diff --git a/C4/ImportBatch.pm b/C4/ImportBatch.pm
index 84dd2edb4f..b403283cd6 100644
--- a/C4/ImportBatch.pm
+++ b/C4/ImportBatch.pm
@@ -227,19 +227,21 @@ sub ModBiblioInBatch {
 
 =over 4
 
-($batch_id, $num_records, @invalid_records) = BatchStageMarcRecords($marc_flavor, $marc_records, $file_name, 
-                                                                    $comments, $branch_code, $leave_as_staging);
+($batch_id, $num_records, $num_items, @invalid_records) = BatchStageMarcRecords($marc_flavor, $marc_records, $file_name, 
+                                                                                $comments, $branch_code, $parse_items,
+                                                                                $leave_as_staging);
 
 =back
 
 =cut
 
 sub  BatchStageMarcRecords {
-    my ($marc_flavor, $marc_records, $file_name, $comments, $branch_code, $leave_as_staging) = @_;
+    my ($marc_flavor, $marc_records, $file_name, $comments, $branch_code, $parse_items, $leave_as_staging) = @_;
 
     my $batch_id = AddImportBatch('create_new', 'staging', 'batch', $file_name, $comments);
     my @invalid_records = ();
     my $num_valid = 0;
+    my $num_items = 0;
     # FIXME - for now, we're dealing only with bibs
     my $rec_num = 0;
     foreach my $marc_blob (split(/\x1D/, $marc_records)) {
@@ -251,6 +253,10 @@ sub  BatchStageMarcRecords {
         } else {
             $num_valid++;
             $import_record_id = AddBiblioToBatch($batch_id, $rec_num, $marc_record, $marc_flavor, int(rand(99999)), 0);
+            if ($parse_items) {
+                my @import_items_ids = AddItemsToImportBiblio($batch_id, $import_record_id, $marc_record, 0);
+                $num_items += scalar(@import_items_ids);
+            }
         }
     }
     unless ($leave_as_staging) {
@@ -258,7 +264,48 @@ sub  BatchStageMarcRecords {
     }
     # FIXME branch_code, number of bibs, number of items
     _update_batch_record_counts($batch_id);
-    return ($batch_id, $num_valid, @invalid_records);
+    return ($batch_id, $num_valid, $num_items, @invalid_records);
+}
+
+=head2 AddItemsToImportBiblio
+
+=over 4
+
+my @import_items_ids = AddItemsToImportBiblio($batch_id, $import_record_id, $marc_record, $update_counts);
+
+=back
+
+=cut
+
+sub AddItemsToImportBiblio {
+    my $batch_id = shift;
+    my $import_record_id = shift;
+    my $marc_record = shift;
+    my $update_counts = @_ ? shift : 0;
+
+    my @import_items_ids = ();
+   
+    my $dbh = C4::Context->dbh; 
+    my ($item_tag,$item_subfield) = &GetMarcFromKohaField("items.itemnumber",'');
+    foreach my $item_field ($marc_record->field($item_tag)) {
+        my $item_marc = MARC::Record->new();
+        $item_marc->append_fields($item_field);
+        $marc_record->delete_field($item_field);
+        my $sth = $dbh->prepare_cached("INSERT INTO import_items (import_record_id, status, marcxml)
+                                        VALUES (?, ?, ?)");
+        $sth->bind_param(1, $import_record_id);
+        $sth->bind_param(2, 'staged');
+        $sth->bind_param(3, $item_marc->as_xml());
+        $sth->execute();
+        push @import_items_ids, $dbh->{'mysql_insertid'};
+        $sth->finish();
+    }
+
+    if ($#import_items_ids > -1) {
+        _update_batch_record_counts($batch_id) if $update_counts;
+        _update_import_record_marc($import_record_id, $marc_record);
+    }
+    return @import_items_ids;
 }
 
 =head2 BatchFindBibDuplicates
@@ -315,7 +362,7 @@ sub BatchFindBibDuplicates {
 
 =over 4
 
-my ($num_added, $num_updated, $num_ignored) = BatchCommitBibRecords($batch_id);
+my ($num_added, $num_updated, $num_items_added, $num_ignored) = BatchCommitBibRecords($batch_id);
 
