diff --git a/arch/powerpc/Kconfig b/arch/powerpc/Kconfig
index 4c780455136..a0d1146a057 100644
--- a/arch/powerpc/Kconfig
+++ b/arch/powerpc/Kconfig
@@ -181,6 +181,10 @@ config SYS_SUPPORTS_APM_EMULATION
 	default y if PMAC_APM_EMU
 	bool
 
+config DTC
+       bool
+       default y
+
 config DEFAULT_UIMAGE
 	bool
 	help
diff --git a/arch/powerpc/boot/Makefile b/arch/powerpc/boot/Makefile
index 4458abb67c5..8da2bf963b5 100644
--- a/arch/powerpc/boot/Makefile
+++ b/arch/powerpc/boot/Makefile
@@ -33,7 +33,7 @@ ifeq ($(call cc-option-yn, -fstack-protector),y)
 BOOTCFLAGS	+= -fno-stack-protector
 endif
 
-BOOTCFLAGS	+= -I$(obj) -I$(srctree)/$(obj) -I$(srctree)/$(src)/libfdt
+BOOTCFLAGS	+= -I$(obj) -I$(srctree)/$(obj)
 
 DTS_FLAGS	?= -p 1024
 
@@ -53,9 +53,14 @@ zliblinuxheader := zlib.h zconf.h zutil.h
 $(addprefix $(obj)/,$(zlib) cuboot-c2k.o gunzip_util.o main.o prpmc2800.o): \
 	$(addprefix $(obj)/,$(zliblinuxheader)) $(addprefix $(obj)/,$(zlibheader))
 
-src-libfdt := fdt.c fdt_ro.c fdt_wip.c fdt_sw.c fdt_rw.c fdt_strerror.c
+libfdt       := fdt.c fdt_ro.c fdt_wip.c fdt_sw.c fdt_rw.c fdt_strerror.c
+libfdtheader := fdt.h libfdt.h libfdt_internal.h
+
+$(addprefix $(obj)/,$(libfdt) libfdt-wrapper.o simpleboot.o): \
+	$(addprefix $(obj)/,$(libfdtheader))
+
 src-wlib := string.S crt0.S crtsavres.S stdio.c main.c \
-		$(addprefix libfdt/,$(src-libfdt)) libfdt-wrapper.c \
+		$(libfdt) libfdt-wrapper.c \
 		ns16550.c serial.c simple_alloc.c div64.S util.S \
 		gunzip_util.c elf_util.c $(zlib) devtree.c oflib.c ofconsole.c \
 		4xx.c ebony.c mv64x60.c mpsc.c mv64x60_i2c.c cuboot.c bamboo.c \
@@ -96,6 +101,12 @@ $(addprefix $(obj)/,$(zlibheader)): $(obj)/%: $(srctree)/lib/zlib_inflate/%
 $(addprefix $(obj)/,$(zliblinuxheader)): $(obj)/%: $(srctree)/include/linux/%
 	$(call cmd,copy_zliblinuxheader)
 
+quiet_cmd_copy_libfdt = COPY    $@
+      cmd_copy_libfdt = cp $< $@
+
+$(addprefix $(obj)/,$(libfdt) $(libfdtheader)): $(obj)/%: $(srctree)/scripts/dtc/libfdt/%
+	$(call cmd,copy_libfdt)
+
 $(obj)/empty.c:
 	@touch $@
 
@@ -103,6 +114,7 @@ $(obj)/zImage.lds $(obj)/zImage.coff.lds $(obj)/zImage.ps3.lds: $(obj)/%: $(srct
 	@cp $< $@
 
 clean-files := $(zlib) $(zlibheader) $(zliblinuxheader) \
+		$(libfdt) $(libfdtheader) \
 		empty.c zImage.coff.lds zImage.ps3.lds zImage.lds
 
 quiet_cmd_bootcc = BOOTCC  $@
@@ -114,6 +126,8 @@ quiet_cmd_bootas = BOOTAS  $@
 quiet_cmd_bootar = BOOTAR  $@
       cmd_bootar = $(CROSS32AR) -cr $@.$$$$ $(filter-out FORCE,$^); mv $@.$$$$ $@
 
