diff --git a/CHANGELOG.md b/CHANGELOG.md
index a18bae069b..928c8d87f3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,10 @@
 # Changelog
 
+## 3.4.0
+
+* Bootstrap rubygem now depends on SassC instead of Sass.
+* Compass no longer supported.
+
 ## 3.3.7
 
 * Allows jQuery 3.x in bower.json. [#1048](https://github.com/twbs/bootstrap-sass/issues/1048)
diff --git a/README.md b/README.md
index de0cfe6c52..f2762cf41d 100644
--- a/README.md
+++ b/README.md
@@ -23,8 +23,8 @@ Please see the appropriate guide for your environment of choice:
 In your Gemfile you need to add the `bootstrap-sass` gem, and ensure that the `sass-rails` gem is present - it is added to new Rails applications by default.
 
 ```ruby
-gem 'bootstrap-sass', '~> 3.3.7'
-gem 'sassc-rails', '>= 1.3.0'
+gem 'bootstrap-sass', '~> 3.4.0'
+gem 'sassc-rails', '>= 2.0.0'
 ```
 
 `bundle install` and restart your server to make the files available through the pipeline.
diff --git a/Rakefile b/Rakefile
index ae42c2e2d7..3af834ef9a 100644
--- a/Rakefile
+++ b/Rakefile
@@ -46,7 +46,7 @@ task :debug do
   require 'bootstrap-sass'
   path = Bootstrap.stylesheets_path
   %w(_bootstrap).each do |file|
-    engine = SassC::Engine.new(File.read("#{path}/#{file}.scss"), syntax: :scss, load_paths: [path])
+    engine = SassC::Engine.new(File.read("#{path}/#{file}.scss"), syntax: :scss, load_paths: ['.', path])
     File.open("tmp/#{file}.css", 'w') { |f| f.write(engine.render) }
   end
 end
@@ -76,7 +76,7 @@ task :compile, :css_path do |t, args|
   %w(_bootstrap bootstrap/_theme).each do |file|
     save_path = "#{css_path}/#{file.sub(/(^|\/)?_+/, '\1').sub('/', '-')}.css"
     puts Term::ANSIColor.cyan("  #{save_path}") + '...'
-    engine = SassC::Engine.new(File.read("#{path}/#{file}.scss"), syntax: :scss, load_paths: [path])
+    engine = SassC::Engine.new(File.read("#{path}/#{file}.scss"), syntax: :scss, load_paths: ['.', path])
     css = engine.render
     File.open(save_path, 'w') { |f| f.write css }
   end
diff --git a/bower.json b/bower.json
index 1194b01bf7..432a211bca 100644
--- a/bower.json
+++ b/bower.json
@@ -32,5 +32,5 @@
   "dependencies": {
     "jquery": "1.9.1 - 3"
   },
-  "version": "3.3.7"
+  "version": "3.4.0"
 }
diff --git a/composer.json b/composer.json
index ffc6b3486b..5bbee773a3 100644
--- a/composer.json
+++ b/composer.json
@@ -29,7 +29,7 @@
     "license": "MIT",
     "extra": {
         "branch-alias": {
-            "dev-master": "3.3.x-dev"
+            "dev-master": "3.4.x-dev"
         }
     }
 }
diff --git a/lib/bootstrap-sass/version.rb b/lib/bootstrap-sass/version.rb
index 0a2d8d236e..77993736ae 100644
--- a/lib/bootstrap-sass/version.rb
+++ b/lib/bootstrap-sass/version.rb
@@ -1,4 +1,4 @@
 module Bootstrap
-  VERSION       = '3.3.7'
-  BOOTSTRAP_SHA = 'v3.4.0-dev'
+  VERSION       = '3.4.0'
+  BOOTSTRAP_SHA = '4c547f2175b9a05aa43551f6927da83fe249ce42'
 end
diff --git a/package.json b/package.json
index 58dcd1739f..b444965f25 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "bootstrap-sass",
-  "version": "3.3.7",
+  "version": "3.4.0",
   "description": "bootstrap-sass is a Sass-powered version of Bootstrap 3, ready to drop right into your Sass powered applications.",
   "main": "assets/javascripts/bootstrap.js",
   "style": "assets/stylesheets/_bootstrap.scss",
diff --git a/templates/project/_bootstrap-variables.sass b/templates/project/_bootstrap-variables.sass
index 03fa387bdc..8777e1149c 100644
--- a/templates/project/_bootstrap-variables.sass
+++ b/templates/project/_bootstrap-variables.sass
@@ -1,4 +1,4 @@
-// Override Bootstrap variables here (defaults from bootstrap-sass v3.3.7):
+// Override Bootstrap variables here (defaults from bootstrap-sass v3.4.0):
 
 //
 // Variables