diff --git a/managed_vms/extending_runtime_compat/.dockerignore b/managed_vms/extending_runtime_compat/.dockerignore
new file mode 100644
index 000000000000..5ce5abfa3fce
--- /dev/null
+++ b/managed_vms/extending_runtime_compat/.dockerignore
@@ -0,0 +1,5 @@
+.dockerignore
+Dockerfile
+.git
+.hg
+.svn
diff --git a/managed_vms/extending_runtime_compat/Dockerfile b/managed_vms/extending_runtime_compat/Dockerfile
new file mode 100644
index 000000000000..b741f0531e02
--- /dev/null
+++ b/managed_vms/extending_runtime_compat/Dockerfile
@@ -0,0 +1,10 @@
+# [START dockerfile]
+FROM gcr.io/google_appengine/python-compat-multicore
+
+# Install the fortunes binary from the debian repositories.
+RUN apt-get update && apt-get install -y fortunes
+
+ADD . /app/
+
+RUN if [ -s requirements.txt ]; then pip install -r requirements.txt; fi
+# [END dockerfile]
diff --git a/managed_vms/extending_runtime_compat/README.md b/managed_vms/extending_runtime_compat/README.md
new file mode 100644
index 000000000000..47c545d9e70c
--- /dev/null
+++ b/managed_vms/extending_runtime_compat/README.md
@@ -0,0 +1,17 @@
+## Google App Engine Managed VMs extending runtime python-compat
+
+This sample demonstrates how to extend the [python-compat](https://cloud.google.com/appengine/docs/managed-vms/python/migrating-an-existing-app) runtime on [Google App Engine Managed VMs](https://cloud.google.com/appengine/docs/python/managed-vms/hello-world)
+
+### Running & deploying the sample
+
+1. `requirements.txt` is automatically installed by the runtime when deploying, however, to run the sample locally you will need to install dependencies:
+
+        $ pip install -r requirements.txt
+
+2. Run the sample on your development server:
+        
+        $ dev_appserver.py --runtime python-compat .
+
+3. Deploy the sample:
+
+        $ gcloud preview app deploy
diff --git a/managed_vms/extending_runtime_compat/app.yaml b/managed_vms/extending_runtime_compat/app.yaml
new file mode 100644
index 000000000000..bd752d1259d1
--- /dev/null
+++ b/managed_vms/extending_runtime_compat/app.yaml
@@ -0,0 +1,8 @@
+runtime: custom
+vm: true
+threadsafe: true
+api_version: 1
+
+handlers:
+- url: .*  # This regex directs all routes to main.app
+  script: main.app
diff --git a/managed_vms/extending_runtime_compat/main.py b/managed_vms/extending_runtime_compat/main.py
new file mode 100644
index 000000000000..46911ef98a8a
--- /dev/null
+++ b/managed_vms/extending_runtime_compat/main.py
@@ -0,0 +1,30 @@
+# Copyright 2015 Google Inc. All Rights Reserved.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+# [START app]
+import subprocess
+
+from flask import Flask
+
+
+app = Flask(__name__)
+
+
+# [START example]
+@app.route('/')
+def fortune():
+    output = subprocess.check_output('/usr/games/fortune')
+    return output, 200, {'Content-Type': 'text/plain; charset=utf-8'}
+# [END example]
+# [END app]
diff --git a/managed_vms/extending_runtime_compat/main_test.py b/managed_vms/extending_runtime_compat/main_test.py
new file mode 100644
index 000000000000..44fb434a4980
--- /dev/null
+++ b/managed_vms/extending_runtime_compat/main_test.py
@@ -0,0 +1,30 @@
+# Copyright 2015 Google Inc. All Rights Reserved.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+import os
+
+import main
+import pytest
+
+
+@pytest.mark.skipif(
+    not os.path.exists('/usr/games/fortune'),
+    reason='Fortune executable is not installed.')
+def test_index():
+    main.app.testing = True
+    client = main.app.test_client()
+
+    r = client.get('/')
+    assert r.status_code == 200
+    assert len(r.data)
diff --git a/managed_vms/extending_runtime_compat/requirements.txt b/managed_vms/extending_runtime_compat/requirements.txt
new file mode 100644
index 000000000000..632a1efabce7
--- /dev/null
+++ b/managed_vms/extending_runtime_compat/requirements.txt
@@ -0,0 +1 @@
+Flask==0.10.1
diff --git a/managed_vms/hello_world_compat/README.md b/managed_vms/hello_world_compat/README.md
index 51cbecc5363a..2b63f050a972 100644
--- a/managed_vms/hello_world_compat/README.md
+++ b/managed_vms/hello_world_compat/README.md
@@ -1,12 +1,12 @@
-## Google App Engine Managed VMs Python Hello World
+## Google App Engine Managed VMs python-compat Hello World
 
-This sample demonstrates using [Python on Google App Engine Managed VMs](https://cloud.google.com/appengine/docs/python/managed-vms/hello-world)
+This sample demonstrates using the [python-compat](https://cloud.google.com/appengine/docs/managed-vms/python/migrating-an-existing-app) runtime on [Google App Engine Managed VMs](https://cloud.google.com/appengine/docs/python/managed-vms/hello-world)
 
 ### Running & deploying the sample
 
 1. `requirements.txt` is automatically installed by the runtime when deploying, however, to run the sample locally you will need to install dependencies:
 
-        $ pip install -t lib -r requirements.txt
+        $ pip install -r requirements.txt
 
 2. Run the sample on your development server:
         
diff --git a/managed_vms/hello_world_compat/app.yaml b/managed_vms/hello_world_compat/app.yaml
index 5d8928f3e234..99dd1f152294 100644
--- a/managed_vms/hello_world_compat/app.yaml
+++ b/managed_vms/hello_world_compat/app.yaml
@@ -1,6 +1,7 @@
 runtime: python-compat
 vm: true
 threadsafe: true
+api_version: 1
 
 handlers:
 - url: .*  # This regex directs all routes to main.app