diff --git a/cc3200/application.mk b/cc3200/application.mk
index b15dbde7f6..5d25424e15 100644
--- a/cc3200/application.mk
+++ b/cc3200/application.mk
@@ -18,9 +18,6 @@ APP_INC += -Iutil
 APP_INC += -Ibootmgr
 APP_INC += -I$(BUILD)
 APP_INC += -I$(BUILD)/genhdr
-APP_INC += -I../lib/mp-readline
-APP_INC += -I../lib/netutils
-APP_INC += -I../lib/timeutils
 APP_INC += -I../stmhal
 
 APP_CPPDEFINES = -Dgcc -DTARGET_IS_CC3200 -DSL_FULL -DUSE_FREERTOS
diff --git a/cc3200/ftp/ftp.c b/cc3200/ftp/ftp.c
index 22035d6b3b..1febe291f9 100644
--- a/cc3200/ftp/ftp.c
+++ b/cc3200/ftp/ftp.c
@@ -29,6 +29,7 @@
 
 #include "py/mpstate.h"
 #include "py/obj.h"
+#include "lib/timeutils/timeutils.h"
 #include "lib/oofatfs/ff.h"
 #include "extmod/vfs.h"
 #include "extmod/vfs_fat.h"
@@ -48,7 +49,6 @@
 #include "fifo.h"
 #include "socketfifo.h"
 #include "updater.h"
-#include "timeutils.h"
 #include "moduos.h"
 
 /******************************************************************************
diff --git a/cc3200/mods/moduos.c b/cc3200/mods/moduos.c
index 5523c887f2..add10ec6c8 100644
--- a/cc3200/mods/moduos.c
+++ b/cc3200/mods/moduos.c
@@ -33,6 +33,7 @@
 #include "py/objtuple.h"
 #include "py/objstr.h"
 #include "py/runtime.h"
+#include "lib/timeutils/timeutils.h"
 #include "lib/oofatfs/ff.h"
 #include "lib/oofatfs/diskio.h"
 #include "genhdr/mpversion.h"
@@ -43,7 +44,6 @@
 #include "random.h"
 #include "mpexception.h"
 #include "version.h"
-#include "timeutils.h"
 #include "pybsd.h"
 #include "pybuart.h"
 
diff --git a/cc3200/mods/modusocket.c b/cc3200/mods/modusocket.c
index 4e2da67372..ca28bf7ba9 100644
--- a/cc3200/mods/modusocket.c
+++ b/cc3200/mods/modusocket.c
@@ -34,7 +34,7 @@
 #include "py/objstr.h"
 #include "py/runtime.h"
 #include "py/stream.h"
-#include "netutils.h"
+#include "lib/netutils/netutils.h"
 #include "modnetwork.h"
 #include "modusocket.h"
 #include "mpexception.h"
diff --git a/cc3200/mods/modutime.c b/cc3200/mods/modutime.c
index 8e3c71402a..48fde67e7e 100644
--- a/cc3200/mods/modutime.c
+++ b/cc3200/mods/modutime.c
@@ -33,8 +33,8 @@
 #include "py/obj.h"
 #include "py/smallint.h"
 #include "py/mphal.h"
+#include "lib/timeutils/timeutils.h"
 #include "extmod/utime_mphal.h"
-#include "timeutils.h"
 #include "inc/hw_types.h"
 #include "inc/hw_ints.h"
 #include "inc/hw_memmap.h"
diff --git a/cc3200/mods/pybrtc.c b/cc3200/mods/pybrtc.c
index 13d7a49cba..134bd440e7 100644
--- a/cc3200/mods/pybrtc.c
+++ b/cc3200/mods/pybrtc.c
@@ -29,6 +29,7 @@
 #include "py/obj.h"
 #include "py/runtime.h"
 #include "py/mperrno.h"
+#include "lib/timeutils/timeutils.h"
 #include "inc/hw_types.h"
 #include "inc/hw_ints.h"
 #include "inc/hw_memmap.h"
@@ -37,7 +38,6 @@
 #include "pybrtc.h"
 #include "mpirq.h"
 #include "pybsleep.h"
-#include "timeutils.h"
 #include "simplelink.h"
 #include "modnetwork.h"
 #include "modwlan.h"
diff --git a/cc3200/mptask.c b/cc3200/mptask.c
index 3c49a56035..d446711a29 100644
--- a/cc3200/mptask.c
+++ b/cc3200/mptask.c
@@ -33,6 +33,7 @@
 #include "py/runtime.h"
 #include "py/gc.h"
 #include "py/mphal.h"
+#include "lib/mp-readline/readline.h"
 #include "lib/oofatfs/ff.h"
 #include "lib/oofatfs/diskio.h"
 #include "extmod/vfs.h"
@@ -51,7 +52,6 @@
 #include "lib/utils/pyexec.h"
 #include "gccollect.h"
 #include "gchelper.h"
-#include "readline.h"
 #include "mperror.h"
 #include "simplelink.h"
 #include "modnetwork.h"
diff --git a/esp8266/Makefile b/esp8266/Makefile
index 28dbf08a64..a3da9d3986 100644
--- a/esp8266/Makefile
+++ b/esp8266/Makefile
@@ -25,9 +25,6 @@ ESP_SDK = $(shell $(CC) -print-sysroot)/usr
 INC += -I.
 INC += -I..
 INC += -I../stmhal
-INC += -I../lib/mp-readline
-INC += -I../lib/netutils
-INC += -I../lib/timeutils
 INC += -I$(BUILD)
 INC += -I$(ESP_SDK)/include
 
