diff --git a/deps b/deps
index 9f44db32c3..f9c354caf3 100755
--- a/deps
+++ b/deps
@@ -1,17 +1,17 @@
 #!/bin/bash
 BASE="$( cd "$( dirname "${BASH_SOURCE[0]}" )" && pwd )"
-BOOT2DOCKER_CLI_VERSION=$(node -pe "JSON.parse(process.argv[1])['boot2docker-version']" "$(cat $BASE/package.json)")
-BOOT2DOCKER_CLI_FILE=boot2docker-$BOOT2DOCKER_CLI_VERSION
+DOCKER_MACHINE_CLI_VERSION=$(node -pe "JSON.parse(process.argv[1])['docker-machine-version']" "$(cat $BASE/package.json)")
+DOCKER_MACHINE_CLI_FILE=docker-machine-$DOCKER_MACHINE_CLI_VERSION
 DOCKER_CLI_VERSION=$(node -pe "JSON.parse(process.argv[1])['docker-version']" "$(cat $BASE/package.json)")
 DOCKER_CLI_FILE=docker-$DOCKER_CLI_VERSION
 
 pushd $BASE/resources > /dev/null
 
-if [ ! -f $BOOT2DOCKER_CLI_FILE ]; then
-  echo "-----> Downloading Boot2docker CLI..."
+if [ ! -f $DOCKER_MACHINE_CLI_FILE ]; then
+  echo "-----> Downloading Docker Machine CLI..."
   rm -rf boot2docker-*
-  curl -L -o $BOOT2DOCKER_CLI_FILE https://github.com/boot2docker/boot2docker-cli/releases/download/v$BOOT2DOCKER_CLI_VERSION/boot2docker-v$BOOT2DOCKER_CLI_VERSION-darwin-amd64
-  chmod +x $BOOT2DOCKER_CLI_FILE
+  curl -L -o $DOCKER_MACHINE_CLI_FILE https://github.com/docker/machine/releases/download/v$DOCKER_MACHINE_CLI_VERSION/docker-machine_darwin-amd64
+  chmod +x $DOCKER_MACHINE_CLI_FILE
 fi
 
 if [ ! -f $DOCKER_CLI_FILE ]; then
diff --git a/gulpfile.js b/gulpfile.js
index e1efcc3c8c..f6d5ac806a 100644
--- a/gulpfile.js
+++ b/gulpfile.js
@@ -172,7 +172,7 @@ gulp.task('release', function () {
 
 gulp.task('default', ['download', 'copy', 'js', 'images', 'styles'], function () {
   livereload.listen();
-  gulp.watch('src/**/*.js', ['js', function () {livereload();}]);
+  gulp.watch('src/**/*.js', ['js']);
   gulp.watch('index.html', ['copy']);
   gulp.watch('styles/**/*.less', ['styles']);
   gulp.watch('images/**', ['images']);
diff --git a/package.json b/package.json
index a899b9bd9c..6da4d35fec 100644
--- a/package.json
+++ b/package.json
@@ -40,8 +40,8 @@
     ]
   },
   "docker-version": "1.5.0",
-  "boot2docker-version": "1.5.0",
-  "atom-shell-version": "0.21.1",
+  "docker-machine-version": "0.1.0",
+  "atom-shell-version": "0.21.2",
   "virtualbox-version": "4.3.22",
   "virtualbox-filename": "VirtualBox-4.3.22.pkg",
   "virtualbox-checksum": "4a7dff25bdeef0d112e16ac11bee6d52e856d36bb412aa75576036ba560082eb",
diff --git a/src/Boot2Docker.js b/src/DockerMachine.js
similarity index 62%
rename from src/Boot2Docker.js
rename to src/DockerMachine.js
index f643cf8d51..5de9c9ae5e 100644
--- a/src/Boot2Docker.js
+++ b/src/DockerMachine.js
@@ -5,20 +5,22 @@ var _ = require('underscore');
 var fs = require('fs');
 var util = require('./Util');
 
