diff --git a/examples/lib/libmgmt-subgraph1.go b/examples/lib/libmgmt-subgraph1.go
new file mode 100644
index 00000000..d17c95c3
--- /dev/null
+++ b/examples/lib/libmgmt-subgraph1.go
@@ -0,0 +1,239 @@
+// libmgmt example of graph resource
+package main
+
+import (
+	"fmt"
+	"log"
+	"os"
+	"os/signal"
+	"sync"
+	"syscall"
+	"time"
+
+	"github.com/purpleidea/mgmt/gapi"
+	mgmt "github.com/purpleidea/mgmt/lib"
+	"github.com/purpleidea/mgmt/pgraph"
+	"github.com/purpleidea/mgmt/resources"
+)
+
+// MyGAPI implements the main GAPI interface.
+type MyGAPI struct {
+	Name     string // graph name
+	Interval uint   // refresh interval, 0 to never refresh
+
+	data        gapi.Data
+	initialized bool
+	closeChan   chan struct{}
+	wg          sync.WaitGroup // sync group for tunnel go routines
+}
+
+// NewMyGAPI creates a new MyGAPI struct and calls Init().
+func NewMyGAPI(data gapi.Data, name string, interval uint) (*MyGAPI, error) {
+	obj := &MyGAPI{
+		Name:     name,
+		Interval: interval,
+	}
+	return obj, obj.Init(data)
+}
+
+// Init initializes the MyGAPI struct.
+func (obj *MyGAPI) Init(data gapi.Data) error {
+	if obj.initialized {
+		return fmt.Errorf("already initialized")
+	}
+	if obj.Name == "" {
+		return fmt.Errorf("the graph name must be specified")
+	}
+	obj.data = data // store for later
+	obj.closeChan = make(chan struct{})
+	obj.initialized = true
+	return nil
+}
+
+// Graph returns a current Graph.
+func (obj *MyGAPI) Graph() (*pgraph.Graph, error) {
+	if !obj.initialized {
+		return nil, fmt.Errorf("libmgmt: MyGAPI is not initialized")
+	}
+
+	g, err := pgraph.NewGraph(obj.Name)
+	if err != nil {
+		return nil, err
+	}
+
+	// FIXME: these are being specified temporarily until it's the default!
+	metaparams := resources.DefaultMetaParams
+
+	content := "I created a subgraph!\n"
+	f0 := &resources.FileRes{
+		BaseRes: resources.BaseRes{
+			Name:       "README",
+			MetaParams: metaparams,
+		},
+		Path:    "/tmp/mgmt/README",
+		Content: &content,
+		State:   "present",
+	}
+	g.AddVertex(f0)
+
+	// create a subgraph to add *into* a graph resource
+	subGraph, err := pgraph.NewGraph(fmt.Sprintf("%s->subgraph", obj.Name))
+	if err != nil {
+		return nil, err
+	}
+
+	// add elements into the sub graph
+	f1 := &resources.FileRes{
+		BaseRes: resources.BaseRes{
+			Name:       "file1",
+			MetaParams: metaparams,
+		},
+		Path: "/tmp/mgmt/sub1",
+
+		State: "present",
+	}
+	subGraph.AddVertex(f1)
+
+	n1 := &resources.NoopRes{
+		BaseRes: resources.BaseRes{
+			Name:       "noop1",
+			MetaParams: metaparams,
+		},
+	}
+	subGraph.AddVertex(n1)
+
+	e0 := &resources.Edge{Name: "e0"}
+	e0.Notify = true // send a notification from v0 to v1
+	subGraph.AddEdge(f1, n1, e0)
+
+	// create the actual resource to hold the sub graph
+	subGraphRes0 := &resources.GraphRes{ // TODO: should we name this SubGraphRes ?
+		BaseRes: resources.BaseRes{
+			Name:       "subgraph1",
+			MetaParams: metaparams,
+		},
+		Graph: subGraph,
+	}
+	g.AddVertex(subGraphRes0) // add it to the main graph
+
+	//g, err := config.NewGraphFromConfig(obj.data.Hostname, obj.data.World, obj.data.Noop)
+	return g, nil
+}
+
+// Next returns nil errors every time there could be a new graph.
