diff --git a/cake/config/paths.php b/cake/config/paths.php
index 4a29fadab45..2ca9ea491b8 100644
--- a/cake/config/paths.php
+++ b/cake/config/paths.php
@@ -71,6 +71,11 @@
  */
 	define('COMPONENTS', CONTROLLERS.'components'.DS);
 
+/**
+ * Path to the application's views directory.
+ */
+	define('APPLIBS', APP.'libs'.DS);
+
 /**
  * Path to the application's views directory.
  */
diff --git a/cake/libs/configure.php b/cake/libs/configure.php
index d75de6b1096..982c48007bf 100644
--- a/cake/libs/configure.php
+++ b/cake/libs/configure.php
@@ -364,7 +364,7 @@ function buildPaths($paths) {
  * @access private
  */
 	function __loadBootstrap($boot) {
-		$modelPaths = $behaviorPaths = $controllerPaths = $componentPaths = $viewPaths = $helperPaths = $pluginPaths = $vendorPaths = $localePaths = $shellPaths = null;
+		$libPaths = $modelPaths = $behaviorPaths = $controllerPaths = $componentPaths = $viewPaths = $helperPaths = $pluginPaths = $vendorPaths = $localePaths = $shellPaths = null;
 
 		if ($boot) {
 			Configure::write('App', array('base' => false, 'baseUrl' => false, 'dir' => APP_DIR, 'webroot' => WEBROOT_DIR));
@@ -418,7 +418,7 @@ function __loadBootstrap($boot) {
 					'models' => $modelPaths, 'views' => $viewPaths, 'controllers' => $controllerPaths,
 					'helpers' => $helperPaths, 'components' => $componentPaths, 'behaviors' => $behaviorPaths,
 					'plugins' => $pluginPaths, 'vendors' => $vendorPaths, 'locales' => $localePaths,
-					'shells' => $shellPaths
+					'shells' => $shellPaths, 'libs' => $libPaths
 				));
 			}
 		}
@@ -448,6 +448,7 @@ class App extends Object {
 		'behavior' => array('suffix' => '.php', 'extends' => 'ModelBehavior', 'core' => true),
 		'controller' => array('suffix' => '_controller.php', 'extends' => 'AppController', 'core' => true),
 		'component' => array('suffix' => '.php', 'extends' => null, 'core' => true),
+		'lib' => array('suffix' => '.php', 'extends' => null, 'core' => true),
 		'view' => array('suffix' => '.php', 'extends' => null, 'core' => true),
 		'helper' => array('suffix' => '.php', 'extends' => 'AppHelper', 'core' => true),
 		'vendor' => array('suffix' => '', 'extends' => null, 'core' => true),
@@ -487,6 +488,13 @@ class App extends Object {
  */
 	var $components = array();
 
+/**
+ * List of additional path(s) where libs files reside.
+ *
+ * @var array
+ * @access public
+ */
+	var $libs = array();
 /**
  * List of additional path(s) where view files reside.
  *
@@ -626,6 +634,7 @@ function build($paths = array(), $reset = false) {
 			'datasources' => array(MODELS . 'datasources'),
 			'controllers' => array(CONTROLLERS),
 			'components' => array(COMPONENTS),
+			'libs' => array(APPLIBS),
 			'views' => array(VIEWS),
 			'helpers' => array(HELPERS),
 			'locales' => array(APP . 'locale' . DS),
@@ -879,7 +888,6 @@ function import($type = null, $name = null, $parent = true, $search = array(), $
 			$file = Inflector::underscore($name) . ".{$ext}";
 		}
 		$ext = $_this->__settings($type, $plugin, $parent);
-
 		if ($name != null && !class_exists($name . $ext['class'])) {
 			if ($load = $_this->__mapped($name . $ext['class'], $type, $plugin)) {
 				if ($_this->__load($load)) {
@@ -1138,6 +1146,12 @@ function __settings($type, $plugin, $parent) {
 				}
 				return array('class' => $type, 'suffix' => null, 'path' => $path);
 			break;
+			case 'lib':
+				if ($plugin) {
+					$path = $pluginPath . DS . 'libs' . DS;
+				}
+				return array('class' => null, 'suffix' => null, 'path' => $path);
+			break;
 			case 'view':
 				if ($plugin) {
 					$path = $pluginPath . DS . 'views' . DS;
diff --git a/cake/tests/cases/libs/configure.test.php b/cake/tests/cases/libs/configure.test.php
index 0348a42f51f..0ed568226ac 100644
--- a/cake/tests/cases/libs/configure.test.php
+++ b/cake/tests/cases/libs/configure.test.php
@@ -502,6 +502,10 @@ function testClassLoading() {
 		$this->assertTrue(class_exists('TestPluginAppController'));
 		$this->assertTrue(class_exists('TestsController'));
 
+		$result = App::import('Lib', 'TestPlugin.TestPluginLibrary');
+		$this->assertTrue($result);
+		$this->assertTrue(class_exists('TestPluginLibrary'));
+		
 		$result = App::import('Helper', 'TestPlugin.OtherHelper');
 		$this->assertTrue($result);
 		$this->assertTrue(class_exists('OtherHelperHelper'));
diff --git a/cake/tests/test_app/plugins/test_plugin/libs/test_plugin_library.php b/cake/tests/test_app/plugins/test_plugin/libs/test_plugin_library.php
new file mode 100644
index 00000000000..800ec1bf967
--- /dev/null
+++ b/cake/tests/test_app/plugins/test_plugin/libs/test_plugin_library.php
@@ -0,0 +1,29 @@
+<?php
+/* SVN FILE: $Id$ */
+
+/**
+ * Test Suite TestPlugin Library
+ *
+ * Long description for file
+ *
+ * PHP versions 4 and 5
+ *
+ * CakePHP(tm) Tests <https://trac.cakephp.org/wiki/Developement/TestSuite>
+ * Copyright 2005-2008, Cake Software Foundation, Inc. (http://www.cakefoundation.org)
+ *
+ *  Licensed under The Open Group Test Suite License
+ *  Redistributions of files must retain the above copyright notice.
+ *
+ * @filesource
+ * @copyright     Copyright 2005-2008, Cake Software Foundation, Inc. (http://www.cakefoundation.org)
+ * @link          https://trac.cakephp.org/wiki/Developement/TestSuite CakePHP(tm) Tests
+ * @package       cake
+ * @subpackage    cake.tests.cases.libs
+ * @since         CakePHP(tm) v 1.2.0.5432
+ * @version       $Rev$
+ * @modifiedby    $LastChangedBy$
+ * @lastmodified  $Date$
+ * @license       http://www.opensource.org/licenses/opengroup.php The Open Group Test Suite License
+ */
+class TestPluginLibrary {}
+?>
\ No newline at end of file