diff --git a/build_image b/build_image
index 4334b16..3f095b7 100755
--- a/build_image
+++ b/build_image
@@ -116,6 +116,7 @@
 . "${BUILD_LIBRARY_DIR}/disk_layout_util.sh" || exit 1
 . "${BUILD_LIBRARY_DIR}/mount_gpt_util.sh" || exit 1
 . "${BUILD_LIBRARY_DIR}/build_image_util.sh" || exit 1
+. "${BUILD_LIBRARY_DIR}/imageloader_util.sh" || exit 1
 . "${BUILD_LIBRARY_DIR}/base_image_util.sh" || exit 1
 . "${BUILD_LIBRARY_DIR}/dev_image_util.sh" || exit 1
 . "${BUILD_LIBRARY_DIR}/test_image_util.sh" || exit 1
diff --git a/build_library/base_image_util.sh b/build_library/base_image_util.sh
index b11405c..4d590cd 100755
--- a/build_library/base_image_util.sh
+++ b/build_library/base_image_util.sh
@@ -140,6 +140,34 @@
       --strip-components=3 "${libc_excludes[@]/#/--exclude=}"
 }
 
+# Generates imageloader images containing demo mode resources.
+# Generates two imageloader images under BUILD_DIR:
+#   * standalone demo resources - archive containing demo resources to be added
+#     to demo mode enabled release images. The demo mode resources will be added
+#     to target image stateful partition during factory flow.
+#   * test demo resources - demo resources that will be moved to the test images
+#     stateful partition during mod_image_for_test.
+generate_demo_mode_resources_images() {
+  local demo_resources_src="$1"
+
+  # Used to enable demo mode on test images, but with reduced set of demo apps.
+  if [[ -d "${demo_resources_src}/test" ]]; then
+    mkdir -p  "${BUILD_DIR}/test_demo_resources"
+    generate_imageloader_image "0.0.1" \
+        "${demo_resources_src}/test/image" \
+        "${BUILD_DIR}/test_demo_resources"
+  fi
+
+  if [[ -d "${demo_resources_src}/standalone" ]]; then
+    # Used to generate the demo resources archive to be bundled with release
+    # images in factory - these are intended to contain the full set of demo
+    # mode apps.
+    generate_and_tar_imageloader_image "0.0.1" \
+        "${demo_resources_src}/standalone/image" \
+        "${BUILD_DIR}/demo_resources.tar.gz"
+  fi
+}
+
 create_base_image() {
   local image_name=$1
   local rootfs_verification_enabled=$2
@@ -351,6 +379,9 @@
     fi
   fi
 
+  generate_demo_mode_resources_images \
+      "${root_fs_dir}/build/rootfs/chromeos-assets/demo_resources"
+
   # Clean up symlinks so they work on a running target rooted at "/".
   # Here development packages are rooted at /usr/local.  However, do not
   # create /usr/local or /var on host (already exist on target).
diff --git a/build_library/imageloader_util.sh b/build_library/imageloader_util.sh
index 47fc64f..603264d 100755
--- a/build_library/imageloader_util.sh
+++ b/build_library/imageloader_util.sh
@@ -95,3 +95,18 @@
   generate_imageloader_manifest "${version}" "${output}"
   return 0
 }
+
+# Creates a tar archive that contains imageloder supported image of a
+# directory. See |generate_imageloader_image| for more info.
+generate_and_tar_imageloader_image() {
+  local version="$1"
+  local src="$2"
+  local output="$3"
+
+  local image=$(mktemp -d)
+
+  generate_imageloader_image "0.0.1" "${src}" "${image}"
+  tar caf "${output}" -C "${image}" \
+      image.squash table imageloader.json imageloader.sig.2
+  rm -rf "${image}"
+}
diff --git a/mod_for_test_scripts/250enableForDemoMode b/mod_for_test_scripts/250enableForDemoMode
new file mode 100755
index 0000000..816d6d4
--- /dev/null
+++ b/mod_for_test_scripts/250enableForDemoMode
@@ -0,0 +1,10 @@
+#!/bin/bash
+
+# Copyright 2018 The Chromium OS Authors. All rights reserved.
+# Use of this source code is governed by a BSD-style license that can be
+# found in the LICENSE file.
+#
+if [[ -d "${BUILD_DIR}/test_demo_resources" ]]; then
+  mv "${BUILD_DIR}/test_demo_resources" \
+      "${STATEFUL_DIR}/unencrypted/demo_mode_resources"
+fi