+func (obj *MyGAPI) Next() chan error {
+	ch := make(chan error)
+	obj.wg.Add(1)
+	go func() {
+		defer obj.wg.Done()
+		defer close(ch) // this will run before the obj.wg.Done()
+		if !obj.initialized {
+			ch <- fmt.Errorf("libmgmt: MyGAPI is not initialized")
+			return
+		}
+		startChan := make(chan struct{}) // start signal
+		close(startChan)                 // kick it off!
+
+		ticker := make(<-chan time.Time)
+		if obj.data.NoStreamWatch || obj.Interval <= 0 {
+			ticker = nil
+		} else {
+			// arbitrarily change graph every interval seconds
+			t := time.NewTicker(time.Duration(obj.Interval) * time.Second)
+			defer t.Stop()
+			ticker = t.C
+		}
+		for {
+			select {
+			case <-startChan: // kick the loop once at start
+				startChan = nil // disable
+				// pass
+			case <-ticker:
+				// pass
+			case <-obj.closeChan:
+				return
+			}
+
+			log.Printf("libmgmt: Generating new graph...")
+			select {
+			case ch <- nil: // trigger a run
+			case <-obj.closeChan:
+				return
+			}
+		}
+	}()
+	return ch
+}
+
+// Close shuts down the MyGAPI.
+func (obj *MyGAPI) Close() error {
+	if !obj.initialized {
+		return fmt.Errorf("libmgmt: MyGAPI is not initialized")
+	}
+	close(obj.closeChan)
+	obj.wg.Wait()
+	obj.initialized = false // closed = true
+	return nil
+}
+
+// Run runs an embedded mgmt server.
+func Run() error {
+
+	obj := &mgmt.Main{}
+	obj.Program = "libmgmt" // TODO: set on compilation
+	obj.Version = "0.0.1"   // TODO: set on compilation
+	obj.TmpPrefix = true    // disable for easy debugging
+	//prefix := "/tmp/testprefix/"
+	//obj.Prefix = &p // enable for easy debugging
+	obj.IdealClusterSize = -1
+	obj.ConvergedTimeout = -1
+	obj.Noop = false // FIXME: careful!
+
+	obj.GAPI = &MyGAPI{ // graph API
+		Name:     "libmgmt", // TODO: set on compilation
+		Interval: 60 * 10,   // arbitrarily change graph every 15 seconds
+	}
+
+	if err := obj.Init(); err != nil {
+		return err
+	}
+
+	// install the exit signal handler
+	exit := make(chan struct{})
+	defer close(exit)
+	go func() {
+		signals := make(chan os.Signal, 1)
+		signal.Notify(signals, os.Interrupt) // catch ^C
+		//signal.Notify(signals, os.Kill) // catch signals
+		signal.Notify(signals, syscall.SIGTERM)
+
+		select {
+		case sig := <-signals: // any signal will do
+			if sig == os.Interrupt {
+				log.Println("Interrupted by ^C")
+				obj.Exit(nil)
+				return
+			}
+			log.Println("Interrupted by signal")
+			obj.Exit(fmt.Errorf("killed by %v", sig))
+			return
+		case <-exit:
+			return
+		}
+	}()
+
+	if err := obj.Run(); err != nil {
+		return err
+	}
+	return nil
+}
+
+func main() {
+	log.Printf("Hello!")
+	if err := Run(); err != nil {
+		fmt.Println(err)
+		os.Exit(1)
+		return
+	}
+	log.Printf("Goodbye!")
+}
diff --git a/resources/graph.go b/resources/graph.go
new file mode 100644
index 00000000..61fdc4a1
--- /dev/null
+++ b/resources/graph.go
@@ -0,0 +1,242 @@
+// Mgmt
+// Copyright (C) 2013-2017+ James Shubin and the project contributors
+// Written by James Shubin <james@shubin.ca> and the project contributors
+//
+// This program is free software: you can redistribute it and/or modify
+// it under the terms of the GNU Affero General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+//
+// This program is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU Affero General Public License for more details.
+//
+// You should have received a copy of the GNU Affero General Public License
+// along with this program.  If not, see <http://www.gnu.org/licenses/>.
+
+package resources
+
+import (
+	"encoding/gob"
+	"fmt"
+
+	"github.com/purpleidea/mgmt/pgraph"
+
+	multierr "github.com/hashicorp/go-multierror"
+	errwrap "github.com/pkg/errors"
+)
+
+func init() {
+	RegisterResource("graph", func() Res { return &GraphRes{} })
+	gob.Register(&GraphRes{})
+}
+
+// GraphRes is a resource that recursively runs a sub graph of resources.
