diff --git a/src/nimble.nim b/src/nimble.nim
index 12706f4..0295903 100644
--- a/src/nimble.nim
+++ b/src/nimble.nim
@@ -306,7 +306,8 @@ proc buildFromDir(pkgInfo: PackageInfo, paths: seq[string], forRelease: bool) =
   buildFromDir(pkgInfo, paths, args)
 
 proc saveNimbleMeta(pkgDestDir, url, vcsRevision: string,
-                    filesInstalled, bins: HashSet[string]) =
+                    filesInstalled, bins: HashSet[string],
+                    isLink: bool = false) =
   ## Saves the specified data into a ``nimblemeta.json`` file inside
   ## ``pkgDestDir``.
   ##
@@ -314,6 +315,9 @@ proc saveNimbleMeta(pkgDestDir, url, vcsRevision: string,
   ##                  installed.
   ## bins - A list of binary filenames which have been installed for this
   ##        package.
+  ##
+  ## isLink - Determines whether the installed package is a .nimble-link.
+  # TODO: Move to packageinstaller.nim
   var nimblemeta = %{"url": %url}
   if not vcsRevision.isNil:
     nimblemeta["vcsRevision"] = %vcsRevision
@@ -325,8 +329,20 @@ proc saveNimbleMeta(pkgDestDir, url, vcsRevision: string,
   nimblemeta["binaries"] = binaries
   for bin in bins:
     binaries.add(%bin)
+  nimblemeta["isLink"] = %isLink
   writeFile(pkgDestDir / "nimblemeta.json", $nimblemeta)
 
+proc saveNimbleMeta(pkgDestDir, pkgDir, vcsRevision: string) =
+  ## Overload of saveNimbleMeta for linked (.nimble-link) packages.
+  ##
+  ## pkgDestDir - The directory where the package has been installed.
+  ##              For example: ~/.nimble/pkgs/jester-#head/
+  ##
+  ## pkgDir - The directory where the original package files are.
+  ##          For example: ~/projects/jester/
+  saveNimbleMeta(pkgDestDir, "file://" & pkgDir, vcsRevision,
+                 initSet[string](), initSet[string](), true)
+
 proc removePkgDir(dir: string, options: Options) =
   ## Removes files belonging to the package in ``dir``.
   try:
@@ -399,7 +415,6 @@ proc installFromDir(dir: string, requestedVer: VersionRange, options: Options,
   var pkgInfo = getPkgInfo(dir, options)
   let realDir = pkgInfo.getRealDir()
   let binDir = options.getBinDir()
-  let pkgsDir = options.getPkgsDir()
   var depsOptions = options
   depsOptions.depsOnly = false
 
@@ -421,12 +436,11 @@ proc installFromDir(dir: string, requestedVer: VersionRange, options: Options,
   # if the build fails then the old package will still be installed.
   if pkgInfo.bin.len > 0: buildFromDir(pkgInfo, result.paths, true)
 
-  let versionStr = '-' & pkgInfo.specialVersion
-
-  let pkgDestDir = pkgsDir / (pkgInfo.name & versionStr)
+  let pkgDestDir = pkgInfo.getPkgDest(options)
   if existsDir(pkgDestDir) and existsFile(pkgDestDir / "nimblemeta.json"):
-    if not options.prompt(pkgInfo.name & versionStr &
-          " already exists. Overwrite?"):
+    let msg = "$1@$2 already exists. Overwrite?" %
+              [pkgInfo.name, pkgInfo.specialVersion]
+    if not options.prompt(msg):
       raise NimbleQuit(msg: "")
     removePkgDir(pkgDestDir, options)
     # Remove any symlinked binaries
@@ -495,49 +509,6 @@ proc installFromDir(dir: string, requestedVer: VersionRange, options: Options,
   display("Success:", pkgInfo.name & " installed successfully.",
           Success, HighPriority)
 
