diff --git a/fs_mgr/Android.bp b/fs_mgr/Android.bp
index 3cce0e8..6c8a943 100644
--- a/fs_mgr/Android.bp
+++ b/fs_mgr/Android.bp
@@ -46,6 +46,7 @@
         "fs_mgr_avb_ops.cpp",
         "fs_mgr_dm_linear.cpp",
         "fs_mgr_overlayfs.cpp",
+        "fs_mgr_vendor_overlay.cpp",
     ],
     shared_libs: [
         "libbase",
diff --git a/fs_mgr/fs_mgr_overlayfs.cpp b/fs_mgr/fs_mgr_overlayfs.cpp
index 2ac638a..34e24f8 100644
--- a/fs_mgr/fs_mgr_overlayfs.cpp
+++ b/fs_mgr/fs_mgr_overlayfs.cpp
@@ -112,17 +112,6 @@
     return ret | !rmdir(test_directory.c_str());
 }
 
-std::string fs_mgr_get_context(const std::string& mount_point) {
-    char* ctx = nullptr;
-    auto len = getfilecon(mount_point.c_str(), &ctx);
-    if ((len > 0) && ctx) {
-        std::string context(ctx, len);
-        free(ctx);
-        return context;
-    }
-    return "";
-}
-
 // At less than 1% free space return value of false,
 // means we will try to wrap with overlayfs.
 bool fs_mgr_filesystem_has_space(const char* mount_point) {
@@ -247,19 +236,6 @@
     return ret;
 }
 
-// return true if system supports overlayfs
-bool fs_mgr_wants_overlayfs() {
-    // Properties will return empty on init first_stage_mount, so speculative
-    // determination, empty (unset) _or_ "1" is true which differs from the
-    // official ro.debuggable policy.  ALLOW_ADBD_DISABLE_VERITY == 0 should
-    // protect us from false in any case, so this is insurance.
-    auto debuggable = android::base::GetProperty("ro.debuggable", "1");
-    if (debuggable != "1") return false;
-
-    // Overlayfs available in the kernel, and patched for override_creds?
-    return fs_mgr_access("/sys/module/overlay/parameters/override_creds");
-}
-
 bool fs_mgr_overlayfs_already_mounted(const std::string& mount_point, bool overlay_only = true) {
     std::unique_ptr<fstab, decltype(&fs_mgr_free_fstab)> fstab(fs_mgr_read_fstab("/proc/mounts"),
                                                                fs_mgr_free_fstab);
@@ -748,7 +724,7 @@
 bool fs_mgr_overlayfs_mount_all(fstab* fstab) {
     auto ret = false;
 
-    if (!fs_mgr_wants_overlayfs()) return ret;
+    if (!fs_mgr_overlayfs_supports_override_creds()) return ret;
 
     if (!fstab) return ret;
 
@@ -806,7 +782,7 @@
 bool fs_mgr_overlayfs_setup(const char* backing, const char* mount_point, bool* change) {
     if (change) *change = false;
     auto ret = false;
-    if (!fs_mgr_wants_overlayfs()) return ret;
+    if (!fs_mgr_overlayfs_supports_override_creds()) return ret;
     if (!fs_mgr_boot_completed()) {
         errno = EBUSY;
         PERROR << "setup";
@@ -869,7 +845,7 @@
     for (const auto& overlay_mount_point : kOverlayMountPoints) {
         ret &= fs_mgr_overlayfs_teardown_one(overlay_mount_point, mount_point ?: "", change);
     }
-    if (!fs_mgr_wants_overlayfs()) {
+    if (!fs_mgr_overlayfs_supports_override_creds()) {
         // After obligatory teardown to make sure everything is clean, but if
         // we didn't want overlayfs in the the first place, we do not want to
         // waste time on a reboot (or reboot request message).
@@ -908,3 +884,19 @@
 
