diff --git a/src/osmo_gsm_tester/bts_sysmo.py b/src/osmo_gsm_tester/bts_sysmo.py
index 1a7b139..812a247 100644
--- a/src/osmo_gsm_tester/bts_sysmo.py
+++ b/src/osmo_gsm_tester/bts_sysmo.py
@@ -19,11 +19,12 @@
 
 import os
 import pprint
-from . import log, config, util, template, process
+from . import log, config, util, template, process, pcu_sysmo
 
 class SysmoBts(log.Origin):
     suite_run = None
     bsc = None
+    sgsn = None
     run_dir = None
     inst = None
     remote_inst = None
@@ -32,8 +33,9 @@
     lac = None
     cellid = None
     proc_bts = None
+    _pcu = None
 
-    REMOTE_DIR = '/osmo-gsm-tester'
+    REMOTE_DIR = '/osmo-gsm-tester-bts'
     BTS_SYSMO_BIN = 'osmo-bts-sysmo'
     BTS_SYSMO_CFG = 'osmo-bts-sysmo.cfg'
 
@@ -77,15 +79,22 @@
 
         remote_lib = self.remote_inst.child('lib')
         remote_binary = self.remote_inst.child('bin', 'osmo-bts-sysmo')
-        self.proc_bts =  self.launch_remote('osmo-bts-sysmo',
-                            ('LD_LIBRARY_PATH=%s' % remote_lib,
-                             remote_binary, '-c', remote_config_file, '-r', '1',
-                             '-i', self.bsc.addr()),
-                            remote_cwd=remote_run_dir)
+
+        args = ('LD_LIBRARY_PATH=%s' % remote_lib,
+         remote_binary, '-c', remote_config_file, '-r', '1',
+         '-i', self.bsc.addr())
+
+        if self._direct_pcu_enabled():
+            args += ('-M',)
+
+        self.proc_bts = self.launch_remote('osmo-bts-sysmo', args, remote_cwd=remote_run_dir)
 
     def cleanup(self):
         pass
 
+    def _direct_pcu_enabled(self):
+        return util.str2bool(self.conf.get('direct_pcu'))
+
     def pcu_socket_path(self):
         return os.path.join(SysmoBts.REMOTE_DIR, 'pcu_bts')
 
@@ -117,9 +126,17 @@
             log.ctx(proc)
             raise log.Error('Exited in error')
 
+    def pcu(self):
+        if self._pcu is None:
+            self._pcu = pcu_sysmo.OsmoPcuSysmo(self.suite_run, self, self.conf)
+        return self._pcu
+
     def remote_addr(self):
         return self.conf.get('addr')
 
+    def pcu_socket_path(self):
+        return os.path.join(SysmoBts.REMOTE_DIR, 'pcu_bts')
+
     def configure(self):
         if self.bsc is None:
             raise RuntimeError('BTS needs to be added to a BSC or NITB before it can be configured')
@@ -152,6 +169,10 @@
         if self.cellid is not None:
             config.overlay(values, { 'cell_identity': self.cellid })
         config.overlay(values, self.conf)
+
+        sgsn_conf = {} if self.sgsn is None else self.sgsn.conf_for_client()
+        config.overlay(values, sgsn_conf)
+
         self.dbg(conf=values)
         return values
 
@@ -163,6 +184,9 @@
     def set_bsc(self, bsc):
         self.bsc = bsc
 
+    def set_sgsn(self, sgsn):
+        self.sgsn = sgsn
+
     def set_lac(self, lac):
         self.lac = lac
 
diff --git a/src/osmo_gsm_tester/osmo_sgsn.py b/src/osmo_gsm_tester/osmo_sgsn.py
index 7a9c5ff..8659186 100644
--- a/src/osmo_gsm_tester/osmo_sgsn.py
+++ b/src/osmo_gsm_tester/osmo_sgsn.py
@@ -91,4 +91,7 @@
     def running(self):
         return not self.process.terminated()
 