-var Boot2Docker = {
+var NAME = 'dev';
+
+var DockerMachine = {
   command: function () {
-    return path.join(process.cwd(), 'resources', 'boot2docker-' + this.version());
+    return path.join(process.cwd(), 'resources', 'docker-machine-' + this.version());
   },
   version: function () {
     try {
-      return JSON.parse(fs.readFileSync(path.join(__dirname, '..', 'package.json'), 'utf8'))['boot2docker-version'];
+      return JSON.parse(fs.readFileSync(path.join(__dirname, '..', 'package.json'), 'utf8'))['docker-machine-version'];
     } catch (err) {
       return null;
     }
   },
   isoversion: function () {
     try {
-      var data = fs.readFileSync(path.join(util.home(), '.boot2docker', 'boot2docker.iso'), 'utf8');
+      var data = fs.readFileSync(path.join(util.home(), '.docker', 'machine', 'cache', 'boot2docker.iso'), 'utf8');
       var match = data.match(/Boot2Docker-v(\d+\.\d+\.\d+)/);
       if (match) {
         return match[1];
@@ -29,35 +31,61 @@ var Boot2Docker = {
       return null;
     }
   },
+  info: function () {
+    return util.exec([DockerMachine.command(), 'ls']).then(stdout => {
+      var lines = stdout.split('\n').filter(line => line.indexOf('time=') === -1);
+      var machines = {};
+      lines.slice(1, lines.length - 1).forEach(line => {
+        var tokens = line.trim().split(/[\s]+/);
+        if (tokens.length === 5) {
+          tokens.splice(1, 1);
+        }
+        var machine = {
+          name: tokens[0],
+          driver: tokens[1],
+          state: tokens[2].toLower(),
+          url: tokens[3]
+        };
+        machines[machine.name] = machine;
+      });
+      if (machines[NAME]) {
+        return machines[NAME];
+      } else {
+        throw new Error('Machine does not exist.');
+      }
+    });
+  },
   exists: function () {
-    return util.exec([Boot2Docker.command(), 'status']).then(() => {
-      return Promise.resolve(true);
-    }).catch(() => {
-      return Promise.resolve(false);
+    return DockerMachine.info().then(info => {
+      if (info) {
+        return Promise.resolve(true);
+      } else {
+        return Promise.resolve(false);
+      }
     });
   },
   status: function () {
-    return util.exec([Boot2Docker.command(), 'status']).then(stdout => {
-      return Promise.resolve(stdout.trim());
+    DockerMachine.info().then(info => {
+      return info ? info.status : null;
     });
   },
-  init: function () {
-    return util.exec([Boot2Docker.command(), 'init']);
+  create: function () {
+    return util.exec([DockerMachine.command(), 'create', '-d', 'virtualbox', NAME]);
   },
   start: function () {
-    return util.exec([Boot2Docker.command(), 'start']);
+    return util.exec([DockerMachine.command(), 'start', NAME]);
   },
   stop: function () {
-    return util.exec([Boot2Docker.command(), 'stop']);
+    return util.exec([DockerMachine.command(), 'stop', NAME]);
   },
   upgrade: function () {
-    return util.exec([Boot2Docker.command(), 'upgrade']);
+    return util.exec([DockerMachine.command(), 'upgrade', NAME]);
   },
   destroy: function () {
-    return util.exec([Boot2Docker.command(), 'destroy']);
+    return util.exec([DockerMachine.command(), 'rm -f', NAME]);
   },
   ip: function () {
-    return util.exec([Boot2Docker.command(), 'ip']).then(stdout => {
+    return util.exec([DockerMachine.command(), 'ip']).then(stdout => {
       return Promise.resolve(stdout.trim().replace('\n', ''));
     });
   },
@@ -65,7 +93,7 @@ var Boot2Docker = {
     return util.exec(['rm', '-rf', path.join(util.home(), 'VirtualBox\\ VMs/boot2docker-vm')]);
   },
   state: function () {
-    util.exec([Boot2Docker.command(), 'info']).then(stdout => {
+    util.exec([DockerMachine.command(), 'info']).then(stdout => {
       try {
         var info = JSON.parse(stdout);
         return Promise.resolve(info.State);
@@ -125,12 +153,12 @@ var Boot2Docker = {
     });
   },
   stats: function () {
-    Boot2Docker.state().then(state => {
+    DockerMachine.state().then(state => {
       if (state === 'poweroff') {
         return Promise.resolve({state: state});
       }
-      var memory = Boot2Docker.memory();
-      var disk = Boot2Docker.disk();
+      var memory = DockerMachine.memory();
+      var disk = DockerMachine.disk();
       return Promise.all([memory, disk]).spread((memory, disk) => {
         return Promise.resolve({
           state: state,
@@ -140,12 +168,9 @@ var Boot2Docker = {
       });
     });
   },
-  haskeys: function () {
-    return fs.existsSync(path.join(util.home(), '.ssh', 'id_boot2docker'));
-  },
   waitstatus: Promise.coroutine(function* () {
     while (true) {
-      var current = yield Boot2Docker.status();
+      var current = yield DockerMachine.status();
       if (status !== current.trim()) {
         return;
       }
@@ -153,4 +178,4 @@ var Boot2Docker = {
   })
 };
 
