diff --git a/include/posix/mqueue.h b/include/posix/mqueue.h
index 1148c3fc5b0..e2ec4096a9d 100644
--- a/include/posix/mqueue.h
+++ b/include/posix/mqueue.h
@@ -8,7 +8,7 @@
 #define __MQUEUE_H__
 
 #include <kernel.h>
-#include <time.h>
+#include <posix/time.h>
 #include "sys/types.h"
 
 #ifdef __cplusplus
diff --git a/include/posix/pthread.h b/include/posix/pthread.h
index 7c7bb736f84..ba8a9859420 100644
--- a/include/posix/pthread.h
+++ b/include/posix/pthread.h
@@ -8,10 +8,10 @@
 #define __PTHREAD_H__
 
 #include <kernel.h>
-#include <time.h>
+#include <posix/time.h>
+#include <posix/unistd.h>
 #include "sys/types.h"
 #include "posix_sched.h"
-#include "unistd.h"
 
 enum pthread_state {
 	/* The thread is running and joinable. */
diff --git a/include/posix/semaphore.h b/include/posix/semaphore.h
index 5fb956266e4..52c9dc6bfdb 100644
--- a/include/posix/semaphore.h
+++ b/include/posix/semaphore.h
@@ -10,8 +10,8 @@
 extern "C" {
 #endif
 
+#include <posix/time.h>
 #include "sys/types.h"
-#include <time.h>
 
 int sem_destroy(sem_t *semaphore);
 int sem_getvalue(sem_t *restrict semaphore, int *restrict value);
diff --git a/include/posix/time.h b/include/posix/time.h
index 66126886a99..fbbc70a3955 100644
--- a/include/posix/time.h
+++ b/include/posix/time.h
@@ -10,9 +10,6 @@
 extern "C" {
 #endif
 
-#ifdef CONFIG_NEWLIB_LIBC
-#include_next <time.h>
-#else
 struct timespec {
 	signed int  tv_sec;
 	signed int  tv_nsec;
@@ -22,7 +19,6 @@ struct itimerspec {
 	struct timespec it_interval;  /* Timer interval */
 	struct timespec it_value;     /* Timer expiration */
 };
-#endif /* CONFIG_NEWLIB_LIBC */
 
 #include <kernel.h>
 #include <errno.h>
diff --git a/include/posix/unistd.h b/include/posix/unistd.h
index e3c6b69dab0..91c03753319 100644
--- a/include/posix/unistd.h
+++ b/include/posix/unistd.h
@@ -12,10 +12,6 @@ extern "C" {
 
 #include "sys/types.h"
 
-#ifndef __ZEPHYR__
-#include_next <unistd.h>
-#endif
-
 unsigned sleep(unsigned int seconds);
 int usleep(useconds_t useconds);
 
diff --git a/kernel/CMakeLists.txt b/kernel/CMakeLists.txt
index c2a196895cd..b5e1f6f3fe9 100644
--- a/kernel/CMakeLists.txt
+++ b/kernel/CMakeLists.txt
@@ -25,15 +25,11 @@ add_library(kernel
   smp.c
 )
 
-if (CONFIG_PTHREAD_IPC)
-target_include_directories(kernel PRIVATE ${PROJECT_SOURCE_DIR}/include/posix)
-endif (CONFIG_PTHREAD_IPC)
 target_sources_ifdef(CONFIG_INT_LATENCY_BENCHMARK kernel PRIVATE int_latency_bench.c)
 target_sources_ifdef(CONFIG_STACK_CANARIES        kernel PRIVATE compiler_stack_protect.c)
 target_sources_ifdef(CONFIG_SYS_CLOCK_EXISTS      kernel PRIVATE timer.c)
 target_sources_ifdef(CONFIG_ATOMIC_OPERATIONS_C   kernel PRIVATE atomic_c.c)
 target_sources_if_kconfig(                        kernel PRIVATE poll.c)
-add_subdirectory_ifdef(CONFIG_PTHREAD_IPC   posix)
 
