diff --git a/homeassistant/components/binary_sensor/__init__.py b/homeassistant/components/binary_sensor/__init__.py
new file mode 100644
index 00000000000..b02d38a9f81
--- /dev/null
+++ b/homeassistant/components/binary_sensor/__init__.py
@@ -0,0 +1,44 @@
+"""
+homeassistant.components.binary_sensor
+~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+Component to interface with binary sensors (sensors which only know two states)
+that can be monitored.
+
+For more details about this component, please refer to the documentation at
+https://home-assistant.io/components/binary_sensor/
+"""
+import logging
+
+from homeassistant.helpers.entity_component import EntityComponent
+from homeassistant.helpers.entity import Entity
+
+DOMAIN = 'binary_sensor'
+DEPENDENCIES = []
+SCAN_INTERVAL = 30
+
+ENTITY_ID_FORMAT = DOMAIN + '.{}'
+
+
+def setup(hass, config):
+    """ Track states and offer events for binary sensors. """
+    component = EntityComponent(
+        logging.getLogger(__name__), DOMAIN, hass, SCAN_INTERVAL)
+
+    component.setup(config)
+
+    return True
+
+
+# pylint: disable=no-self-use
+class BinarySensorDevice(Entity):
+    """ Represents a binary sensor.. """
+
+    @property
+    def is_on(self):
+        """ True if the binary sensor is on. """
+        return False
+
+    @property
+    def friendly_state(self):
+        """ Returns the friendly state of the binary sensor. """
+        return None
diff --git a/homeassistant/components/binary_sensor/demo.py b/homeassistant/components/binary_sensor/demo.py
new file mode 100644
index 00000000000..266b46b7e17
--- /dev/null
+++ b/homeassistant/components/binary_sensor/demo.py
@@ -0,0 +1,49 @@
+"""
+homeassistant.components.binary_sensor.demo
+~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+Demo platform that has two fake binary sensors.
+"""
+from homeassistant.components.binary_sensor import BinarySensorDevice
+from homeassistant.const import (STATE_ON, STATE_OFF, DEVICE_DEFAULT_NAME)
+
+
+def setup_platform(hass, config, add_devices, discovery_info=None):
+    """ Sets up the Demo binary sensors. """
+    add_devices([
+        DemoBinarySensor('Window Bathroom', True, None),
+        DemoBinarySensor('Floor Basement', False, None),
+    ])
+
+
+class DemoBinarySensor(BinarySensorDevice):
+    """ A Demo binary sensor. """
+
+    def __init__(self, name, state, icon=None):
+        self._name = name or DEVICE_DEFAULT_NAME
+        self._state = state
+        self._icon = icon
+
+    @property
+    def should_poll(self):
+        """ No polling needed for a demo binary sensor. """
+        return False
+
+    @property
+    def name(self):
+        """ Returns the name of the binary sensor. """
+        return self._name
+
+    @property
+    def icon(self):
+        """ Returns the icon to use for device if any. """
+        return self._icon
+
+    @property
+    def is_on(self):
+        """ True if the sensor is on. """
+        return self._state
+
+    @property
+    def state(self):
+        """ Returns the state of the binary sensor. """
+        return STATE_ON if self.is_on else STATE_OFF
diff --git a/homeassistant/components/demo.py b/homeassistant/components/demo.py
index 7c873e834bd..3022a0e9393 100644
--- a/homeassistant/components/demo.py
+++ b/homeassistant/components/demo.py
@@ -18,7 +18,7 @@ DEPENDENCIES = ['conversation', 'introduction', 'zone']
 
 COMPONENTS_WITH_DEMO_PLATFORM = [
     'device_tracker', 'light', 'media_player', 'notify', 'switch', 'sensor',
-    'thermostat']
+    'thermostat', 'binary_sensor']
 
 
 def setup(hass, config):