diff --git a/README.md b/README.md
index 2a363398cb..412b911c15 100644
--- a/README.md
+++ b/README.md
@@ -301,8 +301,11 @@ Modify the default IPFS node config. This object will be *merged* with the defau
 | Type | Default |
 |------|---------|
 | object | [`libp2p-nodejs.js`](https://github.com/ipfs/js-ipfs/blob/master/src/core/runtime/libp2p-nodejs.js) in Node.js, [`libp2p-browser.js`](https://github.com/ipfs/js-ipfs/blob/master/src/core/runtime/libp2p-browser.js) in browsers |
+| function | [`libp2p bundle`](examples/custom-libp2p) |
 
-Add custom modules to the libp2p stack of your node.
+The libp2p option allows you to build your libp2p node by configuration, or via a bundle function. If you are looking to just modify the below options, using the object format is the quickest way to get the default features of libp2p. If you need to create a more customized libp2p node, such as with custom transports or peer/content routers that need some of the ipfs data on startup, a custom bundle is a great way to achieve this.
+
+You can see the bundle in action in the [custom libp2p example](examples/custom-libp2p).
 
 - `modules` (object):
     - `transport` (Array<[libp2p.Transport](https://github.com/libp2p/interface-transport)>): An array of Libp2p transport classes/instances to use _instead_ of the defaults. See [libp2p/interface-transport](https://github.com/libp2p/interface-transport) for details.
diff --git a/examples/README.md b/examples/README.md
index 14a4c49d97..b7b587eeb5 100644
--- a/examples/README.md
+++ b/examples/README.md
@@ -23,6 +23,7 @@ Let us know if you find any issue or if you want to contribute and add a new tut
 - [js-ipfs in electron](./run-in-electron)
 - [Using streams to add a directory of files to ipfs](./browser-add-readable-stream)
 - [Customizing the ipfs repository](./custom-ipfs-repo)
+- [Customizing your libp2p bundle](./custom-libp2p)
 - [Streaming video from ipfs to the browser using `ReadableStream`s](./browser-readablestream)
 - [The Mutable File System in the browser](./browser-mfs)
 
diff --git a/examples/custom-libp2p/README.md b/examples/custom-libp2p/README.md
new file mode 100644
index 0000000000..ff4b376f6d
--- /dev/null
+++ b/examples/custom-libp2p/README.md
@@ -0,0 +1,18 @@
+# Customizing your libp2p bundle
+
+This example shows you how to make full use of the ipfs configuration to create a libp2p bundle function. As IPFS applications become more complex, their needs for a custom libp2p bundle also grow. Instead of fighting with configuration options, you can use your own libp2p bundle function to get exactly what you need.
+
+## Run this example
+
+Running this example should result in metrics being logged out to the console every few seconds.
+
+```
+> npm install
+> npm start
+```
+
+## Play with the configuration!
+
+With the metrics for peers and bandwidth stats being logged out, try playing around with the nodes configuration to see what kind of metrics you can get. How many peers are you getting? What does your bandwidth look like?
+
+This is also a good opportunity to explore the various stats that ipfs offers! Not seeing a statistic you think would be useful? We'd love to have you [contribute](https://github.com/ipfs/js-ipfs/blob/master/CONTRIBUTING.md)!
diff --git a/examples/custom-libp2p/index.js b/examples/custom-libp2p/index.js
new file mode 100644
index 0000000000..ede982a2d3
--- /dev/null
+++ b/examples/custom-libp2p/index.js
@@ -0,0 +1,129 @@
+'use strict'
+
+const Libp2p = require('libp2p')
+const IPFS = require('ipfs')
+const TCP = require('libp2p-tcp')
+const MulticastDNS = require('libp2p-mdns')
+const WebSocketStar = require('libp2p-websocket-star')
+const Bootstrap = require('libp2p-railing')
+const SPDY = require('libp2p-spdy')
+const KadDHT = require('libp2p-kad-dht')
+const MPLEX = require('libp2p-mplex')
+const SECIO = require('libp2p-secio')
+const assert = require('assert')
+
+/**
+ * Options for the libp2p bundle
+ * @typedef {Object} libp2pBundle~options
+ * @property {PeerInfo} peerInfo - The PeerInfo of the IPFS node
+ * @property {PeerBook} peerBook - The PeerBook of the IPFS node
+ * @property {Object} config - The config of the IPFS node
+ * @property {Object} options - The options given to the IPFS node
+ */
+
+/**
+ * This is the bundle we will use to create our fully customized libp2p bundle.