-proc getNimbleTempDir(): string =
-  ## Returns a path to a temporary directory.
-  ##
-  ## The returned path will be the same for the duration of the process but
-  ## different for different runs of it. You have to make sure to create it
-  ## first. In release builds the directory will be removed when nimble finishes
-  ## its work.
-  result = getTempDir() / "nimble_"
-  when defined(windows):
-    proc GetCurrentProcessId(): int32 {.stdcall, dynlib: "kernel32",
-                                        importc: "GetCurrentProcessId".}
-    result.add($GetCurrentProcessId())
-  else:
-    result.add($getpid())
-
-proc downloadPkg(url: string, verRange: VersionRange,
-                 downMethod: DownloadMethod,
-                 options: Options): (string, Version) =
-  ## Downloads the repository as specified by ``url`` and ``verRange`` using
-  ## the download method specified.
-  ##
-  ## Returns the directory where it was downloaded and the concrete version
-  ## which was downloaded.
-  let downloadDir = (getNimbleTempDir() / getDownloadDirName(url, verRange))
-  createDir(downloadDir)
-  var modUrl =
-    if url.startsWith("git://") and options.config.cloneUsingHttps:
-      "https://" & url[6 .. ^1]
-    else: url
-
-  # Fixes issue #204
-  # github + https + trailing url slash causes a
-  # checkout/ls-remote to fail with Repository not found
-  if modUrl.contains("github.com") and modUrl.endswith("/"):
-    modUrl = modUrl[0 .. ^2]
-
-  display("Downloading", "$1 using $2" % [modUrl, $downMethod],
-          priority = HighPriority)
-  result = (
-    downloadDir,
-    doDownload(modUrl, downloadDir, verRange, downMethod, options)
-  )
-
 proc getDownloadInfo*(pv: PkgTuple, options: Options,
                       doPrompt: bool): (DownloadMethod, string) =
   if pv.name.isURL:
@@ -931,6 +902,70 @@ proc listTasks(options: Options) =
   let nimbleFile = findNimbleFile(getCurrentDir(), true)
   nimscriptsupport.listTasks(nimbleFile, options)
 
+proc developFromDir(dir: string, options: Options) =
+  if options.depsOnly:
+    raiseNimbleError("Cannot develop dependencies only.")
+
+  var pkgInfo = getPkgInfo(dir, options)
+  if pkgInfo.bin.len > 0:
+    if "nim" in pkgInfo.skipExt:
+      raiseNimbleError("Cannot develop packages that are binaries only.")
+
+    display("Warning:", "This package's binaries will not be compiled " &
+            "nor symlinked for development.", Warning, HighPriority)
+
+  # Overwrite the version to #head always.
+  pkgInfo.specialVersion = "#head"
+
+  # Dependencies need to be processed before the creation of the pkg dir.
+  discard processDeps(pkgInfo, options)
+
+  # This is similar to the code in `installFromDir`, except that we
+  # *consciously* not worry about the package's binaries.
+  let pkgDestDir = pkgInfo.getPkgDest(options)
+  if existsDir(pkgDestDir) and existsFile(pkgDestDir / "nimblemeta.json"):
+    let msg = "$1@$2 already exists. Overwrite?" %
+              [pkgInfo.name, pkgInfo.specialVersion]
+    if not options.prompt(msg):
+      raise NimbleQuit(msg: "")
+    removePkgDir(pkgDestDir, options)
+
+  createDir(pkgDestDir)
+  # The .nimble-link file contains the path to the real .nimble file,
+  # and a secondary path to the source directory of the package.
+  # The secondary path is necessary so that the package's .nimble file doesn't
+  # need to be read. This will mean that users will need to re-run
+  # `nimble develop` if they change their `srcDir` but I think it's a worthy
+  # compromise.
+  let contents = pkgInfo.myPath & "\n" & pkgInfo.getRealDir()
+  writeFile(pkgDestDir / pkgInfo.name.addFileExt("nimble-link"), contents)
+
+  # TODO: Handle dependencies of the package we are developing (they need to be
+  # installed).
+
+  # Save a nimblemeta.json file.
+  saveNimbleMeta(pkgDestDir, "file://" & dir, vcsRevisionInDir(dir))
+
+  # Save the nimble data (which might now contain reverse deps added in
+  # processDeps).
+  saveNimbleData(options)
+
+proc develop(options: Options) =
+  if options.action.packages == @[]:
+    developFromDir(getCurrentDir(), options)
+  else:
+    # Install each package.
+    for pv in options.action.packages:
+      let downloadDir = getCurrentDir() / pv.name
+      if dirExists(downloadDir):
+        let msg = "Cannot clone into '$1': directory exists." % downloadDir
+        let hint = "Remove the directory, or run this command somewhere else."
+        raiseNimbleError(msg, hint)
+
+      let (meth, url) = getDownloadInfo(pv, options, true)
+      discard downloadPkg(url, pv.ver, meth, options, downloadDir)
+      developFromDir(downloadDir, options)
+
 proc execHook(options: Options, before: bool): bool =
   ## Returns whether to continue.
   result = true
@@ -1002,6 +1037,8 @@ proc doAction(options: Options) =
     dump(options)
   of actionTasks:
     listTasks(options)
+  of actionDevelop:
+    develop(options)
   of actionNil:
     assert false
   of actionCustom:
diff --git a/src/nimblepkg/download.nim b/src/nimblepkg/download.nim
index 1db1096..216c36e 100644
--- a/src/nimblepkg/download.nim
+++ b/src/nimblepkg/download.nim
@@ -212,6 +212,42 @@ proc doDownload*(url: string, downloadDir: string, verRange: VersionRange,
 
