diff --git a/Makefile.am b/Makefile.am
index dfcb6fe7..584f636a 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -109,6 +109,7 @@ src_iwd_SOURCES = src/main.c linux/nl80211.h \
 					src/eap-gtc.c \
 					src/eap-pwd.c \
 					src/ecc.h src/ecc.c \
+					src/adhoc.h src/adhoc.c \
 					$(builtin_sources)
 
 src_iwd_LDADD = ell/libell-internal.la -ldl
diff --git a/src/adhoc.c b/src/adhoc.c
new file mode 100644
index 00000000..fe18fc17
--- /dev/null
+++ b/src/adhoc.c
@@ -0,0 +1,550 @@
+/*
+ *
+ *  Wireless daemon for Linux
+ *
+ *  Copyright (C) 2018  Intel Corporation. All rights reserved.
+ *
+ *  This library is free software; you can redistribute it and/or
+ *  modify it under the terms of the GNU Lesser General Public
+ *  License as published by the Free Software Foundation; either
+ *  version 2.1 of the License, or (at your option) any later version.
+ *
+ *  This library 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
+ *  Lesser General Public License for more details.
+ *
+ *  You should have received a copy of the GNU Lesser General Public
+ *  License along with this library; if not, write to the Free Software
+ *  Foundation, Inc., 51 Franklin St, Fifth Floor, Boston, MA  02110-1301  USA
+ *
+ */
+
+#ifdef HAVE_CONFIG_H
+#include <config.h>
+#endif
+
+#include <ell/ell.h>
+
+#include "src/iwd.h"
+#include "src/device.h"
+#include "src/netdev.h"
+#include "src/wiphy.h"
+#include "src/crypto.h"
+#include "src/ie.h"
+#include "src/util.h"
+#include "src/eapol.h"
+#include "src/handshake.h"
+#include "src/mpdu.h"
+#include "src/adhoc.h"
+#include "src/dbus.h"
+
+struct adhoc_state {
+	struct device *device;
+	char *ssid;
+	uint8_t pmk[32];
+	struct l_queue *sta_states;
+	uint32_t sta_watch_id;
+	uint32_t netdev_watch_id;
+	struct l_dbus_message *pending;
+	bool started : 1;
+	bool open : 1;
+};
+
+struct sta_state {
+	uint8_t addr[6];
+	struct adhoc_state *adhoc;
+	struct eapol_sm *sm;
+	struct handshake_state *hs_sta;
+	struct eapol_sm *sm_a;
+	struct handshake_state *hs_auth;
+
+	bool authenticated : 1;
+};
+
+static void adhoc_sta_free(void *data)
+{
+	struct sta_state *sta = data;
+
+	if (sta->adhoc->open)
+		goto end;
+
+	if (sta->sm)
+		eapol_sm_free(sta->sm);
+
+	handshake_state_free(sta->hs_sta);
+
+	if (sta->sm_a)
+		eapol_sm_free(sta->sm_a);
+
+	handshake_state_free(sta->hs_auth);
+
+end:
+	l_free(sta);
+}
+
+static void adhoc_remove_sta(struct sta_state *sta)
+{
+	if (!l_queue_remove(sta->adhoc->sta_states, sta)) {
+		l_error("station %p was not found", sta);
+		return;
+	}
+
+	/* signal station has been removed */
+	if (sta->authenticated) {
+		l_dbus_property_changed(dbus_get_bus(),
+				device_get_path(sta->adhoc->device),
+				IWD_ADHOC_INTERFACE, "ConnectedPeers");
+	}
+
+	adhoc_sta_free(sta);
+}
+
+static void adhoc_reset(struct adhoc_state *adhoc)
+{
+	if (adhoc->pending)
+		dbus_pending_reply(&adhoc->pending,
+				dbus_error_aborted(adhoc->pending));
+
+	l_free(adhoc->ssid);
+
+	netdev_station_watch_remove(device_get_netdev(adhoc->device),
+			adhoc->sta_watch_id);
+
+	l_queue_destroy(adhoc->sta_states, adhoc_sta_free);
