diff --git a/automaton/machines.py b/automaton/machines.py
index 1dac13c..469d84e 100644
--- a/automaton/machines.py
+++ b/automaton/machines.py
@@ -33,12 +33,18 @@ class State(object):
     :ivar name: The name of the state.
     :ivar is_terminal: Whether this state is terminal (or not).
     :ivar next_states: Dictionary of 'event' -> 'next state name' (or none).
+    :ivar on_enter: callback that will be called when the state is entered.
+    :ivar on_exit: callback that will be called when the state is exited.
     """
 
-    def __init__(self, name, is_terminal=False, next_states=None):
+    def __init__(self, name,
+                 is_terminal=False, next_states=None,
+                 on_enter=None, on_exit=None):
         self.name = name
         self.is_terminal = bool(is_terminal)
         self.next_states = next_states
+        self.on_enter = on_enter
+        self.on_exit = on_exit
 
 
 def _convert_to_states(state_space):
@@ -141,7 +147,10 @@ class FiniteMachine(object):
         state_space = list(_convert_to_states(state_space))
         m = cls()
         for state in state_space:
-            m.add_state(state.name, terminal=state.is_terminal)
+            m.add_state(state.name,
+                        terminal=state.is_terminal,
+                        on_enter=state.on_enter,
+                        on_exit=state.on_exit)
         for state in state_space:
             if state.next_states:
                 for event, next_state in six.iteritems(state.next_states):
diff --git a/automaton/tests/test_fsm.py b/automaton/tests/test_fsm.py
index a58ba29..f78728a 100644
--- a/automaton/tests/test_fsm.py
+++ b/automaton/tests/test_fsm.py
@@ -14,6 +14,7 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
+import collections
 import functools
 import random
 
@@ -69,6 +70,40 @@ class FSMTest(testcase.TestCase):
         expected = [('down', 'jump', 'up'), ('up', 'fall', 'down')]
         self.assertEqual(expected, list(m))
 
+    def test_build_transitions_with_callbacks(self):
+        entered = collections.defaultdict(list)
+        exitted = collections.defaultdict(list)
+
+        def on_enter(state, event):
+            entered[state].append(event)
+
+        def on_exit(state, event):
+            exitted[state].append(event)
+
+        space = [
+            machines.State('down', is_terminal=False,
+                           next_states={'jump': 'up'},
+                           on_enter=on_enter, on_exit=on_exit),
+            machines.State('up', is_terminal=False,
+                           next_states={'fall': 'down'},
+                           on_enter=on_enter, on_exit=on_exit),
+        ]
+        m = machines.FiniteMachine.build(space)
+        m.default_start_state = 'down'
+        expected = [('down', 'jump', 'up'), ('up', 'fall', 'down')]
+        self.assertEqual(expected, list(m))
+
+        m.initialize()
+        m.process_event('jump')
+
+        self.assertEqual({'down': ['jump']}, dict(exitted))
+        self.assertEqual({'up': ['jump']}, dict(entered))
+
+        m.process_event('fall')
+
+        self.assertEqual({'down': ['jump'], 'up': ['fall']}, dict(exitted))
+        self.assertEqual({'up': ['jump'], 'down': ['fall']}, dict(entered))
+
     def test_build_transitions_dct(self):
         space = [
             {