diff --git a/library/core/src/androidTest/assets/tx3g/no_subtitle b/library/core/src/androidTest/assets/tx3g/no_subtitle
new file mode 100644
index 0000000000..09f370e38f
Binary files /dev/null and b/library/core/src/androidTest/assets/tx3g/no_subtitle differ
diff --git a/library/core/src/androidTest/assets/tx3g/sample_utf16_be_no_styl b/library/core/src/androidTest/assets/tx3g/sample_utf16_be_no_styl
new file mode 100644
index 0000000000..9c3fed2b7d
Binary files /dev/null and b/library/core/src/androidTest/assets/tx3g/sample_utf16_be_no_styl differ
diff --git a/library/core/src/androidTest/assets/tx3g/sample_utf16_le_no_styl b/library/core/src/androidTest/assets/tx3g/sample_utf16_le_no_styl
new file mode 100644
index 0000000000..03a2cb2350
Binary files /dev/null and b/library/core/src/androidTest/assets/tx3g/sample_utf16_le_no_styl differ
diff --git a/library/core/src/androidTest/assets/tx3g/sample_with_multiple_styl b/library/core/src/androidTest/assets/tx3g/sample_with_multiple_styl
new file mode 100644
index 0000000000..48b01c3438
Binary files /dev/null and b/library/core/src/androidTest/assets/tx3g/sample_with_multiple_styl differ
diff --git a/library/core/src/androidTest/assets/tx3g/sample_with_other_extension b/library/core/src/androidTest/assets/tx3g/sample_with_other_extension
new file mode 100644
index 0000000000..e2eb7ac002
Binary files /dev/null and b/library/core/src/androidTest/assets/tx3g/sample_with_other_extension differ
diff --git a/library/core/src/androidTest/assets/tx3g/sample_with_styl b/library/core/src/androidTest/assets/tx3g/sample_with_styl
new file mode 100644
index 0000000000..b0f0d54265
Binary files /dev/null and b/library/core/src/androidTest/assets/tx3g/sample_with_styl differ
diff --git a/library/core/src/androidTest/java/com/google/android/exoplayer2/text/tx3g/Tx3gDecoderTest.java b/library/core/src/androidTest/java/com/google/android/exoplayer2/text/tx3g/Tx3gDecoderTest.java
new file mode 100644
index 0000000000..ce5281584a
--- /dev/null
+++ b/library/core/src/androidTest/java/com/google/android/exoplayer2/text/tx3g/Tx3gDecoderTest.java
@@ -0,0 +1,123 @@
+/*
+ * Copyright (C) 2016 The Android Open Source Project
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package com.google.android.exoplayer2.text.tx3g;
+
+import android.graphics.Color;
+import android.graphics.Typeface;
+import android.test.InstrumentationTestCase;
+import android.text.SpannedString;
+import android.text.style.ForegroundColorSpan;
+import android.text.style.StyleSpan;
+import android.text.style.UnderlineSpan;
+import com.google.android.exoplayer2.testutil.TestUtil;
+import com.google.android.exoplayer2.text.Subtitle;
+import com.google.android.exoplayer2.text.SubtitleDecoderException;
+import java.io.IOException;
+
+/**
+ * Unit test for {@link Tx3gDecoder}.
+ */
+public final class Tx3gDecoderTest extends InstrumentationTestCase {
+
+  private static final String NO_SUBTITLE = "tx3g/no_subtitle";
+  private static final String SAMPLE_WITH_STYL = "tx3g/sample_with_styl";
+  private static final String SAMPLE_UTF16_BE_NO_STYL = "tx3g/sample_utf16_be_no_styl";
+  private static final String SAMPLE_UTF16_LE_NO_STYL = "tx3g/sample_utf16_le_no_styl";
+  private static final String SAMPLE_WITH_MULTIPLE_STYL = "tx3g/sample_with_multiple_styl";
+  private static final String SAMPLE_WITH_OTHER_EXTENSION = "tx3g/sample_with_other_extension";
+
+  public void testDecodeNoSubtitle() throws IOException, SubtitleDecoderException {
+    Tx3gDecoder decoder = new Tx3gDecoder();
+    byte[] bytes = TestUtil.getByteArray(getInstrumentation(), NO_SUBTITLE);
+    Subtitle subtitle = decoder.decode(bytes, bytes.length, false);
+    assertTrue(subtitle.getCues(0).isEmpty());
+  }
+
+  public void testDecodeWithStyl() throws IOException, SubtitleDecoderException {
+    Tx3gDecoder decoder = new Tx3gDecoder();
+    byte[] bytes = TestUtil.getByteArray(getInstrumentation(), SAMPLE_WITH_STYL);
+    Subtitle subtitle = decoder.decode(bytes, bytes.length, false);
+    SpannedString text = new SpannedString(subtitle.getCues(0).get(0).text);