+
+	adhoc->started = false;
+}
+
+static void adhoc_set_rsn_info(struct adhoc_state *adhoc,
+		struct ie_rsn_info *rsn)
+{
+	memset(rsn, 0, sizeof(*rsn));
+	rsn->akm_suites = IE_RSN_AKM_SUITE_PSK;
+	rsn->pairwise_ciphers = wiphy_select_cipher(
+			device_get_wiphy(adhoc->device), 0xffff);
+	rsn->group_cipher = IE_RSN_CIPHER_SUITE_NO_GROUP_TRAFFIC;
+}
+
+static bool ap_sta_match_addr(const void *a, const void *b)
+{
+	const struct sta_state *sta = a;
+
+	return !memcmp(sta->addr, b, 6);
+}
+
+static void adhoc_handshake_event(struct handshake_state *hs,
+		enum handshake_event event, void *event_data, void *user_data)
+{
+	struct sta_state *sta = user_data;
+	struct adhoc_state *adhoc = sta->adhoc;
+
+	switch (event) {
+	case HANDSHAKE_EVENT_FAILED:
+		l_error("handshake failed with STA "MAC, MAC_STR(sta->addr));
+
+		/*
+		 * eapol frees the state machines upon handshake failure. Since
+		 * this is only a failure on one of the handshakes we need to
+		 * set the failing SM to NULL so it will not get double freed
+		 * by adhoc_remove_sta.
+		 */
+		if (sta->hs_auth == hs)
+			sta->sm_a = NULL;
+		else
+			sta->sm = NULL;
+
+		/* fall through */
+	case HANDSHAKE_EVENT_SETTING_KEYS_FAILED:
+		adhoc_remove_sta(sta);
+
+		return;
+	case HANDSHAKE_EVENT_COMPLETE:
+		if ((sta->hs_auth == hs || sta->hs_sta == hs) &&
+				!sta->authenticated) {
+			sta->authenticated = true;
+			l_dbus_property_changed(dbus_get_bus(),
+					device_get_path(adhoc->device),
+					IWD_ADHOC_INTERFACE, "ConnectedPeers");
+		}
+		break;
+	default:
+		break;
+	}
+}
+
+static void adhoc_netdev_notify(struct netdev *netdev,
+				enum netdev_watch_event event, void *user_data)
+{
+	struct adhoc_state *ap = user_data;
+
+	switch (event) {
+	case NETDEV_WATCH_EVENT_DOWN:
+		adhoc_reset(ap);
+		break;
+	default:
+		break;
+	}
+}
+
+static struct eapol_sm *adhoc_new_sm(struct sta_state *sta, bool authenticator)
+{
+	struct netdev *netdev = device_get_netdev(sta->adhoc->device);
+	struct adhoc_state *adhoc = sta->adhoc;
+	const uint8_t *own_addr = netdev_get_address(netdev);
+	struct ie_rsn_info rsn;
+	uint8_t bss_rsne[24];
+	struct handshake_state *hs;
+	struct eapol_sm *sm;
+
+	/* fill in only what handshake setup requires */
+	adhoc_set_rsn_info(adhoc, &rsn);
+	ie_build_rsne(&rsn, bss_rsne);
+
+	hs = netdev_handshake_state_new(netdev);
+	if (!hs) {
+		l_error("could not create handshake object");
+		return NULL;
+	}
+
+	handshake_state_set_event_func(hs, adhoc_handshake_event, sta);
+	handshake_state_set_ssid(hs, (void *)adhoc->ssid, strlen(adhoc->ssid));
+	/* we dont have the connecting peer rsn info, so just set ap == own */
+	handshake_state_set_ap_rsn(hs, bss_rsne);
+	handshake_state_set_own_rsn(hs, bss_rsne);
+	handshake_state_set_pmk(hs, adhoc->pmk, 32);
+
+	if (authenticator) {
+		handshake_state_set_authenticator_address(hs, own_addr);
+		handshake_state_set_supplicant_address(hs, sta->addr);
+	} else {
+		handshake_state_set_authenticator_address(hs, sta->addr);
+		handshake_state_set_supplicant_address(hs, own_addr);
+	}
+
+	sm = eapol_sm_new(hs);
+	if (!sm) {
