diff --git a/.gitmodules b/.gitmodules
index 6f513e47b..65213c155 100644
--- a/.gitmodules
+++ b/.gitmodules
@@ -10,3 +10,6 @@
 [submodule "third_party/gflags"]
 	path = third_party/gflags
 	url = https://github.com/benvanik/gflags.git
+[submodule "third_party/binutils"]
+	path = third_party/binutils
+	url = http://sourceware.org/git/binutils.git
diff --git a/third_party/binutils b/third_party/binutils
new file mode 160000
index 000000000..21047d50a
--- /dev/null
+++ b/third_party/binutils
@@ -0,0 +1 @@
+Subproject commit 21047d50a8d6b430dfcdb09dd81ffa158406205f
diff --git a/xenia-build.py b/xenia-build.py
index 3d2e33a43..e62e76911 100755
--- a/xenia-build.py
+++ b/xenia-build.py
@@ -223,6 +223,26 @@ class SetupCommand(Command):
         return 1
       print ''
 
+    # Binutils.
+    print '- binutils...'
+    if not os.path.exists('build/binutils'):
+      os.makedirs('build/binutils')
+    os.chdir('build/binutils')
+    shell_call(' '.join([
+        '../../third_party/binutils/configure',
+        '--disable-debug',
+        '--disable-dependency-tracking',
+        '--disable-werror',
+        '--enable-interwork',
+        '--enable-multilib',
+        '--target=powerpc-none-elf',
+        '--with-gnu-ld',
+        '--with-gnu-as',
+        ]))
+    shell_call('make')
+    os.chdir(cwd)
+    print ''
+
     # LLVM.
     print '- preparing llvm...'
     #generator = 'Visual Studio 10 Win64'