 # The last 2 files inside the target_sources_ifdef should be
 # userspace_handler.c and userspace.c. If not the linker would complain.
diff --git a/kernel/Kconfig b/kernel/Kconfig
index b04e4e133a8..09c31726673 100644
--- a/kernel/Kconfig
+++ b/kernel/Kconfig
@@ -487,76 +487,6 @@ config APPLICATION_INIT_PRIORITY
 
 endmenu
 
-menu "POSIX Layer"
-config PTHREAD_IPC
-	bool
-	prompt "POSIX pthread IPC API"
-	default n
-	help
-	  This enables a mostly-standards-compliant implementation of
-	  the pthread mutex, condition variable and barrier IPC
-	  mechanisms.
-
-if PTHREAD_IPC
-config MAX_PTHREAD_COUNT
-	int
-	prompt "Maximum pthread count in POSIX application"
-	default 5
-	range 0 255
-	help
-	  Mention maximum number of threads in POSIX compliant application.
-
-config SEM_VALUE_MAX
-	int
-	prompt "Maximum semaphore limit"
-	default 32767
-	range 1 32767
-	help
-	  Maximum semaphore count in POSIX compliant Application.
-
-config MAX_TIMER_COUNT
-	int
-	prompt "Maximum timer count in POSIX application"
-	default 5
-	range 0 255
-	help
-	  Mention maximum number of timers in POSIX compliant application.
-
-config POSIX_MQUEUE
-	bool
-	prompt "Enable POSIX message queue"
-	default n
-	help
-	  This enabled POSIX message queue related APIs.
-
-if POSIX_MQUEUE
-config	MSG_COUNT_MAX
-	int
-	prompt "Maximum number of messages in message queue"
-	default 16
-	help
-	  Mention maximum number of messages in message queue in POSIX compliant
-	  application.
-
-config	MSG_SIZE_MAX
-	int
-	prompt "Maximum size of a message"
-	default 16
-	help
-	  Mention maximum size of message in bytes.
-
-config	MQUEUE_NAMELEN_MAX
-	int
-	prompt "Maximum size of a name length"
-	default 16
-	range 2 255
-	help
-	  Mention length of message queue name in number of characters.
-
-endif
-endif
-endmenu
-
 menu "Security Options"
 