diff --git a/esp8266/fatfs_port.c b/esp8266/fatfs_port.c
index 20c3235d4d..02384f6055 100644
--- a/esp8266/fatfs_port.c
+++ b/esp8266/fatfs_port.c
@@ -25,8 +25,8 @@
  */
 
 #include "py/obj.h"
+#include "lib/timeutils/timeutils.h"
 #include "lib/oofatfs/ff.h"
-#include "timeutils.h"
 #include "modmachine.h"
 
 DWORD get_fattime(void) {
diff --git a/esp8266/machine_rtc.c b/esp8266/machine_rtc.c
index 8c1fe0779c..019b705ba2 100644
--- a/esp8266/machine_rtc.c
+++ b/esp8266/machine_rtc.c
@@ -30,7 +30,7 @@
 #include "py/nlr.h"
 #include "py/obj.h"
 #include "py/runtime.h"
-#include "timeutils.h"
+#include "lib/timeutils/timeutils.h"
 #include "user_interface.h"
 #include "modmachine.h"
 
diff --git a/esp8266/modnetwork.c b/esp8266/modnetwork.c
index 762717b354..627655b369 100644
--- a/esp8266/modnetwork.c
+++ b/esp8266/modnetwork.c
@@ -32,7 +32,7 @@
 #include "py/objlist.h"
 #include "py/runtime.h"
 #include "py/mphal.h"
-#include "netutils.h"
+#include "lib/netutils/netutils.h"
 #include "queue.h"
 #include "user_interface.h"
 #include "espconn.h"
diff --git a/esp8266/modutime.c b/esp8266/modutime.c
index 117720e6f6..bdeb3bb453 100644
--- a/esp8266/modutime.c
+++ b/esp8266/modutime.c
@@ -34,8 +34,8 @@
 #include "py/runtime.h"
 #include "py/mphal.h"
 #include "py/smallint.h"
+#include "lib/timeutils/timeutils.h"
 #include "modmachine.h"
-#include "timeutils.h"
 #include "user_interface.h"
 #include "extmod/utime_mphal.h"
 
diff --git a/examples/embedding/Makefile.upylib b/examples/embedding/Makefile.upylib
index 8b506e95e7..873c0fd344 100644
--- a/examples/embedding/Makefile.upylib
+++ b/examples/embedding/Makefile.upylib
@@ -14,7 +14,6 @@ INC +=  -I.
 INC +=  -I..
 INC +=  -I$(MPTOP)
 INC +=  -I$(MPTOP)/unix
-#INC += -I../lib/timeutils
 INC += -I$(BUILD)
 
 # compiler settings
diff --git a/extmod/modlwip.c b/extmod/modlwip.c
index 5709413de8..fffabb98ae 100644
--- a/extmod/modlwip.c
+++ b/extmod/modlwip.c
@@ -36,7 +36,7 @@
 #include "py/mperrno.h"
 #include "py/mphal.h"
 
-#include "netutils.h"
+#include "lib/netutils/netutils.h"
 
 #include "lwip/init.h"
 #include "lwip/timers.h"
diff --git a/lib/mp-readline/readline.c b/lib/mp-readline/readline.c
index cbb99cc94c..4b98751367 100644
--- a/lib/mp-readline/readline.c
+++ b/lib/mp-readline/readline.c
@@ -31,7 +31,7 @@
 #include "py/mpstate.h"
 #include "py/repl.h"
 #include "py/mphal.h"
-#include "readline.h"
+#include "lib/mp-readline/readline.h"
 
 #if 0 // print debugging info
 #define DEBUG_PRINT (1)
diff --git a/lib/netutils/netutils.c b/lib/netutils/netutils.c
index 3a4c600dca..a2ea31cf38 100644
--- a/lib/netutils/netutils.c
+++ b/lib/netutils/netutils.c
@@ -31,7 +31,7 @@
 
