diff --git a/pkg/donut/donut-v1_test.go b/pkg/donut/donut-v1_test.go
index 52f3ed767..f3a4e2de4 100644
--- a/pkg/donut/donut-v1_test.go
+++ b/pkg/donut/donut-v1_test.go
@@ -86,16 +86,16 @@ func (s *MyDonutSuite) TearDownSuite(c *C) {
 // test make bucket without name
 func (s *MyDonutSuite) TestBucketWithoutNameFails(c *C) {
 	// fail to create new bucket without a name
-	err := dd.MakeBucket("", "private", nil)
+	err := dd.MakeBucket("", "private", nil, nil)
 	c.Assert(err, Not(IsNil))
 
-	err = dd.MakeBucket(" ", "private", nil)
+	err = dd.MakeBucket(" ", "private", nil, nil)
 	c.Assert(err, Not(IsNil))
 }
 
 // test empty bucket
 func (s *MyDonutSuite) TestEmptyBucket(c *C) {
-	c.Assert(dd.MakeBucket("foo1", "private", nil), IsNil)
+	c.Assert(dd.MakeBucket("foo1", "private", nil, nil), IsNil)
 	// check if bucket is empty
 	var resources BucketResourcesMetadata
 	resources.Maxkeys = 1
@@ -109,7 +109,7 @@ func (s *MyDonutSuite) TestEmptyBucket(c *C) {
 // test bucket list
 func (s *MyDonutSuite) TestMakeBucketAndList(c *C) {
 	// create bucket
-	err := dd.MakeBucket("foo2", "private", nil)
+	err := dd.MakeBucket("foo2", "private", nil, nil)
 	c.Assert(err, IsNil)
 
 	// check bucket exists
@@ -121,20 +121,20 @@ func (s *MyDonutSuite) TestMakeBucketAndList(c *C) {
 
 // test re-create bucket
 func (s *MyDonutSuite) TestMakeBucketWithSameNameFails(c *C) {
-	err := dd.MakeBucket("foo3", "private", nil)
+	err := dd.MakeBucket("foo3", "private", nil, nil)
 	c.Assert(err, IsNil)
 
-	err = dd.MakeBucket("foo3", "private", nil)
+	err = dd.MakeBucket("foo3", "private", nil, nil)
 	c.Assert(err, Not(IsNil))
 }
 
 // test make multiple buckets
 func (s *MyDonutSuite) TestCreateMultipleBucketsAndList(c *C) {
 	// add a second bucket
-	err := dd.MakeBucket("foo4", "private", nil)
+	err := dd.MakeBucket("foo4", "private", nil, nil)
 	c.Assert(err, IsNil)
 
-	err = dd.MakeBucket("bar1", "private", nil)
+	err = dd.MakeBucket("bar1", "private", nil, nil)
 	c.Assert(err, IsNil)
 
 	buckets, err := dd.ListBuckets(nil)
@@ -144,7 +144,7 @@ func (s *MyDonutSuite) TestCreateMultipleBucketsAndList(c *C) {
 	c.Assert(buckets[0].Name, Equals, "bar1")
 	c.Assert(buckets[1].Name, Equals, "foo4")
 
-	err = dd.MakeBucket("foobar1", "private", nil)
+	err = dd.MakeBucket("foobar1", "private", nil, nil)
 	c.Assert(err, IsNil)
 
 	buckets, err = dd.ListBuckets(nil)
@@ -168,7 +168,7 @@ func (s *MyDonutSuite) TestNewObjectMetadata(c *C) {
 	expectedMd5Sum := base64.StdEncoding.EncodeToString(hasher.Sum(nil))
 	reader := ioutil.NopCloser(bytes.NewReader([]byte(data)))
 
-	err := dd.MakeBucket("foo6", "private", nil)
+	err := dd.MakeBucket("foo6", "private", nil, nil)
 	c.Assert(err, IsNil)
 
 	objectMetadata, err := dd.CreateObject("foo6", "obj", expectedMd5Sum, int64(len(data)), reader, map[string]string{"contentType": "application/json"}, nil)
@@ -185,7 +185,7 @@ func (s *MyDonutSuite) TestNewObjectFailsWithEmptyName(c *C) {
 
 // test create object
 func (s *MyDonutSuite) TestNewObjectCanBeWritten(c *C) {
-	err := dd.MakeBucket("foo", "private", nil)
+	err := dd.MakeBucket("foo", "private", nil, nil)
 	c.Assert(err, IsNil)
 
 	data := "Hello World"
@@ -213,7 +213,7 @@ func (s *MyDonutSuite) TestNewObjectCanBeWritten(c *C) {
 
