diff --git a/Makefile.in b/Makefile.in
index 524fbb69..1171c8f3 100644
--- a/Makefile.in
+++ b/Makefile.in
@@ -15,7 +15,7 @@ includedir  := @includedir@
 sbindir     := @sbindir@
 localstatedir := @localstatedir@
 CXX      := @CXX@
-CXXFLAGS := @CPPFLAGS@ @CXXFLAGS@ -I$(srcdir)/headers -Iheaders
+CXXFLAGS := @CPPFLAGS@ @CXXFLAGS@ -I$(srcdir)/include -Iinclude
 LDFLAGS  := @LDFLAGS@
 LIBS     := @LIBS@
 LIBZNC   := @LIBZNC@
@@ -32,10 +32,11 @@ LIB_SRCS  := ZNCString.cpp Csocket.cpp znc.cpp IRCNetwork.cpp User.cpp IRCSock.c
 	Client.cpp Chan.cpp Nick.cpp Server.cpp Modules.cpp MD5.cpp Buffer.cpp Utils.cpp \
 	FileUtils.cpp HTTPSock.cpp Template.cpp ClientCommand.cpp Socket.cpp SHA256.cpp \
 	WebModules.cpp Listener.cpp Config.cpp ZNCDebug.cpp
-BIN_SRCS  := main.cpp
+LIB_SRCS  := $(addprefix src/,$(LIB_SRCS))
+BIN_SRCS  := src/main.cpp
 LIB_OBJS  := $(patsubst %cpp,%o,$(LIB_SRCS))
 BIN_OBJS  := $(patsubst %cpp,%o,$(BIN_SRCS))
-CLEAN     := znc *.o core core.*
+CLEAN     := znc src/*.o core core.*
 DISTCLEAN := Makefile config.log config.status znc-config znc-buildmod .depend \
 	modules/.depend modules/Makefile man/Makefile znc.pc znc-uninstalled.pc
 
@@ -96,10 +97,10 @@ clean:
 distclean: clean
 	rm -rf $(DISTCLEAN)
 
-%.o: %.cpp Makefile
-	@mkdir -p .depend
-	$(E) Building $@...
-	$(Q)$(CXX) $(CXXFLAGS) -c -o $@ $< -MMD -MF .depend/$@.dep
+src/%.o: src/%.cpp Makefile
+	@mkdir -p .depend src
+	$(E) Building core object $*...
+	$(Q)$(CXX) $(CXXFLAGS) -c -o $@ $< -MMD -MF .depend/$*.dep
 