+ *
+ * @param {libp2pBundle~options} opts The options to use when generating the libp2p node
+ * @returns {Libp2p} Our new libp2p node
+ */
+const libp2pBundle = (opts) => {
+  // Set convenience variables to clearly showcase some of the useful things that are available
+  const peerInfo = opts.peerInfo
+  const peerBook = opts.peerBook
+  const bootstrapList = opts.config.Bootstrap
+
+  // Create our WebSocketStar transport and give it our PeerId, straight from the ipfs node
+  const wsstar = new WebSocketStar({
+    id: peerInfo.id
+  })
+
+  // Build and return our libp2p node
+  return new Libp2p({
+    peerInfo,
+    peerBook,
+    // Lets limit the connection managers peers and have it check peer health less frequently
+    connectionManager: {
+      maxPeers: 25,
+      pollInterval: 5000
+    },
+    modules: {
+      transport: [
+        TCP,
+        wsstar
+      ],
+      streamMuxer: [
+        MPLEX,
+        SPDY
+      ],
+      connEncryption: [
+        SECIO
+      ],
+      peerDiscovery: [
+        MulticastDNS,
+        Bootstrap,
+        wsstar.discovery
+      ],
+      dht: KadDHT
+    },
+    config: {
+      peerDiscovery: {
+        mdns: {
+          interval: 10000,
+          enabled: true
+        },
+        bootstrap: {
+          interval: 10000,
+          enabled: true,
+          list: bootstrapList
+        }
+      },
+      // Turn on relay with hop active so we can connect to more peers
+      relay: {
+        enabled: true,
+        hop: {
+          enabled: true,
+          active: true
+        }
+      },
+      dht: {
+        kBucketSize: 20
+      },
+      EXPERIMENTAL: {
+        dht: true,
+        pubsub: true
+      }
+    }
+  })
+}
+
+// Now that we have our custom libp2p bundle, let's start up the ipfs node!
+const node = new IPFS({
+  libp2p: libp2pBundle
+})
+
+// Listen for the node to start, so we can log out some metrics
+node.once('start', (err) => {
+  assert.ifError(err, 'Should startup without issue')
+
+  // Lets log out the number of peers we have every 2 seconds
+  setInterval(() => {
+    node.swarm.peers((err, peers) => {
+      if (err) {
+        console.log('An error occurred trying to check our peers:', err)
+        process.exit(1)
+      }
+      console.log(`The node now has ${peers.length} peers.`)
+    })
+  }, 2000)
+
+  // Log out the bandwidth stats every 4 seconds so we can see how our configuration is doing
+  setInterval(() => {
+    node.stats.bw((err, stats) => {
+      if (err) {
+        console.log('An error occurred trying to check our stats:', err)
+      }
+      console.log(`\nBandwidth Stats: ${JSON.stringify(stats, null, 2)}\n`)
+    })
+  }, 4000)
+})
diff --git a/examples/custom-libp2p/package.json b/examples/custom-libp2p/package.json
new file mode 100644
index 0000000000..8e28bc66e3
--- /dev/null
+++ b/examples/custom-libp2p/package.json
@@ -0,0 +1,23 @@
+{
+  "name": "custom-libp2p",
+  "version": "0.1.0",
+  "description": "Customizing your libp2p node",
+  "main": "index.js",
+  "scripts": {
+    "test": "echo \"Error: no test specified\" && exit 1",
+    "start": "node index.js"
+  },
+  "license": "MIT",
+  "dependencies": {
+    "ipfs": "file:../../",
+    "libp2p": "~0.22.0",
+    "libp2p-kad-dht": "~0.10.1",
+    "libp2p-mdns": "~0.12.0",
+    "libp2p-mplex": "~0.8.0",
+    "libp2p-railing": "~0.9.2",
+    "libp2p-secio": "~0.10.0",
+    "libp2p-spdy": "~0.12.1",
+    "libp2p-tcp": "~0.12.0",
+    "libp2p-websocket-star": "~0.8.1"
+  }
+}
