diff --git a/dib/ironic-python-agent-ramdisk/install.d/ironic-python-agent-ramdisk-source-install/60-ironic-python-agent-ramdisk-install b/dib/ironic-python-agent-ramdisk/install.d/ironic-python-agent-ramdisk-source-install/60-ironic-python-agent-ramdisk-install
index 609085d..5011f3a 100755
--- a/dib/ironic-python-agent-ramdisk/install.d/ironic-python-agent-ramdisk-source-install/60-ironic-python-agent-ramdisk-install
+++ b/dib/ironic-python-agent-ramdisk/install.d/ironic-python-agent-ramdisk-source-install/60-ironic-python-agent-ramdisk-install
@@ -10,6 +10,7 @@ export LC_ALL=C.UTF-8
 
 SCRIPTDIR=$(dirname $0)
 IPADIR=/tmp/ironic-python-agent
+IRLIBDIR=/tmp/ironic-lib
 UPPER_CONSTRAINTS=/tmp/requirements/upper-constraints.txt
 VENVDIR=/opt/ironic-python-agent
 # 19.1.1 is required for cryptography.
@@ -52,6 +53,11 @@ $VENVDIR/bin/pip install -c $UPPER_CONSTRAINTS $IPADIR
 ln -s $VENVDIR/bin/ironic-python-agent /usr/local/bin/
 ln -s $VENVDIR/bin/ironic-collect-introspection-data /usr/local/bin/
 
+# install ironic-lib from source if requested
+if [ ${IRONIC_LIB_FROM_SOURCE:-false} == "true" ]; then
+    $VENVDIR/bin/pip install -c $UPPER_CONSTRAINTS -r $IRLIBDIR/requirements.txt
+    $VENVDIR/bin/pip install $IRLIBDIR
+fi
 
 case "$DIB_INIT_SYSTEM" in
     upstart)
diff --git a/dib/ironic-python-agent-ramdisk/source-repository-ironic-lib b/dib/ironic-python-agent-ramdisk/source-repository-ironic-lib
new file mode 100644
index 0000000..183f5a9
--- /dev/null
+++ b/dib/ironic-python-agent-ramdisk/source-repository-ironic-lib
@@ -0,0 +1 @@
+ironic-lib git /tmp/ironic-lib https://opendev.org/openstack/ironic-lib
diff --git a/doc/source/admin/dib.rst b/doc/source/admin/dib.rst
index 964600d..3564524 100644
--- a/doc/source/admin/dib.rst
+++ b/doc/source/admin/dib.rst
@@ -76,6 +76,14 @@ To use a specific branch of ironic-python-agent, use:
     export DIB_REPOREF_ironic_python_agent=origin/stable/queens
     export DIB_REPOREF_requirements=origin/stable/queens
 
+To build ironic-lib from source, do:
+
+.. code-block:: bash
+
+    export IRONIC_LIB_FROM_SOURCE=true
+    # Optionally:
+    #export DIB_REPOREF_ironic_lib=<branch>
+
 To build image for architectures other than amd64, you can either set the
 ``ARCH`` environment variable or use ``-a`` to specify the target
 architecture:
diff --git a/releasenotes/notes/ironic-lib-6a16f13fc6ec9a50.yaml b/releasenotes/notes/ironic-lib-6a16f13fc6ec9a50.yaml
new file mode 100644
index 0000000..b684ac2
--- /dev/null
+++ b/releasenotes/notes/ironic-lib-6a16f13fc6ec9a50.yaml
@@ -0,0 +1,9 @@
+---
+features:
+  - |
+    Supports installing ironic-lib from source in the DIB build. Set
+    ::
+
+      export IRONIC_LIB_FROM_SOURCE=true
+
+    to use.