diff --git a/.gitignore b/.gitignore
index 120b943c5..7c550a925 100644
--- a/.gitignore
+++ b/.gitignore
@@ -2,3 +2,4 @@
 /test/js
 /test/browsertest/js
 /examples/*/js
+.DS_Store
\ No newline at end of file
diff --git a/README.md b/README.md
index 598d8932f..326348718 100644
--- a/README.md
+++ b/README.md
@@ -326,7 +326,7 @@ Options:
   --filenames      Output Filenames Into File                               [boolean]  [default: false]
   --options        Options JSON File                                        [string]
   --public-prefix  Path Prefix For JavaScript Loading                       [string]
-  --libary         Stores the exports into this variable                    [string]
+  --library        Stores the exports into this variable                    [string]
   --colors         Output Stats with colors                                 [boolean]  [default: false]
   --single         Disable lazy loading                                     [boolean]  [default: false]
   --json           Output Stats as JSON                                     [boolean]  [default: false]
@@ -376,9 +376,9 @@ You can also save this options object in a JSON file and use it with the shell c
  // path to create the chunks url relative to page
  // deprecated name: scriptSrcPrefix
 
- libary: "mylib", // default: null
+ library: "mylib", // default: null
  // store the exports of the entrace module in a variable of this name
- // use this to create a libary from webpack
+ // use this to create a library from webpack
 
  includeFilenames: true, // default: false
  // include the filename of each module as comment before the module
diff --git a/bin/webpack.js b/bin/webpack.js
index ecdfb17ed..b33868a8d 100644
--- a/bin/webpack.js
+++ b/bin/webpack.js
@@ -33,8 +33,8 @@ var argv = require("optimist")
 	.string("public-prefix")
 	.describe("public-prefix", "Path Prefix For JavaScript Loading")
 
-	.string("libary")
-	.describe("libary", "Stores the exports into this variable")
+	.string("library")
+	.describe("library", "Stores the exports into this variable")
 
 	.boolean("colors")
 	.describe("colors", "Output Stats with colors")
@@ -145,8 +145,8 @@ if(argv.filenames) {
 	options.includeFilenames = true;
 }
 
-if(argv.libary) {
-	options.libary = argv.libary;
+if(argv.library) {
+	options.library = argv.library;
 }
 
 if(argv.alias) {
diff --git a/lib/webpack.js b/lib/webpack.js
index f9437a2c2..d010417b5 100644
--- a/lib/webpack.js
+++ b/lib/webpack.js
@@ -39,7 +39,7 @@ module.exports = function webpackMain(context, moduleName, options, callback) {
 	if(!options.events) options.events = new (require("events").EventEmitter)();
 
 	if(!options.outputJsonpFunction)
-		options.outputJsonpFunction = "webpackJsonp" + (options.libary  || "");
+		options.outputJsonpFunction = "webpackJsonp" + (options.library  || "");
 	options.publicPrefix = options.publicPrefix || "";
 
 	options.context = options.context || context;
@@ -282,7 +282,7 @@ function webpack(context, moduleName, options, callback) {
 		var hash;
 		try {
 			hash = new (require("crypto").Hash)("md5");
-			hash.update(JSON.stringify(options.libary || ""));
+			hash.update(JSON.stringify(options.library || ""));
 			hash.update(JSON.stringify(options.outputPostfix));
 			hash.update(JSON.stringify(options.outputJsonpFunction));
 			hash.update(JSON.stringify(options.publicPrefix));
@@ -320,10 +320,10 @@ function webpack(context, moduleName, options, callback) {
 				else
 					hash = "";
 
-				// if it should be a libary, we prepend a variable name
-				if(options.libary) {
+				// if it should be a library, we prepend a variable name
+				if(options.library) {
 					buffer.push("/******/var ");
-					buffer.push(options.libary);
+					buffer.push(options.library);
 					buffer.push("=\n");
 				}
 