diff --git a/src/core/components/libp2p.js b/src/core/components/libp2p.js
index 1ad0d1ecac..c07e7b79f0 100644
--- a/src/core/components/libp2p.js
+++ b/src/core/components/libp2p.js
@@ -16,49 +16,64 @@ module.exports = function libp2p (self) {
           return callback(err)
         }
 
-        const libp2pDefaults = {
-          peerInfo: self._peerInfo,
-          peerBook: self._peerInfoBook,
-          config: {
-            peerDiscovery: {
-              mdns: {
-                enabled: get(self._options, 'config.Discovery.MDNS.Enabled',
-                  get(config, 'Discovery.MDNS.Enabled', true))
+        const defaultBundle = (opts) => {
+          const libp2pDefaults = {
+            peerInfo: opts.peerInfo,
+            peerBook: opts.peerBook,
+            config: {
+              peerDiscovery: {
+                mdns: {
+                  enabled: get(opts.options, 'config.Discovery.MDNS.Enabled',
+                    get(opts.config, 'Discovery.MDNS.Enabled', true))
+                },
+                webRTCStar: {
+                  enabled: get(opts.options, 'config.Discovery.webRTCStar.Enabled',
+                    get(opts.config, 'Discovery.webRTCStar.Enabled', true))
+                },
+                bootstrap: {
+                  list: get(opts.options, 'config.Bootstrap',
+                    get(opts.config, 'Bootstrap', []))
+                }
               },
-              webRTCStar: {
-                enabled: get(self._options, 'config.Discovery.webRTCStar.Enabled',
-                  get(config, 'Discovery.webRTCStar.Enabled', true))
+              relay: {
+                enabled: get(opts.options, 'relay.enabled',
+                  get(opts.config, 'relay.enabled', false)),
+                hop: {
+                  enabled: get(opts.options, 'relay.hop.enabled',
+                    get(opts.config, 'relay.hop.enabled', false)),
+                  active: get(opts.options, 'relay.hop.active',
+                    get(opts.config, 'relay.hop.active', false))
+                }
               },
-              bootstrap: {
-                list: get(self._options, 'config.Bootstrap',
-                  get(config, 'Bootstrap', []))
-              }
-            },
-            relay: {
-              enabled: get(self._options, 'relay.enabled',
-                get(config, 'relay.enabled', false)),
-              hop: {
-                enabled: get(self._options, 'relay.hop.enabled',
-                  get(config, 'relay.hop.enabled', false)),
-                active: get(self._options, 'relay.hop.active',
-                  get(config, 'relay.hop.active', false))
+              EXPERIMENTAL: {
+                dht: get(opts.options, 'EXPERIMENTAL.dht', false),
+                pubsub: get(opts.options, 'EXPERIMENTAL.pubsub', false)
               }
             },
-            EXPERIMENTAL: {
-              dht: get(self._options, 'EXPERIMENTAL.dht', false),
-              pubsub: get(self._options, 'EXPERIMENTAL.pubsub', false)
-            }
-          },
-          connectionManager: get(self._options, 'connectionManager',
-            get(config, 'connectionManager', {}))
+            connectionManager: get(opts.options, 'connectionManager',
+              get(opts.config, 'connectionManager', {}))
+          }
+
+          const libp2pOptions = defaultsDeep(
+            get(self._options, 'libp2p', {}),
+            libp2pDefaults
+          )
+
+          return new Node(libp2pOptions)
         }
 
-        const libp2pOptions = defaultsDeep(
