diff --git a/reactos/Makefile b/reactos/Makefile
index 0d10a955f78..9afe433a400 100644
--- a/reactos/Makefile
+++ b/reactos/Makefile
@@ -58,7 +58,7 @@ DLLS_SHELLEXT = shellext
 DLLS = acledit aclui advapi32 advpack cabinet cards comctl32 crtdll comdlg32 d3d8thk dbghelp expat fmifs freetype \
 	gdi32 gdiplus glu32 hid imagehlp imm32 iphlpapi kernel32 lzexpand mesa32 midimap mmdrv mpr msacm msafd \
 	msgina msi msimg32 msvcrt20 msvideo mswsock netapi32 ntdll ole32 oleaut32 oledlg olepro32 opengl32 \
-	packet psapi riched20 richedit rpcrt4 samlib secur32 setupapi shell32 shlwapi snmpapi syssetup \
+	packet psapi riched20 richedit rpcrt4 samlib secur32 setupapi shell32 shlwapi smdll snmpapi syssetup \
 	twain unicode user32 userenv version wininet winmm winspool ws2help ws2_32 wsock32 wshirda dnsapi \
 	urlmon shdocvw dinput dinput8 dxdiagn devenum dsound $(DLLS_KBD) $(DLLS_CPL) $(DLLS_SHELLEXT)
 
diff --git a/reactos/bootdata/packages/reactos.dff b/reactos/bootdata/packages/reactos.dff
index 6cbb91acc1a..fd7b1b87f5c 100755
--- a/reactos/bootdata/packages/reactos.dff
+++ b/reactos/bootdata/packages/reactos.dff
@@ -116,6 +116,7 @@ lib\setupapi\setupapi.dll               1
 lib\shdocvw\shdocvw.dll                 1
 lib\shell32\shell32.dll                 1
 lib\shlwapi\shlwapi.dll                 1
+lib\smdll\smdll.dll                     1
 lib\syssetup\syssetup.dll               1
 lib\twain\twain_32.dll                  1
 lib\urlmon\urlmon.dll                   1
diff --git a/reactos/include/rosrtl/smapi.h b/reactos/include/sm/api.h
similarity index 94%
rename from reactos/include/rosrtl/smapi.h
rename to reactos/include/sm/api.h
index 8bb6a53db6e..797a14dc5ad 100644
--- a/reactos/include/rosrtl/smapi.h
+++ b/reactos/include/sm/api.h
@@ -1,6 +1,6 @@
 /* $Id$ */
-#ifndef __ROSRTL_SM_API_H
-#define __ROSRTL_SM_API_H
+#ifndef __SM_API_H
+#define __SM_API_H
 
 #define SM_API_PORT_NAME   L"\\SmApiPort"
 #define SM_DBGSS_PORT_NAME L"\\DbgSsApiPort"
@@ -69,4 +69,4 @@ typedef struct _SM_PORT_MESSAGE
 #define SM_PORT_MESSAGE_SIZE  (sizeof(SM_PORT_MESSAGE))
 
 
-#endif /* !def __ROSRTL_SM_API_H */
+#endif /* !def __SM_API_H */
diff --git a/reactos/include/rosrtl/smhelper.h b/reactos/include/sm/helper.h
similarity index 94%
rename from reactos/include/rosrtl/smhelper.h
rename to reactos/include/sm/helper.h
index d00bb3a824e..13ed8829041 100644
--- a/reactos/include/rosrtl/smhelper.h
+++ b/reactos/include/sm/helper.h
@@ -1,4 +1,4 @@
-#ifndef _ROSRTL_SM_HELPER_H
+#ifndef _SM_HELPER_H
 
 /*** DATA TYPES ******************************************************/
 
@@ -43,4 +43,4 @@ SmExecuteProgram (IN     HANDLE           hSmApiPort,
 		  IN     PUNICODE_STRING  Pgm
 		  );
 
