diff --git a/aidl_library/Android.bp b/aidl_library/Android.bp
new file mode 100644
index 0000000..ec21504
--- /dev/null
+++ b/aidl_library/Android.bp
@@ -0,0 +1,32 @@
+// Copyright 2023 Google Inc. All rights reserved.
+//
+// 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.
+
+package {
+    default_applicable_licenses: ["Android-Apache-2.0"],
+}
+
+bootstrap_go_package {
+    name: "soong-aidl-library",
+    pkgPath: "android/soong/aidl_library",
+    deps: [
+        "soong-android",
+    ],
+    srcs: [
+        "aidl_library.go",
+    ],
+    testSrcs: [
+        "aidl_library_test.go",
+    ],
+    pluginFor: ["soong_build"],
+}
diff --git a/aidl_library/aidl_library.go b/aidl_library/aidl_library.go
new file mode 100644
index 0000000..2a42170
--- /dev/null
+++ b/aidl_library/aidl_library.go
@@ -0,0 +1,120 @@
+// Copyright 2023 Google Inc. All rights reserved.
+//
+// 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.
+
+package aidl_library
+
+import (
+	"android/soong/android"
+
+	"github.com/google/blueprint"
+	"github.com/google/blueprint/proptools"
+)
+
+func init() {
+	registerAidlLibraryBuildComponents(android.InitRegistrationContext)
+}
+
+func registerAidlLibraryBuildComponents(ctx android.RegistrationContext) {
+	ctx.RegisterModuleType("aidl_library", AidlLibraryFactory)
+}
+
+type aidlLibraryProperties struct {
+	// srcs lists files that are included in this module for aidl compilation
+	Srcs []string `android:"path"`
+
+	// hdrs lists the headers that are imported by srcs but are not compiled by aidl to language binding code
+	// hdrs is provided to support Bazel migration. It is a no-op until
+	// we enable input sandbox in aidl compilation action
+	Hdrs []string `android:"path"`
+
+	// The prefix to strip from the paths of the .aidl files
+	// The remaining path is the package path of the aidl interface
+	Strip_import_prefix *string
+
+	// List of aidl files or aidl_library depended on by the module
+	Deps []string `android:"arch_variant"`
+}
+
+type AidlLibrary struct {
+	android.ModuleBase
+	properties aidlLibraryProperties
+}
+
+type AidlLibraryInfo struct {
+	// The direct aidl files of the module
+	Srcs android.Paths
+	// The include dirs to the direct aidl files and those provided from aidl_library deps
+	IncludeDirs android.DepSet
+}
+
+// AidlLibraryProvider provides the srcs and the transitive include dirs
+var AidlLibraryProvider = blueprint.NewProvider(AidlLibraryInfo{})
+
+func (lib *AidlLibrary) GenerateAndroidBuildActions(ctx android.ModuleContext) {
+	includeDirsDepSetBuilder := android.NewDepSetBuilder(android.PREORDER)
+
+	if len(lib.properties.Srcs) == 0 && len(lib.properties.Hdrs) == 0 {
+		ctx.ModuleErrorf("at least srcs or hdrs prop must be non-empty")
+	}
+
+	srcs := android.PathsForModuleSrc(ctx, lib.properties.Srcs)
+	if lib.properties.Strip_import_prefix != nil {
+		srcs = android.PathsWithModuleSrcSubDir(
+			ctx,
+			srcs,
+			android.String(lib.properties.Strip_import_prefix))
+	}
+
+	includeDir := android.PathForModuleSrc(
+		ctx,
+		proptools.StringDefault(lib.properties.Strip_import_prefix, ""),
+	)
+
+	includeDirsDepSetBuilder.Direct(includeDir)
+
+	for _, dep := range ctx.GetDirectDepsWithTag(aidlLibraryTag) {
+		if ctx.OtherModuleHasProvider(dep, AidlLibraryProvider) {
+			info := ctx.OtherModuleProvider(dep, AidlLibraryProvider).(AidlLibraryInfo)
+			includeDirsDepSetBuilder.Transitive(&info.IncludeDirs)
+		}
+	}
+
+	// TODO(b/279960133) Propagate direct and transitive headers/srcs when aidl action sandboxes inputs
+	ctx.SetProvider(AidlLibraryProvider, AidlLibraryInfo{
+		Srcs:        srcs,
+		IncludeDirs: *includeDirsDepSetBuilder.Build(),
+	})
+}
+
+// aidl_library contains a list of .aidl files and the strip_import_prefix to
+// to strip from the paths of the .aidl files. The sub-path left-over after stripping
+// corresponds to the aidl package path the aidl interfaces are scoped in
+func AidlLibraryFactory() android.Module {
+	module := &AidlLibrary{}
+	module.AddProperties(&module.properties)
+	android.InitAndroidModule(module)
+	return module
+}
+
+type aidlDependencyTag struct {
+	blueprint.BaseDependencyTag
+}
+
+var aidlLibraryTag = aidlDependencyTag{}
+
+func (lib *AidlLibrary) DepsMutator(ctx android.BottomUpMutatorContext) {
+	for _, dep := range lib.properties.Deps {
+		ctx.AddDependency(lib, aidlLibraryTag, dep)
+	}
+}
diff --git a/aidl_library/aidl_library_test.go b/aidl_library/aidl_library_test.go
new file mode 100644
index 0000000..42fa536
--- /dev/null
+++ b/aidl_library/aidl_library_test.go
@@ -0,0 +1,126 @@
+// Copyright 2023 Google Inc. All rights reserved.
