diff --git a/src/.config b/src/.config
index 7628b6da3..df73420c1 100644
--- a/src/.config
+++ b/src/.config
@@ -157,6 +157,11 @@ VIM_SOURCE_URL=https://github.com/vim/vim/archive/v8.0.1298.tar.gz
 #
 ZLIB_SOURCE_URL=http://zlib.net/zlib-1.2.11.tar.xz
 
+# You can find the latest dialog source bundles here:
+#
+#   http://invisible-island.net/dialog/
+#
+DIALOG_SOURCE_URL=ftp://ftp.invisible-island.net/dialog/dialog-1.3-20170509.tgz
 
 ####################################################
 #                                                  #
@@ -237,6 +242,7 @@ COPY_SOURCE_ISO=true
 # cf_cli     - CLoud Foundry CLI (command line interface).
 # coreutils  - set of commonly used GNU executable utilities.
 # dhcp       - DHCP and DNS functionality.
+# dialog     - shell scripting for ncurses
 # dropbear   - SSH server and client.
 # felix      - Apache Felix OSGi framework.
 # fio        - I/O load generator.
diff --git a/src/README b/src/README
index b63b32837..317230c0c 100644
--- a/src/README
+++ b/src/README
@@ -31,6 +31,10 @@ Currently available overlay bundles:
 
 * dhcp       - DHCP and DNS functionality to connect to the Internet.
 
+* dialog     - shell scripting library for ncurses
+
+               This overlay bundle requires ncurses
+
 * Dropbear   - SSH server/client. Requires ~1MB additional space. The build
                process creates user 'root' with password 'toor'. These are
                sample commands which demonstrate how to use Dropbear:
diff --git a/src/minimal_overlay/bundles/dialog/01_get.sh b/src/minimal_overlay/bundles/dialog/01_get.sh
new file mode 100755
index 000000000..b6f3e00e0
--- /dev/null
+++ b/src/minimal_overlay/bundles/dialog/01_get.sh
@@ -0,0 +1,40 @@
+#!/bin/sh
+
+SRC_DIR=$(pwd)
+
+. ../../common.sh
+
+# Grab everything after the '=' character.
+DOWNLOAD_URL=$(grep -i DIALOG_SOURCE_URL $MAIN_SRC_DIR/.config | cut -f2 -d'=')
+
+# Grab everything after the last '/' character.
+ARCHIVE_FILE=${DOWNLOAD_URL##*/}
+
+# Read the 'USE_LOCAL_SOURCE' property from '.config'
+USE_LOCAL_SOURCE="$(grep -i USE_LOCAL_SOURCE $MAIN_SRC_DIR/.config | cut -f2 -d'=')"
+
+if [ "$USE_LOCAL_SOURCE" = "true" -a ! -f $MAIN_SRC_DIR/source/overlay/$ARCHIVE_FILE  ] ; then
+  echo "Source bundle $MAIN_SRC_DIR/source/overlay/$ARCHIVE_FILE is missing and will be downloaded."
+  USE_LOCAL_SOURCE="false"
+fi
+
+cd $MAIN_SRC_DIR/source/overlay
+
+if [ ! "$USE_LOCAL_SOURCE" = "true" ] ; then
+  # Downloading dialog source bundle file. The '-c' option allows the download to resume.
+  echo "Downloading dialog source bundle from $DOWNLOAD_URL"
+  wget -c $DOWNLOAD_URL
+else
+  echo "Using local dialog source bundle $MAIN_SRC_DIR/source/overlay/$ARCHIVE_FILE"
+fi
+
+# Delete folder with previously extracted dialog.
+echo "Removing dialog work area. This may take a while..."
+rm -rf $WORK_DIR/overlay/dialog
+mkdir $WORK_DIR/overlay/dialog
+
+# Extract dialog to folder 'work/overlay/dialog'.
+# Full path will be something like 'work/overlay/dialog/dialog-1.3-20170509'.
+tar -xvf $ARCHIVE_FILE -C $WORK_DIR/overlay/dialog
+
+cd $SRC_DIR
diff --git a/src/minimal_overlay/bundles/dialog/02_build.sh b/src/minimal_overlay/bundles/dialog/02_build.sh
new file mode 100755
index 000000000..29fdb8f74
--- /dev/null
+++ b/src/minimal_overlay/bundles/dialog/02_build.sh
@@ -0,0 +1,40 @@
+#!/bin/bash
+
+SRC_DIR=$(pwd)
+
+. ../../common.sh
+
+cd $WORK_DIR/overlay/dialog
+
+DESTDIR="$PWD/dialog_installed"
+
+# Change to the dialog source directory which ls finds, e.g. 'dialog-1.3-20170509'.
+cd $(ls -d dialog-*)
+
+echo "Preparing dialog work area. This may take a while..."
+make -j $NUM_JOBS clean
+
+rm -rf $DESTDIR
+
+# Configure dialog
+echo "Configuring dialog..."
+CFLAGS="$CFLAGS" ./configure \
+    --prefix=/usr
+
+echo "Building dialog..."
+make -j $NUM_JOBS
+
+echo "Installing dialog..."
+make -j $NUM_JOBS install DESTDIR=$DESTDIR
+
+echo "Reducing dialog size..."
+strip -g $DESTDIR/usr/bin/*
+
+ROOTFS="$WORK_DIR/src/minimal_overlay/rootfs"
+
+cp -r $DESTDIR/usr/* $ROOTFS
+
+echo "dialog has been installed."
+
+cd $SRC_DIR
+
diff --git a/src/minimal_overlay/bundles/dialog/bundle.sh b/src/minimal_overlay/bundles/dialog/bundle.sh
new file mode 100755
index 000000000..3935ced35
--- /dev/null
+++ b/src/minimal_overlay/bundles/dialog/bundle.sh
@@ -0,0 +1,9 @@
+#!/bin/sh
+
+SRC_DIR=$(pwd)
+
+./01_get.sh
+./02_build.sh
+
+cd $SRC_DIR
+