+$(obj-libfdt): $(obj)/%.o: $(srctree)/scripts/dtc/libfdt/%.c FORCE
+	$(call if_changed_dep,bootcc)
 $(patsubst %.c,%.o, $(filter %.c, $(src-boot))): %.o: %.c FORCE
 	$(Q)mkdir -p $(dir $@)
 	$(call if_changed_dep,bootcc)
@@ -124,7 +138,7 @@ $(patsubst %.S,%.o, $(filter %.S, $(src-boot))): %.o: %.S FORCE
 $(obj)/wrapper.a: $(obj-wlib) FORCE
 	$(call if_changed,bootar)
 
-hostprogs-y	:= addnote addRamDisk hack-coff mktree dtc
+hostprogs-y	:= addnote addRamDisk hack-coff mktree
 
 targets		+= $(patsubst $(obj)/%,%,$(obj-boot) wrapper.a)
 extra-y		:= $(obj)/wrapper.a $(obj-plat) $(obj)/empty.o \
@@ -133,46 +147,9 @@ extra-y		:= $(obj)/wrapper.a $(obj-plat) $(obj)/empty.o \
 dtstree		:= $(srctree)/$(src)/dts
 
 wrapper		:=$(srctree)/$(src)/wrapper
-wrapperbits	:= $(extra-y) $(addprefix $(obj)/,addnote hack-coff mktree dtc) \
+wrapperbits	:= $(extra-y) $(addprefix $(obj)/,addnote hack-coff mktree) \
 			$(wrapper) FORCE
 
-#############
-# Bits for building dtc
-# DTC_GENPARSER      := 1    # Uncomment to rebuild flex/bison output
-
-dtc-objs := dtc.o flattree.o fstree.o data.o livetree.o treesource.o srcpos.o checks.o
-dtc-objs += dtc-lexer.lex.o dtc-parser.tab.o
-dtc-objs := $(addprefix dtc-src/, $(dtc-objs))
-
-# prerequisites on generated files needs to be explicit
-$(obj)/dtc-src/dtc-parser.tab.o: $(obj)/dtc-src/dtc-parser.tab.c $(obj)/dtc-src/dtc-parser.tab.h
-$(obj)/dtc-src/dtc-lexer.lex.o:  $(obj)/dtc-src/dtc-lexer.lex.c $(obj)/dtc-src/dtc-parser.tab.h
-
-HOSTCFLAGS += -I$(src)/dtc-src/ -I$(src)/libfdt/
-
-targets += dtc-src/dtc-parser.tab.c
-targets += dtc-src/dtc-lexer.lex.c
-
-clean-files += dtc-src/dtc-parser.tab.h
-
-ifdef DTC_GENPARSER
-BISON = bison
-FLEX = flex
-
-quiet_cmd_bison = BISON   $@
-      cmd_bison = $(BISON) -o$@ -d $<; cp $@ $@_shipped
-quiet_cmd_flex = FLEX    $@
-      cmd_flex = $(FLEX) -o$@ $<; cp $@ $@_shipped
-
-$(obj)/dtc-src/dtc-parser.tab.c: $(src)/dtc-src/dtc-parser.y FORCE
-	$(call if_changed,bison)
-
-$(obj)/dtc-src/dtc-parser.tab.h: $(obj)/dtc-src/dtc-parser.tab.c
-
-$(obj)/dtc-src/dtc-lexer.lex.c: $(src)/dtc-src/dtc-lexer.l FORCE
-	$(call if_changed,flex)
-endif
-
 #############
 # Bits for building various flavours of zImage
 
@@ -347,8 +324,10 @@ $(obj)/treeImage.%: vmlinux $(obj)/%.dtb $(wrapperbits)
 	$(call if_changed,wrap,treeboot-$*,,$(obj)/$*.dtb)
 
