diff --git a/lib/galaxy/tools/toolbox/panel.py b/lib/galaxy/tools/toolbox/panel.py
index bb1d6bbe3c5..5dd77e071c4 100644
--- a/lib/galaxy/tools/toolbox/panel.py
+++ b/lib/galaxy/tools/toolbox/panel.py
@@ -53,7 +53,6 @@ class ToolSection( Dictifiable, HasPanelItems, object ):
     def __init__( self, item=None ):
         """ Build a ToolSection from an ElementTree element or a dictionary.
         """
-        item = ensure_tool_conf_item(item)
         f = lambda item, val: item is not None and item.get( val ) or ''
         self.name = f( item, 'name' )
         self.id = f( item, 'id' )
diff --git a/lib/galaxy/tools/toolbox/parser.py b/lib/galaxy/tools/toolbox/parser.py
index c6a5ad6dd15..6a075095972 100644
--- a/lib/galaxy/tools/toolbox/parser.py
+++ b/lib/galaxy/tools/toolbox/parser.py
@@ -2,6 +2,7 @@ from abc import ABCMeta
 from abc import abstractmethod
 
 from galaxy.util import parse_xml
+import yaml
 
 
 class ToolConfSource(object):
@@ -34,6 +35,20 @@ class XmlToolConfSource(ToolConfSource):
         return map(ensure_tool_conf_item, self.root.getchildren())
 
 
+class YamlToolConfSource(ToolConfSource):
+
+    def __init__(self, config_filename):
+        with open(config_filename, "r") as f:
+            as_dict = yaml.load(f)
+        self.as_dict = as_dict
+
+    def parse_tool_path(self):
+        return self.as_dict.get('tool_path')
+
+    def parse_items(self):
+        return map(ToolConfItem.from_dict, self.as_dict.get('items'))
+
+
 class ToolConfItem(object):
     """ This interface represents an abstract source to parse tool
     information from.
@@ -44,6 +59,20 @@ class ToolConfItem(object):
         self.attributes = attributes
         self._elem = elem
 
+    @classmethod
+    def from_dict(cls, _as_dict):
+        as_dict = _as_dict.copy()
+        type = as_dict.get('type')
+        del as_dict['type']
+        attributes = as_dict
+        if type == 'section':
+            items = map(cls.from_dict, as_dict['items'])
+            del as_dict['items']
+            item = ToolConfSection(attributes, items)
+        else:
+            item = ToolConfItem(type, attributes)
+        return item
+
     def get(self, key, default=None):
         return self.attributes.get(key, default)
 
@@ -73,7 +102,9 @@ class ToolConfSection(ToolConfItem):
 
 
 def ensure_tool_conf_item(xml_or_item):
-    if isinstance(xml_or_item, ToolConfItem):
+    if xml_or_item is None:
+        return None
+    elif isinstance(xml_or_item, ToolConfItem):
         return xml_or_item
     else:
         elem = xml_or_item
@@ -87,4 +118,8 @@ def ensure_tool_conf_item(xml_or_item):
 
 
 def get_toolbox_parser(config_filename):
-    return XmlToolConfSource(config_filename)
+    is_yaml = any(map(lambda e: config_filename.endswith(e), [".yml", ".yaml", ".json"]))
+    if is_yaml:
+        return YamlToolConfSource(config_filename)
+    else:
+        return XmlToolConfSource(config_filename)
diff --git a/test/unit/tools/test_toolbox.py b/test/unit/tools/test_toolbox.py
index a29c36246b7..5e784a21172 100644
--- a/test/unit/tools/test_toolbox.py
+++ b/test/unit/tools/test_toolbox.py
@@ -1,3 +1,4 @@
+import json
 import os
 import string
 import unittest
@@ -117,10 +118,14 @@ class BaseToolBoxTestCase(  unittest.TestCase, tools_support.UsesApp, tools_supp
 </toolbox>"""
         self._add_config( template % (self.test_directory, CONFIG_TEST_TOOL_VERSION_1, CONFIG_TEST_TOOL_VERSION_2 ) )
 