-#endif /* ndef _ROSRTL_SM_HELPER_H */
+#endif /* ndef _SM_HELPER_H */
diff --git a/reactos/lib/rosrtl/makefile b/reactos/lib/rosrtl/makefile
index 659f0d05c02..6c0f6acbffc 100644
--- a/reactos/lib/rosrtl/makefile
+++ b/reactos/lib/rosrtl/makefile
@@ -33,12 +33,6 @@ FILE_OBJECTS = \
  file/sparse.o \
  file/path.o
 
-SM_OBJECTS = \
- sm/compses.o \
- sm/connect.o \
- sm/execpgm.o \
- sm/testapi.o
-
 RECMUTEX_OBJECTS = recmutex/recmutex.o
 
 include $(PATH_TO_TOP)/config
@@ -52,8 +46,7 @@ TARGET_NAME = rosrtl
 TARGET_CFLAGS = -D__USE_W32API -Wall -Werror
 
 TARGET_OBJECTS = $(THREAD_OBJECTS) $(MISC_OBJECTS) $(STRING_OBJECTS) \
-		 $(REGISTRY_OBJECTS) $(FILE_OBJECTS) $(RECMUTEX_OBJECTS) \
-		 $(SM_OBJECTS)
+		 $(REGISTRY_OBJECTS) $(FILE_OBJECTS) $(RECMUTEX_OBJECTS)
 
 DEP_OBJECTS = $(TARGET_OBJECTS)
 
diff --git a/reactos/lib/rosrtl/sm/compses.c b/reactos/lib/smdll/compses.c
similarity index 95%
rename from reactos/lib/rosrtl/sm/compses.c
rename to reactos/lib/smdll/compses.c
index 96524fecae7..cc29d4e3507 100644
--- a/reactos/lib/rosrtl/sm/compses.c
+++ b/reactos/lib/smdll/compses.c
@@ -7,8 +7,8 @@
  */
 #define NTOS_MODE_USER
 #include <ntos.h>
-#include <rosrtl/smapi.h>
-#include <rosrtl/smhelper.h>
+#include <sm/api.h>
+#include <sm/helper.h>
 
 NTSTATUS STDCALL
 SmCompleteSession (HANDLE hSmApiPort, HANDLE hSbApiPort, HANDLE hApiPort)
diff --git a/reactos/lib/rosrtl/sm/connect.c b/reactos/lib/smdll/connect.c
similarity index 97%
rename from reactos/lib/rosrtl/sm/connect.c
rename to reactos/lib/smdll/connect.c
index 2dded98bb9f..24fbca2d138 100644
--- a/reactos/lib/rosrtl/sm/connect.c
+++ b/reactos/lib/smdll/connect.c
@@ -7,8 +7,8 @@
  */
 #define NTOS_MODE_USER
 #include <ntos.h>
-#include <rosrtl/smapi.h>
-#include <rosrtl/smhelper.h>
+#include <sm/api.h>
+#include <sm/helper.h>
 #include <pe.h>
 
 /**********************************************************************
diff --git a/reactos/lib/smdll/dllmain.c b/reactos/lib/smdll/dllmain.c
new file mode 100644
index 00000000000..10beccdaedc
--- /dev/null
+++ b/reactos/lib/smdll/dllmain.c
@@ -0,0 +1,17 @@
+/* $Id$
+ *
+ * COPYRIGHT:       See COPYING in the top level directory
+ * PROJECT:         ReactOS
+ * FILE:            lib/smdll/dllmain.c
+ * PURPOSE:         SM Helper Library
+ */
+
+#define NTOS_MODE_USER
+#include <ntos.h>
+
+BOOL STDCALL DllMain(HANDLE hinstDll, DWORD fdwReason, LPVOID fImpLoad)
+{
+  return TRUE;
+}
+
+/* EOF */
diff --git a/reactos/lib/rosrtl/sm/execpgm.c b/reactos/lib/smdll/execpgm.c
similarity index 95%
rename from reactos/lib/rosrtl/sm/execpgm.c
rename to reactos/lib/smdll/execpgm.c
index 5af3a228f97..f9a523b8fd2 100644
--- a/reactos/lib/rosrtl/sm/execpgm.c
+++ b/reactos/lib/smdll/execpgm.c
@@ -7,8 +7,8 @@
  */
 #define NTOS_MODE_USER
 #include <ntos.h>
-#include <rosrtl/smapi.h>
-#include <rosrtl/smhelper.h>
+#include <sm/api.h>
+#include <sm/helper.h>
 #include <string.h>
 
