diff --git a/Kconfig.zephyr b/Kconfig.zephyr
index 6d513a64100..2f33a2ae309 100644
--- a/Kconfig.zephyr
+++ b/Kconfig.zephyr
@@ -32,7 +32,7 @@ source "misc/Kconfig"
 
 source "lib/Kconfig"
 
-source "fs/Kconfig"
+source "subsys/Kconfig"
 
 source "ext/Kconfig"
 
diff --git a/MAINTAINERS b/MAINTAINERS
index c0ca58eb07d..18ebc141d0c 100644
--- a/MAINTAINERS
+++ b/MAINTAINERS
@@ -188,7 +188,7 @@ M:	Ramesh Thomas <ramesh.thomas@intel.com>
 M:	Kuo-Lang Tseng <kuo-lang.tseng@intel.com>
 S:	Supported
 F:	ext/fs/
-F:	fs/
+F:	subsys/fs/
 F:	include/fs/
 F:	include/fs.h
 F:	samples/fs/
diff --git a/Makefile b/Makefile
index 64bcf816a6c..4899cdca98b 100644
--- a/Makefile
+++ b/Makefile
@@ -579,9 +579,9 @@ endif # $(dot-config)
 # Unified kernel objects are built as a static library
 ifeq ($(CONFIG_KERNEL_V2),y)
 libs-y := kernel/unified/
-core-y := lib/ misc/ net/ boards/ ext/ usb/ fs/ tests/ arch/
+core-y := lib/ misc/ net/ boards/ ext/ usb/ subsys/ tests/ arch/
 else
-core-y := lib/ kernel/ misc/ net/ boards/ ext/ usb/ fs/ tests/ arch/
+core-y := lib/ kernel/ misc/ net/ boards/ ext/ usb/ subsys/ tests/ arch/
 endif
 drivers-y := drivers/
 
diff --git a/subsys/Kconfig b/subsys/Kconfig
new file mode 100644
index 00000000000..91556627623
--- /dev/null
+++ b/subsys/Kconfig
@@ -0,0 +1,18 @@
+# Kconfig - Subsystem configuration options
+#
+# Copyright (c) 2016 Intel Corporation
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+#
+
+source "subsys/fs/Kconfig"
diff --git a/subsys/Makefile b/subsys/Makefile
new file mode 100644
index 00000000000..dbce7610836
--- /dev/null
+++ b/subsys/Makefile
@@ -0,0 +1 @@
+obj-$(CONFIG_FILE_SYSTEM) += fs/
diff --git a/fs/Kconfig b/subsys/fs/Kconfig
similarity index 100%
rename from fs/Kconfig
rename to subsys/fs/Kconfig
diff --git a/fs/Makefile b/subsys/fs/Makefile
similarity index 100%
rename from fs/Makefile
rename to subsys/fs/Makefile
diff --git a/fs/fat_flash_diskio.c b/subsys/fs/fat_flash_diskio.c
similarity index 100%
rename from fs/fat_flash_diskio.c
rename to subsys/fs/fat_flash_diskio.c
diff --git a/fs/fat_fs.c b/subsys/fs/fat_fs.c
similarity index 100%
rename from fs/fat_fs.c
rename to subsys/fs/fat_fs.c
diff --git a/fs/fat_ram_diskio.c b/subsys/fs/fat_ram_diskio.c
similarity index 100%
rename from fs/fat_ram_diskio.c
rename to subsys/fs/fat_ram_diskio.c