diff --git a/harbour/ChangeLog b/harbour/ChangeLog
index d4e8b1ea5e..7f2bf98908 100644
--- a/harbour/ChangeLog
+++ b/harbour/ChangeLog
@@ -17,6 +17,13 @@
    past entries belonging to author(s): Viktor Szakats.
 */
 
+2009-08-23 01:08 UTC+0200 Viktor Szakats (harbour.01 syenar.hu)
+  * config/linux/watcom.mk
+    + Added dynamic library generation for linux/watcom.
+      Experimental.
+      NOTE: DFLAGS is a little tricky as I found no 'SYSTEM'
+            preset for ELF DLLs.
+
 2009-08-22 16:01 UTC-0800 Pritpal Bedi (pritpal@vouchcac.com)
   * contrib/hbxbp/tests/demoxbp.prg
     ! Fixed codeblock unused variable warnings.
diff --git a/harbour/config/linux/watcom.mk b/harbour/config/linux/watcom.mk
index 35ca4a026b..20b25f9724 100644
--- a/harbour/config/linux/watcom.mk
+++ b/harbour/config/linux/watcom.mk
@@ -61,4 +61,22 @@ LDFLAGS += SYS linux
 
 LDLIBS := $(foreach lib,$(LIBS),$(LIB_DIR)/$(lib))
 
+DY := $(LD)
+DFLAGS := OP quiet FORM elf dll LIBPATH $(WATCOM)/lib386 LIBPATH $(WATCOM)/lib386/linux RUNTIME linux OP exportall OP norelocs
+DY_OUT :=
+DLIBS :=
+
+# NOTE: The empty line directly before 'endef' HAVE TO exist!
+define dyn_object
+   @$(ECHO) $(ECHOQUOTE)FILE '$(file)'$(ECHOQUOTE) >> __dyn__.tmp
+
+endef
+define create_dynlib
+   $(if $(wildcard __dyn__.tmp),@$(RM) __dyn__.tmp,)
+   $(foreach file,$^,$(dyn_object))
+   $(DY) $(DFLAGS) $(HB_USER_DFLAGS) NAME '$(subst /,$(DIRSEP),$(DYN_DIR)/$@)' @__dyn__.tmp
+endef
+
+DY_RULE = $(create_dynlib)
+
 include $(TOP)$(ROOT)config/common/watcom.mk