+    def bts_add(self, bts):
+        bts.set_sgsn(self)
+
 # vim: expandtab tabstop=4 shiftwidth=4
diff --git a/src/osmo_gsm_tester/resource.py b/src/osmo_gsm_tester/resource.py
index 8412d6a..604a9e9 100644
--- a/src/osmo_gsm_tester/resource.py
+++ b/src/osmo_gsm_tester/resource.py
@@ -55,6 +55,7 @@
         'bts[].band': schema.BAND,
         'bts[].trx_remote_ip': schema.IPV4,
         'bts[].launch_trx': schema.BOOL_STR,
+        'bts[].direct_pcu': schema.BOOL_STR,
         'bts[].ciphers[]': schema.CIPHER,
         'bts[].trx_list[].hw_addr': schema.HWADDR,
         'bts[].trx_list[].net_device': schema.STR,
diff --git a/src/osmo_gsm_tester/templates/osmo-bsc.cfg.tmpl b/src/osmo_gsm_tester/templates/osmo-bsc.cfg.tmpl
index 18b3761..2466f9f 100644
--- a/src/osmo_gsm_tester/templates/osmo-bsc.cfg.tmpl
+++ b/src/osmo_gsm_tester/templates/osmo-bsc.cfg.tmpl
@@ -59,7 +59,38 @@
   rach max transmission 7
   ip.access unit_id ${bts.ipa_unit_id} 0
   oml ip.access stream_id ${bts.stream_id} line 0
+% if bts.get('sgsn', False):
+  gprs mode gprs
+  gprs routing area 0
+  gprs network-control-order nc1
+  gprs cell bvci 1800
+  gprs cell timer blocking-timer 3
+  gprs cell timer blocking-retries 3
+  gprs cell timer unblocking-retries 3
+  gprs cell timer reset-timer 3
+  gprs cell timer reset-retries 3
+  gprs cell timer suspend-timer 10
+  gprs cell timer suspend-retries 3
+  gprs cell timer resume-timer 10
+  gprs cell timer resume-retries 3
+  gprs cell timer capability-update-timer 10
+  gprs cell timer capability-update-retries 3
+  gprs nsei 1800
+  gprs ns timer tns-block 3
+  gprs ns timer tns-block-retries 3
+  gprs ns timer tns-reset 3
+  gprs ns timer tns-reset-retries 3
+  gprs ns timer tns-test 30
+  gprs ns timer tns-alive 3
+  gprs ns timer tns-alive-retries 10
+  gprs nsvc 0 nsvci 1800
+  gprs nsvc 0 local udp port 23020
+  gprs nsvc 0 remote udp port 23000
+  gprs nsvc 0 remote ip ${bts.sgsn.ip_address.addr}
+  no force-combined-si
+% else:
   gprs mode none
+% endif
 % for trx in bts.trx_list:
   trx ${loop.index}
    rf_locked 0
diff --git a/src/osmo_gsm_tester/templates/osmo-nitb.cfg.tmpl b/src/osmo_gsm_tester/templates/osmo-nitb.cfg.tmpl
index 803a375..211b4cc 100644
--- a/src/osmo_gsm_tester/templates/osmo-nitb.cfg.tmpl
+++ b/src/osmo_gsm_tester/templates/osmo-nitb.cfg.tmpl
@@ -49,7 +49,38 @@
   rach max transmission 7
   ip.access unit_id ${bts.ipa_unit_id} 0
   oml ip.access stream_id ${bts.stream_id} line 0
+% if bts.get('sgsn', False):
+  gprs mode gprs
+  gprs routing area 0
+  gprs network-control-order nc1
+  gprs cell bvci 1800
+  gprs cell timer blocking-timer 3
+  gprs cell timer blocking-retries 3
+  gprs cell timer unblocking-retries 3
+  gprs cell timer reset-timer 3
+  gprs cell timer reset-retries 3
+  gprs cell timer suspend-timer 10
+  gprs cell timer suspend-retries 3
+  gprs cell timer resume-timer 10
+  gprs cell timer resume-retries 3
+  gprs cell timer capability-update-timer 10
+  gprs cell timer capability-update-retries 3
+  gprs nsei 1800
+  gprs ns timer tns-block 3
+  gprs ns timer tns-block-retries 3
+  gprs ns timer tns-reset 3
+  gprs ns timer tns-reset-retries 3
+  gprs ns timer tns-test 30
+  gprs ns timer tns-alive 3
+  gprs ns timer tns-alive-retries 10
+  gprs nsvc 0 nsvci 1800
+  gprs nsvc 0 local udp port 23020
+  gprs nsvc 0 remote udp port 23000
+  gprs nsvc 0 remote ip ${bts.sgsn.ip_address.addr}
+  no force-combined-si
+% else:
   gprs mode none
+% endif
 % for trx in bts.trx_list:
   trx ${loop.index}
    rf_locked 0