diff --git a/packages/devel/glib/package.mk b/packages/devel/glib/package.mk
index 3e69553c6c..3c554a9e8f 100644
--- a/packages/devel/glib/package.mk
+++ b/packages/devel/glib/package.mk
@@ -1,6 +1,7 @@
 ################################################################################
 #      This file is part of OpenELEC - http://www.openelec.tv
 #      Copyright (C) 2009-2016 Stephan Raue (stephan@openelec.tv)
+#      Copyright (C) 2016-     Team LibreELEC
 #
 #  OpenELEC is free software: you can redistribute it and/or modify
 #  it under the terms of the GNU General Public License as published by
@@ -33,6 +34,7 @@ PKG_LONGDESC="GLib is a library which includes support routines for C such as li
 PKG_IS_ADDON="no"
 PKG_AUTORECONF="yes"
 
+PKG_CONFIGURE_OPTS_HOST="--enable-static --disable-shared"
 PKG_CONFIGURE_OPTS_TARGET="ac_cv_func_mmap_fixed_mapped=yes \
                            ac_cv_func_posix_getpwuid_r=yes \
                            ac_cv_func_posix_getgrgid_r=yes \
diff --git a/packages/tools/qemu/package.mk b/packages/tools/qemu/package.mk
new file mode 100644
index 0000000000..024d99da4b
--- /dev/null
+++ b/packages/tools/qemu/package.mk
@@ -0,0 +1,49 @@
+################################################################################
+#      This file is part of LibreELEC - http://www.libreelec.tv
+#      Copyright (C) 2016- Team LibreELEC
+#
+#  LibreELEC is free software: you can redistribute it and/or modify
+#  it under the terms of the GNU General Public License as published by
+#  the Free Software Foundation, either version 2 of the License, or
+#  (at your option) any later version.
+#
+#  LibreELEC is distributed in the hope that it will be useful,
+#  but WITHOUT ANY WARRANTY; without even the implied warranty of
+#  MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+#  GNU General Public License for more details.
+#
+#  You should have received a copy of the GNU General Public License
+#  along with LibreELEC.  If not, see <http://www.gnu.org/licenses/>.
+################################################################################
+
+PKG_NAME="qemu"
+PKG_VERSION="2.5.1"
+PKG_REV="1"
+PKG_ARCH="any"
+PKG_LICENSE="GPL"
+PKG_SITE="http://wiki.qemu.org"
+PKG_URL="http://wiki.qemu-project.org/download/qemu-$PKG_VERSION.tar.bz2"
+PKG_DEPENDS_HOST="toolchain Python:host zlib:host glib:host"
+PKG_PRIORITY="optional"
+PKG_SECTION="tools"
+PKG_SHORTDESC="QEMU is a generic and open source machine emulator and virtualizer."
+PKG_LONGDESC="QEMU is a generic and open source machine emulator and virtualizer."
+
+PKG_IS_ADDON="no"
+PKG_AUTORECONF="no"
+
+HOST_CONFIGURE_OPTS="--prefix=$ROOT/$TOOLCHAIN \
+  --bindir=$ROOT/$TOOLCHAIN/bin \
+  --sbindir=$ROOT/$TOOLCHAIN/sbin \
+  --sysconfdir=$ROOT/$TOOLCHAIN/etc \
+  --libexecdir=$ROOT/$TOOLCHAIN/lib \
+  --localstatedir=$ROOT/$TOOLCHAIN/var \
+  --extra-cflags=-I$ROOT/$TOOLCHAIN/include \
+  --extra-ldflags=-L$ROOT/$TOOLCHAIN/lib \
+  --static \
+  --disable-vnc \
+  --disable-werror \
+  --disable-blobs \
+  --disable-system \
+  --disable-user \
+  --disable-docs"
diff --git a/packages/virtual/virtual/package.mk b/packages/virtual/virtual/package.mk
new file mode 100644
index 0000000000..f078f71cca
--- /dev/null
+++ b/packages/virtual/virtual/package.mk
@@ -0,0 +1,33 @@
+################################################################################
+#      This file is part of LibreELEC - http://www.libreelec.tv
+#      Copyright (C) 2016-     Team LibreELEC
+#
+#  LibreELEC is free software: you can redistribute it and/or modify
+#  it under the terms of the GNU General Public License as published by
+#  the Free Software Foundation, either version 2 of the License, or
+#  (at your option) any later version.
+#
+#  LibreELEC is distributed in the hope that it will be useful,