-    def _add_config( self, xml, name="tool_conf.xml" ):
+    def _add_config( self, content, name="tool_conf.xml" ):
+        is_json = name.endswith(".json")
         path = self._tool_conf_path( name=name )
         with open( path, "w" ) as f:
-            f.write( xml )
+            if not is_json or isinstance(content, basestring):
+                f.write( content )
+            else:
+                json.dump(content, f)
         self.config_files.append( path )
 
     def _tool_conf_path( self, name="tool_conf.xml" ):
@@ -146,20 +151,22 @@ class ToolBoxTestCase( BaseToolBoxTestCase ):
         assert toolbox.get_tool( "not_a_test_tool" ) is None
 
     def test_to_dict_in_panel( self ):
-        self._init_tool_in_section()
-        mapper = routes.Mapper()
-        mapper.connect( "tool_runner", "/test/tool_runner" )
-        as_dict = self.toolbox.to_dict( mock_trans() )
-        test_section = self._find_section(as_dict, "t")
-        assert len(test_section["elems"]) == 1
-        assert test_section["elems"][0]["id"] == "test_tool"
+        for json_conf in [True, False]:
+            self._init_tool_in_section(json=json_conf)
+            mapper = routes.Mapper()
+            mapper.connect( "tool_runner", "/test/tool_runner" )
+            as_dict = self.toolbox.to_dict( mock_trans() )
+            test_section = self._find_section(as_dict, "t")
+            assert len(test_section["elems"]) == 1
+            assert test_section["elems"][0]["id"] == "test_tool"
 
     def test_to_dict_out_of_panel( self ):
-        self._init_tool_in_section()
-        mapper = routes.Mapper()
-        mapper.connect( "tool_runner", "/test/tool_runner" )
-        as_dict = self.toolbox.to_dict( mock_trans(), in_panel=False )
-        assert as_dict[0]["id"] == "test_tool"
+        for json_conf in [True, False]:
+            self._init_tool_in_section(json=json_conf)
+            mapper = routes.Mapper()
+            mapper.connect( "tool_runner", "/test/tool_runner" )
+            as_dict = self.toolbox.to_dict( mock_trans(), in_panel=False )
+            assert as_dict[0]["id"] == "test_tool"
 
     def test_out_of_panel_filtering( self ):
         self._init_tool_in_section()
@@ -183,7 +190,7 @@ class ToolBoxTestCase( BaseToolBoxTestCase ):
             if elem.get("id") == section_id:
                 assert elem["model_class"] == "ToolSection"
                 return elem
-        assert False, "Failed to find section with id [%s]" % id
+        assert False, "Failed to find section with id [%s]" % section_id
 
     def test_tool_shed_properties( self ):
         self._init_tool()
@@ -275,6 +282,13 @@ class ToolBoxTestCase( BaseToolBoxTestCase ):
         toolbox = self.toolbox
         assert toolbox.get_tool( "test_tool" ) is not None
 
+    def test_tool_dir_json( self ):
+        self._init_tool()
+        self._add_config({"items": [{"type": "tool_dir", "dir": self.test_directory}]}, name="tool_conf.json")
+
+        toolbox = self.toolbox
+        assert toolbox.get_tool( "test_tool" ) is not None
+
     def test_workflow_in_panel( self ):
         stored_workflow = self.__test_workflow()
         encoded_id = self.app.security.encode_id( stored_workflow.id )
@@ -305,9 +319,19 @@ class ToolBoxTestCase( BaseToolBoxTestCase ):
         section = self.toolbox._tool_panel[ 'tid' ]
         self.__check_test_labels( section.elems )
 
-    def _init_tool_in_section( self ):
+    def _init_tool_in_section( self, json=False ):
         self._init_tool()
-        self._add_config( """<toolbox><section id="t" name="test"><tool file="tool.xml" /></section></toolbox>""" )
+        if not json:
+            self._add_config( """<toolbox><section id="t" name="test"><tool file="tool.xml" /></section></toolbox>""" )
+        else:
+            section = {
+                "type": "section",
+                "id": "t",
+                "name": "test",
+                "items": [{"type": "tool",
+                           "file": "tool.xml"}],
+            }
+            self._add_config({"items": [section]}, name="tool_conf.json")
 
     def __check_test_labels( self, panel_dict ):
         assert panel_dict.keys() == ["label_lab1", "label_lab2"]