Index: lib/Target/Mips/AsmParser/MipsAsmParser.cpp
===================================================================
--- lib/Target/Mips/AsmParser/MipsAsmParser.cpp
+++ lib/Target/Mips/AsmParser/MipsAsmParser.cpp
@@ -200,6 +200,7 @@
   bool parseSetNoDspDirective();
   bool parseSetReorderDirective();
   bool parseSetNoReorderDirective();
+  bool parseSetMips16Directive();
   bool parseSetNoMips16Directive();
   bool parseSetFpDirective();
   bool parseSetPopDirective();
@@ -2747,14 +2748,32 @@
   return false;
 }
 
+bool MipsAsmParser::parseSetMips16Directive() {
+  Parser.Lex(); // Eat "mips16".
+
+  // If this is not the end of the statement, report an error.
+  if (getLexer().isNot(AsmToken::EndOfStatement)) {
+    reportParseError("unexpected token, expected end of statement");
+    return false;
+  }
+
+  setFeatureBits(Mips::FeatureMips16, "mips16");
+  getTargetStreamer().emitDirectiveSetMips16();
+  Parser.Lex(); // Consume the EndOfStatement.
+  return false;
+}
+
 bool MipsAsmParser::parseSetNoMips16Directive() {
-  Parser.Lex();
+  Parser.Lex(); // Eat "nomips16".
+
   // If this is not the end of the statement, report an error.
   if (getLexer().isNot(AsmToken::EndOfStatement)) {
     reportParseError("unexpected token, expected end of statement");
     return false;
   }
-  // For now do nothing.
+
+  clearFeatureBits(Mips::FeatureMips16, "mips16");
+  getTargetStreamer().emitDirectiveSetNoMips16();
   Parser.Lex(); // Consume the EndOfStatement.
   return false;
 }
@@ -2904,9 +2923,6 @@
   case Mips::FeatureMicroMips:
     getTargetStreamer().emitDirectiveSetMicroMips();
     break;
-  case Mips::FeatureMips16:
-    getTargetStreamer().emitDirectiveSetMips16();
-    break;
   case Mips::FeatureMips1:
     selectArch("mips1");
     getTargetStreamer().emitDirectiveSetMips1();
@@ -3095,7 +3111,7 @@
   } else if (Tok.getString() == "nomacro") {
     return parseSetNoMacroDirective();
   } else if (Tok.getString() == "mips16") {
-    return parseSetFeature(Mips::FeatureMips16);
+    return parseSetMips16Directive();
   } else if (Tok.getString() == "nomips16") {
     return parseSetNoMips16Directive();
   } else if (Tok.getString() == "nomicromips") {
Index: test/MC/Mips/set-mips16-directive.s
===================================================================
--- /dev/null
+++ test/MC/Mips/set-mips16-directive.s
@@ -0,0 +1,10 @@
+# RUN: llvm-mc %s -arch=mips | FileCheck %s
+# FIXME: Update this test when we have a more mature implementation of Mips16 in the IAS.
+
+.text
+.set mips16
+.set nomips16
+
+# CHECK: .text
+# CHECK: .set mips16
+# CHECK: .set nomips16