+// TODO: should we name this SubGraphRes instead?
+// TODO: we could also flatten "sub graphs" into the main graph to avoid this,
+// and this could even be done with a graph transformation called flatten,
+// similar to where autogroup and autoedges run.
+// XXX: this resource is not complete, and hasn't even been tested
+type GraphRes struct {
+	BaseRes `yaml:",inline"`
+	Graph   *pgraph.Graph `yaml:"graph"` // TODO: how do we suck in a graph via yaml?
+
+	initCount int // number of successfully initialized resources
+}
+
+// GraphUID is a unique representation for a GraphRes object.
+type GraphUID struct {
+	BaseUID
+	//foo string // XXX: not implemented
+}
+
+// Default returns some sensible defaults for this resource.
+func (obj *GraphRes) Default() Res {
+	return &GraphRes{
+		BaseRes: BaseRes{
+			MetaParams: DefaultMetaParams, // force a default
+		},
+	}
+}
+
+// Validate the params and sub resources that are passed to GraphRes.
+func (obj *GraphRes) Validate() error {
+	var err error
+	for _, v := range obj.Graph.VerticesSorted() { // validate everyone
+		if e := VtoR(v).Validate(); err != nil {
+			err = multierr.Append(err, e) // list of errors
+		}
+	}
+	if err != nil {
+		return errwrap.Wrapf(err, "could not Validate() graph")
+	}
+
+	return obj.BaseRes.Validate()
+}
+
+// Init runs some startup code for this resource.
+func (obj *GraphRes) Init() error {
+	// Loop through each vertex and initialize it, but keep track of how far
+	// we've succeeded, because on failure we'll stop and prepare to reverse
+	// through from there running the Close operation on each vertex that we
+	// previously did an Init on. The engine always ensures that we run this
+	// with a 1-1 relationship between Init and Close, so we must do so too.
+	for i, v := range obj.Graph.VerticesSorted() { // deterministic order!
+		obj.initCount = i + 1 // store the number that we tried to init
+		if err := VtoR(v).Init(); err != nil {
+			return errwrap.Wrapf(err, "could not Init() graph")
+		}
+	}
+
+	obj.BaseRes.Kind = "graph"
+	return obj.BaseRes.Init() // call base init, b/c we're overrriding
+}
+
+// Close runs some cleanup code for this resource.
+func (obj *GraphRes) Close() error {
+	// The idea is to Close anything we did an Init on including the BaseRes
+	// methods which are not guaranteed to be safe if called multiple times!
+	var err error
+	vertices := obj.Graph.VerticesSorted() // deterministic order!
+	last := obj.initCount - 1              // index of last vertex we did init on
+	for i := range vertices {
+		v := vertices[last-i] // go through in reverse
+
+		// if we hit this condition, we haven't been able to get through
+		// the entire list of vertices that we'd have liked to, on init!
+		if obj.initCount == 0 {
+			// if we get here, we exit without calling BaseRes.Close
+			// because the matching BaseRes.Init did not get called!
+			return errwrap.Wrapf(err, "could not Close() partial graph")
+			//break
+		}
+
+		obj.initCount-- // count to avoid closing one that didn't init!
+		// try to close everyone that got an init, don't stop suddenly!
+		if e := VtoR(v).Close(); e != nil {
+			err = multierr.Append(err, e) // list of errors
+		}
+	}
+
+	// call base close, b/c we're overriding
+	if e := obj.BaseRes.Close(); err == nil {
+		err = e
+	} else if e != nil {
+		err = multierr.Append(err, e) // list of errors
+	}
+	// this returns nil if err is nil
+	return errwrap.Wrapf(err, "could not Close() graph")
+}
+
+// Watch is the primary listener for this resource and it outputs events.
+// XXX: should this use mgraph.Start/Pause? if so then what does CheckApply do?
+// XXX: we should probably refactor the core engine to make this work, which
+// will hopefully lead us to a more elegant core that is easier to understand
+func (obj *GraphRes) Watch() error {
+
+	return fmt.Errorf("Not implemented")
+}
+
+// CheckApply method for Graph resource.