 # Rule to build device tree blobs
-$(obj)/%.dtb: $(dtstree)/%.dts $(obj)/dtc
-	$(obj)/dtc -O dtb -o $(obj)/$*.dtb -b 0 $(DTS_FLAGS) $(dtstree)/$*.dts
+DTC = $(objtree)/scripts/dtc/dtc
+
+$(obj)/%.dtb: $(dtstree)/%.dts
+	$(DTC) -O dtb -o $(obj)/$*.dtb -b 0 $(DTS_FLAGS) $(dtstree)/$*.dts
 
 # If there isn't a platform selected then just strip the vmlinux.
 ifeq (,$(image-y))
diff --git a/arch/powerpc/boot/simpleboot.c b/arch/powerpc/boot/simpleboot.c
index c58a0dada99..21cd48074ec 100644
--- a/arch/powerpc/boot/simpleboot.c
+++ b/arch/powerpc/boot/simpleboot.c
@@ -19,7 +19,7 @@
 #include "types.h"
 #include "io.h"
 #include "stdio.h"
-#include "libfdt/libfdt.h"
+#include <libfdt.h>
 
 BSS_STACK(4*1024);
 
diff --git a/scripts/Makefile b/scripts/Makefile
index aafdf064fee..9dd5b25a1d5 100644
--- a/scripts/Makefile
+++ b/scripts/Makefile
@@ -21,6 +21,7 @@ hostprogs-y += unifdef
 subdir-$(CONFIG_MODVERSIONS) += genksyms
 subdir-y                     += mod
 subdir-$(CONFIG_SECURITY_SELINUX) += selinux
+subdir-$(CONFIG_DTC)         += dtc
 