+//
+// 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.
+
+package aidl_library
+
+import (
+	"android/soong/android"
+	"testing"
+)
+
+var PrepareForTestWithAidlLibrary = android.FixtureRegisterWithContext(func(ctx android.RegistrationContext) {
+	registerAidlLibraryBuildComponents(ctx)
+})
+
+func TestAidlLibrary(t *testing.T) {
+	t.Parallel()
+	ctx := android.GroupFixturePreparers(
+		PrepareForTestWithAidlLibrary,
+		android.MockFS{
+			"package_bar/Android.bp": []byte(`
+			aidl_library {
+					name: "bar",
+					srcs: ["x/y/Bar.aidl"],
+					strip_import_prefix: "x",
+				}
+			`),
+		}.AddToFixture(),
+		android.MockFS{
+			"package_foo/Android.bp": []byte(`
+			aidl_library {
+					name: "foo",
+					srcs: ["a/b/Foo.aidl"],
+					hdrs: ["Header.aidl"],
+					strip_import_prefix: "a",
+					deps: ["bar"],
+				}
+			`),
+		}.AddToFixture(),
+	).RunTest(t).TestContext
+
+	foo := ctx.ModuleForTests("foo", "").Module().(*AidlLibrary)
+	actualInfo := ctx.ModuleProvider(foo, AidlLibraryProvider).(AidlLibraryInfo)
+
+	android.AssertArrayString(
+		t,
+		"aidl include dirs",
+		[]string{"package_foo/a", "package_bar/x"},
+		actualInfo.IncludeDirs.ToList().Strings(),
+	)
+
+	android.AssertPathsRelativeToTopEquals(
+		t,
+		"aidl srcs paths",
+		[]string{"package_foo/a/b/Foo.aidl"},
+		actualInfo.Srcs,
+	)
+}
+
+func TestAidlLibraryWithoutStripImportPrefix(t *testing.T) {
+	t.Parallel()
+	ctx := android.GroupFixturePreparers(
+		PrepareForTestWithAidlLibrary,
+		android.MockFS{
+			"package_bar/Android.bp": []byte(`
+			aidl_library {
+					name: "bar",
+					srcs: ["x/y/Bar.aidl"],
+				}
+			`),
+		}.AddToFixture(),
+		android.MockFS{
+			"package_foo/Android.bp": []byte(`
+			aidl_library {
+					name: "foo",
+					srcs: ["a/b/Foo.aidl"],
+					hdrs: ["Header.aidl"],
+					deps: ["bar"],
+				}
+			`),
+		}.AddToFixture(),
+	).RunTest(t).TestContext
+
+	foo := ctx.ModuleForTests("foo", "").Module().(*AidlLibrary)
+	actualInfo := ctx.ModuleProvider(foo, AidlLibraryProvider).(AidlLibraryInfo)
+
+	android.AssertArrayString(
+		t,
+		"aidl include dirs",
+		[]string{"package_foo", "package_bar"},
+		actualInfo.IncludeDirs.ToList().Strings(),
+	)
+
+	android.AssertPathsRelativeToTopEquals(
+		t,
+		"aidl srcs paths",
+		[]string{"package_foo/a/b/Foo.aidl"},
+		actualInfo.Srcs,
+	)
+}
+
+func TestAidlLibraryWithNoSrcsHdrsDeps(t *testing.T) {
+	t.Parallel()
+	android.GroupFixturePreparers(
+		PrepareForTestWithAidlLibrary,
+		android.MockFS{
+			"package_bar/Android.bp": []byte(`
+			aidl_library {
+					name: "bar",
+				}
+			`),
+		}.AddToFixture(),
+	).
+		ExtendWithErrorHandler(android.FixtureExpectsOneErrorPattern("at least srcs or hdrs prop must be non-empty")).
+		RunTest(t)
+}