-          get(self._options, 'libp2p', {}),
-          libp2pDefaults
-        )
+        // Always create libp2p via a bundle function
+        let libp2pBundle = get(self._options, 'libp2p', null)
+        if (typeof libp2pBundle !== 'function') {
+          libp2pBundle = defaultBundle
+        }
 
-        self._libp2pNode = new Node(libp2pOptions)
+        self._libp2pNode = libp2pBundle({
+          options: self._options,
+          config: config,
+          peerInfo: self._peerInfo,
+          peerBook: self._peerInfoBook
+        })
 
         self._libp2pNode.on('peer:discovery', (peerInfo) => {
           const dial = () => {
diff --git a/src/core/config.js b/src/core/config.js
index 7b16c17d06..9b27b14de5 100644
--- a/src/core/config.js
+++ b/src/core/config.js
@@ -48,9 +48,12 @@ const schema = Joi.object().keys({
     }).allow(null),
     Bootstrap: Joi.array().items(Joi.multiaddr().IPFS().options({ convert: false }))
   }).allow(null),
-  libp2p: Joi.object().keys({
-    modules: Joi.object().allow(null) // TODO: schemas for libp2p modules?
-  }).allow(null)
+  libp2p: Joi.alternatives().try(
+    Joi.func(),
+    Joi.object().keys({
+      modules: Joi.object().allow(null) // TODO: schemas for libp2p modules?
+    })
+  ).allow(null)
 }).options({ allowUnknown: true })
 
 module.exports.validate = (config) => Joi.attempt(config, schema)
diff --git a/test/core/config.spec.js b/test/core/config.spec.js
index 1946801dde..3250c5b9d4 100644
--- a/test/core/config.spec.js
+++ b/test/core/config.spec.js
@@ -226,6 +226,7 @@ describe('config', () => {
       { libp2p: { modules: null } },
       { libp2p: { modules: undefined } },
       { libp2p: { unknown: 'value' } },
+      { libp2p: () => {} },
       { libp2p: null },
       { libp2p: undefined }
     ]
diff --git a/test/core/libp2p.spec.js b/test/core/libp2p.spec.js
new file mode 100644
index 0000000000..135a6870ac
--- /dev/null
+++ b/test/core/libp2p.spec.js
@@ -0,0 +1,211 @@
+/* eslint max-nested-callbacks: ["error", 8] */
+/* eslint-env mocha */
+'use strict'
+
+const chai = require('chai')
+const dirtyChai = require('dirty-chai')
+const expect = chai.expect
+chai.use(dirtyChai)
+
+const PeerInfo = require('peer-info')
+const PeerBook = require('peer-book')
+const WebSocketStar = require('libp2p-websocket-star')
+const Multiplex = require('libp2p-mplex')
+const SECIO = require('libp2p-secio')
+const Libp2p = require('libp2p')
+
+const libp2pComponent = require('../../src/core/components/libp2p')
+
+describe('libp2p customization', function () {
+  // Provide some extra time for ci since we're starting libp2p nodes in each test
+  this.timeout(15 * 1000)
+
+  let peerInfo
+  let peerBook
+  let mockConfig
+  let _libp2p
+
+  before((done) => {
+    mockConfig = {
+      get: (callback) => {
+        callback(null, {
+          Addresses: {
+            Swarm: ['/ip4/0.0.0.0/tcp/4002'],
+            API: '/ip4/127.0.0.1/tcp/5002',
+            Gateway: '/ip4/127.0.0.1/tcp/9090'
+          },
+          Discovery: {
+            MDNS: {
+              Enabled: false
+            },
+            webRTCStar: {
+              Enabled: false
+            }
+          },
+          EXPERIMENTAL: {
+            dht: false,
+            pubsub: false
+          }
+        })
+      }
+    }
+    peerBook = new PeerBook()
+    PeerInfo.create((err, pi) => {
+      peerInfo = pi
+      done(err)
+    })
+  })
+
+  afterEach((done) => {
+    if (!_libp2p) return done()
+
+    _libp2p.stop(() => {
+      _libp2p = null
+      done()
+    })
+  })
+
