diff --git a/.gitignore b/.gitignore
index 1cbe09e..71a7acb 100644
--- a/.gitignore
+++ b/.gitignore
@@ -19,6 +19,7 @@ configure
 *.tar.bz2
 libtool
 libeloop.pc
+libtsm.pc
 libuterm.pc
 m4/
 stamp-*
diff --git a/Makefile.am b/Makefile.am
index 68bdb94..ad97647 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -130,6 +130,42 @@ include_HEADERS += \
 
 pkgconfig_DATA += libeloop.pc
 
+#
+# libtsm
+# The Terminal-emulator State Machine is a library that implements the whole VTE
+# layer and everything related to it. It has no external dependencies so it can
+# be used to implement any kind of terminal emulator or debugger.
+#
+
+lib_LTLIBRARIES += \
+	libtsm.la
+
+libtsm_la_SOURCES = \
+	$(SHL_LLOG) \
+	$(SHL_TIMER) \
+	$(SHL_ARRAY) \
+	$(SHL_HASHTABLE) \
+	src/tsm_screen.h \
+	src/tsm_screen.c \
+	src/tsm_unicode.h \
+	src/tsm_unicode.c \
+	src/tsm_vte.h \
+	src/tsm_vte.c \
+	src/tsm_vte_charsets.c
+
+libtsm_la_CPPFLAGS = \
+	$(AM_CPPFLAGS)
+libtsm_la_LDFLAGS = \
+	-version-info 1:0:0
+
+include_HEADERS += \
+	src/tsm_screen.h \
+	src/tsm_unicode.h \
+	src/tsm_vte.h
+
+pkgconfig_DATA += \
+	libtsm.pc
+
 #
 # libuterm
 # The uterm library provides helpers to create terminals in user-space. They
@@ -274,10 +310,6 @@ libkmscon_core_la_SOURCES = \
 	src/main.h \
 	src/conf.c src/conf.h \
 	src/ui.c src/ui.h \
-	src/tsm_screen.c src/tsm_screen.h \
-	src/tsm_unicode.c src/tsm_unicode.h \
-	src/tsm_vte.c src/tsm_vte.h \
-	src/tsm_vte_charsets.c \
 	src/log.c src/log.h \
 	src/terminal.c src/terminal.h \
 	src/pty.c src/pty.h \
@@ -339,6 +371,7 @@ libkmscon_core_la_LIBADD = \
 	$(FREETYPE2_LIBS) \
 	-lpthread \
 	libeloop.la \
+	libtsm.la \
 	libuterm.la
 
 #
diff --git a/configure.ac b/configure.ac
index 5a585da..301ee90 100644
--- a/configure.ac
+++ b/configure.ac
@@ -547,7 +547,7 @@ AC_SUBST(FREETYPE2_LIBS)
 AC_SUBST(PANGO_CFLAGS)
 AC_SUBST(PANGO_LIBS)
 
-AC_CONFIG_FILES([Makefile libeloop.pc libuterm.pc])
+AC_CONFIG_FILES([Makefile libeloop.pc libtsm.pc libuterm.pc])
 AC_OUTPUT
 
 #
diff --git a/libtsm.pc.in b/libtsm.pc.in
new file mode 100644
index 0000000..c113e64
--- /dev/null
+++ b/libtsm.pc.in
@@ -0,0 +1,11 @@
+prefix=@prefix@
+exec_prefix=@exec_prefix@
+libdir=@libdir@
+includedir=@includedir@
+
+Name: tsm
+Description: Terminal-emulator State Machine
+URL: @PACKAGE_URL@
+Version: @PACKAGE_VERSION@
+Libs: -L${libdir} -ltsm
+Cflags: -I${includedir}