diff --git a/test/browsertest/build.js b/test/browsertest/build.js
index d1512ed33..4560aece3 100644
--- a/test/browsertest/build.js
+++ b/test/browsertest/build.js
@@ -28,11 +28,11 @@ console.log("compile scripts...");
 var extraArgsNoWatch = extraArgs.slice(0);
 var watchIndex = extraArgsNoWatch.indexOf("--watch");
 if(watchIndex != -1) extraArgsNoWatch.splice(watchIndex, 1);
-// node ../../bin/webpack --colors --single --libary libary1 node_modules/libary1 js/libary1.js
-var libary1 = cp.spawn("node", join(["../../bin/webpack.js", "--colors", "--single", "--libary", "libary1",
-										"node_modules/libary1", "js/libary1.js"], extraArgsNoWatch));
-bindOutput(libary1);
-libary1.on("exit", function(code) {
+// node ../../bin/webpack --colors --single --library library1 node_modules/library1 js/library1.js
+var library1 = cp.spawn("node", join(["../../bin/webpack.js", "--colors", "--single", "--library", "library1",
+										"node_modules/library1", "js/library1.js"], extraArgsNoWatch));
+bindOutput(library1);
+library1.on("exit", function(code) {
 	if(code === 0) {
 		// node ../../bin/webpack --colors --alias vm=vm-browserify --workers --public-prefix js/ lib/index js/web.js
 		var main = cp.spawn("node", join(["../../bin/webpack.js", "--colors", "--alias", "vm=vm-browserify", "--workers",
@@ -40,6 +40,6 @@ libary1.on("exit", function(code) {
 		bindOutput(main);
 	}
 });
-var libary2 = cp.spawn("node", join(["../../bin/webpack.js", "--colors", "--libary", "libary2",
-									"--public-prefix", "js/", "--options", "libary2config.js", "node_modules/libary2", "js/libary2.js"], extraArgsNoWatch));
-bindOutput(libary2);
+var library2 = cp.spawn("node", join(["../../bin/webpack.js", "--colors", "--library", "library2",
+									"--public-prefix", "js/", "--options", "library2config.js", "node_modules/library2", "js/library2.js"], extraArgsNoWatch));
+bindOutput(library2);
diff --git a/test/browsertest/lib/index.web.js b/test/browsertest/lib/index.web.js
index 865a0aff1..f3540a92c 100644
--- a/test/browsertest/lib/index.web.js
+++ b/test/browsertest/lib/index.web.js
@@ -6,8 +6,8 @@ function test(cond, message) {
 	if(!cond) throw new Error(message);
 }
 
-// load tests from libary1, with script loader
-require("script!../js/libary1.js");
+// load tests from library1, with script loader
+require("script!../js/library1.js");
 
 // Buildin 'style' loader adds css to document
 require("../css/stylesheet.css");
@@ -25,15 +25,15 @@ function testCase(number) {
 }
 
 describe("main", function() {
-	it("should load libary1 with script-loader", function() {
-		should.exist(window.libary1);
-		window.libary1.should.be.eql(true);
+	it("should load library1 with script-loader", function() {
+		should.exist(window.library1);
+		window.library1.should.be.eql(true);
 	});
 
-	it("should load libary1 with script-loader", function() {
-		should.exist(window.libary2);
-		should.exist(window.libary2.ok);
-		window.libary2.ok.should.be.eql(true);
+	it("should load library1 with script-loader", function() {
+		should.exist(window.library2);
+		should.exist(window.library2.ok);
+		window.library2.ok.should.be.eql(true);
 	});
 
 	describe("resolving", function() {
diff --git a/test/browsertest/libary2config.js b/test/browsertest/library2config.js
similarity index 100%
rename from test/browsertest/libary2config.js
rename to test/browsertest/library2config.js
diff --git a/test/browsertest/node_modules/libary1/index.js b/test/browsertest/node_modules/library1/index.js
similarity index 73%
rename from test/browsertest/node_modules/libary1/index.js
rename to test/browsertest/node_modules/library1/index.js
index 735409159..ab0bcf7eb 100644
--- a/test/browsertest/node_modules/libary1/index.js
+++ b/test/browsertest/node_modules/library1/index.js
@@ -1,8 +1,8 @@
-// Single File Libary
-var loadTimeLibary1 = typeof window.libary1 === "undefined"
-describe("Libary1", function() {
-	it("should load libary1 only once", function() {
-		loadTimeLibary1.should.be.ok;
+// Single File library
+var loadTimelibrary1 = typeof window.library1 === "undefined"
+describe("library1", function() {
+	it("should load library1 only once", function() {
+		loadTimelibrary1.should.be.ok;
 	});
 	