 config STACK_CANARIES
diff --git a/kernel/posix/CMakeLists.txt b/kernel/posix/CMakeLists.txt
deleted file mode 100644
index 88788086d1c..00000000000
--- a/kernel/posix/CMakeLists.txt
+++ /dev/null
@@ -1,12 +0,0 @@
-target_sources(kernel PRIVATE posix/pthread_common.c)
-target_sources(kernel PRIVATE posix/pthread_cond.c)
-target_sources(kernel PRIVATE posix/pthread_mutex.c)
-target_sources(kernel PRIVATE posix/pthread_barrier.c)
-target_sources(kernel PRIVATE posix/pthread.c)
-target_sources(kernel PRIVATE posix/pthread_sched.c)
-target_sources(kernel PRIVATE posix/clock.c)
-target_sources(kernel PRIVATE posix/sleep.c)
-target_sources(kernel PRIVATE posix/timer.c)
-target_sources(kernel PRIVATE posix/pthread_rwlock.c)
-target_sources(kernel PRIVATE posix/semaphore.c)
-target_sources_ifdef(CONFIG_POSIX_MQUEUE kernel PRIVATE posix/mqueue.c)
diff --git a/lib/CMakeLists.txt b/lib/CMakeLists.txt
index f9b3e040a3f..6d8976f44fe 100644
--- a/lib/CMakeLists.txt
+++ b/lib/CMakeLists.txt
@@ -6,3 +6,4 @@ endif()
 add_subdirectory_if_kconfig(ring_buffer)
 add_subdirectory_if_kconfig(base64)
 add_subdirectory(mempool)
+add_subdirectory_ifdef(CONFIG_PTHREAD_IPC          posix)
diff --git a/lib/Kconfig b/lib/Kconfig
index da8892f0de6..fd025ab596f 100644
--- a/lib/Kconfig
+++ b/lib/Kconfig
@@ -31,4 +31,7 @@ config BASE64
 	default n
 	help
 	  Enable base64 encoding and decoding functionality
+
+source "lib/posix/Kconfig"
+
 endmenu
diff --git a/lib/posix/CMakeLists.txt b/lib/posix/CMakeLists.txt
new file mode 100644
index 00000000000..db478ebf4eb
--- /dev/null
+++ b/lib/posix/CMakeLists.txt
@@ -0,0 +1,21 @@
+
+add_library(PTHREAD INTERFACE)
+
+target_include_directories(PTHREAD INTERFACE ${PROJECT_SOURCE_DIR}/include/posix)
+
+zephyr_library()
+zephyr_library_sources(pthread_common.c)
+zephyr_library_sources(pthread_cond.c)
+zephyr_library_sources(pthread_mutex.c)
+zephyr_library_sources(pthread_barrier.c)
+zephyr_library_sources(pthread.c)
+zephyr_library_sources(pthread_sched.c)
+zephyr_library_sources(clock.c)
+zephyr_library_sources(sleep.c)
+zephyr_library_sources(timer.c)
+zephyr_library_sources(pthread_rwlock.c)
+zephyr_library_sources(semaphore.c)
+zephyr_library_sources_ifdef(CONFIG_POSIX_MQUEUE mqueue.c)
+
+zephyr_library_link_libraries(PTHREAD)
+target_link_libraries(PTHREAD INTERFACE zephyr_interface)
diff --git a/lib/posix/Kconfig b/lib/posix/Kconfig
new file mode 100644
index 00000000000..be484fd205d
--- /dev/null
+++ b/lib/posix/Kconfig
@@ -0,0 +1,73 @@
+#
+# Copyright (c) 2018 Intel Corporation
+#
+# SPDX-License-Identifier: Apache-2.0
+#
+
+config PTHREAD_IPC
+	bool
+	prompt "POSIX pthread IPC API"
+	default n
+	help
+	  This enables a mostly-standards-compliant implementation of
+	  the pthread mutex, condition variable and barrier IPC
+	  mechanisms.
+
+if PTHREAD_IPC
+config MAX_PTHREAD_COUNT
+	int
+	prompt "Maximum pthread count in POSIX application"
+	default 5
+	range 0 255
+	help
+	  Mention maximum number of threads in POSIX compliant application.
+
+config SEM_VALUE_MAX
+	int
+	prompt "Maximum semaphore limit"
+	default 32767
+	range 1 32767
+	help
+	  Maximum semaphore count in POSIX compliant Application.
+
+config MAX_TIMER_COUNT
+	int
+	prompt "Maximum timer count in POSIX application"
+	default 5
+	range 0 255
+	help
+	  Mention maximum number of timers in POSIX compliant application.
+
+config POSIX_MQUEUE
+	bool
+	prompt "Enable POSIX message queue"
+	default n
+	help
+	  This enabled POSIX message queue related APIs.
+
+if POSIX_MQUEUE
+config	MSG_COUNT_MAX
+	int
+	prompt "Maximum number of messages in message queue"
+	default 16
+	help
+	  Mention maximum number of messages in message queue in POSIX compliant
+	  application.
+
+config	MSG_SIZE_MAX
+	int
+	prompt "Maximum size of a message"
+	default 16
+	help
+	  Mention maximum size of message in bytes.
+
+config	MQUEUE_NAMELEN_MAX
+	int
+	prompt "Maximum size of a name length"
+	default 16
+	range 2 255
+	help
+	  Mention length of message queue name in number of characters.
+
+endif
+endif
diff --git a/kernel/posix/clock.c b/lib/posix/clock.c
similarity index 93%
rename from kernel/posix/clock.c
rename to lib/posix/clock.c
index d29d7853b78..56b33db6f56 100644
--- a/kernel/posix/clock.c
+++ b/lib/posix/clock.c
@@ -4,8 +4,9 @@
  * SPDX-License-Identifier: Apache-2.0
  */
 #include <kernel.h>
-#include <time.h>
 #include <errno.h>
+#include <posix/time.h>
+#include <posix/sys/types.h>
 
