diff --git a/udev.h b/udev.h
index 9b22c42b8c..f13eb8366e 100644
--- a/udev.h
+++ b/udev.h
@@ -49,6 +49,7 @@
 
 #define DB_DIR					".udev/db"
 #define DB_NAME_INDEX_DIR			".udev/names"
+#define RULES_DYN_DIR				".udev/rules.d"
 
 struct udev_rules;
 
diff --git a/udev_rules_parse.c b/udev_rules_parse.c
index 638ea159fb..124410a340 100644
--- a/udev_rules_parse.c
+++ b/udev_rules_parse.c
@@ -438,7 +438,7 @@ static int add_to_rules(struct udev_rules *rules, char *line, const char *filena
 				/* figure it out if it is executable */
 				char file[PATH_SIZE];
 				char *pos;
-				struct stat stats;
+				struct stat statbuf;
 
 				strlcpy(file, value, sizeof(file));
 				pos = strchr(file, ' ');
@@ -455,7 +455,7 @@ static int add_to_rules(struct udev_rules *rules, char *line, const char *filena
 				}
 
 				dbg("IMPORT auto mode for '%s'", file);
-				if (!lstat(file, &stats) && (stats.st_mode & S_IXUSR)) {
+				if (!lstat(file, &statbuf) && (statbuf.st_mode & S_IXUSR)) {
 					dbg("IMPORT is executable, will be executed (autotype)");
 					rule->import_type  = IMPORT_PROGRAM;
 				} else {
@@ -593,7 +593,7 @@ static int add_to_rules(struct udev_rules *rules, char *line, const char *filena
 			pos = strstr(value, "link_priority=");
 			if (pos != NULL) {
 				rule->link_priority = atoi(&pos[strlen("link_priority=")]);
-				info("link priority=%i", rule->link_priority);
+				dbg("link priority=%i", rule->link_priority);
 			}
 			pos = strstr(value, "string_escape=");
 			if (pos != NULL) {
@@ -709,39 +709,70 @@ static int parse_file(struct udev_rules *rules, const char *filename)
 
 int udev_rules_init(struct udev_rules *rules, int resolve_names)
 {
-	struct stat stats;
-	int retval;
+	struct stat statbuf;
+	char filename[PATH_MAX];
+	LIST_HEAD(name_list);
+	LIST_HEAD(dyn_list);
+	struct name_entry *name_loop, *name_tmp;
+	struct name_entry *dyn_loop, *dyn_tmp;
+	int retval = 0;
 
 	memset(rules, 0x00, sizeof(struct udev_rules));
 	rules->resolve_names = resolve_names;
 
-	/* parse rules file or all matching files in directory */
-	if (stat(udev_rules_dir, &stats) != 0)
+	/* read main config from single file or all files in a directory */
+	if (stat(udev_rules_dir, &statbuf) != 0)
 		return -1;
-
-	if ((stats.st_mode & S_IFMT) != S_IFDIR) {
+	if ((statbuf.st_mode & S_IFMT) != S_IFDIR) {
 		dbg("parse single rules file '%s'", udev_rules_dir);
-		retval = parse_file(rules, udev_rules_dir);
+		name_list_add(&name_list, udev_rules_dir, 1);
 	} else {
-		struct name_entry *name_loop, *name_tmp;
-		LIST_HEAD(name_list);
-
 		dbg("parse rules directory '%s'", udev_rules_dir);
 		retval = add_matching_files(&name_list, udev_rules_dir, RULESFILE_SUFFIX);
+	}
+
+	/* read dynamic rules directory */
+	strlcpy(filename, udev_root, sizeof(filename));
+	strlcat(filename, "/"RULES_DYN_DIR, sizeof(filename));
+	if (stat(filename, &statbuf) != 0) {
+		create_path(filename);
+		mkdir(filename, 0755);
+	}
+	add_matching_files(&dyn_list, filename, RULESFILE_SUFFIX);
+
+	/* sort dynamic rules files by basename into list of files */
+	list_for_each_entry_safe(dyn_loop, dyn_tmp, &dyn_list, node) {
+		const char *dyn_base = strrchr(dyn_loop->name, '/');
+
+		if (dyn_base == NULL)
+			continue;
 
