diff --git a/README.md b/README.md
index 6f00bd9d..aeffea62 100644
--- a/README.md
+++ b/README.md
@@ -178,10 +178,10 @@ Don't use unix globbing to pass multiple directories, e.g `--watch ./lib/*`, it
 By default, nodemon looks for files with the `.js`, `.mjs`, `.coffee`, `.litcoffee`, and `.json` extensions. If you use the `--exec` option and monitor `app.py` nodemon will monitor files with the extension of `.py`. However, you can specify your own list with the `-e` (or `--ext`) switch like so:
 
 ```bash
-nodemon -e js,jade
+nodemon -e js,pug
 ```
 
-Now nodemon will restart on any changes to files in the directory (or subdirectories) with the extensions `.js`, `.jade`.
+Now nodemon will restart on any changes to files in the directory (or subdirectories) with the extensions `.js`, `.pug`.
 
 ## Ignoring files
 
diff --git a/doc/cli/help.txt b/doc/cli/help.txt
index dd2ab811..4d34ae12 100644
--- a/doc/cli/help.txt
+++ b/doc/cli/help.txt
@@ -3,7 +3,7 @@
   Options:
 
   --config file ............ alternate nodemon.json config file to use
-  -e, --ext ................ extensions to look for, ie. js,jade,hbs.
+  -e, --ext ................ extensions to look for, ie. js,pug,hbs.
   -x, --exec app ........... execute script with "app", ie. -x "python -v".
   -w, --watch path.......... watch directory "path" or files. use once for
                              each directory or file to watch.
diff --git a/doc/cli/options.txt b/doc/cli/options.txt
index 70f41c4a..af0edb5a 100644
--- a/doc/cli/options.txt
+++ b/doc/cli/options.txt
@@ -12,7 +12,7 @@ Configuration
 Execution
   -C, --on-change-only ..... execute script on change only, not startup
   --cwd <dir> .............. change into <dir> before running the script
-  -e, --ext ................ extensions to look for, ie. "js,jade,hbs"
+  -e, --ext ................ extensions to look for, ie. "js,pug,hbs"
   -I, --no-stdin ........... nodemon passes stdin directly to child process
   --spawn .................. force nodemon to use spawn (over fork) [node only]
   -x, --exec app ........... execute script with "app", ie. -x "python -v"
diff --git a/lib/config/exec.js b/lib/config/exec.js
index 951ac7a1..68c2a2de 100644
--- a/lib/config/exec.js
+++ b/lib/config/exec.js
@@ -198,7 +198,7 @@ function exec(nodemonOptions, execMap) {
   }
 
