diff --git a/core/net/pom.xml b/core/net/pom.xml
index 4150ec0..2bc6a60 100644
--- a/core/net/pom.xml
+++ b/core/net/pom.xml
@@ -52,6 +52,14 @@
         </dependency>
 
         <dependency>
+            <groupId>org.onosproject</groupId>
+            <artifactId>onos-core-common</artifactId>
+            <version>${project.version}</version>
+            <classifier>tests</classifier>
+            <scope>test</scope>
+        </dependency>
+
+        <dependency>
             <groupId>org.easymock</groupId>
             <artifactId>easymock</artifactId>
             <scope>test</scope>
@@ -66,6 +74,12 @@
             <groupId>org.apache.felix</groupId>
             <artifactId>org.apache.felix.scr.annotations</artifactId>
         </dependency>
+
+        <dependency>
+            <groupId>org.apache.karaf.features</groupId>
+            <artifactId>org.apache.karaf.features.core</artifactId>
+            <version>3.0.2</version>
+        </dependency>
     </dependencies>
 
     <build>
diff --git a/core/net/src/main/java/org/onosproject/app/impl/ApplicationManager.java b/core/net/src/main/java/org/onosproject/app/impl/ApplicationManager.java
new file mode 100644
index 0000000..08c91a4
--- /dev/null
+++ b/core/net/src/main/java/org/onosproject/app/impl/ApplicationManager.java
@@ -0,0 +1,215 @@
+/*
+ * Copyright 2015 Open Networking Laboratory
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.onosproject.app.impl;
+
+import org.apache.felix.scr.annotations.Activate;
+import org.apache.felix.scr.annotations.Component;
+import org.apache.felix.scr.annotations.Deactivate;
+import org.apache.felix.scr.annotations.Reference;
+import org.apache.felix.scr.annotations.ReferenceCardinality;
+import org.apache.felix.scr.annotations.Service;
+import org.apache.karaf.features.FeaturesService;
+import org.onosproject.app.ApplicationAdminService;
+import org.onosproject.app.ApplicationEvent;
+import org.onosproject.app.ApplicationListener;
+import org.onosproject.app.ApplicationService;
+import org.onosproject.app.ApplicationState;
+import org.onosproject.app.ApplicationStore;
+import org.onosproject.app.ApplicationStoreDelegate;
+import org.onosproject.core.Application;
+import org.onosproject.core.ApplicationId;
+import org.onosproject.core.Permission;
+import org.onosproject.event.AbstractListenerRegistry;
+import org.onosproject.event.EventDeliveryService;
+import org.slf4j.Logger;
+
+import java.io.InputStream;
+import java.util.Set;
+
+import static com.google.common.base.Preconditions.checkNotNull;
+import static org.onosproject.app.ApplicationEvent.Type.*;
+import static org.slf4j.LoggerFactory.getLogger;
+
+/**
+ * Implementation of the application management service.
+ */
+@Component(immediate = true)
+@Service
+public class ApplicationManager implements ApplicationService, ApplicationAdminService {
+
+    private final Logger log = getLogger(getClass());
+
+    private static final String APP_ID_NULL = "Application ID cannot be null";
+
+    protected final AbstractListenerRegistry<ApplicationEvent, ApplicationListener>
+            listenerRegistry = new AbstractListenerRegistry<>();
+
+    private final ApplicationStoreDelegate delegate = new InternalStoreDelegate();
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected ApplicationStore store;
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected FeaturesService featuresService;
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected EventDeliveryService eventDispatcher;
+
+    @Activate
+    public void activate() {
+        store.setDelegate(delegate);
+        eventDispatcher.addSink(ApplicationEvent.class, listenerRegistry);
+        log.info("Started");
+    }
+
+    @Deactivate
+    public void deactivate() {
+        store.unsetDelegate(delegate);
+        eventDispatcher.removeSink(ApplicationEvent.class);
+        log.info("Stopped");
+    }
+
+    @Override
+    public Set<Application> getApplications() {
+        return store.getApplications();
+    }
+
+    @Override
+    public ApplicationId getId(String name) {
+        checkNotNull(name, "Name cannot be null");
+        return store.getId(name);
+    }
+
+    @Override
+    public Application getApplication(ApplicationId appId) {
+        checkNotNull(appId, APP_ID_NULL);
+        return store.getApplication(appId);
+    }
+
+    @Override
+    public ApplicationState getState(ApplicationId appId) {
+        checkNotNull(appId, APP_ID_NULL);
+        return store.getState(appId);
+    }
+
+    @Override
+    public Set<Permission> getPermissions(ApplicationId appId) {
+        checkNotNull(appId, APP_ID_NULL);
+        return store.getPermissions(appId);
+    }
+
+    @Override
+    public Application install(InputStream appDescStream) {
+        checkNotNull(appDescStream, "Application archive stream cannot be null");
+        return store.create(appDescStream);
+    }
+
+    @Override
+    public void uninstall(ApplicationId appId) {
+        checkNotNull(appId, APP_ID_NULL);
+        try {
+            store.remove(appId);
+        } catch (Exception e) {
