diff --git a/.coveragerc b/.coveragerc
index 91d63632aba..5e3dc0978ee 100644
--- a/.coveragerc
+++ b/.coveragerc
@@ -79,6 +79,7 @@ omit =
     homeassistant/components/device_tracker/actiontec.py
     homeassistant/components/device_tracker/aruba.py
     homeassistant/components/device_tracker/asuswrt.py
+    homeassistant/components/device_tracker/bluetooth_tracker.py
     homeassistant/components/device_tracker/ddwrt.py
     homeassistant/components/device_tracker/fritz.py
     homeassistant/components/device_tracker/icloud.py
diff --git a/homeassistant/components/device_tracker/bluetooth_tracker.py b/homeassistant/components/device_tracker/bluetooth_tracker.py
new file mode 100644
index 00000000000..70fefbca1b7
--- /dev/null
+++ b/homeassistant/components/device_tracker/bluetooth_tracker.py
@@ -0,0 +1,91 @@
+"""Tracking for bluetooth devices."""
+import logging
+from datetime import timedelta
+
+from homeassistant.helpers.event import track_point_in_utc_time
+from homeassistant.components.device_tracker import (
+    YAML_DEVICES,
+    CONF_TRACK_NEW,
+    CONF_SCAN_INTERVAL,
+    DEFAULT_SCAN_INTERVAL,
+    load_config,
+)
+import homeassistant.util as util
+import homeassistant.util.dt as dt_util
+
+_LOGGER = logging.getLogger(__name__)
+
+REQUIREMENTS = ['pybluez==0.22']
+
+BT_PREFIX = 'BT_'
+
+
+def setup_scanner(hass, config, see):
+    """Setup the Bluetooth Scanner."""
+    # pylint: disable=import-error
+    import bluetooth
+
+    def see_device(device):
+        """Mark a device as seen."""
+        see(mac=BT_PREFIX + device[0], host_name=device[1])
+
+    def discover_devices():
+        """Discover bluetooth devices."""
+        result = bluetooth.discover_devices(duration=8,
+                                            lookup_names=True,
+                                            flush_cache=True,
+                                            lookup_class=False)
+        _LOGGER.debug("Bluetooth devices discovered = " + str(len(result)))
+        return result
+
+    yaml_path = hass.config.path(YAML_DEVICES)
+    devs_to_track = []
+    devs_donot_track = []
+
+    # Load all known devices.
+    # We just need the devices so set consider_home and home range
+    # to 0
+    for device in load_config(yaml_path, hass, 0, 0):
+        # check if device is a valid bluetooth device
+        if device.mac and device.mac[:3].upper() == BT_PREFIX:
+            if device.track:
+                devs_to_track.append(device.mac[3:])
+            else:
+                devs_donot_track.append(device.mac[3:])
+
+    # if track new devices is true discover new devices
+    # on startup.
+    track_new = util.convert(config.get(CONF_TRACK_NEW), bool,
+                             len(devs_to_track) == 0)
+    if track_new:
+        for dev in discover_devices():
+            if dev[0] not in devs_to_track and \
+               dev[0] not in devs_donot_track:
+                devs_to_track.append(dev[0])
+                see_device(dev)
+
+    if not devs_to_track:
+        _LOGGER.warning("No bluetooth devices to track!")
+        return False
+
+    interval = util.convert(config.get(CONF_SCAN_INTERVAL), int,
+                            DEFAULT_SCAN_INTERVAL)
+
+    def update_bluetooth(now):
+        """Lookup bluetooth device and update status."""
+        try:
+            for mac in devs_to_track:
+                _LOGGER.debug("Scanning " + mac)
+                result = bluetooth.lookup_name(mac, timeout=5)
+                if not result:
+                    # Could not lookup device name
+                    continue
+                see_device((mac, result))
+        except bluetooth.BluetoothError:
+            _LOGGER.exception('Error looking up bluetooth device!')
+        track_point_in_utc_time(hass, update_bluetooth,
+                                now + timedelta(seconds=interval))
+
+    update_bluetooth(dt_util.utcnow())
+
+    return True
diff --git a/requirements_all.txt b/requirements_all.txt
index 4a8904034ef..c3bbb5712b5 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -189,6 +189,9 @@ pyasn1-modules==0.0.8
 # homeassistant.components.notify.xmpp
 pyasn1==0.1.9
 
+# homeassistant.components.device_tracker.bluetooth_tracker
+# pybluez==0.22
+
 # homeassistant.components.media_player.cast
 pychromecast==0.7.2
 
diff --git a/script/gen_requirements_all.py b/script/gen_requirements_all.py
index ff7e11af0d7..2530a27930f 100755
--- a/script/gen_requirements_all.py
+++ b/script/gen_requirements_all.py
@@ -10,6 +10,7 @@ COMMENT_REQUIREMENTS = [
     'RPi.GPIO',
     'Adafruit_Python_DHT',
     'fritzconnection',
+    'pybluez',
 ]