+    assertEquals("CC Test", text.toString());
+    assertEquals(3, text.getSpans(0, text.length(), Object.class).length);
+    StyleSpan styleSpan = findSpan(text, 0, 6, StyleSpan.class);
+    assertEquals(Typeface.BOLD_ITALIC, styleSpan.getStyle());
+    findSpan(text, 0, 6, UnderlineSpan.class);
+    ForegroundColorSpan colorSpan = findSpan(text, 0, 6, ForegroundColorSpan.class);
+    assertEquals(Color.GREEN, colorSpan.getForegroundColor());
+  }
+
+  public void testDecodeUtf16BeNoStyl() throws IOException, SubtitleDecoderException {
+    Tx3gDecoder decoder = new Tx3gDecoder();
+    byte[] bytes = TestUtil.getByteArray(getInstrumentation(), SAMPLE_UTF16_BE_NO_STYL);
+    Subtitle subtitle = decoder.decode(bytes, bytes.length, false);
+    SpannedString text = new SpannedString(subtitle.getCues(0).get(0).text);
+    assertEquals("你好", text.toString());
+    assertEquals(0, text.getSpans(0, text.length(), Object.class).length);
+  }
+
+  public void testDecodeUtf16LeNoStyl() throws IOException, SubtitleDecoderException {
+    Tx3gDecoder decoder = new Tx3gDecoder();
+    byte[] bytes = TestUtil.getByteArray(getInstrumentation(), SAMPLE_UTF16_LE_NO_STYL);
+    Subtitle subtitle = decoder.decode(bytes, bytes.length, false);
+    SpannedString text = new SpannedString(subtitle.getCues(0).get(0).text);
+    assertEquals("你好", text.toString());
+    assertEquals(0, text.getSpans(0, text.length(), Object.class).length);
+  }
+
+  public void testDecodeWithMultipleStyl() throws IOException, SubtitleDecoderException {
+    Tx3gDecoder decoder = new Tx3gDecoder();
+    byte[] bytes = TestUtil.getByteArray(getInstrumentation(), SAMPLE_WITH_MULTIPLE_STYL);
+    Subtitle subtitle = decoder.decode(bytes, bytes.length, false);
+    SpannedString text = new SpannedString(subtitle.getCues(0).get(0).text);
+    assertEquals("Line 2\nLine 3", text.toString());
+    assertEquals(4, text.getSpans(0, text.length(), Object.class).length);
+    StyleSpan styleSpan = findSpan(text, 0, 5, StyleSpan.class);
+    assertEquals(Typeface.ITALIC, styleSpan.getStyle());
+    findSpan(text, 7, 12, UnderlineSpan.class);
+    ForegroundColorSpan colorSpan = findSpan(text, 0, 5, ForegroundColorSpan.class);
+    assertEquals(Color.GREEN, colorSpan.getForegroundColor());
+    colorSpan = findSpan(text, 7, 12, ForegroundColorSpan.class);
+    assertEquals(Color.GREEN, colorSpan.getForegroundColor());
+  }
+
+  public void testDecodeWithOtherExtension() throws IOException, SubtitleDecoderException {
+    Tx3gDecoder decoder = new Tx3gDecoder();
+    byte[] bytes = TestUtil.getByteArray(getInstrumentation(), SAMPLE_WITH_OTHER_EXTENSION);
+    Subtitle subtitle = decoder.decode(bytes, bytes.length, false);
+    SpannedString text = new SpannedString(subtitle.getCues(0).get(0).text);
+    assertEquals("CC Test", text.toString());
+    assertEquals(2, text.getSpans(0, text.length(), Object.class).length);
+    StyleSpan styleSpan = findSpan(text, 0, 6, StyleSpan.class);
+    assertEquals(Typeface.BOLD, styleSpan.getStyle());
+    ForegroundColorSpan colorSpan = findSpan(text, 0, 6, ForegroundColorSpan.class);
+    assertEquals(Color.GREEN, colorSpan.getForegroundColor());
+  }
+
+  private static <T> T findSpan(SpannedString testObject, int expectedStart, int expectedEnd,
+      Class<T> expectedType) {
+    T[] spans = testObject.getSpans(0, testObject.length(), expectedType);
+    for (T span : spans) {
+      if (testObject.getSpanStart(span) == expectedStart
+          && testObject.getSpanEnd(span) == expectedEnd) {
+        return span;
+      }
+    }
+    fail("Span not found.");
+    return null;
+  }
+
+}
diff --git a/library/core/src/main/java/com/google/android/exoplayer2/C.java b/library/core/src/main/java/com/google/android/exoplayer2/C.java
index 02e5939b86..56092f17a9 100644
--- a/library/core/src/main/java/com/google/android/exoplayer2/C.java
+++ b/library/core/src/main/java/com/google/android/exoplayer2/C.java
@@ -76,6 +76,11 @@ public final class C {
    */
   public static final String UTF8_NAME = "UTF-8";
 