+// XXX: not implemented
+func (obj *GraphRes) CheckApply(apply bool) (bool, error) {
+
+	return false, fmt.Errorf("Not implemented")
+
+}
+
+// UIDs includes all params to make a unique identification of this object.
+// Most resources only return one, although some resources can return multiple.
+func (obj *GraphRes) UIDs() []ResUID {
+	x := &GraphUID{
+		BaseUID: BaseUID{
+			Name: obj.GetName(),
+			Kind: obj.GetKind(),
+		},
+		//foo: obj.foo, // XXX: not implemented
+	}
+	uids := []ResUID{}
+	for _, v := range obj.Graph.VerticesSorted() {
+		uids = append(uids, VtoR(v).UIDs()...)
+	}
+	return append([]ResUID{x}, uids...)
+}
+
+// XXX: hook up the autogrouping magic!
+
+// AutoEdges returns the AutoEdges. In this case none are used.
+func (obj *GraphRes) AutoEdges() AutoEdge {
+	return nil
+}
+
+// Compare two resources and return if they are equivalent.
+func (obj *GraphRes) Compare(r Res) bool {
+	// we can only compare GraphRes to others of the same resource kind
+	res, ok := r.(*GraphRes)
+	if !ok {
+		return false
+	}
+	if !obj.BaseRes.Compare(res) {
+		return false
+	}
+	if obj.Name != res.Name {
+		return false
+	}
+
+	//if obj.Foo != res.Foo { // XXX: not implemented
+	//	return false
+	//}
+	// compare the structure of the two graphs...
+	vertexCmpFn := func(v1, v2 pgraph.Vertex) (bool, error) {
+		if v1.String() == "" || v2.String() == "" {
+			return false, fmt.Errorf("oops, empty vertex")
+		}
+		return VtoR(v1).Compare(VtoR(v2)), nil
+	}
+
+	edgeCmpFn := func(e1, e2 pgraph.Edge) (bool, error) {
+		if e1.String() == "" || e2.String() == "" {
+			return false, fmt.Errorf("oops, empty edge")
+		}
+		edge1 := e1.(*Edge) // panic if wrong
+		edge2 := e2.(*Edge) // panic if wrong
+		return edge1.Compare(edge2), nil
+	}
+	if err := obj.Graph.GraphCmp(res.Graph, vertexCmpFn, edgeCmpFn); err != nil {
+		return false
+	}
+
+	// compare individual elements in structurally equivalent graphs
+	// TODO: is this redundant with the GraphCmp?
+	g1 := obj.Graph.VerticesSorted()
+	g2 := res.Graph.VerticesSorted()
+	for i, v1 := range g1 {
+		v2 := g2[i]
+		if !VtoR(v1).Compare(VtoR(v2)) {
+			return false
+		}
+	}
+
+	return true
+}
+
+// UnmarshalYAML is the custom unmarshal handler for this struct.
+// It is primarily useful for setting the defaults.
+func (obj *GraphRes) UnmarshalYAML(unmarshal func(interface{}) error) error {
+	type rawRes GraphRes // indirection to avoid infinite recursion
+
+	def := obj.Default()       // get the default
+	res, ok := def.(*GraphRes) // put in the right format
+	if !ok {
+		return fmt.Errorf("could not convert to GraphRes")
+	}
+	raw := rawRes(*res) // convert; the defaults go here
+
+	if err := unmarshal(&raw); err != nil {
+		return err
+	}
+
+	*obj = GraphRes(raw) // restore from indirection with type conversion!
+	return nil
+}
diff --git a/yamlgraph/gconfig.go b/yamlgraph/gconfig.go
index 4a05f15c..609a1e0e 100644
--- a/yamlgraph/gconfig.go
+++ b/yamlgraph/gconfig.go
@@ -58,6 +58,7 @@ type Resources struct {
 	Augeas   []*resources.AugeasRes   `yaml:"augeas"`
 	Exec     []*resources.ExecRes     `yaml:"exec"`
 	File     []*resources.FileRes     `yaml:"file"`
+	Graph    []*resources.GraphRes    `yaml:"graph"`
 	Hostname []*resources.HostnameRes `yaml:"hostname"`
 	KV       []*resources.KVRes       `yaml:"kv"`
 	Msg      []*resources.MsgRes      `yaml:"msg"`