+		l_error("could not create sm object");
+		return NULL;
+	}
+
+	eapol_sm_set_listen_interval(sm, 100);
+	eapol_sm_set_protocol_version(sm, EAPOL_PROTOCOL_VERSION_2004);
+
+	if (authenticator)
+		sta->hs_auth = hs;
+	else
+		sta->hs_sta = hs;
+
+	return sm;
+}
+
+static void adhoc_free(struct adhoc_state *adhoc)
+{
+	adhoc_reset(adhoc);
+
+	netdev_watch_remove(device_get_netdev(adhoc->device),
+			adhoc->netdev_watch_id);
+
+	l_free(adhoc);
+}
+
+static void adhoc_new_station(struct adhoc_state *adhoc, const uint8_t *mac)
+{
+	struct sta_state *sta;
+
+	sta = l_queue_find(adhoc->sta_states, ap_sta_match_addr, mac);
+	if (sta) {
+		l_warn("new station event with already connected STA");
+		return;
+	}
+
+	sta = l_new(struct sta_state, 1);
+
+	memset(sta, 0, sizeof(struct sta_state));
+
+	memcpy(sta->addr, mac, 6);
+	sta->adhoc = adhoc;
+
+	l_queue_push_tail(adhoc->sta_states, sta);
+
+	l_info("new Station: "MAC" adhoc=%p", MAC_STR(mac), adhoc);
+
+	/* with open networks nothing else is required */
+	if (sta->adhoc->open) {
+		sta->authenticated = true;
+		l_dbus_property_changed(dbus_get_bus(),
+					device_get_path(adhoc->device),
+					IWD_ADHOC_INTERFACE, "ConnectedPeers");
+		return;
+	}
+
+	sta->sm_a = adhoc_new_sm(sta, true);
+	if (!sta->sm_a) {
+		l_error("could not create authenticator state machine");
+		goto failed;
+	}
+
+	sta->sm = adhoc_new_sm(sta, false);
+	if (!sta->sm) {
+		l_error("could not create station state machine");
+		goto failed;
+	}
+
+	eapol_register(sta->sm);
+	eapol_register_authenticator(sta->sm_a);
+
+	eapol_start(sta->sm);
+
+	return;
+
+failed:
+	adhoc_remove_sta(sta);
+}
+
+static void adhoc_del_station(struct adhoc_state *adhoc, const uint8_t *mac)
+{
+	struct sta_state *sta;
+
+	sta = l_queue_find(adhoc->sta_states, ap_sta_match_addr, mac);
+	if (!sta) {
+		l_warn("could not find station "MAC" in list", MAC_STR(mac));
+		return;
+	}
+
+	l_debug("lost station "MAC, MAC_STR(mac));
+
+	adhoc_remove_sta(sta);
+}
+
+static void adhoc_station_changed_cb(struct netdev *netdev,
+		const uint8_t *mac, bool added, void *user_data)
+{
+	struct adhoc_state *adhoc = user_data;
+
+	if (added)
+		adhoc_new_station(adhoc, mac);
+	else
+		adhoc_del_station(adhoc, mac);
+}
+
+static void adhoc_join_cb(struct netdev *netdev, int result, void *user_data)
+{
+	struct adhoc_state *adhoc = user_data;
+	struct l_dbus_message *reply;
+
+	if (result < 0) {
+		l_error("Failed to join adhoc network, %i", result);
+		dbus_pending_reply(&adhoc->pending,
+					dbus_error_failed(adhoc->pending));
+		return;
+	}
+
+	adhoc->sta_watch_id = netdev_station_watch_add(netdev,
+			adhoc_station_changed_cb, adhoc);
+
+	reply = l_dbus_message_new_method_return(adhoc->pending);
+	dbus_pending_reply(&adhoc->pending, reply);
+
+	adhoc->started = true;
+}
+
+static struct l_dbus_message *adhoc_dbus_start(struct l_dbus *dbus,
+						struct l_dbus_message *message,
+						void *user_data)
+{
+	struct adhoc_state *adhoc = user_data;
+	struct device *device = adhoc->device;
+	struct netdev *netdev = device_get_netdev(device);
+	struct wiphy *wiphy = netdev_get_wiphy(netdev);