 #include "py/obj.h"
 #include "py/nlr.h"
-#include "netutils.h"
+#include "lib/netutils/netutils.h"
 
 // Takes an array with a raw IPv4 address and returns something like '192.168.0.1'.
 mp_obj_t netutils_format_ipv4_addr(uint8_t *ip, netutils_endian_t endian) {
diff --git a/lib/timeutils/timeutils.c b/lib/timeutils/timeutils.c
index 19d3ddbdd3..0af39a2958 100644
--- a/lib/timeutils/timeutils.c
+++ b/lib/timeutils/timeutils.c
@@ -27,7 +27,7 @@
 
 #include "py/obj.h"
 
-#include "timeutils.h"
+#include "lib/timeutils/timeutils.h"
 
 // LEAPOCH corresponds to 2000-03-01, which is a mod-400 year, immediately
 // after Feb 29. We calculate seconds as a signed integer relative to that.
diff --git a/minimal/Makefile b/minimal/Makefile
index 3b446beae7..d615157970 100644
--- a/minimal/Makefile
+++ b/minimal/Makefile
@@ -14,7 +14,6 @@ endif
 
 INC += -I.
 INC += -I..
-INC += -I../lib/mp-readline
 INC += -I../stmhal
 INC += -I$(BUILD)
 
diff --git a/pic16bit/Makefile b/pic16bit/Makefile
index add9a8495c..8c0c1c999e 100644
--- a/pic16bit/Makefile
+++ b/pic16bit/Makefile
@@ -14,7 +14,6 @@ PART = 33FJ256GP506
 
 INC += -I.
 INC += -I..
-INC += -I../lib/mp-readline
 INC += -I../stmhal
 INC += -I$(BUILD)
 INC += -I$(XC16)/include
diff --git a/pic16bit/main.c b/pic16bit/main.c
index f2a9debab1..7de790069b 100644
--- a/pic16bit/main.c
+++ b/pic16bit/main.c
@@ -35,7 +35,7 @@
 #include "py/mphal.h"
 #include "py/mperrno.h"
 #include "lib/utils/pyexec.h"
-#include "readline.h"
+#include "lib/mp-readline/readline.h"
 #include "board.h"
 #include "modpyb.h"
 
diff --git a/py/py.mk b/py/py.mk
index 37bb5d023e..5ff1fd6a6c 100644
--- a/py/py.mk
+++ b/py/py.mk
@@ -16,9 +16,6 @@ endif
 # some code is performance bottleneck and compiled with other optimization options
 CSUPEROPT = -O3
 
-INC += -I../lib
-INC += -I../lib/netutils
-
 # this sets the config file for FatFs
 CFLAGS_MOD += -DFFCONF_H=\"lib/oofatfs/ffconf.h\"
 
diff --git a/stmhal/Makefile b/stmhal/Makefile
index 51aa07f3c9..09643be94a 100644
--- a/stmhal/Makefile
+++ b/stmhal/Makefile
@@ -47,9 +47,6 @@ INC += -I$(CMSIS_DIR)/
 INC += -I$(HAL_DIR)/inc
 INC += -I$(USBDEV_DIR)/core/inc -I$(USBDEV_DIR)/class/inc
 #INC += -I$(USBHOST_DIR)
-INC += -I../lib/mp-readline
-INC += -I../lib/netutils
-INC += -I../lib/timeutils
 
 CFLAGS_CORTEX_M = -mthumb -mfpu=fpv4-sp-d16 -mfloat-abi=hard -fsingle-precision-constant -Wdouble-promotion
 CFLAGS_MCU_f4 = $(CFLAGS_CORTEX_M) -mtune=cortex-m4 -mcpu=cortex-m4 -DMCU_SERIES_F4
diff --git a/stmhal/input.c b/stmhal/input.c
index 07e7ba35ca..c78525cc91 100644
--- a/stmhal/input.c
+++ b/stmhal/input.c
@@ -26,7 +26,7 @@
 
 #include "py/nlr.h"
 #include "py/obj.h"
-#include "readline.h"
+#include "lib/mp-readline/readline.h"
 
