diff --git a/example/example-callbacks.cpp b/example/example-callbacks.cpp
index afb864db..a5a3b833 100644
--- a/example/example-callbacks.cpp
+++ b/example/example-callbacks.cpp
@@ -38,7 +38,10 @@ py::cpp_function test_callback5() {
 int dummy_function(int i) { return i + 1; }
 int dummy_function2(int i, int j) { return i + j; }
 std::function<int(int)> roundtrip(std::function<int(int)> f) { 
-    std::cout << "roundtrip.." << std::endl;
+    if (!f)
+        std::cout << "roundtrip (got None).." << std::endl;
+    else
+        std::cout << "roundtrip.." << std::endl;
     return f;
 }
 
diff --git a/example/example-callbacks.py b/example/example-callbacks.py
index 89f83a1b..68a485a7 100755
--- a/example/example-callbacks.py
+++ b/example/example-callbacks.py
@@ -68,6 +68,8 @@ from example import roundtrip
 
 test_dummy_function(dummy_function)
 test_dummy_function(roundtrip(dummy_function))
+if roundtrip(None) is not None:
+    print("Problem!")
 test_dummy_function(lambda x: x + 2)
 
 try:
diff --git a/example/example-callbacks.ref b/example/example-callbacks.ref
index 72f751a0..c6f8f531 100644
--- a/example/example-callbacks.ref
+++ b/example/example-callbacks.ref
@@ -30,6 +30,7 @@ Copy constructions: 1
 Move constructions: True
 argument matches dummy_function
 eval(1) = 2
+roundtrip (got None)..
 roundtrip..
 argument matches dummy_function
 eval(1) = 2
diff --git a/include/pybind11/functional.h b/include/pybind11/functional.h
index e82e520e..0df8129c 100644
--- a/include/pybind11/functional.h
+++ b/include/pybind11/functional.h
@@ -20,6 +20,9 @@ template <typename Return, typename... Args> struct type_caster<std::function<Re
     typedef typename std::conditional<std::is_same<Return, void>::value, void_type, Return>::type retval_type;
 public:
     bool load(handle src_, bool) {
+        if (src_.ptr() == Py_None)
+            return true;
+
         src_ = detail::get_function(src_);
         if (!src_ || !PyCallable_Check(src_.ptr()))
             return false;
@@ -58,6 +61,9 @@ public:
 
     template <typename Func>
     static handle cast(Func &&f_, return_value_policy policy, handle /* parent */) {
+        if (!f_)
+            return handle(Py_None).inc_ref();
+
         auto result = f_.template target<Return (*)(Args...)>();
         if (result)
             return cpp_function(*result, policy).release();