diff --git a/aiohttp/helpers.py b/aiohttp/helpers.py
index 5ddc141d8fb..9f9f8fb7808 100644
--- a/aiohttp/helpers.py
+++ b/aiohttp/helpers.py
@@ -1,4 +1,5 @@
 """Various helper functions"""
+import asyncio
 import base64
 import datetime
 import functools
@@ -11,7 +12,7 @@
 from . import hdrs, multidict
 from .errors import InvalidURL
 
-__all__ = ('BasicAuth', 'FormData', 'parse_mimetype')
+__all__ = ('BasicAuth', 'FormData', 'parse_mimetype', 'Timeout')
 
 
 class BasicAuth(namedtuple('BasicAuth', ['login', 'password', 'encoding'])):
@@ -460,3 +461,43 @@ def requote_uri(uri):
         # there may be unquoted '%'s in the URI. We need to make sure they're
         # properly quoted so they do not cause issues elsewhere.
         return quote(uri, safe=safe_without_percent)
+
+
+class Timeout:
+    """Timeout context manager.
+
+    Useful in cases when you want to apply timeout logic around block
+    of code or in cases when asyncio.wait_for is not suitable. For example:
+
+    >>> with aiohttp.Timeout(0.001):
+    >>>     async with aiohttp.get('https://github.com') as r:
+    >>>         await r.text()
+
+
+    :param timeout: timeout value in seconds
+    :param loop: asyncio compatible event loop
+    """
+    def __init__(self, timeout, *, loop=None):
+        self._timeout = timeout
+        if loop is None:
+            loop = asyncio.get_event_loop()
+        self._loop = loop
+        self._task = None
+        self._cancelled = False
+        self._cancel_handler = None
+
+    def __enter__(self):
+        self._task = asyncio.Task.current_task(loop=self._loop)
+        self._cancel_handler = self._loop.call_later(
+            self._timeout, self._cancel_task)
+        return self
+
+    def __exit__(self, exc_type, exc_val, exc_tb):
+        if exc_type is asyncio.CancelledError and self._cancelled:
+            self._task = None
+            raise asyncio.TimeoutError
+        self._cancel_handler.cancel()
+        self._task = None
+
+    def _cancel_task(self):
+        self._cancelled = self._task.cancel()
diff --git a/docs/client.rst b/docs/client.rst
index 461df90e858..89d6af30228 100644
--- a/docs/client.rst
+++ b/docs/client.rst
@@ -539,6 +539,11 @@ time to wait for a response from a server::
       File "<stdin>", line 1, in <module>
     asyncio.TimeoutError()
 
+Or wrap your client call in :class:`Timeout` context manager::
+
+    with aiohttp.Timeout(0.001):
+        async with aiohttp.get('https://github.com') as r:
+            await r.text()
 
 .. warning::
 
diff --git a/tests/test_timeout.py b/tests/test_timeout.py
new file mode 100644
index 00000000000..426e9a97461
--- /dev/null
+++ b/tests/test_timeout.py
@@ -0,0 +1,122 @@
+import asyncio
+import time
+
+import pytest
+from aiohttp.helpers import Timeout
+
+
+def test_timeout(loop):
+    canceled_raised = False
+
+    @asyncio.coroutine
+    def long_running_task():
+        try:
+            yield from asyncio.sleep(10, loop=loop)
+        except asyncio.CancelledError:
+            nonlocal canceled_raised
+            canceled_raised = True
+            raise
+
+    @asyncio.coroutine
+    def run():
+        with pytest.raises(asyncio.TimeoutError):
+            with Timeout(0.01, loop=loop) as t:
+                yield from long_running_task()
+                assert t._loop is loop
+        assert canceled_raised, 'CancelledError was not raised'
+
+    loop.run_until_complete(run())
+
+
+def test_timeout_finish_in_time(loop):
+    @asyncio.coroutine
+    def long_running_task():
+        yield from asyncio.sleep(0.01, loop=loop)
+        return 'done'
+
+    @asyncio.coroutine
+    def run():
+        with Timeout(0.1, loop=loop):
+            resp = yield from long_running_task()
+        assert resp == 'done'
+
+    loop.run_until_complete(run())
+
+
+def test_timeout_gloabal_loop(loop):
+    asyncio.set_event_loop(loop)
+
+    @asyncio.coroutine
+    def run():
+        with Timeout(0.1) as t:
+            yield from asyncio.sleep(0.01)
+            assert t._loop is loop
+
+    loop.run_until_complete(run())
+
+
+def test_timeout_not_relevant_exception(loop):
+    @asyncio.coroutine
+    def run():
+        with pytest.raises(KeyError):
+            with Timeout(0.1, loop=loop):
+                raise KeyError
+
+    loop.run_until_complete(run())
+
+
+def test_timeout_canceled_error_is_converted_to_timeout(loop):
+    @asyncio.coroutine
+    def run():
+        with pytest.raises(asyncio.CancelledError):
+            with Timeout(0.001, loop=loop):
+                raise asyncio.CancelledError
+
+    loop.run_until_complete(run())
+
+
+def test_timeout_blocking_loop(loop):
+    @asyncio.coroutine
+    def long_running_task():
+        time.sleep(0.1)
+        return 'done'
+
+    @asyncio.coroutine
+    def run():
+        with Timeout(0.01, loop=loop):
+            result = yield from long_running_task()
+        assert result == 'done'
+
+    loop.run_until_complete(run())
+
+
+def test_for_race_conditions(loop):
+    @asyncio.coroutine
+    def run():
+        fut = asyncio.Future(loop=loop)
+        loop.call_later(0.1, fut.set_result('done'))
+        with Timeout(0.2, loop=loop):
+            resp = yield from fut
+        assert resp == 'done'
+
+    loop.run_until_complete(run())
+
+
+def test_timeout_time(loop):
+    @asyncio.coroutine
+    def go():
+        foo_running = None
+
+        start = loop.time()
+        with pytest.raises(asyncio.TimeoutError):
+            with Timeout(0.1, loop=loop):
+                foo_running = True
+                try:
+                    yield from asyncio.sleep(0.2, loop=loop)
+                finally:
+                    foo_running = False
+
+        assert abs(0.1 - (loop.time() - start)) < 0.01
+        assert not foo_running
+
+    loop.run_until_complete(go())