Output directory is created if it doesn't exists.

lib/render.js

 var fs = require('fs'),
     chalk = require('chalk'),
-    sass = require('./');
+    sass = require('./'),
+    path = require('path'),
+    mkdirp = require('mkdirp');
 
 /**
  * Render
@@ -47,14 +49,20 @@ module.exports = function(options, emitter) {
 
     emitter.emit('warn', chalk.green('Rendering Complete, saving .css file...'));
 
-    fs.writeFile(options.dest, result.css, function(err) {
+    mkdirp(path.dirname(options.dest), function(err) {
       if (err) {
         return emitter.emit('error', chalk.red(err));
       }
 
-      emitter.emit('warn', chalk.green('Wrote CSS to ' + options.dest));
-      emitter.emit('write', err, options.dest, result.css);
-      done();
+      fs.writeFile(options.dest, result.css, function (err) {
+        if (err) {
+          return emitter.emit('error', chalk.red(err));
+        }
+
+        emitter.emit('warn', chalk.green('Wrote CSS to ' + options.dest));
+        emitter.emit('write', err, options.dest, result.css);
+        done();
+      });
     });
 
     if (options.sourceMap) {

test/cli.js

@@ -225,6 +225,26 @@ describe('cli', function() {
     });
   });
 
+  describe('node-sass in.scss --output path/to/file/out.css', function() {
+    it('should create the output directory', function(done) {
+      var src = fixture('output-directory/index.scss');
+      var dest = fixture('output-directory/path/to/file/index.css');
+      var bin = spawn(cli, [src, '--output', path.dirname(dest)]);
+
+      bin.on('close', function() {
+        assert(fs.existsSync(path.dirname(dest)));
+        fs.unlinkSync(dest);
+        fs.rmdirSync(path.dirname(dest));
+        dest = path.dirname(dest);
+        fs.rmdirSync(path.dirname(dest));
+        dest = path.dirname(dest);
+        fs.rmdirSync(path.dirname(dest));
+        done();
+      });
+    });
+
+  });
+
   describe('importer', function() {
     var dest = fixture('include-files/index.css');
     var src = fixture('include-files/index.scss');

test/fixtures/output-directory/index.scss

+#navbar {
+  width: 80%;
+  height: 23px;
+}
+
+#navbar ul {
+  list-style-type: none;
+}
+
+#navbar li {
+  float: left;
+
+  a {
+    font-weight: bold;
+  }
+}