 NTSTATUS STDCALL
diff --git a/reactos/lib/smdll/makefile b/reactos/lib/smdll/makefile
new file mode 100644
index 00000000000..3275d1b26ee
--- /dev/null
+++ b/reactos/lib/smdll/makefile
@@ -0,0 +1,34 @@
+# $Id$
+
+PATH_TO_TOP = ../..
+
+TARGET_TYPE = dynlink
+
+TARGET_NAME = smdll
+
+TARGET_SDKLIBS = ntdll.a
+
+TARGET_CFLAGS = -I./include -Wall -Werror
+
+# require os code to explicitly request A/W version of structs/functions
+TARGET_CFLAGS += -D_DISABLE_TIDENTS
+
+TARGET_LFLAGS = -nostartfiles -nostdlib
+
+#TARGET_BASE =
+
+TARGET_OBJECTS = \
+	dllmain.o \
+	connect.o \
+	execpgm.o \
+	compses.o
+	
+DEP_OBJECTS = $(TARGET_OBJECTS)
+
+include $(PATH_TO_TOP)/rules.mak
+
+include $(TOOLS_PATH)/helper.mk
+
+include $(TOOLS_PATH)/depend.mk
+
+# EOF
diff --git a/reactos/lib/rosrtl/sm/readme.txt b/reactos/lib/smdll/readme.txt
similarity index 86%
rename from reactos/lib/rosrtl/sm/readme.txt
rename to reactos/lib/smdll/readme.txt
index 8be90087388..71261e83fa6 100644
--- a/reactos/lib/rosrtl/sm/readme.txt
+++ b/reactos/lib/smdll/readme.txt
@@ -1,6 +1,6 @@
 $Id$
 
-This is a helper library to talk to the ReactOS session manager (SM).
+This is SMDLL: a helper library to talk to the ReactOS session manager (SM).
 
 It should be linked in the following components:
 
diff --git a/reactos/lib/smdll/smdll.def b/reactos/lib/smdll/smdll.def
new file mode 100644
index 00000000000..0822d1a05bc
--- /dev/null
+++ b/reactos/lib/smdll/smdll.def
@@ -0,0 +1,5 @@
+LIBRARY SMDLL.DLL
+EXPORTS
+SmCompleteSession@12
+SmConnectApiPort@16
+SmExecPgm@8
\ No newline at end of file
diff --git a/reactos/lib/smdll/smdll.rc b/reactos/lib/smdll/smdll.rc
new file mode 100644
index 00000000000..4195671e0b1
--- /dev/null
+++ b/reactos/lib/smdll/smdll.rc
@@ -0,0 +1,4 @@
+#define REACTOS_STR_FILE_DESCRIPTION	"ReactOS SM Helper\0"
+#define REACTOS_STR_INTERNAL_NAME	"smdll.dll\0"
+#define REACTOS_STR_ORIGINAL_FILENAME	"smdll.dll\0"
+#include <reactos/version.rc>
diff --git a/reactos/lib/rosrtl/sm/testapi.c b/reactos/lib/smdll/testapi.c
similarity index 96%
rename from reactos/lib/rosrtl/sm/testapi.c
rename to reactos/lib/smdll/testapi.c
index 13b9f8e8a07..cfb8b453dfd 100644
--- a/reactos/lib/rosrtl/sm/testapi.c
+++ b/reactos/lib/smdll/testapi.c
@@ -1,7 +1,7 @@
 /* $Id$ */
 #define NTOS_MODE_USER
 #include <ntos.h>
-#include <rosrtl/smapi.h>
+#include <sm/api.h>
 
 VOID STDCALL SmPrintPortMessage (PSM_PORT_MESSAGE SmMessage)
 {