diff --git a/build.xml b/build.xml
index dc174b339b4..8af56e48344 100644
--- a/build.xml
+++ b/build.xml
@@ -61,6 +61,31 @@
         </java>
     </target>
 
+    <target name="compileTestlib" depends="jarRT">
+        <mkdir dir="${output}/classes/testlib"/>
+        <java classname="org.jetbrains.jet.cli.KotlinCompiler">
+            <classpath>
+              <path refid="classpath"/>
+              <pathelement location="${kotlin-home}/lib/kotlin-compiler.jar"/>
+<!--
+              <pathelement location="${kotlin-home}/lib/kotlin-runtime.jar"/>
+              <pathelement location="${basedir}/testlib/lib/junit-4.9.jar"/>
+              <fileset dir="${basedir}/testlib/lib">
+                <include name="**/*.jar"/>
+              </fileset>
+-->
+            </classpath>
+            <arg value="-stdlib"/>
+            <arg value="${kotlin-home}/lib/kotlin-runtime.jar"/>
+            <arg value="-src"/>
+            <arg value="${basedir}/testlib/test"/>
+            <arg value="-output"/>
+            <arg value="${output}/classes/testlib"/>
+            <arg value="-module"/>
+            <arg value="${basedir}/testlib/module.kt"/>
+        </java>
+    </target>
+
     <target name="compileJDKHeaders" depends="jar">
         <mkdir dir="${output}/classes/stdlib"/>
         <java classname="org.jetbrains.jet.cli.KotlinCompiler">
diff --git a/testlib/module.kt b/testlib/module.kt
new file mode 100644
index 00000000000..a93cdb2cfd4
--- /dev/null
+++ b/testlib/module.kt
@@ -0,0 +1,10 @@
+import kotlin.modules.*
+
+fun project() {
+    module("testlib") {
+        // TODO how to refer to the dir of the module?
+        classpath += "testlib/lib/junit-4.9.jar"
+
+        addSourceFiles("test")
+    }
+}
\ No newline at end of file