 	it("should load a component", function() {
diff --git a/test/browsertest/node_modules/libary1/lib/comp.js b/test/browsertest/node_modules/library1/lib/comp.js
similarity index 100%
rename from test/browsertest/node_modules/libary1/lib/comp.js
rename to test/browsertest/node_modules/library1/lib/comp.js
diff --git a/test/browsertest/node_modules/libary1/lib/component.js b/test/browsertest/node_modules/library1/lib/component.js
similarity index 100%
rename from test/browsertest/node_modules/libary1/lib/component.js
rename to test/browsertest/node_modules/library1/lib/component.js
diff --git a/test/browsertest/node_modules/libary1/node_modules/submodule1/index.js b/test/browsertest/node_modules/library1/node_modules/submodule1/index.js
similarity index 100%
rename from test/browsertest/node_modules/libary1/node_modules/submodule1/index.js
rename to test/browsertest/node_modules/library1/node_modules/submodule1/index.js
diff --git a/test/browsertest/node_modules/libary1/node_modules/submodule2/index.js b/test/browsertest/node_modules/library1/node_modules/submodule2/index.js
similarity index 100%
rename from test/browsertest/node_modules/libary1/node_modules/submodule2/index.js
rename to test/browsertest/node_modules/library1/node_modules/submodule2/index.js
diff --git a/test/browsertest/node_modules/libary2/lib/extra.js b/test/browsertest/node_modules/library2/lib/extra.js
similarity index 100%
rename from test/browsertest/node_modules/libary2/lib/extra.js
rename to test/browsertest/node_modules/library2/lib/extra.js
diff --git a/test/browsertest/node_modules/libary2/lib/extra2.js b/test/browsertest/node_modules/library2/lib/extra2.js
similarity index 100%
rename from test/browsertest/node_modules/libary2/lib/extra2.js
rename to test/browsertest/node_modules/library2/lib/extra2.js
diff --git a/test/browsertest/node_modules/libary2/lib/main.js b/test/browsertest/node_modules/library2/lib/main.js
similarity index 96%
rename from test/browsertest/node_modules/libary2/lib/main.js
rename to test/browsertest/node_modules/library2/lib/main.js
index 838e8d64c..cda3f8913 100644
--- a/test/browsertest/node_modules/libary2/lib/main.js
+++ b/test/browsertest/node_modules/library2/lib/main.js
@@ -1,5 +1,5 @@
-// Chunked File Libary
-describe("libary2", function() {
+// Chunked File library
+describe("library2", function() {
 	var tickExtra, tickEmpty, tickMerged;
 	var extraValue, testValue;
 
diff --git a/test/browsertest/node_modules/libary2/lib/test.js b/test/browsertest/node_modules/library2/lib/test.js
similarity index 100%
rename from test/browsertest/node_modules/libary2/lib/test.js
rename to test/browsertest/node_modules/library2/lib/test.js
diff --git a/test/browsertest/node_modules/libary2/node_modules/submodule1/index.js b/test/browsertest/node_modules/library2/node_modules/submodule1/index.js
similarity index 100%
rename from test/browsertest/node_modules/libary2/node_modules/submodule1/index.js
rename to test/browsertest/node_modules/library2/node_modules/submodule1/index.js
diff --git a/test/browsertest/node_modules/libary2/node_modules/submodule2/index.js b/test/browsertest/node_modules/library2/node_modules/submodule2/index.js
similarity index 100%
rename from test/browsertest/node_modules/libary2/node_modules/submodule2/index.js
rename to test/browsertest/node_modules/library2/node_modules/submodule2/index.js
diff --git a/test/browsertest/node_modules/libary2/node_modules/submodule3/index.js b/test/browsertest/node_modules/library2/node_modules/submodule3/index.js
similarity index 100%
rename from test/browsertest/node_modules/libary2/node_modules/submodule3/index.js
rename to test/browsertest/node_modules/library2/node_modules/submodule3/index.js
diff --git a/test/browsertest/node_modules/libary2/package.json b/test/browsertest/node_modules/library2/package.json
similarity index 100%
rename from test/browsertest/node_modules/libary2/package.json
rename to test/browsertest/node_modules/library2/package.json
diff --git a/test/browsertest/tests.html b/test/browsertest/tests.html
index 9055d5f5e..5386d6191 100644
--- a/test/browsertest/tests.html
+++ b/test/browsertest/tests.html
@@ -12,7 +12,7 @@
 			var should = chai.should();
 			mocha.setup('bdd');
 		</script>
-		<script src="js/libary2.js" charset="utf-8"></script>
+		<script src="js/library2.js" charset="utf-8"></script>
 		<script src="js/web.js" charset="utf-8"></script>
 		<!-- fixtures -->
 		<style>