 STATIC mp_obj_t mp_builtin_input(uint n_args, const mp_obj_t *args) {
     if (n_args == 1) {
diff --git a/stmhal/main.c b/stmhal/main.c
index 8d076a08b1..566c2db07f 100644
--- a/stmhal/main.c
+++ b/stmhal/main.c
@@ -31,6 +31,7 @@
 #include "py/stackctrl.h"
 #include "py/gc.h"
 #include "py/mphal.h"
+#include "lib/mp-readline/readline.h"
 #include "lib/utils/pyexec.h"
 #include "lib/oofatfs/ff.h"
 #include "extmod/vfs.h"
@@ -40,7 +41,6 @@
 #include "pendsv.h"
 #include "pybthread.h"
 #include "gccollect.h"
-#include "readline.h"
 #include "modmachine.h"
 #include "i2c.h"
 #include "spi.h"
diff --git a/stmhal/modnwcc3k.c b/stmhal/modnwcc3k.c
index ae403cacd6..26c6cd48c6 100644
--- a/stmhal/modnwcc3k.c
+++ b/stmhal/modnwcc3k.c
@@ -37,7 +37,7 @@
 #include "py/runtime.h"
 #include "py/mperrno.h"
 #include "py/mphal.h"
-#include "netutils.h"
+#include "lib/netutils/netutils.h"
 #include "modnetwork.h"
 #include "pin.h"
 #include "genhdr/pins.h"
diff --git a/stmhal/modnwwiznet5k.c b/stmhal/modnwwiznet5k.c
index e3d5c6370c..b32f169138 100644
--- a/stmhal/modnwwiznet5k.c
+++ b/stmhal/modnwwiznet5k.c
@@ -33,7 +33,7 @@
 #include "py/runtime.h"
 #include "py/mperrno.h"
 #include "py/mphal.h"
-#include "netutils.h"
+#include "lib/netutils/netutils.h"
 #include "modnetwork.h"
 #include "pin.h"
 #include "genhdr/pins.h"
diff --git a/stmhal/moduos.c b/stmhal/moduos.c
index 0af682612e..745c0d5d7a 100644
--- a/stmhal/moduos.c
+++ b/stmhal/moduos.c
@@ -31,12 +31,12 @@
 #include "py/runtime.h"
 #include "py/objtuple.h"
 #include "py/objstr.h"
+#include "lib/timeutils/timeutils.h"
 #include "lib/oofatfs/ff.h"
 #include "lib/oofatfs/diskio.h"
 #include "extmod/vfs.h"
 #include "extmod/vfs_fat.h"
 #include "genhdr/mpversion.h"
-#include "timeutils.h"
 #include "rng.h"
 #include "uart.h"
 #include "portmodules.h"
diff --git a/stmhal/modusocket.c b/stmhal/modusocket.c
index d066501d02..fd60c5ad43 100644
--- a/stmhal/modusocket.c
+++ b/stmhal/modusocket.c
@@ -32,7 +32,7 @@
 #include "py/objlist.h"
 #include "py/runtime.h"
 #include "py/mperrno.h"
-#include "netutils.h"
+#include "lib/netutils/netutils.h"
 #include "modnetwork.h"
 
 #if MICROPY_PY_USOCKET
diff --git a/stmhal/modutime.c b/stmhal/modutime.c
index 2c72450803..97af35c491 100644
--- a/stmhal/modutime.c
+++ b/stmhal/modutime.c
@@ -31,9 +31,9 @@
 #include "py/nlr.h"
 #include "py/smallint.h"
 #include "py/obj.h"
+#include "lib/timeutils/timeutils.h"
 #include "extmod/utime_mphal.h"
 #include "systick.h"
-#include "timeutils.h"
 #include "portmodules.h"
 #include "rtc.h"
 
diff --git a/teensy/Makefile b/teensy/Makefile
index e613b8f271..9f52cc3c76 100644
--- a/teensy/Makefile
+++ b/teensy/Makefile
@@ -32,7 +32,6 @@ CFLAGS_CORTEX_M4 = -mthumb -mtune=cortex-m4 -mcpu=cortex-m4 -msoft-float -mfloat
 INC += -I.
 INC += -I..
 INC += -I../stmhal
-INC += -I../lib/mp-readline
 INC += -I$(BUILD)
 INC += -Icore
 
diff --git a/teensy/main.c b/teensy/main.c
index d62ae3bdb7..41bbeb5d93 100644
--- a/teensy/main.c
+++ b/teensy/main.c
@@ -10,7 +10,7 @@
 #include "py/mphal.h"
 #include "gccollect.h"
 #include "lib/utils/pyexec.h"
-#include "readline.h"
+#include "lib/mp-readline/readline.h"
 #include "lexermemzip.h"
 
 #include "Arduino.h"
diff --git a/unix/Makefile b/unix/Makefile
index f28a4bcae9..5469853065 100644
--- a/unix/Makefile
+++ b/unix/Makefile
@@ -17,7 +17,6 @@ include ../py/py.mk
 
 INC +=  -I.
 INC +=  -I..
-INC += -I../lib/timeutils
 INC += -I$(BUILD)
 
 # compiler settings