 # Let clean descend into subdirs
 subdir-	+= basic kconfig package selinux
diff --git a/scripts/dtc/Makefile b/scripts/dtc/Makefile
new file mode 100644
index 00000000000..01cdb36fc58
--- /dev/null
+++ b/scripts/dtc/Makefile
@@ -0,0 +1,54 @@
+# scripts/dtc makefile
+
+hostprogs-y	:= dtc
+always		:= $(hostprogs-y)
+
+dtc-objs	:= dtc.o flattree.o fstree.o data.o livetree.o treesource.o \
+		   srcpos.o checks.o
+dtc-objs	+= dtc-lexer.lex.o dtc-parser.tab.o
+
+# Source files need to get at the userspace version of libfdt_env.h to compile
+
+HOSTCFLAGS_DTC := -I$(src) -I$(src)/libfdt
+
+HOSTCFLAGS_checks.o := $(HOSTCFLAGS_DTC)
+HOSTCFLAGS_data.o := $(HOSTCFLAGS_DTC)
+HOSTCFLAGS_dtc.o := $(HOSTCFLAGS_DTC)
+HOSTCFLAGS_flattree.o := $(HOSTCFLAGS_DTC)
+HOSTCFLAGS_fstree.o := $(HOSTCFLAGS_DTC)
+HOSTCFLAGS_livetree.o := $(HOSTCFLAGS_DTC)
+HOSTCFLAGS_srcpos.o := $(HOSTCFLAGS_DTC)
+HOSTCFLAGS_treesource.o := $(HOSTCFLAGS_DTC)
+
+HOSTCFLAGS_dtc-lexer.lex.o := $(HOSTCFLAGS_DTC)
+HOSTCFLAGS_dtc-parser.tab.o := $(HOSTCFLAGS_DTC)
+
+# dependencies on generated files need to be listed explicitly
+$(obj)/dtc-parser.tab.o: $(obj)/dtc-parser.tab.c $(obj)/dtc-parser.tab.h
+$(obj)/dtc-lexer.lex.o:  $(obj)/dtc-lexer.lex.c $(obj)/dtc-parser.tab.h
+
+targets += dtc-parser.tab.c dtc-lexer.lex.c
+
+clean-files += dtc-parser.tab.h
+
+# GENERATE_PARSER := 1		# Uncomment to rebuild flex/bison output
+
+ifdef GENERATE_PARSER
+
+BISON = bison
+FLEX = flex
+
+quiet_cmd_bison = BISON   $@
+      cmd_bison = $(BISON) -o$@ -d $<; cp $@ $@_shipped
+quiet_cmd_flex = FLEX    $@
+      cmd_flex = $(FLEX) -o$@ $<; cp $@ $@_shipped
+
+$(obj)/dtc-parser.tab.c: $(src)/dtc-parser.y FORCE
+        $(call if_changed,bison)
+
+$(obj)/dtc-parser.tab.h: $(obj)/dtc-parser.tab.c
+
+$(obj)/dtc-lexer.lex.c: $(src)/dtc-lexer.l FORCE
+        $(call if_changed,flex)
+
+endif
diff --git a/arch/powerpc/boot/dtc-src/Makefile.dtc b/scripts/dtc/Makefile.dtc
similarity index 100%
rename from arch/powerpc/boot/dtc-src/Makefile.dtc
rename to scripts/dtc/Makefile.dtc
diff --git a/arch/powerpc/boot/dtc-src/checks.c b/scripts/dtc/checks.c
similarity index 100%
rename from arch/powerpc/boot/dtc-src/checks.c
rename to scripts/dtc/checks.c
diff --git a/arch/powerpc/boot/dtc-src/data.c b/scripts/dtc/data.c
similarity index 100%
rename from arch/powerpc/boot/dtc-src/data.c
rename to scripts/dtc/data.c
diff --git a/arch/powerpc/boot/dtc-src/dtc-lexer.l b/scripts/dtc/dtc-lexer.l
similarity index 100%
rename from arch/powerpc/boot/dtc-src/dtc-lexer.l
rename to scripts/dtc/dtc-lexer.l
diff --git a/arch/powerpc/boot/dtc-src/dtc-lexer.lex.c_shipped b/scripts/dtc/dtc-lexer.lex.c_shipped
similarity index 100%
rename from arch/powerpc/boot/dtc-src/dtc-lexer.lex.c_shipped
rename to scripts/dtc/dtc-lexer.lex.c_shipped
diff --git a/arch/powerpc/boot/dtc-src/dtc-parser.tab.c_shipped b/scripts/dtc/dtc-parser.tab.c_shipped
similarity index 100%
rename from arch/powerpc/boot/dtc-src/dtc-parser.tab.c_shipped
rename to scripts/dtc/dtc-parser.tab.c_shipped
diff --git a/arch/powerpc/boot/dtc-src/dtc-parser.tab.h_shipped b/scripts/dtc/dtc-parser.tab.h_shipped
similarity index 100%
rename from arch/powerpc/boot/dtc-src/dtc-parser.tab.h_shipped
rename to scripts/dtc/dtc-parser.tab.h_shipped
diff --git a/arch/powerpc/boot/dtc-src/dtc-parser.y b/scripts/dtc/dtc-parser.y
similarity index 100%
rename from arch/powerpc/boot/dtc-src/dtc-parser.y
rename to scripts/dtc/dtc-parser.y
diff --git a/arch/powerpc/boot/dtc-src/dtc.c b/scripts/dtc/dtc.c
similarity index 100%
rename from arch/powerpc/boot/dtc-src/dtc.c