   // allow users to make a mistake on the extension to monitor
-  // converts .js, jade => js,jade
+  // converts .js, pug => js,pug
   // BIG NOTE: user can't do this: nodemon -e *.js
   // because the terminal will automatically expand the glob against
   // the file system :(
diff --git a/package-lock.json b/package-lock.json
index 139bd221..bba5085e 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -296,6 +296,7 @@
       "resolved": "https://registry.npmjs.org/align-text/-/align-text-0.1.4.tgz",
       "integrity": "sha1-DNkKVhCT810KmSVsIrcGlDP60Rc=",
       "dev": true,
+      "optional": true,
       "requires": {
         "kind-of": "^3.0.2",
         "longest": "^1.0.1",
@@ -1885,7 +1886,8 @@
         },
         "ansi-regex": {
           "version": "2.1.1",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "aproba": {
           "version": "1.2.0",
@@ -1903,11 +1905,13 @@
         },
         "balanced-match": {
           "version": "1.0.0",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "brace-expansion": {
           "version": "1.1.11",
           "bundled": true,
+          "optional": true,
           "requires": {
             "balanced-match": "^1.0.0",
             "concat-map": "0.0.1"
@@ -1920,15 +1924,18 @@
         },
         "code-point-at": {
           "version": "1.1.0",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "concat-map": {
           "version": "0.0.1",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "console-control-strings": {
           "version": "1.1.0",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "core-util-is": {
           "version": "1.0.2",
@@ -2031,7 +2038,8 @@
         },
         "inherits": {
           "version": "2.0.3",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "ini": {
           "version": "1.3.5",
@@ -2041,6 +2049,7 @@
         "is-fullwidth-code-point": {
           "version": "1.0.0",
           "bundled": true,
+          "optional": true,
           "requires": {
             "number-is-nan": "^1.0.0"
           }
@@ -2053,17 +2062,20 @@
         "minimatch": {
           "version": "3.0.4",
           "bundled": true,
+          "optional": true,
           "requires": {
             "brace-expansion": "^1.1.7"
           }
         },
         "minimist": {
           "version": "0.0.8",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "minipass": {
           "version": "2.3.5",
           "bundled": true,
+          "optional": true,
           "requires": {
             "safe-buffer": "^5.1.2",
             "yallist": "^3.0.0"
@@ -2080,6 +2092,7 @@
         "mkdirp": {
           "version": "0.5.1",
           "bundled": true,
+          "optional": true,
           "requires": {
             "minimist": "0.0.8"
           }
@@ -2152,7 +2165,8 @@
         },
         "number-is-nan": {
           "version": "1.0.1",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "object-assign": {
           "version": "4.1.1",
@@ -2162,6 +2176,7 @@
         "once": {
           "version": "1.4.0",
           "bundled": true,
+          "optional": true,
           "requires": {
             "wrappy": "1"
           }
@@ -2237,7 +2252,8 @@
         },
         "safe-buffer": {
           "version": "5.1.2",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "safer-buffer": {
           "version": "2.1.2",
@@ -2267,6 +2283,7 @@
         "string-width": {
           "version": "1.0.2",
           "bundled": true,
+          "optional": true,
           "requires": {
             "code-point-at": "^1.0.0",
             "is-fullwidth-code-point": "^1.0.0",
@@ -2284,6 +2301,7 @@
         "strip-ansi": {
           "version": "3.0.1",
           "bundled": true,
+          "optional": true,
           "requires": {
             "ansi-regex": "^2.0.0"
           }
@@ -2322,11 +2340,13 @@
         },
         "wrappy": {
           "version": "1.0.2",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "yallist": {
           "version": "3.0.3",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         }
       }
     },
@@ -3300,30 +3320,6 @@
         "is-object": "^1.0.1"
       }
     },
-    "jade": {
-      "version": "0.26.3",
-      "resolved": "https://registry.npmjs.org/jade/-/jade-0.26.3.tgz",
-      "integrity": "sha1-jxDXl32NefL2/4YqgbBRPMslaGw=",
-      "dev": true,
-      "requires": {
-        "commander": "0.6.1",
-        "mkdirp": "0.3.0"
-      },
-      "dependencies": {
-        "commander": {
-          "version": "0.6.1",
-          "resolved": "https://registry.npmjs.org/commander/-/commander-0.6.1.tgz",
-          "integrity": "sha1-+mihT2qUXVTbvlDYzbMyDp47GgY=",
-          "dev": true
-        },
-        "mkdirp": {
-          "version": "0.3.0",
-          "resolved": "https://registry.npmjs.org/mkdirp/-/mkdirp-0.3.0.tgz",
-          "integrity": "sha1-G79asbqCevI1dRQ0kEJkVfSB/h4=",
-          "dev": true
-        }
-      }
-    },
     "js-yaml": {
       "version": "3.10.0",
       "resolved": "https://registry.npmjs.org/js-yaml/-/js-yaml-3.10.0.tgz",
@@ -3746,7 +3742,8 @@
       "version": "1.0.1",
       "resolved": "https://registry.npmjs.org/longest/-/longest-1.0.1.tgz",
       "integrity": "sha1-MKCy2jj3N3DoKUoNIuZiXtd9AJc=",
-      "dev": true
+      "dev": true,
+      "optional": true
     },
     "loud-rejection": {
       "version": "1.6.0",
@@ -3937,7 +3934,6 @@
         "escape-string-regexp": "1.0.2",
         "glob": "3.2.11",
         "growl": "1.9.2",
-        "jade": "0.26.3",
         "mkdirp": "0.5.1",
         "supports-color": "1.2.0",
         "to-iso-string": "0.0.2"
diff --git a/test/cli/exec.test.js b/test/cli/exec.test.js
index 3a6482cb..f2b1a922 100644
--- a/test/cli/exec.test.js
+++ b/test/cli/exec.test.js
@@ -83,14 +83,14 @@ describe('nodemon exec', function () {
   });
 
