded;
+    var remoteFiles = sorted.remote;
+
+    if (embededFiles.length > 0) {
+      buffer.push('<style type="text/css">');
+      for (var i = 0, ii = embededFiles.length; i < ii; i++) {
+        var file = embededFiles[i];
+        buffer.push(Ace2Editor.EMBEDED[file].replace(/<\//g, '<\\/'));
+      }
+      buffer.push('<\/style>');
+    }
+    for (var i = 0, ii = remoteFiles.length; i < ii; i++) {
+      var file = remoteFiles[i];
+      buffer.push('<link rel="stylesheet" type="text/css" href="' + file + '"\/>');
+    }
+  }
+
   editor.destroy = pendingInit(function()
   {
     info.ace_dispose();
@@ -140,9 +208,7 @@ function Ace2Editor()
     delete ace2.registry[info.id];
     info = null; // prevent IE 6 closure memory leaks
   });
-  
 
-  
   editor.init = function(containerId, initialCode, doneFunc)
   {
 
@@ -154,8 +220,7 @@ function Ace2Editor()
       doActionsPendingInit();
       doneFunc();
     };
-    
-    // This function builds the DOM structure of the editor which consists of two nested iFrames
+
     (function()
     {
       var doctype = "<!doctype html>";
@@ -175,64 +240,50 @@ function Ace2Editor()
       for (var i = 0, ii = iframeHTML.length; i < ii; i++) {
         iframeHTML[i] = JSON.parse(iframeHTML[i]);
       }
-      
-      
-      // Build HTML of editable iFrame
-      
-      // Add Stylesheets to iFrame
-      iframeHTML.push('<link rel="stylesheet" type="text/css" href="../static/css/iframe_editor.css">');
-      iframeHTML.push('<link rel="stylesheet" type="text/css" href="../static/css/pad.css">');
-      iframeHTML.push('<link rel="stylesheet" type="text/css" href="../static/custom/pad.css">');
-      
-      // Include Require Kernel and ace2_innner.js in iFrame;
-      iframeHTML.push('<script type="text/javascript" src="../static/js/require-kernel.js"></script>');
-      iframeHTML.push('<script type="text/javascript">');
 
-      // Configure reqire
-      iframeHTML.push('require.setRootURI("../minified/");');
-      iframeHTML.push('require.setGlobalKeyPath("require");');
-      
+      // calls to these functions ($$INCLUDE_...)  are replaced when this file is processed
+      // and compressed, putting the compressed code from the named file directly into the
+      // source here.
+      // these lines must conform to a specific format because they are passed by the build script:      
+      var includedCSS = [];
+      var $$INCLUDE_CSS = function(filename) {includedCSS.push(filename)};
+      $$INCLUDE_CSS("../static/css/iframe_editor.css");
+      $$INCLUDE_CSS("../static/css/pad.css");
+      $$INCLUDE_CSS("../static/custom/pad.css");
+      pushStyleTagsFor(iframeHTML, includedCSS);
+
+      var includedJS = [];
+      var $$INCLUDE_JS = function(filename) {includedJS.push(filename)};
+      pushRequireScriptTo(iframeHTML);
       // Inject my plugins into my child.
-      iframeHTML.push('require.define("/plugins", null);');
-      iframeHTML.push('require.define("/plugins.js", function (require, exports, module) {');
-      iframeHTML.push('module.exports = parent.parent.require("/plugins");');
-      iframeHTML.push('});');
-      iframeHTML.push('<\/script>');
-      
-      // Require ace2
-      iframeHTML.push('<script type="text/javascript" src="../minified/ace2_inner.js"></script>');
-      iframeHTML.push('<script type="text/javascript">');
-      iframeHTML.push('require("/ace2_inner");');
-      iframeHTML.push('<\/script>');
-      
+      iframeHTML.push('\
+<script type="text/javascript">\
+  require.define("/plugins", null);\n\
+  require.define("/plugins.js", function (require, exports, module) {\
+    module.exports = parent.parent.require("/plugins");\
+  });\
+</script>\
+');
+      pushScriptsTo(iframeHTML);
+
       iframeHTML.push('<style type="text/css" title="dynamicsyntax"></style>');
       iframeHTML.push('</head><body id="innerdocbody" class="syntax" spellcheck="false">&nbsp;</body></html>');
 