+#  but WITHOUT ANY WARRANTY; without even the implied warranty of
+#  MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+#  GNU General Public License for more details.
+#
+#  You should have received a copy of the GNU General Public License
+#  along with LibreELEC.  If not, see <http://www.gnu.org/licenses/>.
+################################################################################
+
+PKG_NAME="virtual"
+PKG_VERSION=""
+PKG_REV="1"
+PKG_ARCH="any"
+PKG_LICENSE="GPL"
+PKG_SITE="http://www.libreelec.tv"
+PKG_URL=""
+PKG_DEPENDS_TARGET="qemu:host"
+PKG_PRIORITY="optional"
+PKG_SECTION="virtual"
+PKG_SHORTDESC="virtual: Meta package to install Virtual project extra deps"
+PKG_LONGDESC="virtual is a Meta package to install Virtual project extra dependencies"
+
+PKG_IS_ADDON="no"
+PKG_AUTORECONF="no"
diff --git a/projects/Virtual/config/ovf.template b/projects/Virtual/config/ovf.template
new file mode 100644
index 0000000000..51f4baba68
--- /dev/null
+++ b/projects/Virtual/config/ovf.template
@@ -0,0 +1,120 @@
+<?xml version="1.0" encoding="UTF-8"?> <Envelope vmw:buildId="build-3018522" xmlns="http://schemas.dmtf.org/ovf/envelope/1" 
+xmlns:cim="http://schemas.dmtf.org/wbem/wscim/1/common" xmlns:ovf="http://schemas.dmtf.org/ovf/envelope/1" xmlns:rasd="http://schemas.dmtf.org/wbem/wscim/1/cim-schema/2/CIM_ResourceAllocationSettingData" xmlns:vmw="http://www.vmware.com/schema/ovf" 
+xmlns:vssd="http://schemas.dmtf.org/wbem/wscim/1/cim-schema/2/CIM_VirtualSystemSettingData" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance">
+  <References>
+    <File ovf:href="@DISK@.vmdk" ovf:id="file" ovf:size="@DISK_SIZE@"/>
+  </References>
+  <DiskSection>
+    <Info>Virtual disk information</Info>
+    <Disk ovf:capacity="548" ovf:capacityAllocationUnits="byte * 2^20" ovf:diskId="disk" ovf:fileRef="file" ovf:format="http://www.vmware.com/interfaces/specifications/vmdk.html#streamOptimized"/>
+  </DiskSection>
+  <NetworkSection>
+    <Info>The list of logical networks</Info>
+    <Network ovf:name="bridged">
+      <Description>The bridged network</Description>
+    </Network>
+  </NetworkSection>
+  <VirtualSystem ovf:id="@DISTRO@">
+    <Info>A virtual machine</Info>
+    <Name>@DISTRO@</Name>
+    <ProductSection>
+      <Info>Meta-information about the installed software</Info>
+      <Product>LibreELEC</Product>
+      <Vendor>LibreELEC</Vendor>
+      <ProductUrl>http://libreelec.tv</ProductUrl>
+      <VendorUrl>http://libreelec.tv</VendorUrl>
+    </ProductSection>
+    <AnnotationSection>
+      <Info>A human-readable annotation</Info>
+      <Annotation>LibreELEC is &#x2018;Just enough OS&#x2019; for Kodi, a Linux distribution built to run Kodi on current and popular mediacentre hardware. We are an evolution of the popular OpenELEC project.</Annotation>
+    </AnnotationSection>
+    <OperatingSystemSection ovf:id="94" vmw:osType="Ubuntu 64-bit">
+      <Info>The kind of installed guest operating system</Info>
+    </OperatingSystemSection>
+    <VirtualHardwareSection> <Info>Virtual hardware requirements</Info>
+      <System>
+        <vssd:ElementName>Virtual Hardware Family</vssd:ElementName>
+        <vssd:InstanceID>0</vssd:InstanceID>
+        <vssd:VirtualSystemIdentifier>LibreELEC</vssd:VirtualSystemIdentifier>
+        <vssd:VirtualSystemType>vmx-09</vssd:VirtualSystemType>
+      </System>
+      <Item>
+        <rasd:AllocationUnits>hertz * 10^6</rasd:AllocationUnits>
+        <rasd:Description>Number of Virtual CPUs</rasd:Description>
+        <rasd:ElementName>1 virtual CPU(s)</rasd:ElementName>
+        <rasd:InstanceID>1</rasd:InstanceID>
+        <rasd:ResourceType>3</rasd:ResourceType>
+        <rasd:VirtualQuantity>1</rasd:VirtualQuantity>
+      </Item>
+      <Item>
