diff --git a/data/resources/image/BitmapResources/BitmapResources.res b/data/resources/image/BitmapResources/BitmapResources.res
index c709a83ec5..be7a7add3e 100644
--- a/data/resources/image/BitmapResources/BitmapResources.res
+++ b/data/resources/image/BitmapResources/BitmapResources.res
@@ -502,3 +502,4 @@ Python.Template.EmptyFile                              = backendicons\Python\Pyt
 Python.Template.Form                                   = backendicons\Python\Python.Template.Form.png
 Python.Template.ConsoleProject                         = backendicons\Python\Python.Template.ConsoleProject.png
 Python.Template.WinFormsProject                        = backendicons\Python\Python.Template.WinFormsProject.png
+Python.Template.LibraryProject                         = backendicons\Python\Python.Template.LibraryProject.png
diff --git a/data/resources/image/BitmapResources/backendicons/Python/Python.Template.LibraryProject.png b/data/resources/image/BitmapResources/backendicons/Python/Python.Template.LibraryProject.png
new file mode 100644
index 0000000000..af6bc15866
Binary files /dev/null and b/data/resources/image/BitmapResources/backendicons/Python/Python.Template.LibraryProject.png differ
diff --git a/src/AddIns/BackendBindings/Python/PythonBinding/Project/PythonBinding.csproj b/src/AddIns/BackendBindings/Python/PythonBinding/Project/PythonBinding.csproj
index bf51f60391..45db66fe29 100644
--- a/src/AddIns/BackendBindings/Python/PythonBinding/Project/PythonBinding.csproj
+++ b/src/AddIns/BackendBindings/Python/PythonBinding/Project/PythonBinding.csproj
@@ -136,6 +136,9 @@
     <None Include="Templates\FormsProject.xpt">
       <CopyToOutputDirectory>Always</CopyToOutputDirectory>
     </None>
+    <None Include="Templates\LibraryProject.xpt">
+      <CopyToOutputDirectory>Always</CopyToOutputDirectory>
+    </None>
     <EmbeddedResource Include="Resources\Python.xshd" />
   </ItemGroup>
   <ItemGroup>
diff --git a/src/AddIns/BackendBindings/Python/PythonBinding/Project/Templates/LibraryProject.xpt b/src/AddIns/BackendBindings/Python/PythonBinding/Project/Templates/LibraryProject.xpt
new file mode 100644
index 0000000000..d18a8bf695
--- /dev/null
+++ b/src/AddIns/BackendBindings/Python/PythonBinding/Project/Templates/LibraryProject.xpt
@@ -0,0 +1,38 @@
+<?xml version="1.0"?>
+<Template originator="Matt Ward">
+	<TemplateConfiguration>
+		<Name>${res:Templates.Project.ClassLibrary.Name}</Name>
+		<Category>Python</Category>
+		<Icon>Python.Template.LibraryProject</Icon>
+		<Description>${res:Templates.Project.ClassLibrary.Description}</Description>
+	</TemplateConfiguration>
+	
+	<!-- Actions -->
+	<Actions>
+		<Open filename="MyClass.py"/>
+	</Actions>
+	
+	<!-- Template Content -->
+	<Project language="Python">
+		<PropertyGroup>
+			<OutputType>Library</OutputType>
+			<DebugInfo>True</DebugInfo>
+		</PropertyGroup>
+		
+		<ProjectItems>
+			<Reference Include="mscorlib"/>
+			<Reference Include="System"/>
+			<Reference Include="System.Data"/>
+			<Reference Include="System.Xml"/>
+			<Reference Include="$(PythonBinPath)\IronPython.dll"/>
+		</ProjectItems>
+		
+		<Files>
+			<File name="MyClass.py"><![CDATA[
+class MyClass:
+	def __init__(self):
+		pass
+]]></File>
+		</Files>
+	</Project>
+</Template>
diff --git a/src/Main/StartUp/Project/Resources/BitmapResources.resources b/src/Main/StartUp/Project/Resources/BitmapResources.resources
index 1c21556dc7..cb3727cac4 100644
Binary files a/src/Main/StartUp/Project/Resources/BitmapResources.resources and b/src/Main/StartUp/Project/Resources/BitmapResources.resources differ
diff --git a/src/Setup/Files.wxs b/src/Setup/Files.wxs
index 1f310bd616..160b89202c 100644
--- a/src/Setup/Files.wxs
+++ b/src/Setup/Files.wxs
@@ -1297,6 +1297,9 @@
 											<Component Guid="C077D46F-D6EF-4187-9715-3EAD8A43A1EC" Id="PythonFormsProjectTemplate" DiskId="1">
 												<File Source="..\..\AddIns\AddIns\BackendBindings\PythonBinding\Templates\FormsProject.xpt" Id="Templates.FormsProject.xpt" Name="FormsProject.xpt" KeyPath="yes" />
 											</Component>
+											<Component Guid="6AE9C385-3B6A-4DD6-9CB9-92EDEEEF3FCF" Id="PythonLibraryProjectTemplate" DiskId="1">
+												<File Source="..\..\AddIns\AddIns\BackendBindings\PythonBinding\Templates\LibraryProject.xpt" Id="Templates.LibraryProject.xpt" Name="LibraryProject.xpt" KeyPath="yes" />
+											</Component>
 										</Directory>
 										<Component Guid="DE04B306-0C6D-434C-A6DC-6F450AAFB108" Id="IronPythonModulesDll" DiskId="1">
 											<File Source="..\..\AddIns\AddIns\BackendBindings\PythonBinding\IronPython.Modules.dll" Name="IronPython.Modules.dll" Id="IronPython.Modules.dll" KeyPath="yes" Assembly=".net" AssemblyApplication="IronPython.Modules.dll" AssemblyManifest="IronPython.Modules.dll" />
diff --git a/src/Setup/Setup.wxs b/src/Setup/Setup.wxs
index ecac10754f..a6d35944ff 100644
--- a/src/Setup/Setup.wxs
+++ b/src/Setup/Setup.wxs
@@ -413,6 +413,7 @@
 				<ComponentRef Id="PythonEmptyUserControlTemplate"/>	
 				<ComponentRef Id="PythonEmptyFileTemplate"/>	
 				<ComponentRef Id="PythonFormsProjectTemplate"/>	
+				<ComponentRef Id="PythonLibraryProjectTemplate"/>	
 				<ComponentRef Id="IpyExe"/>	
 				<ComponentRef Id="IronPythonModulesDll"/>	
 				<ComponentRef Id="IronPythonDll"/>