+  describe('bundle', () => {
+    it('should allow for using a libp2p bundle', (done) => {
+      const ipfs = {
+        _peerInfo: peerInfo,
+        _peerBook: peerBook,
+        config: mockConfig,
+        _options: {
+          libp2p: (opts) => {
+            const wsstar = new WebSocketStar({id: opts.peerInfo.id})
+
+            return new Libp2p({
+              peerInfo: opts.peerInfo,
+              peerBook: opts.peerBook,
+              modules: {
+                transport: [
+                  wsstar
+                ],
+                streamMuxer: [
+                  Multiplex
+                ],
+                connEncryption: [
+                  SECIO
+                ],
+                peerDiscovery: [
+                  wsstar.discovery
+                ]
+              }
+            })
+          }
+        }
+      }
+
+      _libp2p = libp2pComponent(ipfs)
+
+      _libp2p.start((err) => {
+        expect(err).to.not.exist()
+        expect(ipfs._libp2pNode._config).to.not.have.property('peerDiscovery')
+        expect(ipfs._libp2pNode._transport).to.have.length(1)
+        done()
+      })
+    })
+  })
+
+  describe('options', () => {
+    it('should use options by default', (done) => {
+      const ipfs = {
+        _peerInfo: peerInfo,
+        _peerBook: peerBook,
+        config: mockConfig
+      }
+
+      _libp2p = libp2pComponent(ipfs)
+
+      _libp2p.start((err) => {
+        expect(err).to.not.exist()
+        expect(ipfs._libp2pNode._config).to.deep.include({
+          peerDiscovery: {
+            bootstrap: {
+              enabled: true,
+              list: []
+            },
+            mdns: {
+              enabled: false
+            },
+            webRTCStar: {
+              enabled: false
+            },
+            websocketStar: {
+              enabled: true
+            }
+          },
+          EXPERIMENTAL: {
+            dht: false,
+            pubsub: false
+          }
+        })
+        expect(ipfs._libp2pNode._transport).to.have.length(3)
+        done()
+      })
+    })
+
+    it('should allow for overriding via options', (done) => {
+      const wsstar = new WebSocketStar({id: peerInfo.id})
+
+      const ipfs = {
+        _peerInfo: peerInfo,
+        _peerBook: peerBook,
+        config: mockConfig,
+        _options: {
+          config: {
+            Discovery: {
+              MDNS: {
+                Enabled: true
+              }
+            }
+          },
+          EXPERIMENTAL: {
+            dht: false,
+            pubsub: true
+          },
+          libp2p: {
+            modules: {
+              transport: [
+                wsstar
+              ],
+              peerDiscovery: [
+                wsstar.discovery
+              ]
+            }
+          }
+        }
+      }
+
+      _libp2p = libp2pComponent(ipfs)
+
+      _libp2p.start((err) => {
+        expect(err).to.not.exist()
+        expect(ipfs._libp2pNode._config).to.deep.include({
+          peerDiscovery: {
+            bootstrap: {
+              enabled: true,
+              list: []
+            },
+            mdns: {
+              enabled: true
+            },
+            webRTCStar: {
+              enabled: false
+            },
+            websocketStar: {
+              enabled: true
+            }
+          },
+          EXPERIMENTAL: {
+            dht: false,
+            pubsub: true
+          }
+        })
+        expect(ipfs._libp2pNode._transport).to.have.length(1)
+        done()
+      })
+    })
+  })
+})