diff --git a/CMakeLists.txt b/CMakeLists.txt
index d2c2e87..704be97 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -5,3 +5,4 @@
 # as the module CMake entry point (see zephyr/module.yml).
 
 add_subdirectory(drivers)
+add_subdirectory(lib)
diff --git a/Kconfig b/Kconfig
index 1e908a1..3bd03f2 100644
--- a/Kconfig
+++ b/Kconfig
@@ -6,3 +6,4 @@
 # module options by going to Zephyr -> Modules in Kconfig.
 
 rsource "drivers/Kconfig"
+rsource "lib/Kconfig"
diff --git a/README.md b/README.md
index 4841891..88a1c98 100644
--- a/README.md
+++ b/README.md
@@ -10,6 +10,7 @@ applications. Some of the features demonstrated in this example are:
 - [Custom boards][board_porting]
 - Custom [devicetree bindings][bindings]
 - Out-of-tree [drivers][drivers]
+- Out-of-tree libraries
 - Example CI configuration (using Github Actions)
 - Custom [west extension][west_ext]
 
diff --git a/lib/CMakeLists.txt b/lib/CMakeLists.txt
new file mode 100644
index 0000000..9ed8728
--- /dev/null
+++ b/lib/CMakeLists.txt
@@ -0,0 +1,6 @@
+# SPDX-License-Identifier: Apache-2.0
+
+# The visibility and compilation of libraries may be controlled
+# with a Kconfig setting as follows:
+#
+#   add_subdirectory_ifdef(CONFIG_CUSTOM_LIB              custom_lib)
diff --git a/lib/Kconfig b/lib/Kconfig
new file mode 100644
index 0000000..a84752d
--- /dev/null
+++ b/lib/Kconfig
@@ -0,0 +1,6 @@
+# Copyright (c) 2021 Legrand North America, LLC.
+# SPDX-License-Identifier: Apache-2.0
+
+menu "Libraries"
+
+endmenu