+	const char *ssid, *wpa2_psk;
+	struct ie_rsn_info rsn;
+	struct iovec rsn_ie;
+	uint8_t ie_elems[32];
+
+	if (adhoc->pending)
+		return dbus_error_busy(message);
+
+	if (!l_dbus_message_get_arguments(message, "ss", &ssid, &wpa2_psk))
+		return dbus_error_invalid_args(message);
+
+	adhoc->ssid = l_strdup(ssid);
+	adhoc->pending = l_dbus_message_ref(message);
+	adhoc->sta_states = l_queue_new();
+
+	memset(&rsn, 0, sizeof(rsn));
+	rsn.akm_suites = IE_RSN_AKM_SUITE_PSK;
+	rsn.pairwise_ciphers = wiphy_select_cipher(wiphy, 0xffff);
+	rsn.group_cipher = IE_RSN_CIPHER_SUITE_NO_GROUP_TRAFFIC;
+	ie_build_rsne(&rsn, ie_elems);
+
+	rsn_ie.iov_base = ie_elems;
+	rsn_ie.iov_len = ie_elems[1] + 2;
+
+	if (crypto_psk_from_passphrase(wpa2_psk, (uint8_t *) ssid,
+			strlen(ssid), adhoc->pmk))
+		return dbus_error_invalid_args(message);
+
+	if (netdev_join_adhoc(netdev, ssid, &rsn_ie, 1, true, adhoc_join_cb,
+			adhoc))
+		return dbus_error_invalid_args(message);
+
+	return NULL;
+}
+
+static struct l_dbus_message *adhoc_dbus_start_open(struct l_dbus *dbus,
+				struct l_dbus_message *message, void *user_data)
+{
+	struct adhoc_state *adhoc = user_data;
+	struct device *device = adhoc->device;
+	struct netdev *netdev = device_get_netdev(device);
+	const char *ssid;
+	struct iovec rsn_ie;
+	uint8_t ie_elems[10];
+
+	if (adhoc->pending)
+		return dbus_error_busy(message);
+
+	if (!l_dbus_message_get_arguments(message, "s", &ssid))
+		return dbus_error_invalid_args(message);
+
+	adhoc->ssid = l_strdup(ssid);
+	adhoc->pending = l_dbus_message_ref(message);
+	adhoc->sta_states = l_queue_new();
+	adhoc->open = true;
+
+	/* Mac/iPhone seem to require the extended capabilities field */
+	memset(ie_elems, 0, sizeof(ie_elems));
+	ie_elems[0] = IE_TYPE_EXTENDED_CAPABILITIES;
+	ie_elems[1] = 8;
+
+	rsn_ie.iov_base = ie_elems;
+	rsn_ie.iov_len = ie_elems[1] + 2;
+
+	if (netdev_join_adhoc(netdev, ssid, &rsn_ie, 1, false, adhoc_join_cb,
+			adhoc))
+		return dbus_error_invalid_args(message);
+
+	return NULL;
+}
+
+static void adhoc_leave_cb(struct netdev *netdev, int result, void *user_data)
+{
+	struct adhoc_state *adhoc = user_data;
+
+	if (result < 0) {
+		l_error("Failed to leave adhoc network, %i", result);
+		dbus_pending_reply(&adhoc->pending,
+				dbus_error_failed(adhoc->pending));
+		return;
+	}
+
+	dbus_pending_reply(&adhoc->pending,
+			l_dbus_message_new_method_return(adhoc->pending));
+
+	adhoc_reset(adhoc);
+}
+
+static struct l_dbus_message *adhoc_dbus_stop(struct l_dbus *dbus,
+						struct l_dbus_message *message,
+						void *user_data)
+{
+	struct adhoc_state *adhoc = user_data;
+
+	if (adhoc->pending)
+		return dbus_error_busy(message);
+
+	/* already stopped, no-op */
+	if (!adhoc->started)
+		return l_dbus_message_new_method_return(message);
+
+	if (!netdev_leave_adhoc(device_get_netdev(adhoc->device),
+						adhoc_leave_cb, adhoc))
+		return dbus_error_failed(message);
+
+	return NULL;
+}
+
+static void sta_append(void *data, void *user_data)
+{
+	struct sta_state *sta = data;
+	struct l_dbus_message_builder *builder = user_data;
+	const char* macstr;
+
+	if (!sta->addr)