+            log.warn("Unable to purge application directory for {}", appId.name());
+        }
+    }
+
+    @Override
+    public void activate(ApplicationId appId) {
+        checkNotNull(appId, APP_ID_NULL);
+        store.activate(appId);
+    }
+
+    @Override
+    public void deactivate(ApplicationId appId) {
+        checkNotNull(appId, APP_ID_NULL);
+        store.deactivate(appId);
+    }
+
+    @Override
+    public void setPermissions(ApplicationId appId, Set<Permission> permissions) {
+        checkNotNull(appId, APP_ID_NULL);
+        checkNotNull(permissions, "Permissions cannot be null");
+        store.setPermissions(appId, permissions);
+    }
+
+    @Override
+    public void addListener(ApplicationListener listener) {
+        listenerRegistry.addListener(listener);
+    }
+
+    @Override
+    public void removeListener(ApplicationListener listener) {
+        listenerRegistry.removeListener(listener);
+    }
+
+    private class InternalStoreDelegate implements ApplicationStoreDelegate {
+        @Override
+        public void notify(ApplicationEvent event) {
+            ApplicationEvent.Type type = event.type();
+            Application app = event.subject();
+            try {
+                if (type == APP_ACTIVATED) {
+                    installAppFeatures(app);
+                    log.info("Application {} has been activated", app.id().name());
+
+                } else if (type == APP_DEACTIVATED) {
+                    uninstallAppFeatures(app);
+                    log.info("Application {} has been deactivated", app.id().name());
+
+                } else if (type == APP_INSTALLED) {
+                    installAppArtifacts(app);
+                    log.info("Application {} has been installed", app.id().name());
+
+                } else if (type == APP_UNINSTALLED) {
+                    uninstallAppFeatures(app);
+                    uninstallAppArtifacts(app);
+                    log.info("Application {} has been uninstalled", app.id().name());
+
+                }
+                eventDispatcher.post(event);
+
+            } catch (Exception e) {
+                log.warn("Unable to perform operation on application " + app.id().name(), e);
+            }
+        }
+    }
+
+    private void installAppArtifacts(Application app) throws Exception {
+        if (app.featuresRepo().isPresent()) {
+            featuresService.addRepository(app.featuresRepo().get());
+        }
+    }
+
+    private void uninstallAppArtifacts(Application app) throws Exception {
+        if (app.featuresRepo().isPresent()) {
+            featuresService.removeRepository(app.featuresRepo().get());
+        }
+    }
+
+    private void installAppFeatures(Application app) throws Exception {
+        for (String name : app.features()) {
+            featuresService.installFeature(name);
+        }
+    }
+
+    private void uninstallAppFeatures(Application app) throws Exception {
+        for (String name : app.features()) {
+            featuresService.uninstallFeature(name);
+        }
+    }
+
+}
diff --git a/core/net/src/main/java/org/onosproject/app/impl/package-info.java b/core/net/src/main/java/org/onosproject/app/impl/package-info.java
new file mode 100644
index 0000000..d5f3037
--- /dev/null
+++ b/core/net/src/main/java/org/onosproject/app/impl/package-info.java
@@ -0,0 +1,20 @@
+/*
+ * Copyright 2015 Open Networking Laboratory
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+/**
+ * Subsystem for managing applications.
+ */
+package org.onosproject.app.impl;
\ No newline at end of file
diff --git a/core/net/src/test/java/org/onosproject/app/impl/ApplicationManagerTest.java b/core/net/src/test/java/org/onosproject/app/impl/ApplicationManagerTest.java
new file mode 100644
index 0000000..3477207
--- /dev/null
+++ b/core/net/src/test/java/org/onosproject/app/impl/ApplicationManagerTest.java
@@ -0,0 +1,197 @@
+/*
+ * Copyright 2015 Open Networking Laboratory
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.onosproject.app.impl;
+
+import com.google.common.collect.ImmutableSet;
+import org.junit.After;
+import org.junit.Before;
+import org.junit.Test;
+import org.onosproject.app.ApplicationEvent;
+import org.onosproject.app.ApplicationListener;
+import org.onosproject.app.ApplicationState;
+import org.onosproject.app.ApplicationStoreAdapter;
+import org.onosproject.common.app.ApplicationArchive;
+import org.onosproject.core.Application;
+import org.onosproject.core.ApplicationId;
+import org.onosproject.core.DefaultApplication;
+import org.onosproject.core.DefaultApplicationId;
+import org.onosproject.event.impl.TestEventDispatcher;
+
+import java.io.InputStream;
+import java.net.URI;
+import java.util.HashSet;
+import java.util.Optional;
+import java.util.Set;
+
+import static org.junit.Assert.assertEquals;
+import static org.onosproject.app.ApplicationEvent.Type.*;
+import static org.onosproject.app.ApplicationState.ACTIVE;
+import static org.onosproject.app.ApplicationState.INSTALLED;
+import static org.onosproject.app.DefaultApplicationDescriptionTest.*;
+
+/**
+ * Test of the application manager implementation.
