diff --git a/samples/bluetooth/peripheral/prj.conf b/samples/bluetooth/peripheral/prj.conf
index 7973a614458..dd695046076 100644
--- a/samples/bluetooth/peripheral/prj.conf
+++ b/samples/bluetooth/peripheral/prj.conf
@@ -1,3 +1,6 @@
+# Incresed stack due to settings API usage
+CONFIG_SYSTEM_WORKQUEUE_STACK_SIZE=2048
+
 CONFIG_BT=y
 CONFIG_BT_DEBUG_LOG=y
 CONFIG_BT_SMP=y
@@ -7,3 +10,11 @@ CONFIG_BT_ATT_PREPARE_COUNT=2
 CONFIG_BT_PRIVACY=y
 CONFIG_BT_DEVICE_NAME="Test peripheral"
 CONFIG_BT_DEVICE_APPEARANCE=833
+
+CONFIG_BT_SETTINGS=y
+CONFIG_FLASH=y
+CONFIG_FLASH_PAGE_LAYOUT=y
+CONFIG_FLASH_MAP=y
+CONFIG_FCB=y
+CONFIG_SETTINGS=y
+CONFIG_SETTINGS_FCB=y
diff --git a/samples/bluetooth/peripheral/src/main.c b/samples/bluetooth/peripheral/src/main.c
index 365c0312154..bf8d3c5187a 100644
--- a/samples/bluetooth/peripheral/src/main.c
+++ b/samples/bluetooth/peripheral/src/main.c
@@ -14,6 +14,8 @@
 #include <misc/byteorder.h>
 #include <zephyr.h>
 
+#include <settings/settings.h>
+
 #include <bluetooth/bluetooth.h>
 #include <bluetooth/hci.h>
 #include <bluetooth/conn.h>
@@ -242,6 +244,10 @@ static void bt_ready(int err)
 	dis_init(CONFIG_SOC, "Manufacturer");
 	bt_gatt_service_register(&vnd_svc);
 
+	if (IS_ENABLED(CONFIG_SETTINGS)) {
+		settings_load();
+	}
+
 	err = bt_le_adv_start(BT_LE_ADV_CONN, ad, ARRAY_SIZE(ad),
 			      sd, ARRAY_SIZE(sd));
 	if (err) {
diff --git a/subsys/bluetooth/host/CMakeLists.txt b/subsys/bluetooth/host/CMakeLists.txt
index 856cb1585f5..b560e2c0610 100644
--- a/subsys/bluetooth/host/CMakeLists.txt
+++ b/subsys/bluetooth/host/CMakeLists.txt
@@ -13,6 +13,7 @@ zephyr_library_sources_ifdef(CONFIG_BT_A2DP             a2dp.c)
 zephyr_library_sources_ifdef(CONFIG_BT_AVDTP            avdtp.c)
 zephyr_library_sources_ifdef(CONFIG_BT_RFCOMM           rfcomm.c)
 zephyr_library_sources_ifdef(CONFIG_BT_TESTING          testing.c)
+zephyr_library_sources_ifdef(CONFIG_BT_SETTINGS         settings.c)
 
 zephyr_library_sources_ifdef(
   CONFIG_BT_BREDR
diff --git a/subsys/bluetooth/host/Kconfig b/subsys/bluetooth/host/Kconfig
index c69f9c810f2..5a594188f67 100644
--- a/subsys/bluetooth/host/Kconfig
+++ b/subsys/bluetooth/host/Kconfig
@@ -95,6 +95,7 @@ config BT_RX_STACK_SIZE
 	int "Size of the receiving thread stack"
 	depends on BT_HCI_HOST || BT_RECV_IS_RX_THREAD
 	default 1024
+	default 2048 if BT_SETTINGS
 	default 2048 if BT_MESH
 	default 512 if BT_HCI_RAW
 	range 512 65536 if BT_HCI_RAW
@@ -130,6 +131,23 @@ config BT_HOST_CRYPTO
 	select TINYCRYPT_SHA256_HMAC
 	select TINYCRYPT_SHA256_HMAC_PRNG
 