 // test list objects
 func (s *MyDonutSuite) TestMultipleNewObjects(c *C) {
-	c.Assert(dd.MakeBucket("foo5", "private", nil), IsNil)
+	c.Assert(dd.MakeBucket("foo5", "private", nil, nil), IsNil)
 
 	one := ioutil.NopCloser(bytes.NewReader([]byte("one")))
 
diff --git a/pkg/donut/donut-v2.go b/pkg/donut/donut-v2.go
index bcb0997c2..c0a1e83f9 100644
--- a/pkg/donut/donut-v2.go
+++ b/pkg/donut/donut-v2.go
@@ -448,12 +448,22 @@ func (donut API) createObject(bucket, key, contentType, expectedMD5Sum string, s
 }
 
 // MakeBucket - create bucket in cache
-func (donut API) MakeBucket(bucketName, acl string, signature *Signature) error {
+func (donut API) MakeBucket(bucketName, acl string, location io.Reader, signature *Signature) error {
 	donut.lock.Lock()
 	defer donut.lock.Unlock()
 
+	// do not have to parse location constraint, using this just for signature verification
+	locationSum := "e3b0c44298fc1c149afbf4c8996fb92427ae41e4649b934ca495991b7852b855"
+	if location != nil {
+		locationConstraintBytes, err := ioutil.ReadAll(location)
+		if err != nil {
+			return iodine.New(InternalError{}, nil)
+		}
+		locationSum = hex.EncodeToString(sha256.Sum256(locationConstraintBytes)[:])
+	}
+
 	if signature != nil {
-		ok, err := signature.DoesSignatureMatch("e3b0c44298fc1c149afbf4c8996fb92427ae41e4649b934ca495991b7852b855")
+		ok, err := signature.DoesSignatureMatch(locationSum)
 		if err != nil {
 			return iodine.New(err, nil)
 		}
diff --git a/pkg/donut/donut-v2_test.go b/pkg/donut/donut-v2_test.go
index 2604c401b..27706dbf9 100644
--- a/pkg/donut/donut-v2_test.go
+++ b/pkg/donut/donut-v2_test.go
@@ -61,16 +61,16 @@ func (s *MyCacheSuite) TearDownSuite(c *C) {
 // test make bucket without name
 func (s *MyCacheSuite) TestBucketWithoutNameFails(c *C) {
 	// fail to create new bucket without a name
-	err := dc.MakeBucket("", "private", nil)
+	err := dc.MakeBucket("", "private", nil, nil)
 	c.Assert(err, Not(IsNil))
 
-	err = dc.MakeBucket(" ", "private", nil)
+	err = dc.MakeBucket(" ", "private", nil, nil)
 	c.Assert(err, Not(IsNil))
 }
 
 // test empty bucket
 func (s *MyCacheSuite) TestEmptyBucket(c *C) {
-	c.Assert(dc.MakeBucket("foo1", "private", nil), IsNil)
+	c.Assert(dc.MakeBucket("foo1", "private", nil, nil), IsNil)
 	// check if bucket is empty
 	var resources BucketResourcesMetadata
 	resources.Maxkeys = 1
@@ -84,7 +84,7 @@ func (s *MyCacheSuite) TestEmptyBucket(c *C) {
 // test bucket list
 func (s *MyCacheSuite) TestMakeBucketAndList(c *C) {
 	// create bucket
-	err := dc.MakeBucket("foo2", "private", nil)
+	err := dc.MakeBucket("foo2", "private", nil, nil)
 	c.Assert(err, IsNil)
 
 	// check bucket exists
@@ -96,20 +96,20 @@ func (s *MyCacheSuite) TestMakeBucketAndList(c *C) {
 
 // test re-create bucket
 func (s *MyCacheSuite) TestMakeBucketWithSameNameFails(c *C) {
-	err := dc.MakeBucket("foo3", "private", nil)
+	err := dc.MakeBucket("foo3", "private", nil, nil)
 	c.Assert(err, IsNil)
 
-	err = dc.MakeBucket("foo3", "private", nil)
+	err = dc.MakeBucket("foo3", "private", nil, nil)
 	c.Assert(err, Not(IsNil))
 }
 
