diff --git a/gluon/tools.py b/gluon/tools.py
index 3945d854..00ffc17e 100644
--- a/gluon/tools.py
+++ b/gluon/tools.py
@@ -1755,19 +1755,45 @@ class Auth(object):
                 self.add_membership(self.settings.everybody_group_id, user_id)
         return user
 
-    def basic(self):
+    def basic(self, basic_auth_realm=False):
         """
         perform basic login.
+
+        :param basic_auth_realm: optional basic http authentication realm.
+        :type basic_auth_realm: str or unicode or function or callable or boolean.
+
         reads current.request.env.http_authorization
-        and returns basic_allowed,basic_accepted,user
+        and returns basic_allowed,basic_accepted,user.
+        
+        if basic_auth_realm is defined is a callable it's return value
+        is used to set the basic authentication realm, if it's a string
+        its content is used instead.  Otherwise basic authentication realm
+        is set to the application name.
+        If basic_auth_realm is None or False (the default) the behavior
+        is to skip sending any challenge.
+        
         """
         if not self.settings.allow_basic_login:
             return (False, False, False)
         basic = current.request.env.http_authorization
+        if basic_auth_realm:
+            if callable(basic_auth_realm):
+                basic_auth_realm = basic_auth_auth()
+            elif isinstance(basic_auth_realm, (unicode, str)):
+                basic_realm = unicode(basic_auth_realm)
+            elif basic_auth_realm is True:
+                basic_realm = u'' + current.request.application
+            http_401 = HTTP(401, u'Not Authorized', 
+                       **{u'WWW-Authenticate': u'Basic realm="' + basic_realm + '"'})
         if not basic or not basic[:6].lower() == 'basic ':
+            if basic_auth_realm:
+                raise http_401
             return (True, False, False)
         (username, password) = base64.b64decode(basic[6:]).split(':')
-        return (True, True, self.login_bare(username, password))
+        is_valid_user = self.login_bare(username, password)
+        if not is_valid_user and basic_auth_realm:
+            raise http_401
+        return (True, True, is_valid_user)
 
     def login_user(self, user):
         """