--- ./libpkg/pkg_config.c	2015-11-11 14:54:50.125248000 -0700
+++ ./libpkg/pkg_config.c	2015-11-11 15:22:26.890375000 -0700
@@ -638,7 +638,21 @@ add_repo(const ucl_object_t *obj, struct
 }
 
 static void
-walk_repo_obj(const ucl_object_t *obj, const char *file, pkg_init_flags flags)
+add_repo_obj(const ucl_object_t *obj, const char *file, pkg_init_flags flags)
+{
+	struct pkg_repo *r;
+	const char *key;
+
+	key = ucl_object_key(obj);
+	pkg_debug(1, "PkgConfig: parsing repo key '%s' in file '%s'", key, file);
+	r = pkg_repo_find(key);
+	if (r != NULL)
+		pkg_debug(1, "PkgConfig: overwriting repository %s", key);
+	add_repo(obj, r, key, flags);
+}
+
+static void
+walk_repofile_obj(const ucl_object_t *obj, const char *file, pkg_init_flags flags)
 {
 	const ucl_object_t *cur;
 	ucl_object_iter_t it = NULL;
@@ -646,13 +660,8 @@ walk_repo_obj(const ucl_object_t *obj, c
 	const char *key;
 
 	while ((cur = ucl_iterate_object(obj, &it, true))) {
-		key = ucl_object_key(cur);
-		pkg_debug(1, "PkgConfig: parsing key '%s'", key);
-		r = pkg_repo_find(key);
-		if (r != NULL)
-			pkg_debug(1, "PkgConfig: overwriting repository %s", key);
 		if (cur->type == UCL_OBJECT)
-			add_repo(cur, r, key, flags);
+			add_repo_obj(cur, file, flags);
 		else
 			pkg_emit_error("Ignoring bad configuration entry in %s: %s",
 			    file, ucl_object_emit(cur, UCL_EMIT_YAML));
@@ -688,7 +697,7 @@ load_repo_file(const char *repofile, pkg
 		return;
 
 	if (obj->type == UCL_OBJECT)
-		walk_repo_obj(obj, repofile, flags);
+		walk_repofile_obj(obj, repofile, flags);
 
 	ucl_object_unref(obj);
 }
@@ -782,7 +791,7 @@ pkg_ini(const char *path, const char *re
 	const char *useragent = NULL;
 	const char *evpipe = NULL;
 	const ucl_object_t *cur, *object;
-	ucl_object_t *obj = NULL, *o, *ncfg;
+	ucl_object_t *obj = NULL, *o, *ncfg, *repos;
 	ucl_object_iter_t it = NULL;
 	struct sbuf *ukey = NULL;
 	bool fatal_errors = false;
@@ -905,6 +914,7 @@ pkg_ini(const char *path, const char *re
 	}
 
 	ncfg = NULL;
+	repos = NULL;
 	while (obj != NULL && (cur = ucl_iterate_object(obj, &it, true))) {
 		sbuf_init(&ukey);
 		key = ucl_object_key(cur);
@@ -924,9 +934,20 @@ pkg_ini(const char *path, const char *re
 			continue;
 		}
 
-		/* ignore unknown keys */
-		if (object == NULL)
+                /*
+                 * Save UCL_OBJECTs for later processing as potential embedded
+                 * repos and ignore other types of unknown keys.
+                 */
+                if (object == NULL) {
+			if (cur->type == UCL_OBJECT) {
+				if (repos == NULL)
+					repos = ucl_object_typed_new(UCL_OBJECT);
+				ucl_object_insert_key(repos, ucl_object_copy(cur),
+				    key, strlen(key), true);
+				pkg_debug(1, "potential repo: %s", key);
+			}
 			continue;
+		}
 
 		if (object->type != cur->type) {
 			pkg_emit_error("Malformed key %s, ignoring", key);
@@ -1081,6 +1100,16 @@ pkg_ini(const char *path, const char *re
 	useragent = pkg_object_string(pkg_config_get("HTTP_USER_AGENT"));
 	setenv("HTTP_USER_AGENT", useragent, 1);
 
+	/* Process any repos that were embedded in pkg.conf */
+	if (repos != NULL) {
+		it = NULL;
+		while ((cur = ucl_iterate_object(repos, &it, true))) {
+			key = ucl_object_key(cur);
+			add_repo_obj(cur, path, flags);
+		}
+		ucl_object_unref(repos);
+	}
+
 	/* load the repositories */
 	load_repositories(reposdir, flags);