-module.exports = Boot2Docker;
+module.exports = DockerMachine;
diff --git a/src/SetupStore.js b/src/SetupStore.js
index 497e8f191f..d9520d60f9 100644
--- a/src/SetupStore.js
+++ b/src/SetupStore.js
@@ -3,7 +3,7 @@ var _ = require('underscore');
 var path = require('path');
 var fs = require('fs');
 var Promise = require('bluebird');
-var boot2docker = require('./Boot2Docker');
+var machine = require('./DockerMachine');
 var virtualBox = require('./VirtualBox');
 var setupUtil = require('./SetupUtil');
 var util = require('./Util');
@@ -37,7 +37,7 @@ var _steps = [{
   seconds: 5,
   run: Promise.coroutine(function* (progressCallback) {
     var packagejson = util.packagejson();
-    var cmd = util.copyBinariesCmd() + ' && ' + util.fixBinariesCmd();
+    var cmd = setupUtil.copyBinariesCmd() + ' && ' + setupUtil.fixBinariesCmd();
     if (!virtualBox.installed() || setupUtil.compareVersions(yield virtualBox.version(), packagejson['virtualbox-required-version']) < 0) {
       yield virtualBox.killall();
       cmd += ' && ' + setupUtil.installVirtualBoxCmd();
@@ -55,45 +55,33 @@ var _steps = [{
   })
 }, {
   name: 'init',
-  title: 'Setting up Docker VM',
-  message: 'To run Docker containers on your computer, we are setting up a Linux virtual machine provided by boot2docker.',
-  totalPercent: 15,
+  title: 'Starting Docker VM',
+  message: 'To run Docker containers on your computer, starting a Linux virutal machine. This may take a minute..',
+  totalPercent: 60,
   percent: 0,
-  seconds: 11,
+  seconds: 46,
   run: Promise.coroutine(function* (progressCallback) {
     setupUtil.simulateProgress(this.seconds, progressCallback);
     yield virtualBox.vmdestroy('kitematic-vm');
-    var exists = yield boot2docker.exists();
+    var exists = yield machine.exists();
     if (!exists) {
-      yield boot2docker.init();
+      yield machine.create();
       return;
     }
 
-    if (!boot2docker.haskeys()) {
-      throw new Error('Boot2Docker SSH keys do not exist. Fix this by removing the existing Boot2Docker VM setup and re-run the installer. This usually occurs because an old version of Boot2Docker is installed.');
+    var isoversion = machine.isoversion();
+    if (!isoversion || setupUtil.compareVersions(isoversion, machine.version()) < 0) {
+      yield machine.stop();
+      yield machine.upgrade();
     }
 