+ */
+public class ApplicationManagerTest {
+
+    public static final DefaultApplicationId APP_ID = new DefaultApplicationId(1, APP_NAME);
+
+    private ApplicationManager mgr = new ApplicationManager();
+    private ApplicationListener listener = new TestListener();
+
+    @Before
+    public void setUp() {
+        mgr.eventDispatcher = new TestEventDispatcher();
+        mgr.featuresService = new TestFeaturesService();
+        mgr.store = new TestStore();
+        mgr.activate();
+        mgr.addListener(listener);
+    }
+
+    @After
+    public void tearDown() {
+        mgr.removeListener(listener);
+        mgr.deactivate();
+    }
+
+    private void validate(Application app) {
+        assertEquals("incorrect name", APP_NAME, app.id().name());
+        assertEquals("incorrect version", VER, app.version());
+        assertEquals("incorrect origin", ORIGIN, app.origin());
+
+        assertEquals("incorrect description", DESC, app.description());
+        assertEquals("incorrect features URI", FURL, app.featuresRepo().get());
+        assertEquals("incorrect features", FEATURES, app.features());
+    }
+
+    @Test
+    public void install() {
+        InputStream stream = ApplicationArchive.class.getResourceAsStream("app.zip");
+        Application app = mgr.install(stream);
+        validate(app);
+        assertEquals("incorrect features URI used", app.featuresRepo().get(),
+                     ((TestFeaturesService) mgr.featuresService).uri);
+        assertEquals("incorrect app count", 1, mgr.getApplications().size());
+        assertEquals("incorrect app", app, mgr.getApplication(APP_ID));
+        assertEquals("incorrect app state", INSTALLED, mgr.getState(APP_ID));
+    }
+
+    @Test
+    public void uninstall() {
+        install();
+        mgr.uninstall(APP_ID);
+        assertEquals("incorrect app count", 0, mgr.getApplications().size());
+    }
+
+    @Test
+    public void activate() {
+        install();
+        mgr.activate(APP_ID);
+        assertEquals("incorrect app state", ACTIVE, mgr.getState(APP_ID));
+    }
+
+    @Test
+    public void deactivate() {
+        activate();
+        mgr.deactivate(APP_ID);
+        assertEquals("incorrect app state", INSTALLED, mgr.getState(APP_ID));
+    }
+
+
+    private class TestListener implements ApplicationListener {
+        private ApplicationEvent event;
+
+        @Override
+        public void event(ApplicationEvent event) {
+            this.event = event;
+        }
+    }
+
+    private class TestStore extends ApplicationStoreAdapter {
+
+        private Application app;
+        private ApplicationState state;
+
+        @Override
+        public Application create(InputStream appDescStream) {
+            app = new DefaultApplication(APP_ID, VER, DESC, ORIGIN, PERMS,
+                                         Optional.of(FURL), FEATURES);
+            state = INSTALLED;
+            delegate.notify(new ApplicationEvent(APP_INSTALLED, app));
+            return app;
+        }
+
+        @Override
+        public Set<Application> getApplications() {
+            return app != null ? ImmutableSet.of(app) : ImmutableSet.of();
+        }
+
+        @Override
+        public Application getApplication(ApplicationId appId) {
+            return app;
+        }
+
+        @Override
+        public void remove(ApplicationId appId) {
+            delegate.notify(new ApplicationEvent(APP_UNINSTALLED, app));
+            app = null;
+            state = null;
+        }
+
+        @Override
+        public ApplicationState getState(ApplicationId appId) {
+            return state;
+        }
+
+        @Override
+        public void activate(ApplicationId appId) {
+            state = ApplicationState.ACTIVE;
+            delegate.notify(new ApplicationEvent(APP_ACTIVATED, app));
+        }
+
+        @Override
+        public void deactivate(ApplicationId appId) {
+            state = INSTALLED;
+            delegate.notify(new ApplicationEvent(APP_DEACTIVATED, app));
+        }
+    }
+
+    private class TestFeaturesService extends FeaturesServiceAdapter {
+        private URI uri;
+        private Set<String> features = new HashSet<>();
+
+        @Override
+        public void addRepository(URI uri) throws Exception {
+            this.uri = uri;
+        }
+
+        @Override
+        public void removeRepository(URI uri) throws Exception {
+            this.uri = null;
+        }
+
+        @Override
+        public void installFeature(String name) throws Exception {
+            features.add(name);
+        }
+
+        @Override
+        public void uninstallFeature(String name) throws Exception {
+            features.remove(name);
+        }
+    }
+
+}
\ No newline at end of file
diff --git a/core/net/src/test/java/org/onosproject/app/impl/FeaturesServiceAdapter.java b/core/net/src/test/java/org/onosproject/app/impl/FeaturesServiceAdapter.java
new file mode 100644
index 0000000..f527bd4
--- /dev/null
+++ b/core/net/src/test/java/org/onosproject/app/impl/FeaturesServiceAdapter.java
@@ -0,0 +1,148 @@
+/*
+ * Copyright 2015 Open Networking Laboratory
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.onosproject.app.impl;
+
+import org.apache.karaf.features.Feature;
+import org.apache.karaf.features.Repository;
+
+import java.net.URI;
+import java.util.EnumSet;
+import java.util.Set;
+
+/**
+ * Adapter for testing against Apache Karaf feature service.
