diff --git a/src/tex2lyx/TODO.txt b/src/tex2lyx/TODO.txt
index 12e1d37796..a6191cb967 100644
--- a/src/tex2lyx/TODO.txt
+++ b/src/tex2lyx/TODO.txt
@@ -30,7 +30,6 @@ Format LaTeX feature                        LyX feature
 293    ?                                    InsetInfo
 309    \nocite                              InsetCitation
 310    \nocite{*}                           InsetBibtex
-316    subfig.sty (subfloats)               InsetFloat
 322    ?                                    local layout
 325    japanese                             one japanese language
 326    PDFLaTeX for external insets         InsetExternal
diff --git a/src/tex2lyx/preamble.cpp b/src/tex2lyx/preamble.cpp
index 7ba86a2430..e31a2a8252 100644
--- a/src/tex2lyx/preamble.cpp
+++ b/src/tex2lyx/preamble.cpp
@@ -654,6 +654,9 @@ void handle_package(Parser &p, string const & name, string const & opts,
 	else if (name == "wrapfig")
 		; // ignore this
 
+	else if (name == "subfig")
+		; // ignore this
+
 	else if (is_known(name, known_languages))
 		h_language = name;
 
@@ -1280,6 +1283,13 @@ void parse_preamble(Parser & p, ostream & os,
 			} else if (arg1 == "definecolor" && arg2 == "\\usepackage{color}"
 				&& arg3.empty()) {
 				ifundefined_color_set = true;
+			// test for case
+			//\@ifundefined{showcaptionsetup}{}{%
+			// \PassOptionsToPackage{caption=false}{subfig}}
+			// that LyX uses for subfloats
+			} else if (arg1 == "showcaptionsetup" && arg2.empty()
+				&& arg3 == "%\n \\PassOptionsToPackage{caption=false}{subfig}") {
+				; // do nothing
 			} else if (!in_lyx_preamble) {
 				h_preamble << t.asInput()
 				           << '{' << arg1 << '}'
diff --git a/src/tex2lyx/text.cpp b/src/tex2lyx/text.cpp
index a2bd665c8f..df639dbc00 100644
--- a/src/tex2lyx/text.cpp
+++ b/src/tex2lyx/text.cpp
@@ -229,6 +229,9 @@ char const * const known_phrases[] = {"LyX", "TeX", "LaTeXe", "LaTeX", 0};
 char const * const known_coded_phrases[] = {"LyX", "TeX", "LaTeX2e", "LaTeX", 0};
 int const known_phrase_lengths[] = {3, 5, 7, 0};
 
+// string to store the float type to be able to determine the type of subfloats
+string float_type = "";
+
 
 /// splits "x=z, y=b" into a map and an ordered keyword vector
 void split_map(string const & s, map<string, string> & res, vector<string> & keys)
@@ -1062,6 +1065,14 @@ void parse_environment(Parser & p, ostream & os, bool outer,
 		eat_whitespace(p, os, parent_context, false);
 		parent_context.check_layout(os);
 		begin_inset(os, "Float " + unstarred_name + "\n");
+		// store the float type for subfloats
+		// subfloats only work with figures and tables
+		if (unstarred_name == "figure")
+			float_type = unstarred_name;
+		else if (unstarred_name == "table")
+			float_type = unstarred_name;
+		else
+			float_type = "";
 		if (p.hasOpt())
 			os << "placement " << p.getArg('[', ']') << '\n';
 		os << "wide " << convert<string>(is_starred)
@@ -2133,7 +2144,7 @@ void parse_text(Parser & p, ostream & os, unsigned flags, bool outer,
 			p.skip_spaces();
 			context.check_layout(os);
 			p.skip_spaces();
-			begin_inset(os, "Caption\n\n");
+			begin_inset(os, "Caption\n");
 			Context newcontext(true, context.textclass);
 			newcontext.font = context.font;
 			newcontext.check_layout(os);
@@ -2156,6 +2167,68 @@ void parse_text(Parser & p, ostream & os, unsigned flags, bool outer,
 			newcontext.check_end_layout(os);
 		}
 
+		else if (t.cs() == "subfloat") {
+			// the syntax is \subfloat[caption]{content}
+			// if it is a table of figure depends on the surrounding float
+			bool has_caption = false;
+			p.skip_spaces();
+			// do nothing if there is no outer float
+			if (!float_type.empty()) {
+				context.check_layout(os);
+				p.skip_spaces();
+				begin_inset(os, "Float " + float_type + "\n");
+				os << "wide false"
+				   << "\nsideways false"
+				   << "\nstatus collapsed\n\n";
+				// test for caption
+				string caption;
+				if (p.next_token().cat() != catEscape &&
+						p.next_token().character() == '[') {
+							p.get_token(); // eat '['
+							caption = parse_text_snippet(p, FLAG_BRACK_LAST, outer, context);
+							has_caption = true;
+				}
+				// the content
+				parse_text_in_inset(p, os, FLAG_ITEM, outer, context);
+				// the caption comes always as the last
+				if (has_caption) {
+					// we must make sure that the caption gets a \begin_layout
+					os << "\n\\begin_layout Plain Layout";
+					p.skip_spaces();
+					begin_inset(os, "Caption\n");
+					Context newcontext(true, context.textclass);
+					newcontext.font = context.font;
+					newcontext.check_layout(os);
+					os << caption << "\n";
+					newcontext.check_end_layout(os);
+					// We don't need really a new paragraph, but
+					// we must make sure that the next item gets a \begin_layout.
+					//newcontext.new_paragraph(os);
+					end_inset(os);
+					p.skip_spaces();
+				}
+				// We don't need really a new paragraph, but
+				// we must make sure that the next item gets a \begin_layout.
+				if (has_caption)
+					context.new_paragraph(os);
+				end_inset(os);
+				p.skip_spaces();
+				context.check_end_layout(os);
+				// close the layout we opened
+				if (has_caption)
+					os << "\n\\end_layout\n";
+			} else {
+				// if the float type is not supported or there is no surrounding float
+				// output it as ERT
+				if (p.hasOpt()) {
+					string opt_arg = convert_command_inset_arg(p.getArg('[', ']'));
+					handle_ert(os, t.asInput() + '[' + opt_arg +
+				               "]{" + p.verbatim_item() + '}', context);
+				} else
+					handle_ert(os, t.asInput() + "{" + p.verbatim_item() + '}', context);
+			}
+		}
+
 		else if (t.cs() == "includegraphics") {
 			bool const clip = p.next_token().asInput() == "*";
 			if (clip)