   it('should support multiple extensions', function () {
-    var options = exec({ script: 'app.js', ext: 'js, jade, hbs' });
+    var options = exec({ script: 'app.js', ext: 'js, pug, hbs' });
     var cmd = toCmd(options);
     assert(cmd.string === 'node app.js', cmd.string);
-    assert(options.ext.indexOf('jade') !== -1, 'comma separated string');
+    assert(options.ext.indexOf('pug') !== -1, 'comma separated string');
 
-    options = exec({ script: 'app.js', ext: 'js|jade|hbs' });
+    options = exec({ script: 'app.js', ext: 'js|pug|hbs' });
     assert(options.exec === 'node');
-    assert(options.ext.indexOf('jade') !== -1, 'pipe separated string');
+    assert(options.ext.indexOf('pug') !== -1, 'pipe separated string');
   });
 
   it('should support watching all extensions', function () {
@@ -123,14 +123,14 @@ describe('nodemon exec', function () {
   });
 
   it('should support extension maps', function () {
-    var options = exec({ script: 'template.jade' }, { 'jade': 'jade {{filename}} --out /tmp' });
+    var options = exec({ script: 'template.pug' }, { 'pug': 'pug {{filename}} --out /tmp' });
     var cmd = toCmd(options);
-    assert(cmd.string === 'jade template.jade --out /tmp', cmd.string);
+    assert(cmd.string === 'pug template.pug --out /tmp', cmd.string);
   });
 
   it('should support input from argv#parse', function () {
     var parse = require('../../lib/cli/parse');
-    parse('node /usr/local/bin/nodemon.js --debug -e js,jade,hbs app.js'.split(' '));
+    parse('node /usr/local/bin/nodemon.js --debug -e js,pug,hbs app.js'.split(' '));
   });
 
   it('should use coffeescript on .coffee', function () {
@@ -186,10 +186,10 @@ describe('nodemon exec', function () {
   });
 
   it('should support single-level file extensions', function () {
-    var options = exec({ ext: '.js, jade' });
+    var options = exec({ ext: '.js, pug' });
 
     assert(options.ext.indexOf('js') !== -1);
-    assert(options.ext.indexOf('jade') !== -1);
+    assert(options.ext.indexOf('pug') !== -1);
   });
 
   it('should expand app to app.js', function () {
diff --git a/test/cli/parse.test.js b/test/cli/parse.test.js
index 77cc83de..b2b63131 100644
--- a/test/cli/parse.test.js
+++ b/test/cli/parse.test.js
@@ -229,7 +229,7 @@ describe('nodemon argument parser', function () {
   });
 
   it('should support short versions of flags', function () {
-    var settings = cli.parse('node nodemon -v -x java -I -V -q -w fixtures -i fixtures -d 5 -L -C -e jade -s SIGHUP');
+    var settings = cli.parse('node nodemon -v -x java -I -V -q -w fixtures -i fixtures -d 5 -L -C -e pug -s SIGHUP');
     assert(settings.version, 'version');
     assert(settings.verbose, 'verbose');
     assert(settings.exec === 'java', 'exec');
@@ -239,13 +239,13 @@ describe('nodemon argument parser', function () {
     assert(settings.ignore[0] === 'fixtures', 'ignore');
     assert(settings.delay === 5000, 'delay 5 seconds');
     assert(settings.runOnChangeOnly, 'run on change only');
-    assert(settings.ext === 'jade', 'extension is jade');
+    assert(settings.ext === 'pug', 'extension is pug');
     assert(settings.signal === 'SIGHUP', 'signal is SIGHUP');
   });
 