 =back
 
@@ -326,6 +373,7 @@ sub BatchCommitBibRecords {
 
     my $num_added = 0;
     my $num_updated = 0;
+    my $num_items_added = 0;
     my $num_ignored = 0;
     # commit (i.e., save, all records in the batch)
     # FIXME biblio only at the moment
@@ -349,6 +397,7 @@ sub BatchCommitBibRecords {
             my $sth = $dbh->prepare_cached("UPDATE import_biblios SET matched_biblionumber = ? WHERE import_record_id = ?");
             $sth->execute($biblionumber, $rowref->{'import_record_id'});
             $sth->finish();
+            $num_items_added += BatchCommitItems($rowref->{'import_record_id'}, $biblionumber);
             SetImportRecordStatus($rowref->{'import_record_id'}, 'imported');
         } else {
             $num_updated++;
@@ -362,20 +411,59 @@ sub BatchCommitBibRecords {
             my $sth2 = $dbh->prepare_cached("UPDATE import_biblios SET matched_biblionumber = ? WHERE import_record_id = ?");
             $sth2->execute($biblionumber, $rowref->{'import_record_id'});
             $sth2->finish();
+            $num_items_added += BatchCommitItems($rowref->{'import_record_id'}, $biblionumber);
             SetImportRecordOverlayStatus($rowref->{'import_record_id'}, 'match_applied');
             SetImportRecordStatus($rowref->{'import_record_id'}, 'imported');
         }
     }
     $sth->finish();
     SetImportBatchStatus($batch_id, 'imported');
-    return ($num_added, $num_updated, $num_ignored);
+    return ($num_added, $num_updated, $num_items_added, $num_ignored);
+}
+
+=head2 BatchCommitItems
+
+=over 4
+
+$num_items_added = BatchCommitItems($import_record_id, $biblionumber);
+
+=back
+
+=cut
+
+sub BatchCommitItems {
+    my ($import_record_id, $biblionumber) = @_;
+
+    my $dbh = C4::Context->dbh;
+
+    my $num_items_added = 0;
+    my $sth = $dbh->prepare("SELECT import_items_id, import_items.marcxml, encoding
+                             FROM import_items
+                             JOIN import_records USING (import_record_id)
+                             WHERE import_record_id = ?
+                             ORDER BY import_items_id");
+    $sth->bind_param(1, $import_record_id);
+    $sth->execute();
+    while (my $row = $sth->fetchrow_hashref()) {
+        my $item_marc = MARC::Record->new_from_xml($row->{'marcxml'}, 'UTF-8', $row->{'encoding'});
+        my ($item_biblionumber, $biblionumber, $itemnumber) = AddItem($item_marc, $biblionumber);
+        my $updsth = $dbh->prepare("UPDATE import_items SET status = ?, itemnumber = ? WHERE import_items_id = ?");
+        $updsth->bind_param(1, 'imported');
+        $updsth->bind_param(2, $itemnumber);
+        $updsth->bind_param(3, $row->{'import_items_id'});
+        $updsth->execute();
+        $updsth->finish();
+        $num_items_added++;
+    }
+    $sth->finish();
+    return $num_items_added;
 }
 
 =head2 BatchRevertBibRecords
 
 =over 4
 
-my ($num_deleted, $num_errors, $num_reverted, $num_ignored) = BatchRevertBibRecords($batch_id);
+my ($num_deleted, $num_errors, $num_reverted, $num_items_deleted, $num_ignored) = BatchRevertBibRecords($batch_id);
 
 =back
 
@@ -387,6 +475,7 @@ sub BatchRevertBibRecords {
     my $num_deleted = 0;
     my $num_errors = 0;
     my $num_reverted = 0;
+    my $num_items_deleted = 0;
     my $num_ignored = 0;
     # commit (i.e., save, all records in the batch)
     # FIXME biblio only at the moment
@@ -404,6 +493,7 @@ sub BatchRevertBibRecords {
         }
         if ($overlay_action eq 'create_new' or
             ($overlay_action eq 'replace' and $rowref->{'overlay_status'} eq 'no_match')) {
+            $num_items_deleted += BatchRevertItems($rowref->{'import_record_id'}, $rowref->{'matched_biblionumber'});
             my $error = DelBiblio($rowref->{'matched_biblionumber'});
             if (defined $error) {
                 $num_errors++;
@@ -416,13 +506,48 @@ sub BatchRevertBibRecords {
             my $old_record = MARC::Record->new_from_xml($rowref->{'marcxml_old'}, 'UTF-8', $rowref->{'encoding'});
             my $biblionumber = $rowref->{'matched_biblionumber'};
             my ($count, $oldbiblio) = GetBiblio($biblionumber);
+            $num_items_deleted += BatchRevertItems($rowref->{'import_record_id'}, $rowref->{'matched_biblionumber'});
             ModBiblio($old_record, $biblionumber, $oldbiblio->{'frameworkcode'});
             SetImportRecordStatus($rowref->{'import_record_id'}, 'reverted');
         }
     }
     $sth->finish();
     SetImportBatchStatus($batch_id, 'reverted');
-    return ($num_deleted, $num_errors, $num_reverted, $num_ignored);
+    return ($num_deleted, $num_errors, $num_reverted, $num_items_deleted, $num_ignored);
+}
+
+=head2 BatchRevertItems
+
+=over 4
+
+my $num_items_deleted = BatchRevertItems($import_record_id, $biblionumber);
+
+=back
+
+=cut
+
+sub BatchRevertItems {
+    my ($import_record_id, $biblionumber) = @_;
+
+    my $dbh = C4::Context->dbh;
+    my $num_items_deleted = 0;
+
+    my $sth = $dbh->prepare_cached("SELECT import_items_id, itemnumber
+                                   FROM import_items
+                                   WHERE import_record_id = ?");
+    $sth->bind_param(1, $import_record_id);
+    $sth->execute();
+    while (my $row = $sth->fetchrow_hashref()) {
+        DelItem($dbh, $biblionumber, $row->{'itemnumber'});
+        my $updsth = $dbh->prepare("UPDATE import_items SET status = ? WHERE import_items_id = ?");
+        $updsth->bind_param(1, 'reverted');
+        $updsth->bind_param(2, $row->{'import_items_id'});
+        $updsth->execute();
+        $updsth->finish();
+        $num_items_deleted++;
+    }
+    $sth->finish();
+    return $num_items_deleted;
 }
 
