diff --git a/cli/assets/component/README.md b/cli/assets/component/README.md
index 3a0cda5223..1fa8846cc9 100644
--- a/cli/assets/component/README.md
+++ b/cli/assets/component/README.md
@@ -96,6 +96,18 @@ As `learning_rate` and `learning_rate_schedule` have default value defined which
 python train.py --training_data some_input_path --max_epocs 10 --learning_rate 0.01 --learning_rate_schedule time-based --model_output some_output_path
 ```
 
+## Adding common libraries/dependencies to components
+In complex machine learning projects, it is common for multiple components to use the same libraries/dependencies. To avoid duplicating these in each component, we provide a way to add common libraries/dependencies to a component. You can add `addtional_includes` propertity to `command` component yaml, and specify the common libraries/dependencies in this property. you can add any file or folder to the `additional_includes` property. 
+
+Here is an example of how to add local files and folders to the `additional_includes` property:
+
+```yaml
+additional_includes:
+ - your/local/folder
+ - your/local/file
+```
+
+
 To learn more details about `az ml component` commands, Please refer [this link](https://docs.microsoft.com/en-us/cli/azure/ml/component?view=azure-cli-latest).
 
 To learn more details about `component` , Please refer [this link](https://docs.microsoft.com/en-us/azure/machine-learning/concept-component).
diff --git a/cli/assets/component/common_src/helper.py b/cli/assets/component/common_src/helper.py
new file mode 100644
index 0000000000..d5632bd739
--- /dev/null
+++ b/cli/assets/component/common_src/helper.py
@@ -0,0 +1,2 @@
+def helper_function():
+    print("Hello from helper_function")
diff --git a/cli/assets/component/component_additional_includes.yml b/cli/assets/component/component_additional_includes.yml
new file mode 100644
index 0000000000..aff3ad5942
--- /dev/null
+++ b/cli/assets/component/component_additional_includes.yml
@@ -0,0 +1,13 @@
+$schema: https://azuremlschemas.azureedge.net/latest/commandComponent.schema.json
+name: component_additional_include_cli
+display_name: component_additional_include_cli
+description: A example of component using additional includes
+tags:
+  author: azureml-sdk-team
+type: command
+code: ./component_src
+environment: azureml:AzureML-sklearn-1.0-ubuntu20.04-py38-cpu:1
+additional_includes:
+    - common_src
+command: >-
+  python component.py
diff --git a/cli/assets/component/component_src/component.py b/cli/assets/component/component_src/component.py
new file mode 100644
index 0000000000..ec8a40ed2b
--- /dev/null
+++ b/cli/assets/component/component_src/component.py
@@ -0,0 +1,3 @@
+from common_src.helper import helper_function
+
+helper_function()
diff --git a/sdk/python/assets/component/common_src/helper.py b/sdk/python/assets/component/common_src/helper.py
new file mode 100644
index 0000000000..d5632bd739
--- /dev/null
+++ b/sdk/python/assets/component/common_src/helper.py
@@ -0,0 +1,2 @@
+def helper_function():
+    print("Hello from helper_function")