+        <rasd:AllocationUnits>byte * 2^20</rasd:AllocationUnits>
+        <rasd:Description>Memory Size</rasd:Description>
+        <rasd:ElementName>512MB of memory</rasd:ElementName>
+        <rasd:InstanceID>2</rasd:InstanceID>
+        <rasd:ResourceType>4</rasd:ResourceType>
+        <rasd:VirtualQuantity>512</rasd:VirtualQuantity>
+      </Item>
+      <Item ovf:required="false">
+        <rasd:Address>0</rasd:Address>
+        <rasd:Description>USB Controller (EHCI)</rasd:Description>
+        <rasd:ElementName>usb</rasd:ElementName>
+        <rasd:InstanceID>3</rasd:InstanceID>
+        <rasd:ResourceSubType>vmware.usb.ehci</rasd:ResourceSubType>
+        <rasd:ResourceType>23</rasd:ResourceType>
+        <vmw:Config ovf:required="false" vmw:key="ehciEnabled" vmw:value="true"/>
+      </Item>
+      <Item>
+        <rasd:Address>0</rasd:Address>
+        <rasd:Description>IDE Controller</rasd:Description>
+        <rasd:ElementName>ideController0</rasd:ElementName>
+        <rasd:InstanceID>4</rasd:InstanceID>
+        <rasd:ResourceType>5</rasd:ResourceType>
+      </Item>
+      <Item>
+        <rasd:AddressOnParent>0</rasd:AddressOnParent>
+        <rasd:ElementName>disk0</rasd:ElementName>
+        <rasd:HostResource>ovf:/disk/disk</rasd:HostResource>
+        <rasd:InstanceID>5</rasd:InstanceID>
+        <rasd:Parent>4</rasd:Parent>
+        <rasd:ResourceType>17</rasd:ResourceType>
+      </Item>
+      <Item>
+        <rasd:AddressOnParent>1</rasd:AddressOnParent>
+        <rasd:AutomaticAllocation>true</rasd:AutomaticAllocation>
+        <rasd:Connection>bridged</rasd:Connection>
+        <rasd:Description>E1000 ethernet adapter on &quot;bridged&quot;</rasd:Description>
+        <rasd:ElementName>ethernet0</rasd:ElementName>
+        <rasd:InstanceID>6</rasd:InstanceID>
+        <rasd:ResourceSubType>E1000</rasd:ResourceSubType>
+        <rasd:ResourceType>10</rasd:ResourceType>
+        <vmw:Config ovf:required="false" vmw:key="wakeOnLanEnabled" vmw:value="false"/>
+      </Item>
+      <Item ovf:required="false">
+        <rasd:AutomaticAllocation>false</rasd:AutomaticAllocation>
+        <rasd:ElementName>sound</rasd:ElementName>
+        <rasd:InstanceID>7</rasd:InstanceID>
+        <rasd:ResourceSubType>vmware.soundcard.hdaudio</rasd:ResourceSubType>
+        <rasd:ResourceType>1</rasd:ResourceType>
+      </Item>
+      <Item ovf:required="false">
+        <rasd:AutomaticAllocation>false</rasd:AutomaticAllocation>
+        <rasd:ElementName>video</rasd:ElementName>
+        <rasd:InstanceID>8</rasd:InstanceID>
+        <rasd:ResourceType>24</rasd:ResourceType>
+        <vmw:Config ovf:required="false" vmw:key="enable3DSupport" vmw:value="true"/>
+      </Item>
+      <Item ovf:required="false">
+        <rasd:AutomaticAllocation>false</rasd:AutomaticAllocation>
+        <rasd:ElementName>vmci</rasd:ElementName>
+        <rasd:InstanceID>9</rasd:InstanceID>
+        <rasd:ResourceSubType>vmware.vmci</rasd:ResourceSubType>
+        <rasd:ResourceType>1</rasd:ResourceType>
+      </Item>
+      <vmw:Config ovf:required="false" vmw:key="cpuHotAddEnabled" vmw:value="true"/>
+      <vmw:Config ovf:required="false" vmw:key="memoryHotAddEnabled" vmw:value="true"/>
+      <vmw:Config ovf:required="false" vmw:key="powerOpInfo.powerOffType" vmw:value="soft"/>
+      <vmw:Config ovf:required="false" vmw:key="powerOpInfo.resetType" vmw:value="soft"/>
+      <vmw:Config ovf:required="false" vmw:key="powerOpInfo.suspendType" vmw:value="soft"/>
+    </VirtualHardwareSection>
+  </VirtualSystem>
+</Envelope>
diff --git a/scripts/image b/scripts/image
index 3539e0683e..73c77fbce4 100755
--- a/scripts/image
+++ b/scripts/image
@@ -177,6 +177,9 @@ fi
 # LCD support
   [ ! "$LCD_DRIVER" = "none" ] && $SCRIPTS/install lcdproc
 