-    var isoversion = boot2docker.isoversion();
-    if (!isoversion || setupUtil.compareVersions(isoversion, boot2docker.version()) < 0) {
-      yield boot2docker.stop();
-      yield boot2docker.upgrade();
+    setupUtil.simulateProgress(this.seconds, progressCallback);
+    yield machine.waitstatus('saving');
+    var status = machine.status;
+    if (status !== 'running') {
+      return yield machine.start();
     }
   })
-}, {
-  name: 'start',
-  title: 'Starting Docker VM',
-  message: "Kitematic is starting the boot2docker VM. This may take about a minute.",
-  totalPercent: 45,
-  percent: 0,
-  seconds: 35,
-  run: function (progressCallback) {
-    setupUtil.simulateProgress(this.seconds, progressCallback);
-    return boot2docker.waitstatus('saving').then(boot2docker.status).then(status => {
-      if (status !== 'running') {
-        return boot2docker.start();
-      }
-    });
-  }
 }];
 
 var SetupStore = assign(Object.create(EventEmitter.prototype), {
@@ -140,14 +128,13 @@ var SetupStore = assign(Object.create(EventEmitter.prototype), {
       return Promise.resolve(_requiredSteps);
     }
     var packagejson = util.packagejson();
-    var isoversion = boot2docker.isoversion();
+    var isoversion = machine.isoversion();
     var required = {};
     var vboxfile = path.join(util.supportDir(), packagejson['virtualbox-filename']);
     var vboxInstallRequired = virtualBox.installed() ? setupUtil.compareVersions(yield virtualBox.version(), packagejson['virtualbox-required-version']) < 0 : true;
     required.download = vboxInstallRequired && (!fs.existsSync(vboxfile) || setupUtil.checksum(vboxfile) !== packagejson['virtualbox-checksum']);
     required.install = vboxInstallRequired || setupUtil.needsBinaryFix();
-    required.init = !(yield boot2docker.exists()) || !isoversion || setupUtil.compareVersions(isoversion, boot2docker.version()) < 0;
-    required.start = required.install || required.init || (yield boot2docker.status()) !== 'running';
+    required.init = !(yield machine.exists()) || !isoversion || setupUtil.compareVersions(isoversion, boot2docker.version()) < 0;
 
     var exists = yield boot2docker.exists();
     if (exists) {
diff --git a/src/SetupUtil.js b/src/SetupUtil.js
index 5598ecaa01..302d574b67 100644
--- a/src/SetupUtil.js
+++ b/src/SetupUtil.js
@@ -12,7 +12,7 @@ var SetupUtil = {
     if (!fs.existsSync('/usr/local') || !fs.existsSync('/usr/local/bin')) {
       return true;
     }
-    if (!fs.existsSync('/usr/local/bin/docker') && !fs.existsSync('/usr/local/bin/boot2docker')) {
+    if (!fs.existsSync('/usr/local/bin/docker') && !fs.existsSync('/usr/local/bin/docker-machine')) {
       return fs.statSync('/usr/local/bin').gid !== 80 || fs.statSync('/usr/local/bin').uid !== process.getuid();
     }
 