 
   it('should support long versions of flags', function () {
-    var settings = cli.parse('node nodemon --version --exec java --verbose --quiet --watch fixtures --ignore fixtures --no-stdin --delay 5 --legacy-watch --exitcrash --on-change-only --ext jade --config my/.nodemon.json --signal SIGHUP');
+    var settings = cli.parse('node nodemon --version --exec java --verbose --quiet --watch fixtures --ignore fixtures --no-stdin --delay 5 --legacy-watch --exitcrash --on-change-only --ext pug --config my/.nodemon.json --signal SIGHUP');
     assert(settings.version, 'version');
     assert(settings.verbose, 'verbose');
     assert(settings.exec === 'java', 'exec');
@@ -256,7 +256,7 @@ describe('nodemon argument parser', function () {
     assert(settings.ignore[0] === 'fixtures', 'ignore');
     assert(settings.delay === 5000, 'delay 5 seconds');
     assert(settings.runOnChangeOnly, 'run on change only');
-    assert(settings.ext === 'jade', 'extension is jade');
+    assert(settings.ext === 'pug', 'extension is pug');
     assert(settings.configFile === 'my/.nodemon.json', 'custom config file name is my/.nodemon.json');
     assert(settings.signal === 'SIGHUP', 'signal is SIGHUP');
   });
diff --git a/test/config/load.test.js b/test/config/load.test.js
index 0ef8f9d3..083572d1 100644
--- a/test/config/load.test.js
+++ b/test/config/load.test.js
@@ -97,8 +97,8 @@ describe('config load', function () {
       assert(config.verbose, 'we are verbose');
 
       // ensure global mapping works too
-      var options = exec({ script: 'template.jade' }, config.execMap);
-      assert(options.exec === 'bin/jade template.jade --out /tmp', 'exec used, should be "bin/jade": ' + options.exec);
+      var options = exec({ script: 'template.pug' }, config.execMap);
+      assert(options.exec === 'bin/pug template.pug --out /tmp', 'exec used, should be "bin/pug": ' + options.exec);
 
       done();
 
diff --git a/test/fixtures/global/nodemon.json b/test/fixtures/global/nodemon.json
index 1cd7277a..f72b25ad 100644
--- a/test/fixtures/global/nodemon.json
+++ b/test/fixtures/global/nodemon.json
@@ -2,6 +2,6 @@
   "verbose": true,
   "ignore": ["one", "two"],
   "execMap": {
-    "jade": "bin/jade {{filename}} --out /tmp"
+    "pug": "bin/pug {{filename}} --out /tmp"
   }
-}
\ No newline at end of file
+}
diff --git a/test/fixtures/packages/express4/package.json b/test/fixtures/packages/express4/package.json
index c08b5921..395d65aa 100644
--- a/test/fixtures/packages/express4/package.json
+++ b/test/fixtures/packages/express4/package.json
@@ -12,6 +12,7 @@
     "cookie-parser": "~1.0.1",
     "body-parser": "~1.0.0",
     "debug": "~0.7.4",
-    "jade": "~1.3.0"
+    "pug": "~2.0.4",
+    "pug-cli": "~1.0.0"
   }
 }
diff --git a/test/fixtures/watch-count/node_modules/express/node_modules/accepts/node_modules/mime-types/node_modules/mime-db/db.json b/test/fixtures/watch-count/node_modules/express/node_modules/accepts/node_modules/mime-types/node_modules/mime-db/db.json
index 5542caf7..253dcea2 100644
--- a/test/fixtures/watch-count/node_modules/express/node_modules/accepts/node_modules/mime-types/node_modules/mime-db/db.json
+++ b/test/fixtures/watch-count/node_modules/express/node_modules/accepts/node_modules/mime-types/node_modules/mime-db/db.json
@@ -5719,6 +5719,9 @@
   "text/jade": {
     "extensions": ["jade"]
   },
+  "text/pug": {
+    "extensions": ["pug"]
+  },
   "text/javascript": {
     "source": "iana",
     "compressible": true
diff --git a/test/monitor/match.test.js b/test/monitor/match.test.js
index eebec6d5..ad30596d 100644
--- a/test/monitor/match.test.js
+++ b/test/monitor/match.test.js
@@ -222,7 +222,7 @@ describe('match', function() {
   it('should be specific about directories', function(done) {
     config.load(
       {
-        ext: 'js md jade',
+        ext: 'js md pug',
         watch: ['lib'],
       },
       function(config) {