diff --git a/configure.ac b/configure.ac
index bbb4394b..f53cb507 100644
--- a/configure.ac
+++ b/configure.ac
@@ -30,6 +30,7 @@ activities/chat/Makefile
 activities/terminal/Makefile
 shell/Makefile
 shell/data/Makefile
+shell/session/Makefile
 shell/PresenceService/Makefile
 sugar/Makefile
 sugar/__installed__.py
diff --git a/shell/Makefile.am b/shell/Makefile.am
index 82812dd7..5642a4ab 100644
--- a/shell/Makefile.am
+++ b/shell/Makefile.am
@@ -1,4 +1,4 @@
-SUBDIRS = PresenceService data
+SUBDIRS = data session PresenceService
 
 bin_SCRIPTS = 				\
 	sugar				\
@@ -14,15 +14,12 @@ sugar_PYTHON =				\
 	ActivitiesModel.py		\
 	ActivityHost.py			\
 	ActivityRegistry.py		\
-	ChatController.py	\
+	ChatController.py		\
 	ConsoleWindow.py		\
-	Emulator.py			\
 	Owner.py			\
 	HomeWindow.py			\
 	PeopleWindow.py			\
 	PresenceView.py			\
-	Process.py			\
-	Session.py			\
 	Shell.py
 
 EXTRA_DIST = sugar
diff --git a/shell/Emulator.py b/shell/session/Emulator.py
similarity index 97%
rename from shell/Emulator.py
rename to shell/session/Emulator.py
index 89a20fcf..d70059d6 100644
--- a/shell/Emulator.py
+++ b/shell/session/Emulator.py
@@ -3,7 +3,7 @@ import os
 import socket
 import sys
 
-from Process import Process
+from session.Process import Process
 
 def get_display_number():
 	"""Find a free display number trying to connect to 6000+ ports"""
diff --git a/shell/session/Makefile.am b/shell/session/Makefile.am
new file mode 100644
index 00000000..c95c6cb3
--- /dev/null
+++ b/shell/session/Makefile.am
@@ -0,0 +1,6 @@
+sugardir = $(pkgdatadir)/shell/session
+sugar_PYTHON =				\
+	__init__.py			\
+	Emulator.py			\
+	Process.py			\
+	Session.py
diff --git a/shell/Process.py b/shell/session/Process.py
similarity index 100%
rename from shell/Process.py
rename to shell/session/Process.py
diff --git a/shell/Session.py b/shell/session/Session.py
similarity index 98%
rename from shell/Session.py
rename to shell/session/Session.py
index 985f1afa..8131c1d9 100644
--- a/shell/Session.py
+++ b/shell/session/Session.py
@@ -7,7 +7,7 @@ import dbus.dbus_bindings
 
 from sugar.presence import PresenceService
 from Shell import Shell
-from Process import Process
+from session.Process import Process
 import sugar.env
 
 class DbusProcess(Process):
diff --git a/shell/session/__init__.py b/shell/session/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/shell/sugar b/shell/sugar
index 73e7bc1e..47c1225f 100755
--- a/shell/sugar
+++ b/shell/sugar
@@ -76,7 +76,7 @@ registry = ActivityRegistry()
 registry.scan_directory(activities_dest)
 #registry.scan_directory(os.path.join(env.get_user_dir(), 'activities'))
 
-from Emulator import Emulator
+from session.Emulator import Emulator
 
 # FIXE Don't run the emulator on the OLPC
 emulator = Emulator()
@@ -84,7 +84,7 @@ emulator.start()
 	
 print 'Redirecting output to the console, press F3 to open it.'
 	
-from Session import Session
+from session.Session import Session
 
 session = Session(registry)
 session.start()