rename to scripts/dtc/dtc.c
diff --git a/arch/powerpc/boot/dtc-src/dtc.h b/scripts/dtc/dtc.h
similarity index 100%
rename from arch/powerpc/boot/dtc-src/dtc.h
rename to scripts/dtc/dtc.h
diff --git a/arch/powerpc/boot/dtc-src/flattree.c b/scripts/dtc/flattree.c
similarity index 100%
rename from arch/powerpc/boot/dtc-src/flattree.c
rename to scripts/dtc/flattree.c
diff --git a/arch/powerpc/boot/dtc-src/fstree.c b/scripts/dtc/fstree.c
similarity index 100%
rename from arch/powerpc/boot/dtc-src/fstree.c
rename to scripts/dtc/fstree.c
diff --git a/arch/powerpc/boot/libfdt/Makefile.libfdt b/scripts/dtc/libfdt/Makefile.libfdt
similarity index 100%
rename from arch/powerpc/boot/libfdt/Makefile.libfdt
rename to scripts/dtc/libfdt/Makefile.libfdt
diff --git a/arch/powerpc/boot/libfdt/fdt.c b/scripts/dtc/libfdt/fdt.c
similarity index 100%
rename from arch/powerpc/boot/libfdt/fdt.c
rename to scripts/dtc/libfdt/fdt.c
diff --git a/arch/powerpc/boot/libfdt/fdt.h b/scripts/dtc/libfdt/fdt.h
similarity index 100%
rename from arch/powerpc/boot/libfdt/fdt.h
rename to scripts/dtc/libfdt/fdt.h
diff --git a/arch/powerpc/boot/libfdt/fdt_ro.c b/scripts/dtc/libfdt/fdt_ro.c
similarity index 100%
rename from arch/powerpc/boot/libfdt/fdt_ro.c
rename to scripts/dtc/libfdt/fdt_ro.c
diff --git a/arch/powerpc/boot/libfdt/fdt_rw.c b/scripts/dtc/libfdt/fdt_rw.c
similarity index 100%
rename from arch/powerpc/boot/libfdt/fdt_rw.c
rename to scripts/dtc/libfdt/fdt_rw.c
diff --git a/arch/powerpc/boot/libfdt/fdt_strerror.c b/scripts/dtc/libfdt/fdt_strerror.c
similarity index 100%
rename from arch/powerpc/boot/libfdt/fdt_strerror.c
rename to scripts/dtc/libfdt/fdt_strerror.c
diff --git a/arch/powerpc/boot/libfdt/fdt_sw.c b/scripts/dtc/libfdt/fdt_sw.c
similarity index 100%
rename from arch/powerpc/boot/libfdt/fdt_sw.c
rename to scripts/dtc/libfdt/fdt_sw.c
diff --git a/arch/powerpc/boot/libfdt/fdt_wip.c b/scripts/dtc/libfdt/fdt_wip.c
similarity index 100%
rename from arch/powerpc/boot/libfdt/fdt_wip.c
rename to scripts/dtc/libfdt/fdt_wip.c
diff --git a/arch/powerpc/boot/libfdt/libfdt.h b/scripts/dtc/libfdt/libfdt.h
similarity index 100%
rename from arch/powerpc/boot/libfdt/libfdt.h
rename to scripts/dtc/libfdt/libfdt.h
diff --git a/arch/powerpc/boot/dtc-src/libfdt_env.h b/scripts/dtc/libfdt/libfdt_env.h
similarity index 100%
rename from arch/powerpc/boot/dtc-src/libfdt_env.h
rename to scripts/dtc/libfdt/libfdt_env.h
diff --git a/arch/powerpc/boot/libfdt/libfdt_internal.h b/scripts/dtc/libfdt/libfdt_internal.h
similarity index 100%
rename from arch/powerpc/boot/libfdt/libfdt_internal.h
rename to scripts/dtc/libfdt/libfdt_internal.h
diff --git a/arch/powerpc/boot/dtc-src/livetree.c b/scripts/dtc/livetree.c
similarity index 100%
rename from arch/powerpc/boot/dtc-src/livetree.c
rename to scripts/dtc/livetree.c
diff --git a/arch/powerpc/boot/dtc-src/srcpos.c b/scripts/dtc/srcpos.c
similarity index 100%
rename from arch/powerpc/boot/dtc-src/srcpos.c
rename to scripts/dtc/srcpos.c
diff --git a/arch/powerpc/boot/dtc-src/srcpos.h b/scripts/dtc/srcpos.h
similarity index 100%
rename from arch/powerpc/boot/dtc-src/srcpos.h
rename to scripts/dtc/srcpos.h
diff --git a/arch/powerpc/boot/dtc-src/treesource.c b/scripts/dtc/treesource.c
similarity index 100%
rename from arch/powerpc/boot/dtc-src/treesource.c
rename to scripts/dtc/treesource.c
diff --git a/arch/powerpc/boot/dtc-src/version_gen.h b/scripts/dtc/version_gen.h
similarity index 100%
rename from arch/powerpc/boot/dtc-src/version_gen.h
rename to scripts/dtc/version_gen.h