diff --git a/IPython/frontend/html/notebook/static/js/notebook.js b/IPython/frontend/html/notebook/static/js/notebook.js
index a080fa12d..a65be89b0 100644
--- a/IPython/frontend/html/notebook/static/js/notebook.js
+++ b/IPython/frontend/html/notebook/static/js/notebook.js
@@ -973,15 +973,12 @@ var IPython = (function (IPython) {
     Notebook.prototype.notebook_saved = function (data, status, xhr) {
         this.dirty = false;
         IPython.save_widget.notebook_saved();
-        IPython.save_widget.status_save();
+        IPython.save_widget.status_last_saved();
     };
 
 
     Notebook.prototype.notebook_save_failed = function (xhr, status, error_msg) {
-        // Notify the user and reset the save button
-        // TODO: Handle different types of errors (timeout etc.)
-        alert('An unexpected error occured while saving the notebook.');
-        IPython.save_widget.reset_status();
+        IPython.save_widget.status_save_failed();
     };
 
 
@@ -1013,7 +1010,7 @@ var IPython = (function (IPython) {
         if (this.ncells() === 0) {
             this.insert_code_cell_below();
         };
-        IPython.save_widget.status_save();
+        IPython.save_widget.status_last_saved();
         IPython.save_widget.set_notebook_name(data.metadata.name);
         this.dirty = false;
         if (! this.read_only) {
diff --git a/IPython/frontend/html/notebook/static/js/savewidget.js b/IPython/frontend/html/notebook/static/js/savewidget.js
index 7f8d5322b..9688a31de 100644
--- a/IPython/frontend/html/notebook/static/js/savewidget.js
+++ b/IPython/frontend/html/notebook/static/js/savewidget.js
@@ -28,6 +28,8 @@ var IPython = (function (IPython) {
     SaveWidget.prototype.style = function () {
         this.element.find('span#save_widget').addClass('ui-widget');
         this.element.find('span#notebook_name').addClass('ui-widget ui-widget-content');
+        this.element.find('span#save_status').addClass('ui-widget ui-widget-content')
+            .css({border: 'none', 'margin-left': '20px'});
     };
 
 
@@ -137,24 +139,34 @@ var IPython = (function (IPython) {
     };
 
 
+    SaveWidget.prototype.set_last_saved = function () {
+        var d = new Date();
+        $('#save_status').html('Last saved: '+d.format('mmm dd h:MM TT'));
+        
+    };
+
     SaveWidget.prototype.reset_status = function () {
-        this.is_renaming();
+        this.element.find('span#save_status').html('');
     };
 
 
-    SaveWidget.prototype.status_save = function () {
+    SaveWidget.prototype.status_last_saved = function () {
+        this.set_last_saved();
     };
 
 
     SaveWidget.prototype.status_saving = function () {
+        this.element.find('span#save_status').html('Saving...');
     };
 
 
-    SaveWidget.prototype.status_loading = function () {
+    SaveWidget.prototype.status_save_failed = function () {
+        this.element.find('span#save_status').html('Save failed');
     };
 
 
-    SaveWidget.prototype.status_rename = function () {
+    SaveWidget.prototype.status_loading = function () {
+        this.element.find('span#save_status').html('Loading...');
     };
 
 
diff --git a/IPython/frontend/html/notebook/templates/notebook.html b/IPython/frontend/html/notebook/templates/notebook.html
index 161945cd1..f51ecece3 100644
--- a/IPython/frontend/html/notebook/templates/notebook.html
+++ b/IPython/frontend/html/notebook/templates/notebook.html
@@ -45,6 +45,7 @@
     <span id="ipython_notebook"><h1><a href='..' alt='dashboard'><img src='/static/ipynblogo.png' alt='IPython Notebook'/></a></h1></span>
     <span id="save_widget">
         <span id="notebook_name"></span>
+        <span id="save_status"></span>
     </span>
 
     <span id="login_widget">
@@ -159,6 +160,7 @@
 <script src="/static/pagedown/Markdown.Converter.js" charset="utf-8"></script>
 
 <script src="/static/prettify/prettify.js" charset="utf-8"></script>
+<script src="/static/dateformat/date.format.js" charset="utf-8"></script>
 
 <script src="/static/js/namespace.js" type="text/javascript" charset="utf-8"></script>
 <script src="/static/js/utils.js" type="text/javascript" charset="utf-8"></script>