diff --git a/pkgs/development/libraries/smpeg/default.nix b/pkgs/development/libraries/smpeg/default.nix
new file mode 100644
index 000000000000..3e7baf77df8e
--- /dev/null
+++ b/pkgs/development/libraries/smpeg/default.nix
@@ -0,0 +1,34 @@
+{ stdenv, fetchsvn, SDL, autoconf, automake, libtool, gtk, m4, pkgconfig, mesa }:
+
+stdenv.mkDerivation rec {
+  name = "smpeg-svn-${version}";
+  version = "390";
+
+  src = fetchsvn {
+    url = svn://svn.icculus.org/smpeg/trunk;
+    rev = version;
+    sha256 = "0ynwn7ih5l2b1kpzpibns9bb9wzfjak7mgrb1ji0dkn2q5pv6lr0";
+  };
+
+  buildInputs = [ SDL autoconf automake libtool gtk m4 pkgconfig mesa ];
+
+  preConfigure = ''
+    touch NEWS AUTHORS ChangeLog
+    autoreconf -fvi -I acinclude
+  '';
+
+  postInstall = ''
+    sed -i -e 's,"SDL.h",<SDL/SDL.h>,' \
+    -e 's,"SDL_mutex.h",<SDL/SDL_mutex.h>,' \
+    -e 's,"SDL_audio.h",<SDL/SDL_audio.h>,' \
+    -e 's,"SDL_thread.h",<SDL/SDL_thread.h>,' \
+    -e 's,"SDL_types.h",<SDL/SDL_types.h>,' \
+      $out/include/smpeg/*.h
+  '';
+
+  meta = {
+    homepage = http://icculus.org/smpeg/;
+    description = "MPEG decoding library";
+    license = "GPLv2+";
+  };
+}
diff --git a/pkgs/games/btanks/default.nix b/pkgs/games/btanks/default.nix
index 7172d4c81478..085c7c4082cb 100644
--- a/pkgs/games/btanks/default.nix
+++ b/pkgs/games/btanks/default.nix
@@ -1,6 +1,4 @@
-{stdenv, fetchurl, scons, pkgconfig, SDL, mesa, zlib }:
-
-throw "Still does not build. It needs smpeg"
+{stdenv, fetchurl, scons, pkgconfig, SDL, mesa, zlib, smpeg, SDL_image, libvorbis, lua5, zip }:
 
 stdenv.mkDerivation rec {
   name = "battle-tanks-0.9.8083";
@@ -10,12 +8,15 @@ stdenv.mkDerivation rec {
     sha256 = "0ha35kxc8xlbg74wsrbapfgxvcrwy6psjkqi7c6adxs55dmcxliz";
   };
 
-  /* It still does not build */
-  buildInputs = [ scons pkgconfig SDL mesa zlib ];
+  buildInputs = [ scons pkgconfig SDL mesa zlib smpeg SDL_image libvorbis lua5
+    zip ];
+
+  buildPhase = ''
+    scons prefix=$out
+  '';
 
   installPhase = ''
-    scons PREFIX=$out
-    scons PREFIX=$out install
+    scons install
   '';
 
   meta = {
diff --git a/pkgs/top-level/all-packages.nix b/pkgs/top-level/all-packages.nix
index f9b7419f2be1..de855238ed5c 100644
--- a/pkgs/top-level/all-packages.nix
+++ b/pkgs/top-level/all-packages.nix
@@ -4075,6 +4075,8 @@ let
     scheme = guile;
   };
 
+  smpeg = callPackage ../development/libraries/smpeg { };
+
   snack = callPackage ../development/libraries/snack {
         # optional
   };