diff --git a/lib/jade-rails/railtie.rb b/lib/jade-rails/railtie.rb
index 16c0a94..fb298fd 100644
--- a/lib/jade-rails/railtie.rb
+++ b/lib/jade-rails/railtie.rb
@@ -5,12 +5,29 @@ class Railtie < Rails::Engine
     config.jade.pretty        = Rails.env.development?
     config.jade.compile_debug = Rails.env.development?
 
-    config.before_initialize do |app|
-      register_template = -> (env) { (env || app.assets).register_engine('.jade',  Jade::Template) }
-      if app.config.assets.respond_to?(:configure)
-        app.config.assets.configure { |env| register_template.call(env) }
+    def configure_assets(app)
+      if config.respond_to?(:assets) && config.assets.respond_to?(:configure)
+        # Rails 4.x
+        config.assets.configure { |env| yield(env) }
       else
-        register_template.call(nil)
+        # Rails 3.2
+        yield(app.assets)
+      end
+    end
+
+    initializer 'sprockets.jade', group: :all, after: 'sprockets.environment' do |app|
+      configure_assets(app) do |env|
+        # Sprockets 2, 3, and 4
+        if env.respond_to?(:register_transformer)
+          env.register_mime_type 'text/x-jade', extensions: ['.jade']
+          env.register_transformer 'text/x-jade', 'application/javascript', Jade::SprocketsTransformer
+        end
+
+        if env.respond_to?(:register_engine)
+          args = ['.jade', Jade::SprocketsTransformer]
+          args << { mime_type: 'text/x-jade', silence_deprecation: true } if Sprockets::VERSION.start_with?('3')
+          env.register_engine(*args)
+        end
       end
     end
   end
diff --git a/lib/jade-rails/template.rb b/lib/jade-rails/template.rb
index 1461092..02e377a 100644
--- a/lib/jade-rails/template.rb
+++ b/lib/jade-rails/template.rb
@@ -1,12 +1,28 @@
 # frozen_string_literal: true
-require 'tilt'
 module Jade
-  class Template < Tilt::Template
-    def prepare
+  # Sprockets 2, 3 & 4 interface
+  # https://github.com/rails/sprockets/blob/master/guides/extending_sprockets.md#registering-all-versions-of-sprockets-in-processors
+  class SprocketsTransformer
+    def initialize(filename, &block)
+      @filename = filename
+      @source   = block.call
     end
 
-    def evaluate(context, locals, &block)
-      Jade.compile(data, filename: file, client: true)
+    def render(context, empty_hash_wtf)
+      self.class.run(@filename, @source, context)
+    end
+
+    def self.run(filename, source, context)
+      Jade.compile(source, filename: filename, client: true)
+    end
+
+    def self.call(input)
+      filename = input[:filename]
+      source   = input[:data]
+      context  = input[:environment].context_class.new(input)
+
+      result = run(filename, source, context)
+      context.metadata.merge(data: result)
     end
   end
 end
diff --git a/lib/pug-rails/railtie.rb b/lib/pug-rails/railtie.rb
index 73cd6a9..407eb5d 100644
--- a/lib/pug-rails/railtie.rb
+++ b/lib/pug-rails/railtie.rb
@@ -5,12 +5,29 @@ class Railtie < Rails::Engine
     config.pug.pretty        = Rails.env.development?
     config.pug.compile_debug = Rails.env.development?
 
-    config.before_initialize do |app|
-      register_template = -> (env) { (env || app.assets).register_engine('.pug',  Pug::Template) }
-      if app.config.assets.respond_to?(:configure)
-        app.config.assets.configure { |env| register_template.call(env) }
+    def configure_assets(app)
+      if config.respond_to?(:assets) && config.assets.respond_to?(:configure)
+        # Rails 4.x
+        config.assets.configure { |env| yield(env) }
       else
-        register_template.call(nil)
+        # Rails 3.2
+        yield(app.assets)
+      end
+    end
+
+    initializer 'sprockets.pug', group: :all, after: 'sprockets.environment' do |app|
+      configure_assets(app) do |env|
+        # Sprockets 2, 3, and 4
+        if env.respond_to?(:register_transformer)
+          env.register_mime_type 'text/x-pug', extensions: ['.pug']
+          env.register_transformer 'text/x-pug', 'application/javascript+function', Pug::SprocketsTransformer
+        end
+
+        if env.respond_to?(:register_engine)
+          args = ['.pug', Pug::SprocketsTransformer]
+          args << { mime_type: 'text/x-pug', silence_deprecation: true } if Sprockets::VERSION.start_with?('3')
+          env.register_engine(*args)
+        end
       end
     end
   end
diff --git a/lib/pug-rails/template.rb b/lib/pug-rails/template.rb
index da6b3e8..47ad624 100644
--- a/lib/pug-rails/template.rb
+++ b/lib/pug-rails/template.rb
@@ -1,12 +1,28 @@
 # frozen_string_literal: true
-require 'tilt'
 module Pug
-  class Template < Tilt::Template
-    def prepare
+  # Sprockets 2, 3 & 4 interface
+  # https://github.com/rails/sprockets/blob/master/guides/extending_sprockets.md#registering-all-versions-of-sprockets-in-processors
+  class SprocketsTransformer
+    def initialize(filename, &block)
+      @filename = filename
+      @source   = block.call
     end
 
-    def evaluate(context, locals, &block)
-      Pug.compile(data, filename: file, client: true)
+    def render(context, empty_hash_wtf)
+      self.class.run(@filename, @source, context)
+    end
+
+    def self.run(filename, source, context)
+      Pug.compile(source, filename: filename, client: true)
+    end
+
+    def self.call(input)
+      filename = input[:filename]
+      source   = input[:data]
+      context  = input[:environment].context_class.new(input)
+
+      result = run(filename, source, context)
+      context.metadata.merge(data: result)
     end
   end
 end
diff --git a/pug-rails.gemspec b/pug-rails.gemspec
index e481406..53a556f 100644
--- a/pug-rails.gemspec
+++ b/pug-rails.gemspec
@@ -1,7 +1,7 @@
 # frozen_string_literal: true
 Gem::Specification.new do |s|
   s.name            = 'pug-rails'
-  s.version         = '2.0.1'
+  s.version         = '2.0.2'
   s.author          = 'Yaroslav Konoplov'
   s.email           = 'eahome00@gmail.com'
   s.summary         = 'Pug/Jade template engine integration with Rails asset pipeline.'
@@ -15,5 +15,4 @@ Gem::Specification.new do |s|
   s.require_paths   = ['lib']
 
   s.add_dependency 'pug-ruby', '~> 1.0'
-  s.add_dependency 'tilt',     '~> 2.0'
 end