 =head2 GetImportBatchRangeDesc
@@ -854,6 +979,16 @@ sub _update_batch_record_counts {
     $sth->bind_param(1, $batch_id);
     $sth->execute();
     $sth->finish();
+    $sth = $dbh->prepare_cached("UPDATE import_batches SET num_items = (
+                                    SELECT COUNT(*)
+                                    FROM import_records
+                                    JOIN import_items USING (import_record_id)
+                                    WHERE import_batch_id = import_batches.import_batch_id
+                                    AND record_type = 'biblio')
+                                    WHERE import_batch_id = ?");
+    $sth->bind_param(1, $batch_id);
+    $sth->execute();
+    $sth->finish();
 
 }
 
diff --git a/koha-tmpl/intranet-tmpl/prog/en/modules/tools/manage-marc-import.tmpl b/koha-tmpl/intranet-tmpl/prog/en/modules/tools/manage-marc-import.tmpl
index 9b97ddb400..fa9d8e4584 100644
--- a/koha-tmpl/intranet-tmpl/prog/en/modules/tools/manage-marc-import.tmpl
+++ b/koha-tmpl/intranet-tmpl/prog/en/modules/tools/manage-marc-import.tmpl
@@ -58,6 +58,7 @@
   <table>
   <tr><td>Number of records added</td><td><!-- TMPL_VAR name="num_added" --></td></tr>
   <tr><td>Number of records updated</td><td><!-- TMPL_VAR name="num_updated" --></td></tr>
+  <tr><td>Number of items added</td><td><!-- TMPL_VAR name="num_items_added" --></td></tr>
   <tr><td>Number of records ignored</td><td><!-- TMPL_VAR name="num_ignored" --></td></tr>
   </table>
   <!-- /TMPL_IF -->
@@ -65,6 +66,7 @@
   <p><span class="problem">Undid import of records</span></p>
   <table>
   <tr><td>Number of records deleted</td><td><!-- TMPL_VAR name="num_deleted" --></td></tr>
+  <tr><td>Number of items deleted</td><td><!-- TMPL_VAR name="num_items_deleted" --></td></tr>
   <tr><td>Number of records not deleted due to items on loan</td><td><!-- TMPL_VAR name="num_errors" --></td></tr>
   <tr><td>Number of records changed back</td><td><!-- TMPL_VAR name="num_reverted" --></td></tr>
   <tr><td>Number of records ignored</td><td><!-- TMPL_VAR name="num_ignored" --></td></tr>
diff --git a/koha-tmpl/intranet-tmpl/prog/en/modules/tools/stage-marc-import.tmpl b/koha-tmpl/intranet-tmpl/prog/en/modules/tools/stage-marc-import.tmpl
index 1f063fb616..19fe7d27f1 100644
--- a/koha-tmpl/intranet-tmpl/prog/en/modules/tools/stage-marc-import.tmpl
+++ b/koha-tmpl/intranet-tmpl/prog/en/modules/tools/stage-marc-import.tmpl
@@ -27,6 +27,7 @@
     <!-- TMPL_ELSE -->
     <li>Did not check for matches with existing records in catalogue</li>
     <!-- /TMPL_IF -->
+	<li><!-- TMPL_VAR name="num_items" --> item records found and staged</li>
     <li><a href="/cgi-bin/koha/tools/manage-marc-import.pl?import_batch_id=<!-- TMPL_VAR name="import_batch_id" -->">Manage staged records</a></li>
 	<li><a href="/cgi-bin/koha/tools/tools-home.pl">Back</a></li>
 </ul>
@@ -63,7 +64,21 @@
 		<input type="radio" id="check_for_matchesno" name="check_for_matches" value="0" checked="checked" /><label for="check_for_matchesno">Do not look for matching records (using ISBN)</label></li>
 <li class="radio">
 			<input type="radio" id="check_for_matchesyes" name="check_for_matches" value="1" /><label for="check_for_matchesyes">Look for matching records</label>
-	</li></ol></fieldset><input type="submit" value="Import" />
+	</li></ol></fieldset>
+  <fieldset class="rows">
+    <legend>Check for embedded item record data?</legend>
+    <ol>
+      <li class="radio">
+        <input type="radio" id="parse_itemsyes" name="parse_items" value="1" checked="checked" />
+        <label for="parse_itemsyes">Yes</label>
+      </li>
+      <li class="radio">
+        <input type="radio" id="parse_itemsno" name="parse_items" value="0" />
+        <label for="parse_itemsno">No</label>
+      </li>
+    </ol>
+  </fieldset>
+  <input type="submit" value="Stage for import" />
 </form>
 <!-- /TMPL_IF -->
 