+# Virtual image creation support
+  [ "$PROJECT" = Virtual ] && $SCRIPTS/install virtual
+
 # Installer support
   [ "$INSTALLER_SUPPORT" = "yes" ] && $SCRIPTS/install installer
 
@@ -367,6 +370,9 @@ fi
           PATH="$PATH:/sbin" \
           ROOT="$ROOT" \
           TOOLCHAIN="$TOOLCHAIN" \
+          PROJECT_DIR="$PROJECT_DIR" \
+          PROJECT="$PROJECT" \
+          DISTRO="$DISTRO" \
           TARGET_IMG="$TARGET_IMG" \
           IMAGE_NAME="$IMAGE_NAME" \
           BOOTLOADER="$BOOTLOADER" \
diff --git a/scripts/mkimage b/scripts/mkimage
index c765dbbb88..2fe06335e0 100755
--- a/scripts/mkimage
+++ b/scripts/mkimage
@@ -108,7 +108,7 @@ fi
   HEADS=4
   TRACKS=32
   SECTORS=$(( $SYSTEM_SIZE * 1024 * 1024 / 512 / $HEADS / $TRACKS ))
-  
+
   shopt -s expand_aliases  # enables alias expansion in script
   alias mformat="mformat -i $DISK@@$OFFSET -h $HEADS -t $TRACKS -s $SECTORS"
   alias mcopy="mcopy -i $DISK@@$OFFSET"
@@ -139,6 +139,18 @@ LABEL live
   APPEND boot=UUID=$UUID_SYSTEM live quiet tty vga=current
 EOF
 
+  if [ "$PROJECT" = Virtual ]; then
+    cat << EOF > "$OE_TMP"/syslinux.cfg
+DEFAULT virtual
+TIMEOUT 50
+PROMPT 0
+
+LABEL virtual
+  KERNEL /$KERNEL_NAME
+  APPEND boot=UUID=$UUID_SYSTEM disk=UUID=$UUID_STORAGE quiet tty vga=current
+EOF
+  fi
+
     mcopy "$OE_TMP/syslinux.cfg" ::
 
   # install extlinux
@@ -255,7 +267,7 @@ fi # bootloader
   sync
 
 # add resize mark
-  if [ "$BOOTLOADER" != "syslinux" ]; then
+  if [ "$BOOTLOADER" != "syslinux" -o "$PROJECT" = Virtual ]; then
     mkdir "$OE_TMP/part2.fs"
     touch "$OE_TMP/part2.fs/.please_resize_me"
     echo "image: populating filesystem on part2..."
@@ -268,6 +280,7 @@ fi # bootloader
   echo "image: merging part2 back to image..."
   dd if="$OE_TMP/part2.ext4" of="$DISK" bs=512 seek="$STORAGE_PART_START" conv=fsync,notrunc >"$SAVE_ERROR" 2>&1 || show_error
 
+
 # extract part1 from image to run fsck
   echo "image: extracting part1 from image..."
   SYSTEM_PART_COUNT=$(( $SYSTEM_PART_END - $SYSTEM_PART_START + 1 ))
@@ -276,6 +289,17 @@ fi # bootloader
   echo "image: checking filesystem on part1..."
   fsck -n $OE_TMP/part1.fat >"$SAVE_ERROR" 2>&1 || show_error
 
+# create virtual images
+  if [ "$PROJECT" = Virtual ]; then
+    echo "image: creating open virtual appliance..."
+    qemu-img convert -O vmdk -o subformat=streamOptimized "$DISK" "$DISK.vmdk"
+    sed -e "s,@DISTRO@,$DISTRO,g" -e "s,@DISK@,$(basename $DISK),g" -e "s,@DISK_SIZE@,$(ls -l $DISK.vmdk | awk '{print $5}'),g" $PROJECT_DIR/$PROJECT/config/ovf.template > $DISK.ovf
+    tar -C $TARGET_IMG -cf $DISK.ova $(basename $DISK).ovf $(basename $DISK).vmdk
+    echo "image: cleaning up..."
+    rm $DISK.vmdk $DISK.ovf
+    [ -n "$SUDO_USER" ] && chown $SUDO_USER: $DISK.ova
+  fi
+
 # gzip
   echo "image: compressing..."
   gzip $DISK