diff --git a/bitbake/lib/toaster/toastergui/static/js/importlayer.js b/bitbake/lib/toaster/toastergui/static/js/importlayer.js
index 2f59567133..191b30ffee 100644
--- a/bitbake/lib/toaster/toastergui/static/js/importlayer.js
+++ b/bitbake/lib/toaster/toastergui/static/js/importlayer.js
@@ -10,6 +10,7 @@ function importLayerPageInit (ctx) {
   var layerDepInput = $("#layer-dependency");
   var layerNameCtrl = $("#layer-name-ctrl");
   var duplicatedLayerName = $("#duplicated-layer-name-hint");
+  var localDirPath = $("#local-dir-path");
 
   var layerDeps = {};
   var layerDepsDeps = {};
@@ -35,6 +36,9 @@ function importLayerPageInit (ctx) {
     }
   });
 
+  // Disable local dir repo when page is loaded.
+  $('#local-dir').hide();
+
   // disable the "Add layer" button when the layer input typeahead is empty
   // or not in the typeahead choices
   layerDepInput.on("input change", function () {
@@ -168,8 +172,16 @@ function importLayerPageInit (ctx) {
         dir_path: $("#layer-subdir").val(),
         project_id: libtoaster.ctx.projectId,
         layer_deps: layerDepsCsv,
+        local_source_dir: $('#local-dir-path').val(),
       };
 
+      if ($('input[name=repo]:checked').val() == "git") {
+        layerData.local_source_dir = "";
+      } else {
+        layerData.vcs_url = "";
+        layerData.git_ref = "";
+      }
+
       $.ajax({
           type: "POST",
           url: ctx.xhrImportLayerUrl,
@@ -208,25 +220,45 @@ function importLayerPageInit (ctx) {
   function check_form() {
     var valid = false;
     var inputs = $("input:required");
+    var inputStr = inputs.val().split("");
 
-    for (var i=0; i<inputs.length; i++){
-      if (!(valid = inputs[i].value)){
+    for (var i=0; i<inputs.val().length; i++){
+      if (!(valid = inputStr[i])){
         enable_import_btn(false);
         break;
       }
     }
 
-    if (valid)
-      enable_import_btn(true);
+    if (valid) {
+      if ($("#local-dir-radio").prop("checked") && localDirPath.val().length > 0) {
+        enable_import_btn(true);
+      }
+      if ($("#git-repo-radio").prop("checked") && vcsURLInput.val().length > 0 && gitRefInput.val().length > 0) {
+        enable_import_btn(true);
+      }
+    }
+
+    if (inputs.val().length == 0)
+      enable_import_btn(false);
   }
 
   function layerExistsError(layer){
     var dupLayerInfo = $("#duplicate-layer-info");
-    dupLayerInfo.find(".dup-layer-name").text(layer.name);
-    dupLayerInfo.find(".dup-layer-link").attr("href", layer.layerdetailurl);
-    dupLayerInfo.find("#dup-layer-vcs-url").text(layer.vcs_url);
-    dupLayerInfo.find("#dup-layer-revision").text(layer.vcs_reference);
 
+    if (layer.local_source_dir) {
+      $("#git-layer-dup").hide();
+      $("#local-layer-dup").fadeIn();
+      dupLayerInfo.find(".dup-layer-name").text(layer.name);
+      dupLayerInfo.find(".dup-layer-link").attr("href", layer.layerdetailurl);
+      dupLayerInfo.find("#dup-local-source-dir-name").text(layer.local_source_dir);
+    } else {
+      $("#git-layer-dup").fadeIn();
+      $("#local-layer-dup").hide();
+      dupLayerInfo.find(".dup-layer-name").text(layer.name);
+      dupLayerInfo.find(".dup-layer-link").attr("href", layer.layerdetailurl);
+      dupLayerInfo.find("#dup-layer-vcs-url").text(layer.vcs_url);
+      dupLayerInfo.find("#dup-layer-revision").text(layer.vcs_reference);
+    }
     $(".fields-apart-from-layer-name").fadeOut(function(){
 
       dupLayerInfo.fadeIn();
@@ -271,10 +303,13 @@ function importLayerPageInit (ctx) {
 
     if ($("#duplicate-layer-info").css("display") != "None"){
       $("#duplicate-layer-info").fadeOut(function(){
-        $(".fields-apart-from-layer-name").show();
-      });
+      $(".fields-apart-from-layer-name").show();
+      radioDisplay();
+    });
 
-    }
+  }
+
+    radioDisplay();
 
     /* Don't remove the error class if we're displaying the error for another
      * reason.
@@ -301,4 +336,72 @@ function importLayerPageInit (ctx) {
     }
   });
 
+  function radioDisplay() {
+    if ($('input[name=repo]:checked').val() == "local") {
+      $('#git-repo').hide();
+      $('#import-git-layer-and-add-hint').hide();
+      $('#local-dir').fadeIn();
+      $('#import-local-dir-and-add-hint').fadeIn();
+    } else {
+      $('#local-dir').hide();
+      $('#import-local-dir-and-add-hint').hide();
+      $('#git-repo').fadeIn();
+      $('#import-git-layer-and-add-hint').fadeIn();
+    }
+  }
+
+  $('input:radio[name="repo"]').change(function() {
+    radioDisplay();
+    if ($("#local-dir-radio").prop("checked")) {
+      if (localDirPath.val().length > 0) {
+        enable_import_btn(true);
+      } else {
+        enable_import_btn(false);
+      }
+    }
+    if ($("#git-repo-radio").prop("checked")) {
+      if (vcsURLInput.val().length > 0 && gitRefInput.val().length > 0) {
+        enable_import_btn(true);
+      } else {
+        enable_import_btn(false);
+      }
+    }
+  });
+
+  localDirPath.on('input', function(){
+    if ($(this).val().trim().length == 0) {
+      $('#import-and-add-btn').attr("disabled","disabled");
+      $('#local-dir').addClass('has-error');
+      $('#hintError-dir-abs-path').show();
+      $('#hintError-dir-path-starts-with-slash').show();
+    } else {
+      var input = $(this);
+      var reBeginWithSlash = /^\//;
+      var reCheckVariable = /^\$/;
+      var re = /([ <>\\|":\.%\?\*]+)/;
+
+      var invalidDir = re.test(input.val());
+      var invalidSlash = reBeginWithSlash.test(input.val());
+      var invalidVar = reCheckVariable.test(input.val());
+
+      if (!invalidSlash && !invalidVar) {
+        $('#local-dir').addClass('has-error');
+        $('#import-and-add-btn').attr("disabled","disabled");
+        $('#hintError-dir-abs-path').show();
+        $('#hintError-dir-path-starts-with-slash').show();
+      } else if (invalidDir) {
+        $('#local-dir').addClass('has-error');
+        $('#import-and-add-btn').attr("disabled","disabled");
+        $('#hintError-dir-path').show();
+      } else {
+        $('#local-dir').removeClass('has-error');
+        if (layerNameInput.val().length > 0) {
+          $('#import-and-add-btn').removeAttr("disabled");
+        }
+        $('#hintError-dir-abs-path').hide();
+        $('#hintError-dir-path-starts-with-slash').hide();
+        $('#hintError-dir-path').hide();
+      }
+    }
+  });
 }