 install: znc $(LIBZNC)
 	mkdir -p $(DESTDIR)$(bindir)
@@ -113,8 +114,8 @@ install: znc $(LIBZNC)
 	$(INSTALL_PROGRAM) znc $(DESTDIR)$(bindir)
 	$(INSTALL_SCRIPT) znc-config $(DESTDIR)$(bindir)
 	$(INSTALL_SCRIPT) znc-buildmod $(DESTDIR)$(bindir)
-	$(INSTALL_DATA) $(srcdir)/headers/znc/*.h $(DESTDIR)$(includedir)/znc
-	$(INSTALL_DATA) headers/znc/zncconfig.h $(DESTDIR)$(includedir)/znc
+	$(INSTALL_DATA) $(srcdir)/include/znc/*.h $(DESTDIR)$(includedir)/znc
+	$(INSTALL_DATA) include/znc/zncconfig.h $(DESTDIR)$(includedir)/znc
 	$(INSTALL_DATA) znc.pc $(DESTDIR)$(PKGCONFIGDIR)
 	@$(MAKE) -C modules install DESTDIR=$(DESTDIR);
 	if test -n "$(LIBZNC)"; then \
diff --git a/configure.ac b/configure.ac
index f28b6384..d988c917 100644
--- a/configure.ac
+++ b/configure.ac
@@ -9,9 +9,9 @@ AC_PREREQ([2.62])
 dnl Keep the version number in sync with main.h!
 AC_INIT([znc], [0.203])
 AC_CONFIG_MACRO_DIR([m4])
-AC_CONFIG_SRCDIR([znc.cpp])
+AC_CONFIG_SRCDIR([src/znc.cpp])
 AC_LANG([C++])
-AC_CONFIG_HEADERS([headers/znc/zncconfig.h])
+AC_CONFIG_HEADERS([include/znc/zncconfig.h])
 AH_TOP([#ifndef ZNCCONFIG_H
 #define ZNCCONFIG_H])
 AH_BOTTOM([#endif /* ZNCCONFIG_H */])
diff --git a/Buffer.cpp b/src/Buffer.cpp
similarity index 100%
rename from Buffer.cpp
rename to src/Buffer.cpp
diff --git a/Chan.cpp b/src/Chan.cpp
similarity index 100%
rename from Chan.cpp
rename to src/Chan.cpp
diff --git a/Client.cpp b/src/Client.cpp
similarity index 100%
rename from Client.cpp
rename to src/Client.cpp
diff --git a/ClientCommand.cpp b/src/ClientCommand.cpp
similarity index 100%
rename from ClientCommand.cpp
rename to src/ClientCommand.cpp
diff --git a/Config.cpp b/src/Config.cpp
similarity index 100%
rename from Config.cpp
rename to src/Config.cpp
diff --git a/Csocket.cpp b/src/Csocket.cpp
similarity index 100%
rename from Csocket.cpp
rename to src/Csocket.cpp
diff --git a/FileUtils.cpp b/src/FileUtils.cpp
similarity index 100%
rename from FileUtils.cpp
rename to src/FileUtils.cpp
diff --git a/HTTPSock.cpp b/src/HTTPSock.cpp
similarity index 100%
rename from HTTPSock.cpp
rename to src/HTTPSock.cpp
diff --git a/IRCNetwork.cpp b/src/IRCNetwork.cpp
similarity index 100%
rename from IRCNetwork.cpp
rename to src/IRCNetwork.cpp
diff --git a/IRCSock.cpp b/src/IRCSock.cpp
similarity index 100%
rename from IRCSock.cpp
rename to src/IRCSock.cpp
diff --git a/Listener.cpp b/src/Listener.cpp
similarity index 100%
rename from Listener.cpp
rename to src/Listener.cpp
diff --git a/MD5.cpp b/src/MD5.cpp
similarity index 100%
rename from MD5.cpp
rename to src/MD5.cpp
diff --git a/Modules.cpp b/src/Modules.cpp
similarity index 100%
rename from Modules.cpp
rename to src/Modules.cpp
diff --git a/Nick.cpp b/src/Nick.cpp
similarity index 100%
rename from Nick.cpp
rename to src/Nick.cpp
diff --git a/SHA256.cpp b/src/SHA256.cpp
similarity index 100%
rename from SHA256.cpp
rename to src/SHA256.cpp
diff --git a/Server.cpp b/src/Server.cpp
similarity index 100%
rename from Server.cpp
rename to src/Server.cpp
diff --git a/Socket.cpp b/src/Socket.cpp
similarity index 100%
rename from Socket.cpp
rename to src/Socket.cpp
diff --git a/Template.cpp b/src/Template.cpp
similarity index 100%
rename from Template.cpp
rename to src/Template.cpp
diff --git a/User.cpp b/src/User.cpp
similarity index 100%
rename from User.cpp
rename to src/User.cpp
diff --git a/Utils.cpp b/src/Utils.cpp
similarity index 100%
rename from Utils.cpp
rename to src/Utils.cpp
diff --git a/WebModules.cpp b/src/WebModules.cpp
similarity index 100%
rename from WebModules.cpp
rename to src/WebModules.cpp
diff --git a/ZNCDebug.cpp b/src/ZNCDebug.cpp
similarity index 100%
rename from ZNCDebug.cpp
rename to src/ZNCDebug.cpp
diff --git a/ZNCString.cpp b/src/ZNCString.cpp
similarity index 100%
rename from ZNCString.cpp
rename to src/ZNCString.cpp
diff --git a/main.cpp b/src/main.cpp
similarity index 100%
rename from main.cpp
rename to src/main.cpp
diff --git a/znc.cpp b/src/znc.cpp
similarity index 100%
rename from znc.cpp
rename to src/znc.cpp