+ */
+public class FeaturesServiceAdapter implements org.apache.karaf.features.FeaturesService {
+    @Override
+    public void validateRepository(URI uri) throws Exception {
+
+    }
+
+    @Override
+    public void addRepository(URI uri) throws Exception {
+
+    }
+
+    @Override
+    public void addRepository(URI uri, boolean install) throws Exception {
+
+    }
+
+    @Override
+    public void removeRepository(URI uri) throws Exception {
+
+    }
+
+    @Override
+    public void removeRepository(URI uri, boolean uninstall) throws Exception {
+
+    }
+
+    @Override
+    public void restoreRepository(URI uri) throws Exception {
+
+    }
+
+    @Override
+    public Repository[] listRepositories() {
+        return new Repository[0];
+    }
+
+    @Override
+    public Repository getRepository(String repoName) {
+        return null;
+    }
+
+    @Override
+    public void installFeature(String name) throws Exception {
+
+    }
+
+    @Override
+    public void installFeature(String name, EnumSet<Option> options) throws Exception {
+
+    }
+
+    @Override
+    public void installFeature(String name, String version) throws Exception {
+
+    }
+
+    @Override
+    public void installFeature(String name, String version, EnumSet<Option> options) throws Exception {
+
+    }
+
+    @Override
+    public void installFeature(Feature f, EnumSet<Option> options) throws Exception {
+
+    }
+
+    @Override
+    public void installFeatures(Set<Feature> features, EnumSet<Option> options) throws Exception {
+
+    }
+
+    @Override
+    public void uninstallFeature(String name, EnumSet<Option> options) throws Exception {
+
+    }
+
+    @Override
+    public void uninstallFeature(String name) throws Exception {
+
+    }
+
+    @Override
+    public void uninstallFeature(String name, String version, EnumSet<Option> options) throws Exception {
+
+    }
+
+    @Override
+    public void uninstallFeature(String name, String version) throws Exception {
+
+    }
+
+    @Override
+    public Feature[] listFeatures() throws Exception {
+        return new Feature[0];
+    }
+
+    @Override
+    public Feature[] listInstalledFeatures() {
+        return new Feature[0];
+    }
+
+    @Override
+    public boolean isInstalled(Feature f) {
+        return false;
+    }
+
+    @Override
+    public Feature getFeature(String name, String version) throws Exception {
+        return null;
+    }
+
+    @Override
+    public Feature getFeature(String name) throws Exception {
+        return null;
+    }
+
+    @Override
+    public void refreshRepository(URI uri) throws Exception {
+
+    }
+}
diff --git a/core/net/src/test/java/org/onosproject/net/flow/impl/FlowRuleManagerTest.java b/core/net/src/test/java/org/onosproject/net/flow/impl/FlowRuleManagerTest.java
index 974af66..5a79b43 100644
--- a/core/net/src/test/java/org/onosproject/net/flow/impl/FlowRuleManagerTest.java
+++ b/core/net/src/test/java/org/onosproject/net/flow/impl/FlowRuleManagerTest.java
@@ -110,7 +110,7 @@
         mgr.addListener(listener);
         provider = new TestProvider(PID);
         providerService = registry.register(provider);
-        appId = new TestApplicationId((short) 0, "FlowRuleManagerTest");
+        appId = new TestApplicationId(0, "FlowRuleManagerTest");
         assertTrue("provider should be registered",
                    registry.getProviders().contains(provider.id()));
     }
@@ -639,8 +639,7 @@
     }
 
     public class TestApplicationId extends DefaultApplicationId {
-
-        public TestApplicationId(short id, String name) {
+        public TestApplicationId(int id, String name) {
             super(id, name);
         }
     }