+config BT_SETTINGS
+	bool "Store Bluetooth state and configuration persistently"
+	depends on SETTINGS
+	select MPU_ALLOW_FLASH_WRITE if ARM_MPU
+	help
+	  When selected, the Bluetooth stack will take care of storing
+	  (and restoring) the Bluetooth state (e.g. pairing keys) and
+	  configuration persistently in flash.
+
+	  When this option has been enabled, it's important that the
+	  application makes a call to settings_load() after having done
+	  all necessary initialization (e.g. calling bt_enable). The
+	  reason settings_load() is handled externally to the stack, is
+	  that there may be other subsystems using the settings API, in
+	  which case it's more efficient to load all settings in one go,
+	  instead of each subsystem doing it independently.
+
 config BT_INTERNAL_STORAGE
 	bool "Use an internal persistent storage handler"
 	depends on FILE_SYSTEM
@@ -350,6 +368,12 @@ config BT_TINYCRYPT_ECC
 	  Connections so that Hosts can make use of those.
 
 if BT_DEBUG
+config BT_DEBUG_SETTINGS
+	bool "Bluetooth storage debug"
+	depends on BT_SETTINGS
+	help
+	  This option enables debug support for Bluetooth storage.
+
 config BT_DEBUG_HCI_CORE
 	bool "Bluetooth HCI core debug"
 	help
diff --git a/subsys/bluetooth/host/hci_core.c b/subsys/bluetooth/host/hci_core.c
index 1faad4b10c2..d5af97f21fb 100644
--- a/subsys/bluetooth/host/hci_core.c
+++ b/subsys/bluetooth/host/hci_core.c
@@ -41,6 +41,7 @@
 #include "l2cap_internal.h"
 #include "smp.h"
 #include "crypto.h"
+#include "settings.h"
 
 /* Peripheral timeout to initialize Connection Parameter Update procedure */
 #define CONN_UPDATE_TIMEOUT  K_SECONDS(5)
@@ -4143,7 +4144,7 @@ static const char *ver_str(u8_t ver)
 	return "unknown";
 }
 
-static void show_dev_info(void)
+void bt_dev_show_info(void)
 {
 	BT_INFO("Identity: %s", bt_addr_le_str(&bt_dev.id_addr));
 	BT_INFO("HCI: version %s (0x%02x) revision 0x%04x, manufacturer 0x%04x",
@@ -4154,7 +4155,7 @@ static void show_dev_info(void)
 		bt_dev.lmp_subversion);
 }
 #else
-static inline void show_dev_info(void)
+void bt_dev_show_info(void)
 {
 }
 #endif /* CONFIG_BT_DEBUG */
@@ -4320,7 +4321,9 @@ static int hci_init(void)
 		}
 	}
 
-	show_dev_info();
+	if (!IS_ENABLED(CONFIG_BT_SETTINGS)) {
+		bt_dev_show_info();
+	}
 
 	return 0;
 }
@@ -4549,6 +4552,13 @@ int bt_enable(bt_ready_cb_t cb)
 		return -EALREADY;
 	}
 
+	if (IS_ENABLED(CONFIG_BT_SETTINGS)) {
+		err = bt_settings_init();
+		if (err) {
+			return err;
+		}
+	}
+
 	ready_cb = cb;
 
