diff --git a/homeassistant/components/alarm_control_panel/nx584.py b/homeassistant/components/alarm_control_panel/nx584.py
index 55ad9b25b9f..c77fab341de 100644
--- a/homeassistant/components/alarm_control_panel/nx584.py
+++ b/homeassistant/components/alarm_control_panel/nx584.py
@@ -14,7 +14,7 @@ from homeassistant.const import (STATE_UNKNOWN, STATE_ALARM_DISARMED,
                                  STATE_ALARM_ARMED_AWAY)
 import homeassistant.components.alarm_control_panel as alarm
 
-REQUIREMENTS = ['pynx584==0.1']
+REQUIREMENTS = ['pynx584==0.2']
 
 _LOGGER = logging.getLogger(__name__)
 
diff --git a/homeassistant/components/binary_sensor/nx584.py b/homeassistant/components/binary_sensor/nx584.py
new file mode 100644
index 00000000000..0565bb5d857
--- /dev/null
+++ b/homeassistant/components/binary_sensor/nx584.py
@@ -0,0 +1,115 @@
+"""
+homeassistant.components.sensor.nx584
+~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+Support for exposing nx584 elements as sensors.
+
+For more details about this platform, please refer to the documentation at
+https://home-assistant.io/components/sensor.nx584/
+"""
+import logging
+import threading
+import time
+
+import requests
+
+from homeassistant.components.binary_sensor import BinarySensorDevice
+
+REQUIREMENTS = ['pynx584==0.2']
+_LOGGER = logging.getLogger(__name__)
+
+
+def setup_platform(hass, config, add_devices, discovery_info=None):
+    """Setup nx584 sensors."""
+    from nx584 import client as nx584_client
+
+    host = config.get('host', 'localhost:5007')
+    exclude = config.get('exclude_zones', [])
+
+    if not all(isinstance(zone, int) for zone in exclude):
+        _LOGGER.error('Invalid excluded zone specified (use zone number)')
+        return False
+
+    try:
+        client = nx584_client.Client('http://%s' % host)
+        zones = client.list_zones()
+    except requests.exceptions.ConnectionError as ex:
+        _LOGGER.error('Unable to connect to NX584: %s', str(ex))
+        return False
+
+    version = [int(v) for v in client.get_version().split('.')]
+    if version < [1, 1]:
+        _LOGGER.error('NX584 is too old to use for sensors (>=0.2 required)')
+        return False
+
+    zone_sensors = {
+        zone['number']: NX584ZoneSensor(zone)
+        for zone in zones
+        if zone['number'] not in exclude}
+    if zone_sensors:
+        add_devices(zone_sensors.values())
+        watcher = NX584Watcher(client, zone_sensors)
+        watcher.start()
+    else:
+        _LOGGER.warning('No zones found on NX584')
+
+    return True
+
+
+class NX584ZoneSensor(BinarySensorDevice):
+    """Represents a NX584 zone as a sensor."""
+
+    def __init__(self, zone):
+        self._zone = zone
+
+    @property
+    def should_poll(self):
+        return False
+
+    @property
+    def name(self):
+        return self._zone['name']
+
+    @property
+    def is_on(self):
+        # True means "faulted" or "open" or "abnormal state"
+        return self._zone['state']
+
+
+class NX584Watcher(threading.Thread):
+    """Event listener thread to process NX584 events."""
+
+    def __init__(self, client, zone_sensors):
+        super(NX584Watcher, self).__init__()
+        self.daemon = True
+        self._client = client
+        self._zone_sensors = zone_sensors
+
+    def _process_zone_event(self, event):
+        zone = event['zone']
+        zone_sensor = self._zone_sensors.get(zone)
+        # pylint: disable=protected-access
+        if not zone_sensor:
+            return
+        zone_sensor._zone['state'] = event['zone_state']
+        zone_sensor.update_ha_state()
+
+    def _process_events(self, events):
+        for event in events:
+            if event.get('type') == 'zone_status':
+                self._process_zone_event(event)
+
+    def _run(self):
+        # Throw away any existing events so we don't replay history
+        self._client.get_events()
+        while True:
+            events = self._client.get_events()
+            if events:
+                self._process_events(events)
+
+    def run(self):
+        while True:
+            try:
+                self._run()
+            except requests.exceptions.ConnectionError:
+                _LOGGER.error('Failed to reach NX584 server')
+                time.sleep(10)
diff --git a/requirements_all.txt b/requirements_all.txt
index e4299f3e80c..9d9fd17e887 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -161,7 +161,8 @@ pyicloud==0.7.2
 pynetgear==0.3.2
 