@@ -20,7 +20,7 @@ var SetupUtil = {
       return true;
     }
 
-    if (fs.existsSync('/usr/local/bin/boot2docker') && (fs.statSync('/usr/local/bin/boot2docker').gid !== 80 || fs.statSync('/usr/local/bin/boot2docker').uid !== process.getuid())) {
+    if (fs.existsSync('/usr/local/bin/docker-machine') && (fs.statSync('/usr/local/bin/docker-machine').gid !== 80 || fs.statSync('/usr/local/bin/docker-machine').uid !== process.getuid())) {
       return true;
     }
     return false;
@@ -28,10 +28,26 @@ var SetupUtil = {
   shouldUpdateBinaries: function () {
     var packagejson = util.packagejson();
     return !fs.existsSync('/usr/local/bin/docker') ||
-      !fs.existsSync('/usr/local/bin/boot2docker') ||
-      this.checksum('/usr/local/bin/boot2docker') !== this.checksum(path.join(util.resourceDir(), 'boot2docker-' + packagejson['boot2docker-version'])) ||
+      !fs.existsSync('/usr/local/bin/docker-machine') ||
+      this.checksum('/usr/local/bin/docker-machine') !== this.checksum(path.join(util.resourceDir(), 'docker-machine-' + packagejson['docker-machine-version'])) ||
       this.checksum('/usr/local/bin/docker') !== this.checksum(path.join(util.resourceDir(), 'docker-' + packagejson['docker-version']));
   },
+  copyBinariesCmd: function () {
+    var packagejson = this.packagejson();
+    var cmd = ['mkdir', '-p', '/usr/local/bin'];
+    cmd.push('&&');
+    cmd.push.apply(cmd, this.copycmd(this.escapePath(path.join(this.resourceDir(), 'docker-machine-' + packagejson['docker-machine-version'])), '/usr/local/bin/docker-machine'));
+    cmd.push('&&');
+    cmd.push.apply(cmd, this.copycmd(this.escapePath(path.join(this.resourceDir(), 'docker-' + packagejson['docker-version'])), '/usr/local/bin/docker'));
+    return cmd.join(' ');
+  },
+  fixBinariesCmd: function () {
+    var cmd = [];
+    cmd.push.apply(cmd, ['chown', `${process.getuid()}:${80}`, this.escapePath(path.join('/usr/local/bin', 'docker-machine'))]);
+    cmd.push('&&');
+    cmd.push.apply(cmd, ['chown', `${process.getuid()}:${80}`, this.escapePath(path.join('/usr/local/bin', 'docker'))]);
+    return cmd.join(' ');
+  },
   installVirtualBoxCmd: function () {
     var packagejson = util.packagejson();
     return `installer -pkg ${util.escapePath(path.join(util.supportDir(), packagejson['virtualbox-filename']))} -target /`;
diff --git a/src/Util.js b/src/Util.js
index 9d47e5b921..d27b5bce53 100644
--- a/src/Util.js
+++ b/src/Util.js
@@ -38,22 +38,6 @@ module.exports = {
   copycmd: function (src, dest) {
     return ['rm', '-f', dest, '&&', 'cp', src, dest];
   },
-  copyBinariesCmd: function () {
-    var packagejson = this.packagejson();
-    var cmd = ['mkdir', '-p', '/usr/local/bin'];
-    cmd.push('&&');
-    cmd.push.apply(cmd, this.copycmd(this.escapePath(path.join(this.resourceDir(), 'boot2docker-' + packagejson['boot2docker-version'])), '/usr/local/bin/boot2docker'));
-    cmd.push('&&');
-    cmd.push.apply(cmd, this.copycmd(this.escapePath(path.join(this.resourceDir(), 'docker-' + packagejson['docker-version'])), '/usr/local/bin/docker'));
-    return cmd.join(' ');
-  },
-  fixBinariesCmd: function () {
-    var cmd = [];
-    cmd.push.apply(cmd, ['chown', `${process.getuid()}:${80}`, this.escapePath(path.join('/usr/local/bin', 'boot2docker'))]);
-    cmd.push('&&');
-    cmd.push.apply(cmd, ['chown', `${process.getuid()}:${80}`, this.escapePath(path.join('/usr/local/bin', 'docker'))]);
-    return cmd.join(' ');
-  },
   escapePath: function (str) {
     return str.replace(/ /g, '\\ ').replace(/\(/g, '\\(').replace(/\)/g, '\\)');
   }