 /**
  * @brief Get clock time specified by clock_id.
diff --git a/kernel/posix/mqueue.c b/lib/posix/mqueue.c
similarity index 99%
rename from kernel/posix/mqueue.c
rename to lib/posix/mqueue.c
index 1d6086c3b5e..3f148596987 100644
--- a/kernel/posix/mqueue.c
+++ b/lib/posix/mqueue.c
@@ -4,11 +4,11 @@
  * SPDX-License-Identifier: Apache-2.0
  */
 #include <kernel.h>
-#include <time.h>
 #include <errno.h>
-#include <mqueue.h>
 #include <string.h>
 #include <atomic.h>
+#include <posix/time.h>
+#include <posix/mqueue.h>
 
 typedef struct mqueue_object {
 	sys_snode_t snode;
diff --git a/kernel/posix/pthread.c b/lib/posix/pthread.c
similarity index 99%
rename from kernel/posix/pthread.c
rename to lib/posix/pthread.c
index e0372e36710..3f33f968dfb 100644
--- a/kernel/posix/pthread.c
+++ b/lib/posix/pthread.c
@@ -5,11 +5,11 @@
  */
 
 #include <kernel.h>
-#include <pthread.h>
 #include <stdio.h>
 #include <atomic.h>
-#include "ksched.h"
-#include "wait_q.h"
+#include <ksched.h>
+#include <wait_q.h>
+#include <posix/pthread.h>
 
 #define PTHREAD_INIT_FLAGS	PTHREAD_CANCEL_ENABLE
 #define PTHREAD_CANCELED	((void *) -1)
diff --git a/kernel/posix/pthread_barrier.c b/lib/posix/pthread_barrier.c
similarity index 88%
rename from kernel/posix/pthread_barrier.c
rename to lib/posix/pthread_barrier.c
index 445eb32a0ba..0f5d5159367 100644
--- a/kernel/posix/pthread_barrier.c
+++ b/lib/posix/pthread_barrier.c
@@ -5,9 +5,9 @@
  */
 
 #include <kernel.h>
-#include <pthread.h>
-#include "ksched.h"
-#include "wait_q.h"
+#include <posix/pthread.h>
+#include <ksched.h>
+#include <wait_q.h>
 #include <kswap.h>
 
 void ready_one_thread(_wait_q_t *wq);
diff --git a/kernel/posix/pthread_common.c b/lib/posix/pthread_common.c
similarity index 90%
rename from kernel/posix/pthread_common.c
rename to lib/posix/pthread_common.c
index 25c0d1f0894..2ffd49ad0d8 100644
--- a/kernel/posix/pthread_common.c
+++ b/lib/posix/pthread_common.c
@@ -5,10 +5,10 @@
  */
 
 #include <kernel.h>
-#include <pthread.h>
-#include "ksched.h"
-#include "wait_q.h"
-#include "time.h"
+#include <ksched.h>
+#include <wait_q.h>
+#include <posix/pthread.h>
+#include <posix/time.h>
 
 void ready_one_thread(_wait_q_t *wq)
 {
diff --git a/kernel/posix/pthread_cond.c b/lib/posix/pthread_cond.c
similarity index 97%
rename from kernel/posix/pthread_cond.c
rename to lib/posix/pthread_cond.c
index 072b205c854..9fc01b7326c 100644
--- a/kernel/posix/pthread_cond.c
+++ b/lib/posix/pthread_cond.c
@@ -5,10 +5,10 @@
  */
 