 # homeassistant.components.alarm_control_panel.nx584
-pynx584==0.1
+# homeassistant.components.binary_sensor.nx584
+pynx584==0.2
 
 # homeassistant.components.sensor.openweathermap
 pyowm==2.3.0
diff --git a/tests/components/binary_sensor/test_nx584.py b/tests/components/binary_sensor/test_nx584.py
new file mode 100644
index 00000000000..67dbe18e866
--- /dev/null
+++ b/tests/components/binary_sensor/test_nx584.py
@@ -0,0 +1,173 @@
+"""
+tests.components.binary_sensor.nx584
+~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+Tests for nx584 sensor.
+"""
+
+import requests
+import unittest
+from unittest import mock
+
+from homeassistant.components.binary_sensor import nx584
+from nx584 import client as nx584_client
+
+
+class StopMe(Exception):
+    pass
+
+
+class TestNX584SensorSetup(unittest.TestCase):
+    def setUp(self):
+        self._mock_client = mock.patch.object(nx584_client, 'Client')
+        self._mock_client.start()
+
+        self.fake_zones = [
+            {'name': 'front', 'number': 1},
+            {'name': 'back', 'number': 2},
+            {'name': 'inside', 'number': 3},
+            ]
+
+        client = nx584_client.Client.return_value
+        client.list_zones.return_value = self.fake_zones
+        client.get_version.return_value = '1.1'
+
+    def tearDown(self):
+        self._mock_client.stop()
+
+    @mock.patch('homeassistant.components.binary_sensor.nx584.NX584Watcher')
+    @mock.patch('homeassistant.components.binary_sensor.nx584.NX584ZoneSensor')
+    def test_setup_no_config(self, mock_nx, mock_watcher):
+        add_devices = mock.MagicMock()
+        hass = mock.MagicMock()
+        self.assertTrue(nx584.setup_platform(hass, {}, add_devices))
+        mock_nx.assert_has_calls([
+            mock.call(zone)
+            for zone in self.fake_zones])
+        self.assertTrue(add_devices.called)
+        nx584_client.Client.assert_called_once_with('http://localhost:5007')
+
+    @mock.patch('homeassistant.components.binary_sensor.nx584.NX584Watcher')
+    @mock.patch('homeassistant.components.binary_sensor.nx584.NX584ZoneSensor')
+    def test_setup_full_config(self, mock_nx, mock_watcher):
+        config = {
+            'host': 'foo:123',
+            'exclude_zones': [2],
+            'zone_types': {3: 'motion'},
+            }
+        add_devices = mock.MagicMock()
+        hass = mock.MagicMock()
+        self.assertTrue(nx584.setup_platform(hass, config, add_devices))
+        mock_nx.assert_has_calls([
+            mock.call(self.fake_zones[0]),
+            mock.call(self.fake_zones[2]),
+            ])
+        self.assertTrue(add_devices.called)
+        nx584_client.Client.assert_called_once_with('http://foo:123')
+        self.assertTrue(mock_watcher.called)
+
+    def _test_assert_graceful_fail(self, config):
+        hass = add_devices = mock.MagicMock()
+        self.assertFalse(nx584.setup_platform(hass, config,
+                                              add_devices))
+        self.assertFalse(add_devices.called)
+
+    def test_setup_bad_config(self):
+        bad_configs = [
+            {'exclude_zones': ['a']},
+        ]
+        for config in bad_configs:
+            self._test_assert_graceful_fail(config)
+
+    def test_setup_connect_failed(self):
+        nx584_client.Client.return_value.list_zones.side_effect = \
+            requests.exceptions.ConnectionError
