diff --git a/lib/ice_cube/parsers/ical_parser.rb b/lib/ice_cube/parsers/ical_parser.rb
index 2e1e2f05..437efac9 100644
--- a/lib/ice_cube/parsers/ical_parser.rb
+++ b/lib/ice_cube/parsers/ical_parser.rb
@@ -7,12 +7,14 @@ def self.schedule_from_ical(ical_string, options = {})
         (property, tzid) = property.split(';')
         case property
         when 'DTSTART'
-          data[:start_time] = Time.parse(value)
+          data[:start_time] = _parse_in_tzid(value, tzid)
         when 'DTEND'
-          data[:end_time] = Time.parse(value)
+          data[:end_time] = _parse_in_tzid(value, tzid)
         when 'EXDATE'
           data[:extimes] ||= []
-          data[:extimes] += value.split(',').map{|v| Time.parse(v)}
+          data[:extimes] += value.split(',').map do |v|
+            _parse_in_tzid(v, tzid)
+          end
         when 'DURATION'
           data[:duration] # FIXME
         when 'RRULE'
@@ -23,6 +25,14 @@ def self.schedule_from_ical(ical_string, options = {})
       Schedule.from_hash data
     end
 
+    def self._parse_in_tzid(value, tzid)
+      time_parser = Time
+      if tzid
+        time_parser = ActiveSupport::TimeZone.new(tzid.split('=')[1]) || Time
+      end
+      time_parser.parse(value)
+    end
+
     def self.rule_from_ical(ical)
       params = { validations: { } }
 
diff --git a/spec/examples/from_ical_spec.rb b/spec/examples/from_ical_spec.rb
index a46cb3f1..3694bdc2 100644
--- a/spec/examples/from_ical_spec.rb
+++ b/spec/examples/from_ical_spec.rb
@@ -94,7 +94,7 @@ module IceCube
 
   end
 
-  describe Schedule, 'from_ical' do
+  describe Schedule, 'from_ical', system_time_zone: "America/Chicago" do
 
     ical_string = <<-ICAL.gsub(/^\s*/, '')
   DTSTART:20130314T201500Z
@@ -102,7 +102,14 @@ module IceCube
   RRULE:FREQ=WEEKLY;BYDAY=TH;UNTIL=20130531T100000Z
   ICAL
 
-    ical_string_with_multiple_exdates = <<-ICAL.gsub(/^\s*/, '')
+  ical_string_with_time_zones = <<-ICAL.gsub(/^\s*/,'')
+  DTSTART;TZID=America/Denver:20130731T143000
+  DTEND:20130731T153000
+  RRULE:FREQ=WEEKLY
+  EXDATE;TZID=America/Chicago:20130823T143000
+  ICAL
+
+  ical_string_with_multiple_exdates = <<-ICAL.gsub(/^\s*/, '')
   DTSTART;TZID=America/Denver:20130731T143000
   DTEND;TZID=America/Denver:20130731T153000
   RRULE:FREQ=WEEKLY;UNTIL=20140730T203000Z;BYDAY=MO,WE,FR
@@ -130,6 +137,28 @@ def sorted_ical(ical)
       it "loads an ICAL string" do
         expect(IceCube::Schedule.from_ical(ical_string)).to be_a(IceCube::Schedule)
       end
+
+      describe "parsing time zones" do
+        it "sets the time zone of the start time" do
+          schedule = IceCube::Schedule.from_ical(ical_string_with_time_zones)
+          expect(schedule.start_time.time_zone).to eq ActiveSupport::TimeZone.new("America/Denver")
+        end
+
+        it "uses the system time if a time zone is not explicity provided" do
+          schedule = IceCube::Schedule.from_ical(ical_string_with_time_zones)
+          expect(schedule.end_time).not_to respond_to :time_zone
+        end
+
+        it "sets the time zone of the exception times" do
+          schedule = IceCube::Schedule.from_ical(ical_string_with_time_zones)
+          expect(schedule.exception_times[0].time_zone).to eq ActiveSupport::TimeZone.new("America/Chicago")
+        end
+
+        it "adding the offset doesnt also change the time" do
+          schedule = IceCube::Schedule.from_ical(ical_string_with_time_zones)
+          expect(schedule.exception_times[0].hour).to eq 14
+        end
+      end
     end
 
     describe "daily frequency" do
@@ -240,7 +269,6 @@ def sorted_ical(ical)
     describe 'monthly frequency' do
       it 'matches simple monthly' do
         start_time = Time.now
-
         schedule = IceCube::Schedule.new(start_time)
         schedule.add_recurrence_rule(IceCube::Rule.monthly)
 
diff --git a/spec/examples/hourly_rule_spec.rb b/spec/examples/hourly_rule_spec.rb
index 854cf990..199ed514 100644
--- a/spec/examples/hourly_rule_spec.rb
+++ b/spec/examples/hourly_rule_spec.rb
@@ -39,13 +39,14 @@ module IceCube
       end
 
       it 'should not skip times in DST end hour' do
-        schedule = Schedule.new(t0 = Time.local(2013, 11, 3, 0, 0, 0))
+        tz = ActiveSupport::TimeZone["America/Vancouver"]
+        schedule = Schedule.new(t0 = tz.local(2013, 11, 3, 0, 0, 0))
         schedule.add_recurrence_rule Rule.hourly
-        schedule.first(4).should == [
-          Time.local(2013, 11, 3, 0, 0, 0),             # -0700
-          Time.local(2013, 11, 3, 1, 0, 0) - ONE_HOUR,  # -0700
-          Time.local(2013, 11, 3, 1, 0, 0),             # -0800
-          Time.local(2013, 11, 3, 2, 0, 0),             # -0800
+        expect(schedule.first(4)).to eq [
+          tz.local(2013, 11, 3, 0, 0, 0),             # -0700
+          tz.local(2013, 11, 3, 1, 0, 0),             # -0700
+          tz.local(2013, 11, 3, 2, 0, 0) - ONE_HOUR,  # -0800
+          tz.local(2013, 11, 3, 2, 0, 0),             # -0800
         ]
       end