+  /**
+   * The name of the UTF-16 charset.
+   */
+  public static final String UTF16_NAME = "UTF-16";
+
   /**
    * Crypto modes for a codec.
    */
diff --git a/library/core/src/main/java/com/google/android/exoplayer2/text/tx3g/Tx3gDecoder.java b/library/core/src/main/java/com/google/android/exoplayer2/text/tx3g/Tx3gDecoder.java
index dccb64caec..79ec89838a 100644
--- a/library/core/src/main/java/com/google/android/exoplayer2/text/tx3g/Tx3gDecoder.java
+++ b/library/core/src/main/java/com/google/android/exoplayer2/text/tx3g/Tx3gDecoder.java
@@ -15,10 +15,21 @@
  */
 package com.google.android.exoplayer2.text.tx3g;
 
+import android.graphics.Typeface;
+import android.text.SpannableStringBuilder;
+import android.text.Spanned;
+import android.text.style.ForegroundColorSpan;
+import android.text.style.StyleSpan;
+import android.text.style.UnderlineSpan;
+import com.google.android.exoplayer2.C;
 import com.google.android.exoplayer2.text.Cue;
 import com.google.android.exoplayer2.text.SimpleSubtitleDecoder;
 import com.google.android.exoplayer2.text.Subtitle;
+import com.google.android.exoplayer2.text.SubtitleDecoderException;
+import com.google.android.exoplayer2.util.Assertions;
 import com.google.android.exoplayer2.util.ParsableByteArray;
+import com.google.android.exoplayer2.util.Util;
+import java.nio.charset.Charset;
 
 /**
  * A {@link SimpleSubtitleDecoder} for tx3g.
@@ -27,6 +38,20 @@ import com.google.android.exoplayer2.util.ParsableByteArray;
  */
 public final class Tx3gDecoder extends SimpleSubtitleDecoder {
 
+  private static final char BOM_UTF16_BE = '\uFEFF';
+  private static final char BOM_UTF16_LE = '\uFFFE';
+
+  private static final int TYPE_STYL = Util.getIntegerCodeForString("styl");
+
+  private static final int SIZE_ATOM_HEADER = 8;
+  private static final int SIZE_SHORT = 2;
+  private static final int SIZE_BOM_UTF16 = 2;
+  private static final int SIZE_STYLE_RECORD = 12;
+
+  private static final int FONT_FACE_BOLD = 0x0001;
+  private static final int FONT_FACE_ITALIC = 0x0002;
+  private static final int FONT_FACE_UNDERLINE = 0x0004;
+
   private final ParsableByteArray parsableByteArray;
 
   public Tx3gDecoder() {
@@ -35,14 +60,90 @@ public final class Tx3gDecoder extends SimpleSubtitleDecoder {
   }
 
   @Override
-  protected Subtitle decode(byte[] bytes, int length, boolean reset) {
-    parsableByteArray.reset(bytes, length);
-    int textLength = parsableByteArray.readUnsignedShort();
-    if (textLength == 0) {
-      return Tx3gSubtitle.EMPTY;
+  protected Subtitle decode(byte[] bytes, int length, boolean reset)
+      throws SubtitleDecoderException {
+    try {
+      parsableByteArray.reset(bytes, length);
+      String cueTextString = readSubtitleText(parsableByteArray);
+      if (cueTextString.isEmpty()) {
+        return Tx3gSubtitle.EMPTY;
+      }
+      SpannableStringBuilder cueText = new SpannableStringBuilder(cueTextString);
+      while (parsableByteArray.bytesLeft() >= SIZE_ATOM_HEADER) {
+        int atomSize = parsableByteArray.readInt();
+        int atomType = parsableByteArray.readInt();
+        if (atomType == TYPE_STYL) {
+          Assertions.checkArgument(parsableByteArray.bytesLeft() >= SIZE_SHORT);
+          int styleRecordCount = parsableByteArray.readUnsignedShort();
+          for (int i = 0; i < styleRecordCount; i++) {
+            applyStyleRecord(parsableByteArray, cueText);
+          }
+        } else {
+          parsableByteArray.skipBytes(atomSize - SIZE_ATOM_HEADER);
+        }
+      }
+      return new Tx3gSubtitle(new Cue(cueText));
+    } catch (IllegalArgumentException e) {
+      throw new SubtitleDecoderException("Unexpected subtitle format.", e);
     }
-    String cueText = parsableByteArray.readString(textLength);
-    return new Tx3gSubtitle(new Cue(cueText));
   }
 