 // test make multiple buckets
 func (s *MyCacheSuite) TestCreateMultipleBucketsAndList(c *C) {
 	// add a second bucket
-	err := dc.MakeBucket("foo4", "private", nil)
+	err := dc.MakeBucket("foo4", "private", nil, nil)
 	c.Assert(err, IsNil)
 
-	err = dc.MakeBucket("bar1", "private", nil)
+	err = dc.MakeBucket("bar1", "private", nil, nil)
 	c.Assert(err, IsNil)
 
 	buckets, err := dc.ListBuckets(nil)
@@ -119,7 +119,7 @@ func (s *MyCacheSuite) TestCreateMultipleBucketsAndList(c *C) {
 	c.Assert(buckets[0].Name, Equals, "bar1")
 	c.Assert(buckets[1].Name, Equals, "foo4")
 
-	err = dc.MakeBucket("foobar1", "private", nil)
+	err = dc.MakeBucket("foobar1", "private", nil, nil)
 	c.Assert(err, IsNil)
 
 	buckets, err = dc.ListBuckets(nil)
@@ -143,7 +143,7 @@ func (s *MyCacheSuite) TestNewObjectMetadata(c *C) {
 	expectedMd5Sum := base64.StdEncoding.EncodeToString(hasher.Sum(nil))
 	reader := ioutil.NopCloser(bytes.NewReader([]byte(data)))
 
-	err := dc.MakeBucket("foo6", "private", nil)
+	err := dc.MakeBucket("foo6", "private", nil, nil)
 	c.Assert(err, IsNil)
 
 	objectMetadata, err := dc.CreateObject("foo6", "obj", expectedMd5Sum, int64(len(data)), reader, map[string]string{"contentType": "application/json"}, nil)
@@ -160,7 +160,7 @@ func (s *MyCacheSuite) TestNewObjectFailsWithEmptyName(c *C) {
 
 // test create object
 func (s *MyCacheSuite) TestNewObjectCanBeWritten(c *C) {
-	err := dc.MakeBucket("foo", "private", nil)
+	err := dc.MakeBucket("foo", "private", nil, nil)
 	c.Assert(err, IsNil)
 
 	data := "Hello World"
@@ -188,7 +188,7 @@ func (s *MyCacheSuite) TestNewObjectCanBeWritten(c *C) {
 
 // test list objects
 func (s *MyCacheSuite) TestMultipleNewObjects(c *C) {
-	c.Assert(dc.MakeBucket("foo5", "private", nil), IsNil)
+	c.Assert(dc.MakeBucket("foo5", "private", nil, nil), IsNil)
 
 	one := ioutil.NopCloser(bytes.NewReader([]byte("one")))
 
diff --git a/pkg/donut/interfaces.go b/pkg/donut/interfaces.go
index a2870770e..4a8d0a88d 100644
--- a/pkg/donut/interfaces.go
+++ b/pkg/donut/interfaces.go
@@ -32,7 +32,7 @@ type ObjectStorage interface {
 	GetBucketMetadata(bucket string, signature *Signature) (BucketMetadata, error)
 	SetBucketMetadata(bucket string, metadata map[string]string, signature *Signature) error
 	ListBuckets(signature *Signature) ([]BucketMetadata, error)
-	MakeBucket(bucket string, ACL string, signature *Signature) error
+	MakeBucket(bucket string, ACL string, location io.Reader, signature *Signature) error
 
 	// Bucket operations
 	ListObjects(string, BucketResourcesMetadata, *Signature) ([]ObjectMetadata, BucketResourcesMetadata, error)
diff --git a/pkg/server/api/bucket-handlers.go b/pkg/server/api/bucket-handlers.go
index 12b4d9527..d5b34d35a 100644
--- a/pkg/server/api/bucket-handlers.go
+++ b/pkg/server/api/bucket-handlers.go
@@ -296,7 +296,17 @@ func (api Minio) PutBucketHandler(w http.ResponseWriter, req *http.Request) {
 		}
 	}
 
-	err := api.Donut.MakeBucket(bucket, getACLTypeString(aclType), signature)
+	// if body of request is non-nil then check for validity of Content-Length
+	if req.Body != nil {
+		/// if Content-Length missing, deny the request
+		size := req.Header.Get("Content-Length")
+		if size == "" {
+			writeErrorResponse(w, req, MissingContentLength, acceptsContentType, req.URL.Path)
+			return
+		}
+	}
+
+	err := api.Donut.MakeBucket(bucket, getACLTypeString(aclType), req.Body, signature)
 	switch iodine.ToError(err).(type) {
 	case nil:
 		// Make sure to add Location information here only for bucket