       verifyClone()
 
+proc downloadPkg*(url: string, verRange: VersionRange,
+                 downMethod: DownloadMethod,
+                 options: Options,
+                 downloadPath = ""): (string, Version) =
+  ## Downloads the repository as specified by ``url`` and ``verRange`` using
+  ## the download method specified.
+  ##
+  ## If `downloadPath` isn't specified a location in /tmp/ will be used.
+  ##
+  ## Returns the directory where it was downloaded and the concrete version
+  ## which was downloaded.
+  let downloadDir =
+    if downloadPath == "":
+      (getNimbleTempDir() / getDownloadDirName(url, verRange))
+    else:
+      downloadPath
+
+  createDir(downloadDir)
+  var modUrl =
+    if url.startsWith("git://") and options.config.cloneUsingHttps:
+      "https://" & url[6 .. ^1]
+    else: url
+
+  # Fixes issue #204
+  # github + https + trailing url slash causes a
+  # checkout/ls-remote to fail with Repository not found
+  if modUrl.contains("github.com") and modUrl.endswith("/"):
+    modUrl = modUrl[0 .. ^2]
+
+  display("Downloading", "$1 using $2" % [modUrl, $downMethod],
+          priority = HighPriority)
+  result = (
+    downloadDir,
+    doDownload(modUrl, downloadDir, verRange, downMethod, options)
+  )
+
 proc echoPackageVersions*(pkg: Package) =
   let downMethod = pkg.downloadMethod.getDownloadMethod()
   case downMethod
diff --git a/src/nimblepkg/options.nim b/src/nimblepkg/options.nim
index eee40cd..5890a00 100644
--- a/src/nimblepkg/options.nim
+++ b/src/nimblepkg/options.nim
@@ -27,15 +27,16 @@ type
     actionNil, actionRefresh, actionInit, actionDump, actionPublish,
     actionInstall, actionSearch,
     actionList, actionBuild, actionPath, actionUninstall, actionCompile,
-    actionDoc, actionCustom, actionTasks
+    actionDoc, actionCustom, actionTasks, actionDevelop
 