+  private static String readSubtitleText(ParsableByteArray parsableByteArray) {
+    Assertions.checkArgument(parsableByteArray.bytesLeft() >= SIZE_SHORT);
+    int textLength = parsableByteArray.readUnsignedShort();
+    if (textLength == 0) {
+      return "";
+    }
+    if (parsableByteArray.bytesLeft() >= SIZE_BOM_UTF16) {
+      char firstChar = parsableByteArray.peekChar();
+      if (firstChar == BOM_UTF16_BE || firstChar == BOM_UTF16_LE) {
+        return parsableByteArray.readString(textLength, Charset.forName(C.UTF16_NAME));
+      }
+    }
+    return parsableByteArray.readString(textLength, Charset.forName(C.UTF8_NAME));
+  }
+
+  private static void applyStyleRecord(ParsableByteArray parsableByteArray,
+      SpannableStringBuilder cueText) {
+    Assertions.checkArgument(parsableByteArray.bytesLeft() >= SIZE_STYLE_RECORD);
+    int start = parsableByteArray.readUnsignedShort();
+    int end = parsableByteArray.readUnsignedShort();
+    parsableByteArray.skipBytes(2); // font identifier
+    int fontFace = parsableByteArray.readUnsignedByte();
+    parsableByteArray.skipBytes(1); // font size
+    int colorRgba = parsableByteArray.readInt();
+
+    if (fontFace != 0) {
+      attachFontFace(cueText, fontFace, start, end);
+    }
+    attachColor(cueText, colorRgba, start, end);
+  }
+
+  private static void attachFontFace(SpannableStringBuilder cueText, int fontFace, int start,
+      int end) {
+    boolean isBold = (fontFace & FONT_FACE_BOLD) != 0;
+    boolean isItalic = (fontFace & FONT_FACE_ITALIC) != 0;
+    if (isBold) {
+      if (isItalic) {
+        cueText.setSpan(new StyleSpan(Typeface.BOLD_ITALIC), start, end,
+            Spanned.SPAN_EXCLUSIVE_EXCLUSIVE);
+      } else {
+        cueText.setSpan(new StyleSpan(Typeface.BOLD), start, end, Spanned.SPAN_EXCLUSIVE_EXCLUSIVE);
+      }
+    } else if (isItalic) {
+      cueText.setSpan(new StyleSpan(Typeface.ITALIC), start, end, Spanned.SPAN_EXCLUSIVE_EXCLUSIVE);
+    }
+
+    boolean isUnderlined = (fontFace & FONT_FACE_UNDERLINE) != 0;
+    if (isUnderlined) {
+      cueText.setSpan(new UnderlineSpan(), start, end, Spanned.SPAN_EXCLUSIVE_EXCLUSIVE);
+    }
+  }
+
+  private static void attachColor(SpannableStringBuilder cueText, int colorRgba, int start,
+      int end) {
+    int colorArgb = ((colorRgba & 0xFF) << 24) | (colorRgba >>> 8);
+    cueText.setSpan(new ForegroundColorSpan(colorArgb), start, end,
+        Spanned.SPAN_EXCLUSIVE_EXCLUSIVE);
+  }
 }
diff --git a/library/core/src/main/java/com/google/android/exoplayer2/util/ParsableByteArray.java b/library/core/src/main/java/com/google/android/exoplayer2/util/ParsableByteArray.java
index ef4aa05cfe..2a907e5955 100644
--- a/library/core/src/main/java/com/google/android/exoplayer2/util/ParsableByteArray.java
+++ b/library/core/src/main/java/com/google/android/exoplayer2/util/ParsableByteArray.java
@@ -201,6 +201,14 @@ public final class ParsableByteArray {
     return (data[position] & 0xFF);
   }
 
+  /**
+   * Peeks at the next char.
+   */
+  public char peekChar() {
+    return (char) ((data[position] & 0xFF) << 8
+        | (data[position + 1] & 0xFF));
+  }
+
   /**
    * Reads the next byte as an unsigned value.
    */