+		return;
+
+	if (!sta->authenticated)
+		return;
+
+	macstr = util_address_to_string(sta->addr);
+
+	l_dbus_message_builder_append_basic(builder, 's', macstr);
+}
+
+static bool adhoc_property_get_peers(struct l_dbus *dbus,
+					struct l_dbus_message *message,
+					struct l_dbus_message_builder *builder,
+					void *user_data)
+{
+	struct adhoc_state *adhoc = user_data;
+
+	l_dbus_message_builder_enter_array(builder, "s");
+
+	l_queue_foreach(adhoc->sta_states, sta_append, builder);
+
+	l_dbus_message_builder_leave_array(builder);
+
+	return true;
+}
+
+static void adhoc_setup_interface(struct l_dbus_interface *interface)
+{
+	l_dbus_interface_method(interface, "Start", 0, adhoc_dbus_start, "",
+					"ss", "ssid", "wpa2_psk");
+	l_dbus_interface_method(interface, "Stop", 0, adhoc_dbus_stop, "", "");
+	l_dbus_interface_method(interface, "StartOpen", 0,
+					adhoc_dbus_start_open, "", "s", "ssid");
+	l_dbus_interface_property(interface, "ConnectedPeers", 0, "as",
+					adhoc_property_get_peers, NULL);
+}
+
+static void adhoc_destroy_interface(void *user_data)
+{
+	struct adhoc_state *adhoc = user_data;
+
+	adhoc_free(adhoc);
+}
+
+bool adhoc_init(void)
+{
+	return l_dbus_register_interface(dbus_get_bus(), IWD_ADHOC_INTERFACE,
+			adhoc_setup_interface, adhoc_destroy_interface, false);
+}
+
+void adhoc_exit(void)
+{
+	l_dbus_unregister_interface(dbus_get_bus(), IWD_ADHOC_INTERFACE);
+}
+
+bool adhoc_add_interface(struct device *device)
+{
+	struct adhoc_state *adhoc;
+
+	/* just allocate/set device, Start method will complete setup */
+	adhoc = l_new(struct adhoc_state, 1);
+	adhoc->device = device;
+
+	adhoc->netdev_watch_id = netdev_watch_add(device_get_netdev(device),
+			adhoc_netdev_notify, adhoc);
+
+	/* setup ap dbus interface */
+	return l_dbus_object_add_interface(dbus_get_bus(),
+			device_get_path(device), IWD_ADHOC_INTERFACE, adhoc);
+}
+
+bool adhoc_remove_interface(struct device *device)
+{
+	return l_dbus_object_remove_interface(dbus_get_bus(),
+			device_get_path(device), IWD_ADHOC_INTERFACE);
+}
diff --git a/src/adhoc.h b/src/adhoc.h
new file mode 100644
index 00000000..dd5fe53e
--- /dev/null
+++ b/src/adhoc.h
@@ -0,0 +1,29 @@
+/*
+ *
+ *  Wireless daemon for Linux
+ *
+ *  Copyright (C) 2017  Intel Corporation. All rights reserved.
+ *
+ *  This library is free software; you can redistribute it and/or
+ *  modify it under the terms of the GNU Lesser General Public
+ *  License as published by the Free Software Foundation; either
+ *  version 2.1 of the License, or (at your option) any later version.
+ *
+ *  This library 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
+ *  Lesser General Public License for more details.
+ *
+ *  You should have received a copy of the GNU Lesser General Public
+ *  License along with this library; if not, write to the Free Software
+ *  Foundation, Inc., 51 Franklin St, Fifth Floor, Boston, MA  02110-1301  USA
+ *
+ */
+
+struct device;
+
+bool adhoc_add_interface(struct device *device);
+bool adhoc_remove_interface(struct device *device);
+
+bool adhoc_init(void);
+void adhoc_exit(void);