   Action* = object
     case typ*: ActionType
     of actionNil, actionList, actionPublish, actionTasks: nil
     of actionRefresh:
       optionalURL*: string # Overrides default package list.
-    of actionInstall, actionPath, actionUninstall:
-      packages*: seq[PkgTuple] # Optional only for actionInstall.
+    of actionInstall, actionPath, actionUninstall, actionDevelop:
+      packages*: seq[PkgTuple] # Optional only for actionInstall
+                               # and actionDevelop.
     of actionSearch:
       search*: seq[string] # Search string.
     of actionInit, actionDump:
@@ -56,6 +57,9 @@ Usage: nimble COMMAND [opts]
 Commands:
   install      [pkgname, ...]     Installs a list of packages.
                [-d, --depsOnly]   Install only dependencies.
+  develop      [pkgname, ...]     Clones a list of packages for development.
+                                  Symlinks the cloned packages or any package
+                                  in the current working directory.
   init         [pkgname]          Initializes a new Nimble project.
   publish                         Publishes a package on nim-lang/packages.
                                   The current working directory needs to be the
@@ -141,6 +145,8 @@ proc parseActionType*(action: string): ActionType =
     result = actionPublish
   of "tasks":
     result = actionTasks
+  of "develop":
+    result = actionDevelop
   else:
     result = actionCustom
 
@@ -149,7 +155,7 @@ proc initAction*(options: var Options, key: string) =
   ## `key`.
   let keyNorm = key.normalize()
   case options.action.typ
-  of actionInstall, actionPath:
+  of actionInstall, actionPath, actionDevelop, actionUninstall:
     options.action.packages = @[]
   of actionCompile, actionDoc, actionBuild:
     options.action.compileOptions = @[]
@@ -164,8 +170,6 @@ proc initAction*(options: var Options, key: string) =
     options.action.optionalURL = ""
   of actionSearch:
     options.action.search = @[]
-  of actionUninstall:
-    options.action.packages = @[]
   of actionCustom:
     options.action.command = key
     options.action.arguments = @[]
diff --git a/src/nimblepkg/packageinfo.nim b/src/nimblepkg/packageinfo.nim
index 389342d..f854676 100644
--- a/src/nimblepkg/packageinfo.nim
+++ b/src/nimblepkg/packageinfo.nim
@@ -497,6 +497,11 @@ proc iterInstallFiles*(realDir: string, pkgInfo: PackageInfo,
 
         action(file)
 