diff --git a/tools/manage-marc-import.pl b/tools/manage-marc-import.pl
index 207236803d..6832eb7c4d 100755
--- a/tools/manage-marc-import.pl
+++ b/tools/manage-marc-import.pl
@@ -106,18 +106,20 @@ sub import_batches_list {
 
 sub commit_batch {
     my ($template, $import_batch_id) = @_;
-    my ($num_added, $num_updated, $num_ignored) = BatchCommitBibRecords($import_batch_id);
+    my ($num_added, $num_updated, $num_items_added, $num_ignored) = BatchCommitBibRecords($import_batch_id);
     $template->param(did_commit => 1);
     $template->param(num_added => $num_added);
     $template->param(num_updated => $num_updated);
+    $template->param(num_items_added => $num_items_added);
     $template->param(num_ignored => $num_ignored);
 }
 
 sub revert_batch {
     my ($template, $import_batch_id) = @_;
-    my ($num_deleted, $num_errors, $num_reverted, $num_ignored) = BatchRevertBibRecords($import_batch_id);
+    my ($num_deleted, $num_errors, $num_reverted, $num_items_deleted, $num_ignored) = BatchRevertBibRecords($import_batch_id);
     $template->param(did_revert => 1);
     $template->param(num_deleted => $num_deleted);
+    $template->param(num_items_deleted => $num_items_deleted);
     $template->param(num_errors => $num_errors);
     $template->param(num_reverted => $num_reverted);
     $template->param(num_ignored => $num_ignored);
diff --git a/tools/stage-marc-import.pl b/tools/stage-marc-import.pl
index b3b2aa4815..625362631d 100755
--- a/tools/stage-marc-import.pl
+++ b/tools/stage-marc-import.pl
@@ -60,6 +60,7 @@ my $dbh = C4::Context->dbh;
 
 my $uploadmarc=$input->param('uploadmarc');
 my $check_for_matches = $input->param('check_for_matches');
+my $parse_items = $input->param('parse_items');
 my $comments = $input->param('comments');
 my $syntax = $input->param('syntax');
 my ($template, $loggedinuser, $cookie)
@@ -81,7 +82,8 @@ if ($uploadmarc && length($uploadmarc)>0) {
 	}
 
     # FIXME branch code
-    my ($batch_id, $num_valid, @import_errors) = BatchStageMarcRecords($syntax, $marcrecord, $filename, $comments, '', 0);
+    my ($batch_id, $num_valid, $num_items, @import_errors) = BatchStageMarcRecords($syntax, $marcrecord, $filename, 
+                                                                                   $comments, '', $parse_items, 0);
     my $matcher = C4::Matcher->new('biblio');
     $matcher->add_matchpoint("020", "a", '', 'isbn', 1000);
     my $num_with_matches = 0;
@@ -90,11 +92,10 @@ if ($uploadmarc && length($uploadmarc)>0) {
         $checked_matches = 1;
         $num_with_matches = BatchFindBibDuplicates($batch_id, $matcher);
     }
-    # FIXME we're not committing now
-    # my ($num_added, $num_updated, $num_ignored) = BatchCommitBibRecords($batch_id);
 
 	$template->param(staged => $num_valid,
  	                 matched => $num_with_matches,
+                     num_items => $num_items,
                      import_errors => scalar(@import_errors),
                      total => $num_valid + scalar(@import_errors),
                      checked_matches => $checked_matches,