diff --git a/CODEOWNERS b/CODEOWNERS
index 146e353457..1366bd7108 100644
--- a/CODEOWNERS
+++ b/CODEOWNERS
@@ -386,7 +386,6 @@
 /samples/                                 @nashif
 /samples/basic/minimal/                   @carlescufi
 /samples/basic/servo_motor/boards/*microbit* @jhe
-/lib/updatehub/                           @nandojve @otavio
 /samples/bluetooth/                       @jhedberg @Vudentz @joerchan
 /samples/boards/intel_s1000_crb/          @sathishkuttan @dcpleung @nashif
 /samples/display/                         @vanwinkeljan
@@ -463,6 +462,7 @@
 /subsys/logging/log_backend_net.c         @nordic-krch @jukkar
 /subsys/mgmt/mcumgr/                      @carlescufi @nvlsianpu
 /subsys/mgmt/mcumgr/smp_udp.c             @aunsbjerg
+/subsys/mgmt/updatehub/                   @nandojve @otavio
 /subsys/net/buf.c                         @jukkar @jhedberg @tbursztyka @pfalcon
 /subsys/net/ip/                           @jukkar @tbursztyka @pfalcon
 /subsys/net/lib/                          @jukkar @tbursztyka @pfalcon
diff --git a/lib/CMakeLists.txt b/lib/CMakeLists.txt
index 9626d1bfc3..9ca2f968df 100644
--- a/lib/CMakeLists.txt
+++ b/lib/CMakeLists.txt
@@ -9,5 +9,4 @@ add_subdirectory_ifdef(CONFIG_CMSIS_RTOS_V2        cmsis_rtos_v2)
 add_subdirectory_ifdef(CONFIG_FNMATCH              fnmatch)
 add_subdirectory(gui)
 add_subdirectory(os)
-add_subdirectory_ifdef(CONFIG_UPDATEHUB            updatehub)
 add_subdirectory_ifdef(CONFIG_OPENAMP              open-amp)
diff --git a/lib/Kconfig b/lib/Kconfig
index 5b8e8d9513..04b1819ea1 100644
--- a/lib/Kconfig
+++ b/lib/Kconfig
@@ -17,8 +17,6 @@ source "lib/os/Kconfig"
 
 source "lib/posix/Kconfig"
 
-source "lib/updatehub/Kconfig"
-
 source "lib/open-amp/Kconfig"
 
 endmenu
diff --git a/subsys/mgmt/CMakeLists.txt b/subsys/mgmt/CMakeLists.txt
index 7c3a870663..29ead671b1 100644
--- a/subsys/mgmt/CMakeLists.txt
+++ b/subsys/mgmt/CMakeLists.txt
@@ -1,3 +1,4 @@
 # SPDX-License-Identifier: Apache-2.0
 
 add_subdirectory_ifdef(CONFIG_MCUMGR               mcumgr)
+add_subdirectory_ifdef(CONFIG_UPDATEHUB            updatehub)
diff --git a/subsys/mgmt/Kconfig b/subsys/mgmt/Kconfig
index a3a6192fad..cb7d289502 100644
--- a/subsys/mgmt/Kconfig
+++ b/subsys/mgmt/Kconfig
@@ -6,4 +6,6 @@ menu "Management subsystems"
 
 source "subsys/mgmt/mcumgr/Kconfig"
 
+source "subsys/mgmt/updatehub/Kconfig"
+
 endmenu
diff --git a/lib/updatehub/CMakeLists.txt b/subsys/mgmt/updatehub/CMakeLists.txt
similarity index 84%
rename from lib/updatehub/CMakeLists.txt
rename to subsys/mgmt/updatehub/CMakeLists.txt
index 4993e3c297..cf63f1331d 100644
--- a/lib/updatehub/CMakeLists.txt
+++ b/subsys/mgmt/updatehub/CMakeLists.txt
@@ -11,3 +11,7 @@ zephyr_library_sources_ifdef(CONFIG_UPDATEHUB updatehub_device.c)
 zephyr_library_sources_ifdef(CONFIG_UPDATEHUB updatehub_firmware.c)
 zephyr_library_sources_ifdef(CONFIG_UPDATEHUB updatehub_timer.c)
 zephyr_library_sources_ifdef(CONFIG_UPDATEHUB_SHELL shell.c)
+
+zephyr_include_directories(
+  ${ZEPHYR_BASE}/subsys/mgmt/updatehub/include
+)
diff --git a/lib/updatehub/Kconfig b/subsys/mgmt/updatehub/Kconfig
similarity index 100%
rename from lib/updatehub/Kconfig
rename to subsys/mgmt/updatehub/Kconfig
diff --git a/lib/updatehub/include/updatehub.h b/subsys/mgmt/updatehub/include/updatehub.h
similarity index 100%
rename from lib/updatehub/include/updatehub.h
rename to subsys/mgmt/updatehub/include/updatehub.h
diff --git a/lib/updatehub/shell.c b/subsys/mgmt/updatehub/shell.c
similarity index 100%
rename from lib/updatehub/shell.c
rename to subsys/mgmt/updatehub/shell.c
diff --git a/lib/updatehub/updatehub.c b/subsys/mgmt/updatehub/updatehub.c
similarity index 100%
rename from lib/updatehub/updatehub.c
rename to subsys/mgmt/updatehub/updatehub.c
diff --git a/lib/updatehub/updatehub_device.c b/subsys/mgmt/updatehub/updatehub_device.c
similarity index 100%
rename from lib/updatehub/updatehub_device.c
rename to subsys/mgmt/updatehub/updatehub_device.c
diff --git a/lib/updatehub/updatehub_device.h b/subsys/mgmt/updatehub/updatehub_device.h
similarity index 100%
rename from lib/updatehub/updatehub_device.h
rename to subsys/mgmt/updatehub/updatehub_device.h
diff --git a/lib/updatehub/updatehub_firmware.c b/subsys/mgmt/updatehub/updatehub_firmware.c
similarity index 100%
rename from lib/updatehub/updatehub_firmware.c
rename to subsys/mgmt/updatehub/updatehub_firmware.c
diff --git a/lib/updatehub/updatehub_firmware.h b/subsys/mgmt/updatehub/updatehub_firmware.h
similarity index 100%
rename from lib/updatehub/updatehub_firmware.h
rename to subsys/mgmt/updatehub/updatehub_firmware.h
diff --git a/lib/updatehub/updatehub_priv.h b/subsys/mgmt/updatehub/updatehub_priv.h
similarity index 100%
rename from lib/updatehub/updatehub_priv.h
rename to subsys/mgmt/updatehub/updatehub_priv.h
diff --git a/lib/updatehub/updatehub_timer.c b/subsys/mgmt/updatehub/updatehub_timer.c
similarity index 100%
rename from lib/updatehub/updatehub_timer.c
rename to subsys/mgmt/updatehub/updatehub_timer.c
diff --git a/lib/updatehub/updatehub_timer.h b/subsys/mgmt/updatehub/updatehub_timer.h
similarity index 100%
rename from lib/updatehub/updatehub_timer.h
rename to subsys/mgmt/updatehub/updatehub_timer.h