     return (info.feat_ro_compat & EXT4_FEATURE_RO_COMPAT_SHARED_BLOCKS) != 0;
 }
+
+std::string fs_mgr_get_context(const std::string& mount_point) {
+    char* ctx = nullptr;
+    if (getfilecon(mount_point.c_str(), &ctx) == -1) {
+        return "";
+    }
+
+    std::string context(ctx);
+    free(ctx);
+    return context;
+}
+
+bool fs_mgr_overlayfs_supports_override_creds() {
+    // Overlayfs available in the kernel, and patched for override_creds?
+    return fs_mgr_access("/sys/module/overlay/parameters/override_creds");
+}
diff --git a/fs_mgr/fs_mgr_vendor_overlay.cpp b/fs_mgr/fs_mgr_vendor_overlay.cpp
new file mode 100644
index 0000000..360a117
--- /dev/null
+++ b/fs_mgr/fs_mgr_vendor_overlay.cpp
@@ -0,0 +1,128 @@
+/*
+ * Copyright (C) 2018 The Android Open Source Project
+ *
+ * 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.
+ */
+
+#include <dirent.h>
+#include <selinux/selinux.h>
+#include <sys/mount.h>
+#include <unistd.h>
+
+#include <memory>
+#include <string>
+#include <vector>
+
+#include <android-base/logging.h>
+#include <android-base/properties.h>
+#include <fs_mgr_overlayfs.h>
+#include <fs_mgr_vendor_overlay.h>
+#include <fstab/fstab.h>
+
+#include "fs_mgr_priv.h"
+
+using namespace std::literals;
+
+namespace {
+
+const auto kVendorOverlaySourceDir = "/system/vendor_overlay/"s;
+const auto kVndkVersionPropertyName = "ro.vndk.version"s;
+const auto kVendorTopDir = "/vendor/"s;
+const auto kLowerdirOption = "lowerdir="s;
+
+std::string fs_mgr_get_vendor_overlay_top_dir() {
+    // VNDK version is provided by the /vendor/default.prop
+    // To read the property, it must be called at the second init stage after the default
+    // properties are loaded.
+    std::string vndk_version = android::base::GetProperty(kVndkVersionPropertyName, "");
+    if (vndk_version.empty()) {
+        return "";
+    }
+    return kVendorOverlaySourceDir + vndk_version;
+}
+
+std::vector<std::string> fs_mgr_get_vendor_overlay_dirs(const std::string& overlay_top) {
+    std::vector<std::string> vendor_overlay_dirs;
+    std::unique_ptr<DIR, decltype(&closedir)> vendor_overlay_top(opendir(overlay_top.c_str()),
+                                                                 closedir);
+    if (!vendor_overlay_top) return vendor_overlay_dirs;
+
+    // Vendor overlay root for current vendor version found!
+    LINFO << "vendor overlay root: " << overlay_top;
+    struct dirent* dp;
+    while ((dp = readdir(vendor_overlay_top.get())) != nullptr) {
+        if (dp->d_type != DT_DIR || dp->d_name[0] == '.') {
+            continue;
+        }
+        vendor_overlay_dirs.push_back(dp->d_name);
+    }
+
+    return vendor_overlay_dirs;
+}
+
+bool fs_mgr_vendor_overlay_mount(const std::string& overlay_top, const std::string& mount_point) {
+    const auto vendor_mount_point = kVendorTopDir + mount_point;
+    LINFO << "vendor overlay mount on " << vendor_mount_point;
+
+    auto context = fs_mgr_get_context(vendor_mount_point);
+    if (!context.empty()) {
+        context = ",rootcontext="s + context;
+    } else {
+        PERROR << " result: cannot find the mount point";
+        return false;
+    }
+
+    auto options = "override_creds=off,"s + kLowerdirOption + overlay_top + "/" + mount_point +
+                   ":" + vendor_mount_point + context;
+    auto report = "__mount(source=overlay,target="s + vendor_mount_point + ",type=overlay," +
+                  options + ")=";
+    auto ret = mount("overlay", vendor_mount_point.c_str(), "overlay", MS_RDONLY | MS_RELATIME,
+                     options.c_str());
+    if (ret) {
+        PERROR << report << ret;
+        return false;
+    } else {
+        LINFO << report << ret;
+        return true;
+    }
+}
+
+}  // namespace
+
+// Since the vendor overlay requires to know the version of the vendor partition,
+// it is not possible to mount vendor overlay at the first stage that cannot
+// initialize properties.
+// To read the properties, vendor overlay must be mounted at the second stage, right
+// after "property_load_boot_defaults()" is called.
+bool fs_mgr_vendor_overlay_mount_all() {
+    const auto overlay_top = fs_mgr_get_vendor_overlay_top_dir();
+    if (overlay_top.empty()) {
+        LINFO << "vendor overlay: vndk version not defined";
+        return false;
+    }
+    const auto vendor_overlay_dirs = fs_mgr_get_vendor_overlay_dirs(overlay_top);
+    if (vendor_overlay_dirs.empty()) return true;
+    if (!fs_mgr_overlayfs_supports_override_creds()) {
+        LINFO << "vendor overlay: kernel does not support overlayfs";
+        return false;
+    }
+
+    // Mount each directory in /system/vendor_overlay/<ver> on /vendor
+    auto ret = true;
+    for (const auto& vendor_overlay_dir : vendor_overlay_dirs) {
+        if (!fs_mgr_vendor_overlay_mount(overlay_top, vendor_overlay_dir)) {
+            ret = false;
+        }
+    }
+    return ret;
+}
diff --git a/fs_mgr/include/fs_mgr_overlayfs.h b/fs_mgr/include/fs_mgr_overlayfs.h
index 9182532..72202ab 100644
--- a/fs_mgr/include/fs_mgr_overlayfs.h
+++ b/fs_mgr/include/fs_mgr_overlayfs.h
@@ -30,3 +30,5 @@
                             bool* change = nullptr);
 bool fs_mgr_overlayfs_teardown(const char* mount_point = nullptr, bool* change = nullptr);
 bool fs_mgr_has_shared_blocks(const std::string& mount_point, const std::string& dev);
+std::string fs_mgr_get_context(const std::string& mount_point);
+bool fs_mgr_overlayfs_supports_override_creds();
diff --git a/fs_mgr/include/fs_mgr_vendor_overlay.h b/fs_mgr/include/fs_mgr_vendor_overlay.h
new file mode 100644
index 0000000..9771a0c
--- /dev/null
+++ b/fs_mgr/include/fs_mgr_vendor_overlay.h
@@ -0,0 +1,21 @@
+/*
+ * Copyright (C) 2018 The Android Open Source Project
+ *
+ * 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.
+ */
+
+#pragma once
+
+#include <fstab/fstab.h>
+
+bool fs_mgr_vendor_overlay_mount_all();
diff --git a/init/init.cpp b/init/init.cpp
index b12ba8c..90803f7 100644
--- a/init/init.cpp
+++ b/init/init.cpp
@@ -39,6 +39,7 @@
 #include <android-base/stringprintf.h>
 #include <android-base/strings.h>
 #include <cutils/android_reboot.h>
+#include <fs_mgr_vendor_overlay.h>
 #include <keyutils.h>
 #include <libavb/libavb.h>
 #include <selinux/android.h>
@@ -717,6 +718,7 @@
     InstallSignalFdHandler(&epoll);
 
     property_load_boot_defaults();
+    fs_mgr_vendor_overlay_mount_all();
     export_oem_lock_status();
     StartPropertyService(&epoll);
     set_usb_controller();