+proc getPkgDest*(pkgInfo: PackageInfo, options: Options): string =
+  let versionStr = '-' & pkgInfo.specialVersion
+  let pkgDestDir = options.getPkgsDir() / (pkgInfo.name & versionStr)
+  return pkgDestDir
+
 when isMainModule:
   doAssert getNameVersion("/home/user/.nimble/libs/packagea-0.1") ==
       ("packagea", "0.1")
diff --git a/src/nimblepkg/tools.nim b/src/nimblepkg/tools.nim
index ebc268d..00e518c 100644
--- a/src/nimblepkg/tools.nim
+++ b/src/nimblepkg/tools.nim
@@ -141,3 +141,20 @@ proc contains*(j: JsonNode, elem: tuple[key: string, val: JsonNode]): bool =
   for key, val in pairs(j):
     if key == elem.key and val == elem.val:
       return true
+
+when not defined(windows):
+  from posix import getpid
+proc getNimbleTempDir*(): string =
+  ## Returns a path to a temporary directory.
+  ##
+  ## The returned path will be the same for the duration of the process but
+  ## different for different runs of it. You have to make sure to create it
+  ## first. In release builds the directory will be removed when nimble finishes
+  ## its work.
+  result = getTempDir() / "nimble_"
+  when defined(windows):
+    proc GetCurrentProcessId(): int32 {.stdcall, dynlib: "kernel32",
+                                        importc: "GetCurrentProcessId".}
+    result.add($GetCurrentProcessId())
+  else:
+    result.add($getpid())
\ No newline at end of file
diff --git a/tests/develop/binary/binary.nim b/tests/develop/binary/binary.nim
new file mode 100644
index 0000000..53c687a
--- /dev/null
+++ b/tests/develop/binary/binary.nim
@@ -0,0 +1 @@
+echo("hello")
\ No newline at end of file
diff --git a/tests/develop/binary/binary.nimble b/tests/develop/binary/binary.nimble
new file mode 100644
index 0000000..b80a50e
--- /dev/null
+++ b/tests/develop/binary/binary.nimble
@@ -0,0 +1,14 @@
+# Package
+
+version       = "1.0"
+author        = "Dominik Picheta"
+description   = "binary"
+license       = "MIT"
+
+bin = @["binary"]
+
+skipExt = @["nim"]
+
+# Dependencies
+
+requires "nim >= 0.16.0"
diff --git a/tests/develop/hybrid/hybrid.nim b/tests/develop/hybrid/hybrid.nim
new file mode 100644
index 0000000..53c687a
--- /dev/null
+++ b/tests/develop/hybrid/hybrid.nim
@@ -0,0 +1 @@
+echo("hello")
\ No newline at end of file
diff --git a/tests/develop/hybrid/hybrid.nimble b/tests/develop/hybrid/hybrid.nimble
new file mode 100644
index 0000000..d580fad
--- /dev/null
+++ b/tests/develop/hybrid/hybrid.nimble
@@ -0,0 +1,12 @@
+# Package
+
+version       = "1.0"
+author        = "Dominik Picheta"
+description   = "hybrid"
+license       = "MIT"
+
+bin = @["hybrid"]
+
+# Dependencies
+
+requires "nim >= 0.16.0"
diff --git a/tests/develop/srcdirtest/src/srcdirtest.nim b/tests/develop/srcdirtest/src/srcdirtest.nim
new file mode 100644
index 0000000..53c687a
--- /dev/null
+++ b/tests/develop/srcdirtest/src/srcdirtest.nim
@@ -0,0 +1 @@
+echo("hello")
\ No newline at end of file
diff --git a/tests/develop/srcdirtest/srcdirtest.nimble b/tests/develop/srcdirtest/srcdirtest.nimble
new file mode 100644
index 0000000..c0f8136
--- /dev/null
+++ b/tests/develop/srcdirtest/srcdirtest.nimble
@@ -0,0 +1,12 @@
+# Package
+
+version       = "1.0"
+author        = "Dominik Picheta"
+description   = "srcdir"
+license       = "MIT"
+
+srcDir = "src"
+
+# Dependencies
+
+requires "nim >= 0.16.0"
diff --git a/tests/tester.nim b/tests/tester.nim
index 804a656..603023b 100644
--- a/tests/tester.nim
+++ b/tests/tester.nim
@@ -460,4 +460,41 @@ test "can pass args with spaces to Nim (#351)":
                                        " -d:myVar=\"string with spaces\"" &
                                        " binaryPackage")
     checkpoint output
-    check exitCode == QuitSuccess
\ No newline at end of file
+    check exitCode == QuitSuccess
+
+suite "develop feature":
+  test "can reject binary packages":
+    cd "develop/binary":
+      let (output, exitCode) = execNimble("develop")
+      checkpoint output
+      check output.processOutput.inLines("cannot develop packages")
+      check exitCode == QuitFailure
+
+  test "can develop hybrid":
+    cd "develop/hybrid":
+      let (output, exitCode) = execNimble("develop")
+      checkpoint output
+      check output.processOutput.inLines("will not be compiled")
+      check exitCode == QuitSuccess
+
+      let path = installDir / "pkgs" / "hybrid-#head" / "hybrid.nimble-link"
+      check fileExists(path)
+      let split = readFile(path).splitLines()
+      check split.len == 2
+      check split[0].endsWith("develop/hybrid/hybrid.nimble")
+      check split[1].endsWith("develop/hybrid")
+
+  test "can develop with srcDir":
+    cd "develop/srcdirtest":
+      let (output, exitCode) = execNimble("develop")
+      checkpoint output
+      check(not output.processOutput.inLines("will not be compiled"))
+      check exitCode == QuitSuccess
+
+      let path = installDir / "pkgs" / "srcdirtest-#head" /
+                 "srcdirtest.nimble-link"
+      check fileExists(path)
+      let split = readFile(path).splitLines()
+      check split.len == 2
+      check split[0].endsWith("develop/srcdirtest/srcdirtest.nimble")
+      check split[1].endsWith("develop/srcdirtest/src")
\ No newline at end of file