diff --git a/tools/Makefile b/tools/Makefile
index e96167b4e7..3b3f187c4d 100644
--- a/tools/Makefile
+++ b/tools/Makefile
@@ -17,7 +17,7 @@ endif
 tools-y += m4 autoconf automake bison pkg-config sed mklibs
 tools-y += sstrip ipkg-utils genext2fs e2fsprogs mtd-utils mkimage
 tools-y += firmware-utils patch-cmdline quilt yaffs2 flock
-tools-y += xorg-macros
+tools-y += xorg-macros xz
 tools-$(CONFIG_TARGET_orion_generic) += wrt350nv2-builder upslug2
 tools-$(CONFIG_TARGET_x86) += qemu
 ifneq ($(CONFIG_TARGET_ar71xx),)
diff --git a/tools/xz/Makefile b/tools/xz/Makefile
new file mode 100644
index 0000000000..5689e18d44
--- /dev/null
+++ b/tools/xz/Makefile
@@ -0,0 +1,18 @@
+# 
+# Copyright (C) 2006 OpenWrt.org
+#
+# This is free software, licensed under the GNU General Public License v2.
+# See /LICENSE for more information.
+#
+include $(TOPDIR)/rules.mk
+
+PKG_NAME:=xz
+PKG_VERSION:=5.0.0
+
+PKG_SOURCE:=$(PKG_NAME)-$(PKG_VERSION).tar.bz2
+PKG_SOURCE_URL:=http://tukaani.org/xz
+PKG_MD5SUM:=0652c09fdbb93ae2ce78c1368ffda612
+
+include $(INCLUDE_DIR)/host-build.mk
+
+$(eval $(call HostBuild))