 		list_for_each_entry_safe(name_loop, name_tmp, &name_list, node) {
-			if (stat(name_loop->name, &stats) == 0) {
-				if (stats.st_size)
-					parse_file(rules, name_loop->name);
-				else
-					dbg("empty rules file '%s'", name_loop->name);
-			} else
-				err("could not read '%s': %s", name_loop->name, strerror(errno));
-			list_del(&name_loop->node);
-			free(name_loop);
+			const char *name_base = strrchr(name_loop->name, '/');
+
+			if (name_base == NULL)
+				continue;
+
+			if (strcmp(name_base, dyn_base) > 0) {
+				list_move_tail(&dyn_loop->node, &name_loop->node);
+				break;
+			}
 		}
 	}
 
+	/* parse list of files */
+	list_for_each_entry_safe(name_loop, name_tmp, &name_list, node) {
+		if (stat(name_loop->name, &statbuf) == 0) {
+			if (statbuf.st_size)
+				parse_file(rules, name_loop->name);
+			else
+				dbg("empty rules file '%s'", name_loop->name);
+		} else
+			err("could not read '%s': %s", name_loop->name, strerror(errno));
+		list_del(&name_loop->node);
+		free(name_loop);
+	}
+
 	return retval;
 }
 
diff --git a/udev_utils_file.c b/udev_utils_file.c
index 44c3686361..0ceefe1720 100644
--- a/udev_utils_file.c
+++ b/udev_utils_file.c
@@ -49,7 +49,7 @@ int create_path(const char *path)
 	if (stat(p, &stats) == 0 && (stats.st_mode & S_IFMT) == S_IFDIR)
 		return 0;
 
-	if (create_path (p) != 0)
+	if (create_path(p) != 0)
 		return -1;
 
 	dbg("mkdir '%s'", p);
diff --git a/udevd.c b/udevd.c
index 7dedf078f3..69572c6268 100644
--- a/udevd.c
+++ b/udevd.c
@@ -1102,10 +1102,17 @@ int main(int argc, char *argv[], char *envp[])
 
 	/* watch rules directory */
 	inotify_fd = inotify_init();
-	if (inotify_fd >= 0)
+	if (inotify_fd >= 0) {
+		char filename[PATH_MAX];
+
 		inotify_add_watch(inotify_fd, udev_rules_dir, IN_CREATE | IN_DELETE | IN_MOVE | IN_CLOSE_WRITE);
-	else if (errno == ENOSYS)
-		err("the kernel does not support inotify, udevd can't monitor configuration file changes");
+
+		/* watch dynamic rules directory */
+		strlcpy(filename, udev_root, sizeof(filename));
+		strlcat(filename, "/"RULES_DYN_DIR, sizeof(filename));
+		inotify_add_watch(inotify_fd, filename, IN_CREATE | IN_DELETE | IN_MOVE | IN_CLOSE_WRITE);
+	} else if (errno == ENOSYS)
+		err("the kernel does not support inotify, udevd can't monitor rules file changes");
 	else
 		err("inotify_init failed: %s", strerror(errno));
 
@@ -1190,12 +1197,12 @@ int main(int argc, char *argv[], char *envp[])
 			int nbytes;
 
 			/* discard all possible events, we can just reload the config */
-			if ((ioctl(inotify_fd, FIONREAD, &nbytes) == 0) && nbytes) {
+			if ((ioctl(inotify_fd, FIONREAD, &nbytes) == 0) && nbytes > 0) {
 				char *buf;
 
 				reload_config = 1;
 				buf = malloc(nbytes);
-				if (!buf) {
+				if (buf != NULL) {
 					err("error getting buffer for inotify, disable watching");
 					close(inotify_fd);
 					inotify_fd = -1;