diff --git a/meta/recipes-core/images/build-appliance-image/README_VirtualBox_Guest_Additions.txt b/meta/recipes-core/images/build-appliance-image/README_VirtualBox_Guest_Additions.txt
new file mode 100644
index 0000000000..e7298f2c3c
--- /dev/null
+++ b/meta/recipes-core/images/build-appliance-image/README_VirtualBox_Guest_Additions.txt
@@ -0,0 +1,75 @@
+
+Installing VirtualBox Guest Additions
+=====================================
+
+In order to use VirtualBox guest additions, they have to be build
+first. They may have to be rebuilt each time the time you upgrade to
+a new version of VirtualBox.
+
+Make sure VM is configured with an Optical Drive. 
+
+Please follow these steps to install the VirtualBox Guest Additions on the
+Build Appliance VM:
+
+1.  Boot VM, select root "Terminal" instead of the default "Terminal <2>"
+
+2.  Insert Guest additions CD into VM optical drive:
+    VM menu "Devices"->"Optical Drives"-> Select "VBoxGuestAdditions<version>.iso"
+
+3.  Find your CDROM device. Typically it is /dev/hda for IDE. You can determine
+    the actual name <cdromedev> by viewing the cdrom info:
+
+        # cat /proc/sys/dev/cdrom/info
+
+    Mount the cdrom drive:
+        # mount -t iso9660 <cdromdev> /media/cdrom
+    i.e.:
+        # mount -t iso9660 /dev/hda /media/cdrom
+
+4. Build the additions:
+
+    First, we need to build of some prerequisite utilities.
+    (This is only needed to be done once)
+
+        # cd /lib/modules/<kernel-version>-yocto-standard/build
+        # make scripts
+
+    Now build the guest additions:
+
+        # /media/cdrom/VBoxLinuxAdditions.run --nox11
+
+    At this point, providing there were no build errors, the guest additions are 
+    built and installed.
+
+5. Check if vbox additions running:
+
+        # /etc/init.d/vboxadd status
+
+    If not running, try manually starting:
+
+        # /etc/init.d/vboxadd start
+
+6. Check if additons actually work, in particular folder sharing.
+
+    Host: Devices->Shared Folders->Shared Folder Settings...
+        Add any host folder and name it (i.e. "images")
+
+    Guest VM: create mount point for the shared folder, i.e.:
+
+        # mkdir ~/my-host
+
+    Mount the shared folder: (Watch out for spelling: it's vboxsf NOT vboxfs)
+
+        # mount -t vboxsf images ~/my-host
+
+    Verify mount, should see the contents of the shared folder:
+
+        # ls ~/my-host
+
+
+
+
+
+
+
+
diff --git a/meta/recipes-core/images/build-appliance-image_14.0.0.bb b/meta/recipes-core/images/build-appliance-image_14.0.0.bb
index a34a621c4c..eeb301df57 100644
--- a/meta/recipes-core/images/build-appliance-image_14.0.0.bb
+++ b/meta/recipes-core/images/build-appliance-image_14.0.0.bb
@@ -6,7 +6,7 @@ LICENSE = "MIT"
 LIC_FILES_CHKSUM = "file://${COREBASE}/LICENSE;md5=4d92cd373abda3937c2bc47fbc49d690 \
                     file://${COREBASE}/meta/COPYING.MIT;md5=3da9cfbcb788c80a0384361b4de20420"
 
-IMAGE_INSTALL = "packagegroup-core-boot packagegroup-core-ssh-openssh packagegroup-self-hosted"
+IMAGE_INSTALL = "packagegroup-core-boot packagegroup-core-ssh-openssh packagegroup-self-hosted kernel-dev kernel-devsrc "
 
 IMAGE_FEATURES += "x11-base package-management splash"
 
@@ -19,12 +19,13 @@ APPEND += "rootfstype=ext4 quiet"
 DEPENDS = "zip-native"
 IMAGE_FSTYPES = "vmdk"
 
-inherit core-image
+inherit core-image module-base
 
 SRCREV ?= "00c4c9bf0007b964dfa4559fe8fc8687f14cdec3"
 SRC_URI = "git://git.yoctoproject.org/poky \
            file://Yocto_Build_Appliance.vmx \
            file://Yocto_Build_Appliance.vmxf \
+           file://README_VirtualBox_Guest_Additions.txt \
           "
 BA_INCLUDE_SOURCES ??= "0"
 
@@ -49,6 +50,12 @@ fakeroot do_populate_poky_src () {
 		rm -rf ${IMAGE_ROOTFS}/home/builder/poky/build/downloads/git2_*
 	fi
 
+	# Place the README_VirtualBox_Guest_Additions file in builders home folder.
+	cp ${WORKDIR}/README_VirtualBox_Guest_Additions.txt ${IMAGE_ROOTFS}/home/builder/
+
+	# Create a symlink, needed for out-of-tree kernel modules build
+	ln -snr ${IMAGE_ROOTFS}/usr/src/kernel ${IMAGE_ROOTFS}/lib/modules/${KERNEL_VERSION}/build
+
 	echo "/usr/bin" > ${IMAGE_ROOTFS}/home/builder/poky/build/pseudodone
 	echo "INHERIT += \"rm_work\"" >> ${IMAGE_ROOTFS}/home/builder/poky/build/conf/auto.conf
 	mkdir -p ${IMAGE_ROOTFS}/home/builder/pseudo
@@ -70,6 +77,9 @@ fakeroot do_populate_poky_src () {
 	chown -R builder.builder ${IMAGE_ROOTFS}/home/builder/poky
 	chmod -R ug+rw ${IMAGE_ROOTFS}/home/builder/poky
 
+	# Assume we will need CDROM to install guest additions
+	mkdir -p ${IMAGE_ROOTFS}/media/cdrom
+
 	# Allow builder to use sudo to setup tap/tun
 	echo "builder ALL=(ALL) NOPASSWD: ALL" >> ${IMAGE_ROOTFS}/etc/sudoers