 	/* TX thread */
diff --git a/subsys/bluetooth/host/hci_core.h b/subsys/bluetooth/host/hci_core.h
index 06f08f17443..91544a751bb 100644
--- a/subsys/bluetooth/host/hci_core.h
+++ b/subsys/bluetooth/host/hci_core.h
@@ -190,3 +190,5 @@ u16_t bt_hci_get_cmd_opcode(struct net_buf *buf);
 struct bt_keys;
 int bt_id_add(struct bt_keys *keys);
 int bt_id_del(struct bt_keys *keys);
+
+void bt_dev_show_info(void);
diff --git a/subsys/bluetooth/host/settings.c b/subsys/bluetooth/host/settings.c
new file mode 100644
index 00000000000..64f7c6164fe
--- /dev/null
+++ b/subsys/bluetooth/host/settings.c
@@ -0,0 +1,152 @@
+/*
+ * Copyright (c) 2018 Intel Corporation
+ *
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+#include <errno.h>
+
+#include <zephyr.h>
+#include <settings/settings.h>
+
+#include <bluetooth/bluetooth.h>
+#include <bluetooth/conn.h>
+
+#define BT_DBG_ENABLED IS_ENABLED(CONFIG_BT_DEBUG_SETTINGS)
+#include "common/log.h"
+
+#include "hci_core.h"
+#include "settings.h"
+
+static int set(int argc, char **argv, char *val)
+{
+	int len;
+
+	BT_DBG("argc %d argv[0] %s val %s", argc, argv[0], val);
+
+	if (argc != 1) {
+		return -ENOENT;
+	}
+
+	if (!strcmp(argv[0], "id")) {
+		len = sizeof(bt_dev.id_addr);
+		settings_bytes_from_str(val, &bt_dev.id_addr, &len);
+		BT_DBG("ID Addr set to %s", bt_addr_le_str(&bt_dev.id_addr));
+		return 0;
+	}
+
+#if defined(CONFIG_BT_PRIVACY)
+	if (!strcmp(argv[0], "irk")) {
+		len = sizeof(bt_dev.irk);
+		settings_bytes_from_str(val, bt_dev.irk, &len);
+		BT_DBG("IRK set to %s", bt_hex(bt_dev.irk, 16));
+		return 0;
+	}
+#endif /* CONFIG_BT_PRIVACY */
+
+	return 0;
+}
+
+static void generate_static_addr(void)
+{
+	char buf[13];
+	char *str;
+
+	BT_DBG("Generating new static random address");
+
+	if (bt_addr_le_create_static(&bt_dev.id_addr)) {
+		BT_ERR("Failed to generate static addr");
+		return;
+	}
+
+	atomic_set_bit(bt_dev.flags, BT_DEV_ID_STATIC_RANDOM);
+
+	BT_DBG("New ID Addr: %s", bt_addr_le_str(&bt_dev.id_addr));
+
+	str = settings_str_from_bytes(&bt_dev.id_addr, sizeof(bt_dev.id_addr),
+				      buf, sizeof(buf));
+	if (!str) {
+		BT_ERR("Unable to encode ID Addr as value");
+		return;
+	}
+
+	BT_DBG("Saving ID addr as value %s", str);
+	settings_save_one("bt/id", str);
+}
+
+#if defined(CONFIG_BT_PRIVACY)
+static void generate_irk(void)
+{
+	char buf[25];
+	char *str;
+
+	BT_DBG("Generating new IRK");
+
+	if (bt_rand(bt_dev.irk, sizeof(bt_dev.irk))) {
+		BT_ERR("Failed to generate IRK");
+		return;
+	}
+
+	BT_DBG("New local IRK: %s", bt_hex(bt_dev.irk, 16));
+
+	str = settings_str_from_bytes(bt_dev.irk, 16, buf, sizeof(buf));
+	if (!str) {
+		BT_ERR("Unable to encode IRK as value");
+		return;
+	}
+
+	BT_DBG("Saving IRK as value %s", str);
+	settings_save_one("bt/irk", str);
+}
+#endif /* CONFIG_BT_PRIVACY */
+
+static int commit(void)
+{
+	BT_DBG("");
+
+	if (!bt_addr_le_cmp(&bt_dev.id_addr, BT_ADDR_LE_ANY) ||
+	    !bt_addr_le_cmp(&bt_dev.id_addr, BT_ADDR_LE_NONE)) {
+		generate_static_addr();
+	}
+
+#if defined(CONFIG_BT_PRIVACY)
+	{
+		u8_t zero[16] = { 0 };
+
+		if (!memcmp(bt_dev.irk, zero, 16)) {
+			generate_irk();
+		}
+	}
+#endif /* CONFIG_BT_PRIVACY */
+
+	bt_dev_show_info();
+
+	return 0;
+}
+
+static struct settings_handler bt_settings = {
+	.name = "bt",
+	.h_set = set,
+	.h_commit = commit,
+};
+
+int bt_settings_init(void)
+{
+	int err;
+
+	BT_DBG("");
+
+	err = settings_subsys_init();
+	if (err) {
+		BT_ERR("settings_subsys_init failed (err %d)", err);
+		return err;
+	}
+
+	err = settings_register(&bt_settings);
+	if (err) {
+		BT_ERR("settings_register failed (err %d)", err);
+		return err;
+	}
+
+	return 0;
+}
diff --git a/subsys/bluetooth/host/settings.h b/subsys/bluetooth/host/settings.h
new file mode 100644
index 00000000000..6f14f32a1ab
--- /dev/null
+++ b/subsys/bluetooth/host/settings.h
@@ -0,0 +1,7 @@
+/*
+ * Copyright (c) 2018 Intel Corporation
+ *
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+int bt_settings_init(void);