 #include <kernel.h>
-#include <pthread.h>
-#include "ksched.h"
-#include "wait_q.h"
+#include <ksched.h>
+#include <wait_q.h>
 #include <kswap.h>
+#include <posix/pthread.h>
 
 void ready_one_thread(_wait_q_t *wq);
 
diff --git a/kernel/posix/pthread_mutex.c b/lib/posix/pthread_mutex.c
similarity index 81%
rename from kernel/posix/pthread_mutex.c
rename to lib/posix/pthread_mutex.c
index 4bf1b916604..bd8e429771c 100644
--- a/kernel/posix/pthread_mutex.c
+++ b/lib/posix/pthread_mutex.c
@@ -5,9 +5,9 @@
  */
 
 #include <kernel.h>
-#include <pthread.h>
-#include "ksched.h"
-#include "wait_q.h"
+#include <ksched.h>
+#include <wait_q.h>
+#include <posix/pthread.h>
 
 int pthread_mutex_trylock(pthread_mutex_t *m)
 {
diff --git a/kernel/posix/pthread_rwlock.c b/lib/posix/pthread_rwlock.c
similarity index 99%
rename from kernel/posix/pthread_rwlock.c
rename to lib/posix/pthread_rwlock.c
index 455fb30dc45..145f6e85f76 100644
--- a/kernel/posix/pthread_rwlock.c
+++ b/lib/posix/pthread_rwlock.c
@@ -4,9 +4,9 @@
  * SPDX-License-Identifier: Apache-2.0
  */
 #include <kernel.h>
-#include <time.h>
 #include <errno.h>
-#include <sys/types.h>
+#include <posix/time.h>
+#include <posix/sys/types.h>
 
 #define INITIALIZED 1
 #define NOT_INITIALIZED 0
diff --git a/kernel/posix/pthread_sched.c b/lib/posix/pthread_sched.c
similarity index 97%
rename from kernel/posix/pthread_sched.c
rename to lib/posix/pthread_sched.c
index e5e90b66c50..8c1e0a07665 100644
--- a/kernel/posix/pthread_sched.c
+++ b/lib/posix/pthread_sched.c
@@ -5,7 +5,7 @@
  */
 
 #include <kernel.h>
-#include <posix_sched.h>
+#include <posix/posix_sched.h>
 
 static bool valid_posix_policy(int policy)
 {
diff --git a/kernel/posix/semaphore.c b/lib/posix/semaphore.c
similarity index 98%
rename from kernel/posix/semaphore.c
rename to lib/posix/semaphore.c
index 6490a02f5ce..e284f681521 100644
--- a/kernel/posix/semaphore.c
+++ b/lib/posix/semaphore.c
@@ -4,8 +4,8 @@
  * SPDX-License-Identifier: Apache-2.0
  */
 
-#include <pthread.h>
 #include <errno.h>
+#include <posix/pthread.h>
 
 /**
  * @brief Destroy semaphore.
diff --git a/kernel/posix/sleep.c b/lib/posix/sleep.c
similarity index 91%
rename from kernel/posix/sleep.c
rename to lib/posix/sleep.c
index 6cbd36d52bd..cf5bc171b8c 100644
--- a/kernel/posix/sleep.c
+++ b/lib/posix/sleep.c
@@ -3,7 +3,9 @@
  *
  * SPDX-License-Identifier: Apache-2.0
  */
-#include <unistd.h>
+
+#include <kernel.h>
+#include <posix/unistd.h>
 
 /**
  * @brief Sleep for a specified number of seconds.
diff --git a/kernel/posix/timer.c b/lib/posix/timer.c
similarity index 99%
rename from kernel/posix/timer.c
rename to lib/posix/timer.c
index 333749dd1e2..3863abff606 100644
--- a/kernel/posix/timer.c
+++ b/lib/posix/timer.c
@@ -4,10 +4,10 @@
  * SPDX-License-Identifier: Apache-2.0
  */
 #include <kernel.h>
-#include <time.h>
 #include <errno.h>
 #include <string.h>
 #include <misc/printk.h>
+#include <posix/time.h>
 
 #define ACTIVE 1
 #define NOT_ACTIVE 0