-      editor.iframeHTML =  iframeHTML.join('\n');
-
       // Expose myself to global for my child frame.
       var thisFunctionsName = "ChildAccessibleAce2Editor";
       (function () {return this}())[thisFunctionsName] = Ace2Editor;
-      
-      var outerScript = 'editorId = "' + info.id + '"; editorInfo = parent.' + thisFunctionsName + '.registry[editorId]; ' +
-      'window.onload = function()' + 
-             '{ window.onload = null; setTimeout' + '(function() ' + 
-             '{ var iframe = document.createElement("IFRAME"); ' + 
-             'iframe.scrolling = "no"; var outerdocbody = document.getElementById("outerdocbody"); ' +
-             'iframe.frameBorder = 0; iframe.allowTransparency = true; ' + // for IE
-             'outerdocbody.insertBefore(iframe, outerdocbody.firstChild); ' +
-             'iframe.ace_outerWin = window; ' +
-             'var doc = iframe.contentWindow.document; doc.open();doc.write(editorInfo.editor.iframeHTML); doc.close();'+
-             'readyFunc = function() { editorInfo.onEditorReady(); readyFunc = null; editorInfo = null; };' +
-              '}, 0); }';
-      
-      
-      // Build HTML of editor iFrame;
-      var outerHTML = [doctype, '<html><head>'];
-      outerHTML.push('<link rel="stylesheet" type="text/css" href="../static/css/iframe_editor.css">');
-      outerHTML.push('<link rel="stylesheet" type="text/css" href="../static/css/pad.css">');
-      outerHTML.push('<link rel="stylesheet" type="text/css" href="../static/custom/pad.css"');
 
+      var outerScript = 'editorId = "' + info.id + '"; editorInfo = parent.' + thisFunctionsName + '.registry[editorId]; ' + 'window.onload = function() ' + '{ window.onload = null; setTimeout' + '(function() ' + '{ var iframe = document.createElement("IFRAME"); ' + 'iframe.scrolling = "no"; var outerdocbody = document.getElementById("outerdocbody"); ' + 'iframe.frameBorder = 0; iframe.allowTransparency = true; ' + // for IE
+      'outerdocbody.insertBefore(iframe, outerdocbody.firstChild); ' + 'iframe.ace_outerWin = window; ' + 'readyFunc = function() { editorInfo.onEditorReady(); readyFunc = null; editorInfo = null; }; ' + 'var doc = iframe.contentWindow.document; doc.open(); var text = (' + JSON.stringify(iframeHTML.join('\n')) + ');doc.write(text); doc.close(); ' + '}, 0); }';
+
+      var outerHTML = [doctype, '<html><head>']
+
+      var includedCSS = [];
+      var $$INCLUDE_CSS = function(filename) {includedCSS.push(filename)};
+      $$INCLUDE_CSS("../static/css/iframe_editor.css");
+      $$INCLUDE_CSS("../static/css/pad.css");
+      $$INCLUDE_CSS("../static/custom/pad.css");
+      pushStyleTagsFor(outerHTML, includedCSS);
 
       // bizarrely, in FF2, a file with no "external" dependencies won't finish loading properly
       // (throbs busy while typing)
@@ -244,7 +295,6 @@ function Ace2Editor()
       document.getElementById(containerId).appendChild(outerFrame);
 
       var editorDocument = outerFrame.contentWindow.document;
-      
 
       editorDocument.open();
       editorDocument.write(outerHTML.join(''));