diff --git a/README.md b/README.md
index d772a8e..6feb603 100644
--- a/README.md
+++ b/README.md
@@ -24,7 +24,7 @@ Constructors:
 * `generate([icap])` - create an instance based on a new random key (setting `icap` to true will generate an address suitable for the `ICAP Direct mode`)
 * `fromPrivateKey(input)` - create an instance based on a raw private key
 * `fromExtendedPrivateKey(input)` - create an instance based on a BIP32 xprv
-* `fromPublicKey(input)` - create an instance based on a public key (certain methods will not be available)
+* `fromPublicKey(input, [nonStrict])` - create an instance based on a public key (certain methods will not be available)
 * `fromExtendedPublicKey(input)` - create an instance based on a BIP32 xpub
 * `fromV1(input, password)` - import a wallet (Version 1 of the Ethereum wallet format)
 * `fromV3(input, password, [nonStrict])` - import a wallet (Version 3 of the Ethereum wallet format). Set `nonStrict` true to accept files with mixed-caps.
@@ -32,6 +32,8 @@ Constructors:
 
 For the V1, V3 and EthSale formats the input is a JSON serialized string. All these formats require a password.
 
+Note: `fromPublicKey()` only accepts uncompressed Ethereum-style public keys, unless the `nonStrict` flag is set to true.
+
 Third party imports:
 
 * `fromEtherCamp(passphrase)` - import a brain wallet used by Ether.Camp
diff --git a/hdkey.js b/hdkey.js
index 5089d0d..1dc8fd3 100644
--- a/hdkey.js
+++ b/hdkey.js
@@ -41,7 +41,7 @@ EthereumHDKey.prototype.getWallet = function () {
   if (this._hdkey._privateKey) {
     return Wallet.fromPrivateKey(this._hdkey._privateKey)
   } else {
-    return Wallet.fromPublicKey(this._hdkey._publicKey)
+    return Wallet.fromPublicKey(this._hdkey._publicKey, true)
   }
 }
 
diff --git a/index.js b/index.js
index b138f88..c759f27 100644
--- a/index.js
+++ b/index.js
@@ -161,7 +161,12 @@ Wallet.prototype.toV3String = function (password, opts) {
   return JSON.stringify(this.toV3(password, opts))
 }
 
-Wallet.fromPublicKey = function (pub) {
+Wallet.fromPublicKey = function (pub, nonStrict) {
+  // FIXME: duplicate from ethUtil.publicToAddress(), maybe it could be factored out?
+  if ((pub.length !== 64) && nonStrict) {
+    pub = secp256k1.publicKeyConvert(pub, false).slice(1)
+  }
+  assert(pub.length === 64, 'Invalid public key')
   return new Wallet(null, pub)
 }
 
@@ -169,8 +174,7 @@ Wallet.fromExtendedPublicKey = function (pub) {
   assert(pub.slice(0, 4) === 'xpub', 'Not an extended public key')
   pub = bs58check.decode(pub).slice(45)
   // Convert to an Ethereum public key
-  pub = secp256k1.publicKeyConvert(pub, false).slice(1)
-  return Wallet.fromPublicKey(pub)
+  return Wallet.fromPublicKey(pub, true)
 }
 
 Wallet.fromPrivateKey = function (priv) {
diff --git a/test/hdkey.js b/test/hdkey.js
index 950c273..571f22e 100644
--- a/test/hdkey.js
+++ b/test/hdkey.js
@@ -69,6 +69,6 @@ describe('.getWallet()', function () {
     assert.throws(function () {
       hdnode.getWallet().getPrivateKeyString()
     })
-    assert.equal(hdnode.getWallet().getPublicKeyString(), '0x030639797f6cc72aea0f3d309730844a9e67d9f1866e55845c5f7e0ab48402973d')
+    assert.equal(hdnode.getWallet().getPublicKeyString(), '0x0639797f6cc72aea0f3d309730844a9e67d9f1866e55845c5f7e0ab48402973defa5cb69df462bcc6d73c31e1c663c225650e80ef14a507b203f2a12aea55bc1')
   })
 })
diff --git a/test/index.js b/test/index.js
index 19e3583..310562a 100644
--- a/test/index.js
+++ b/test/index.js
@@ -58,6 +58,16 @@ describe('public key only wallet', function () {
     assert.equal(Wallet.fromPublicKey(pubKey).getPublicKey().toString('hex'),
       '5d4392f450262b276652c1fc037606abac500f3160830ce9df53aa70d95ce7cfb8b06010b2f3691c78c65c21eb4cf3dfdbfc0745d89b664ee10435bb3a0f906c')
   })
+  it('.fromPublicKey() should not accept compressed keys in strict mode', function () {
+    assert.throws(function () {
+      Wallet.fromPublicKey(new Buffer('030639797f6cc72aea0f3d309730844a9e67d9f1866e55845c5f7e0ab48402973d', 'hex'))
+    })
+  })
+  it('.fromPublicKey() should accept compressed keys in non-strict mode', function () {
+    var tmp = new Buffer('030639797f6cc72aea0f3d309730844a9e67d9f1866e55845c5f7e0ab48402973d', 'hex')
+    assert.equal(Wallet.fromPublicKey(tmp, true).getPublicKey().toString('hex'),
+      '0639797f6cc72aea0f3d309730844a9e67d9f1866e55845c5f7e0ab48402973defa5cb69df462bcc6d73c31e1c663c225650e80ef14a507b203f2a12aea55bc1')
+  })
   it('.getAddress() should work', function () {
     assert.equal(Wallet.fromPublicKey(pubKey).getAddress().toString('hex'), 'b14ab53e38da1c172f877dbc6d65e4a1b0474c3c')
   })