diff --git a/src/.config b/src/.config
index 9d729c418..40c8920e7 100644
--- a/src/.config
+++ b/src/.config
@@ -67,6 +67,13 @@ FELIX_SOURCE_URL=http://www-us.apache.org/dist/felix/org.apache.felix.main.distr
 #JAVA_ARCHIVE=/absolute/path/to/java.archive.tar.gz
 #JAVA_ARCHIVE=/home/ivan/Downloads/jdk-8u111-linux-x64.tar.gz
 
+# You can find the latest Lua source bundes here:
+#
+#   https://www.lua.org/ftp/
+#
+LUA_SOURCE_URL=https://www.lua.org/ftp/lua-5.3.4.tar.gz
+
+
 
 
 ####################################################
@@ -150,10 +157,11 @@ COPY_SOURCE_ISO=true
 # java       - installs Oracle's JRE or JDK. Manual preparations are required.
 # felix      - Apache Felix OSGi framework.
 # mll_utils  - set of executable utilities (mll-*).
+# lua        - scripting language
 #
 # Refer to the README file for more information.
 #
-#OVERLAY_BUNDLES=glibc_full,links,dropbear,java,felix,mll_utils
+#OVERLAY_BUNDLES=glibc_full,links,dropbear,java,felix,mll_utils,lua
 #OVERLAY_BUNDLES=mll_utils
 
 # This property enables the standard penguin boot logo in the upper left corner
diff --git a/src/README b/src/README
index 80a8d0930..f0f32fbf8 100644
--- a/src/README
+++ b/src/README
@@ -50,7 +50,7 @@ Currently available overlay bundles:
                This overlay bundle requires GLIBC.
 
 * Felix OSGi - Apache Felix OSGi framework. Requires ~2MB additional space. Use
-               the "felix-start" command to run the Apache Felix OSGi framework. 
+               the "felix-start" command to run the Apache Felix OSGi framework.
 
                This overlay bundle requires JRE or JDK.
 
@@ -60,6 +60,9 @@ Currently available overlay bundles:
                This overlay bundle is currently experimental and its build
                process depends on the host machine.
 
+* Lua        - The Lua Scripting Language 5.3. Requires ~ 800kb additional
+               space. Use the "lua" command to run an interactive lua interpreter
+
 ###   ###   ###
 
 I only provide the build scripts. It's entirely up to you to configure and
@@ -72,4 +75,3 @@ The build proces is slow, so be prepared to wait. In the end you should have
 the ISO image file "minimal_linux_live.iso" in the same folder where you
 started the build process. You can burn the ISO image on CD/DVD or (better) run
 it with PC emulator like QEMU or VirtualBox.
-
diff --git a/src/minimal_overlay/bundles/lua/01_get.sh b/src/minimal_overlay/bundles/lua/01_get.sh
new file mode 100755
index 000000000..1891f4c2f
--- /dev/null
+++ b/src/minimal_overlay/bundles/lua/01_get.sh
@@ -0,0 +1,43 @@
+#!/bin/sh
+
+SRC_DIR=$(pwd)
+
+# Find the main source directory
+cd ../../..
+MAIN_SRC_DIR=$(pwd)
+cd $SRC_DIR
+
+# Grab everything after the '=' character.
+DOWNLOAD_URL=$(grep -i LUA_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 the Lua bundle file. The '-c' option allows the download to resume.
+  echo "Downloading the Lua source bundle from $DOWNLOAD_URL"
+  wget -c $DOWNLOAD_URL
+else
+  echo "Using local Lua source bundle $MAIN_SRC_DIR/source/overlay/$ARCHIVE_FILE"
+fi
+
+# Delete folder with previously extracted Lua.
+echo "Removing Lua work area. This may take a while..."
+rm -rf ../../work/overlay/lua
+mkdir ../../work/overlay/lua
+
+# Extract lua to folder 'work/overlay/lua'.
+# Full path will be something like 'work/overlay/lua/lua-5.3.4'.
+tar -xvf $ARCHIVE_FILE -C ../../work/overlay/lua
+
+cd $SRC_DIR
diff --git a/src/minimal_overlay/bundles/lua/02_build.sh b/src/minimal_overlay/bundles/lua/02_build.sh
new file mode 100755
index 000000000..9169d6a43
--- /dev/null
+++ b/src/minimal_overlay/bundles/lua/02_build.sh
@@ -0,0 +1,46 @@
+#!/bin/sh
+
+# TODO: compile the gnu readline library for line editing support
+
+SRC_DIR=$(pwd)
+
+# Find the main source directory
+cd ../../..
+MAIN_SRC_DIR=$(pwd)
+cd $SRC_DIR
+
+# Read the 'JOB_FACTOR' property from '.config'
+JOB_FACTOR="$(grep -i ^JOB_FACTOR $MAIN_SRC_DIR/.config | cut -f2 -d'=')"
+
+# Read the 'CFLAGS' property from '.config'
+CFLAGS="$(grep -i ^CFLAGS $MAIN_SRC_DIR/.config | cut -f2 -d'=')"
+
+# Find the number of available CPU cores.
+NUM_CORES=$(grep ^processor /proc/cpuinfo | wc -l)
+
+# Calculate the number of 'make' jobs to be used later.
+NUM_JOBS=$((NUM_CORES * JOB_FACTOR))
+
+cd $MAIN_SRC_DIR/work/overlay/lua
+
+# Change to the Lua source directory which ls finds, e.g. 'lua-5.3.4'.
+cd $(ls -d lua-*)
+
+echo "Preparing Lua work area. This may take a while..."
+make clean -j $NUM_JOBS 2>/dev/null
+rm -rf ../lua_installed
+
+echo "Building Lua..."
+make posix -j $NUM_JOBS CFLAGS="$CFLAGS --sysroot=$MAIN_SRC_DIR/work/glibc/glibc_prepared/"
+
+make install -j $NUM_JOBS INSTALL_TOP=../../lua_installed/usr
+
+echo "Reducing Lua size..."
+strip -g ../lua_installed/bin/* 2>/dev/null
+
+mkdir -p $MAIN_SRC_DIR/work/src/minimal_overlay/rootfs/usr/
+cp -r ../lua_installed/usr/* $MAIN_SRC_DIR/work/src/minimal_overlay/rootfs/usr
+
+echo "Lua has been installed."
+
+cd $SRC_DIR
diff --git a/src/minimal_overlay/bundles/lua/bundle.sh b/src/minimal_overlay/bundles/lua/bundle.sh
new file mode 100755
index 000000000..143589c27
--- /dev/null
+++ b/src/minimal_overlay/bundles/lua/bundle.sh
@@ -0,0 +1,8 @@
+#!/bin/sh
+
+SRC_DIR=$(pwd)
+
+time sh 01_get.sh
+time sh 02_build.sh
+
+cd $SRC_DIR