+        self._test_assert_graceful_fail({})
+
+    def test_setup_version_too_old(self):
+        nx584_client.Client.return_value.get_version.return_value = '1.0'
+        self._test_assert_graceful_fail({})
+
+    def test_setup_no_zones(self):
+        nx584_client.Client.return_value.list_zones.return_value = []
+        hass = add_devices = mock.MagicMock()
+        self.assertTrue(nx584.setup_platform(hass, {},
+                                             add_devices))
+        self.assertFalse(add_devices.called)
+
+
+class TestNX584ZoneSensor(unittest.TestCase):
+    def test_sensor_normal(self):
+        zone = {'number': 1, 'name': 'foo', 'state': True}
+        sensor = nx584.NX584ZoneSensor(zone)
+        self.assertEqual('foo', sensor.name)
+        self.assertFalse(sensor.should_poll)
+        self.assertTrue(sensor.is_on)
+
+        zone['state'] = False
+        self.assertFalse(sensor.is_on)
+
+
+class TestNX584Watcher(unittest.TestCase):
+    @mock.patch.object(nx584.NX584ZoneSensor, 'update_ha_state')
+    def test_process_zone_event(self, mock_update):
+        zone1 = {'number': 1, 'name': 'foo', 'state': True}
+        zone2 = {'number': 2, 'name': 'bar', 'state': True}
+        zones = {
+            1: nx584.NX584ZoneSensor(zone1),
+            2: nx584.NX584ZoneSensor(zone2),
+        }
+        watcher = nx584.NX584Watcher(None, zones)
+        watcher._process_zone_event({'zone': 1, 'zone_state': False})
+        self.assertFalse(zone1['state'])
+        self.assertEqual(1, mock_update.call_count)
+
+    @mock.patch.object(nx584.NX584ZoneSensor, 'update_ha_state')
+    def test_process_zone_event_missing_zone(self, mock_update):
+        watcher = nx584.NX584Watcher(None, {})
+        watcher._process_zone_event({'zone': 1, 'zone_state': False})
+        self.assertFalse(mock_update.called)
+
+    def test_run_with_zone_events(self):
+        empty_me = [1, 2]
+
+        def fake_get_events():
+            """Return nothing twice, then some events"""
+            if empty_me:
+                empty_me.pop()
+            else:
+                return fake_events
+
+        client = mock.MagicMock()
+        fake_events = [
+            {'zone': 1, 'zone_state': True, 'type': 'zone_status'},
+            {'zone': 2, 'foo': False},
+        ]
+        client.get_events.side_effect = fake_get_events
+        watcher = nx584.NX584Watcher(client, {})
+
+        @mock.patch.object(watcher, '_process_zone_event')
+        def run(fake_process):
+            fake_process.side_effect = StopMe
+            self.assertRaises(StopMe, watcher._run)
+            fake_process.assert_called_once_with(fake_events[0])
+
+        run()
+        self.assertEqual(3, client.get_events.call_count)
+
+    @mock.patch('time.sleep')
+    def test_run_retries_failures(self, mock_sleep):
+        empty_me = [1, 2]
+
+        def fake_run():
+            if empty_me:
+                empty_me.pop()
+                raise requests.exceptions.ConnectionError()
+            else:
+                raise StopMe()
+
+        watcher = nx584.NX584Watcher(None, {})
+        with mock.patch.object(watcher, '_run') as mock_inner:
+            mock_inner.side_effect = fake_run
+            self.assertRaises(StopMe, watcher.run)
+            self.assertEqual(3, mock_inner.call_count)
+        mock_sleep.assert_has_calls([mock.call(10), mock.call(10)])