diff --git a/nova/pci/pci_device.py b/nova/pci/pci_device.py
new file mode 100644
index 000000000000..4ee2ef6660ff
--- /dev/null
+++ b/nova/pci/pci_device.py
@@ -0,0 +1,121 @@
+# Copyright 2014 Intel Corporation
+# 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 copy
+import functools
+
+from nova import exception
+
+
+def check_device_status(dev_status=None):
+    """Decorator to check device status before changing it."""
+
+    if dev_status is not None and not isinstance(dev_status, set):
+        dev_status = set(dev_status)
+
+    def outer(f):
+        @functools.wraps(f)
+        def inner(devobj, instance=None):
+            if devobj['status'] not in dev_status:
+                raise exception.PciDeviceInvalidStatus(
+                    compute_node_id=devobj.compute_node_id,
+                    address=devobj.address, status=devobj.status,
+                    hopestatus=dev_status)
+            if instance:
+                return f(devobj, instance)
+            else:
+                return f(devobj)
+        return inner
+    return outer
+
+
+@check_device_status(dev_status=['available'])
+def claim(devobj, instance):
+    devobj.status = 'claimed'
+    devobj.instance_uuid = instance['uuid']
+
+
+@check_device_status(dev_status=['available', 'claimed'])
+def allocate(devobj, instance):
+    if devobj.status == 'claimed' and devobj.instance_uuid != instance['uuid']:
+        raise exception.PciDeviceInvalidOwner(
+            compute_node_id=devobj.compute_node_id,
+            address=devobj.address, owner=devobj.instance_uuid,
+            hopeowner=instance['uuid'])
+
+    devobj.status = 'allocated'
+    devobj.instance_uuid = instance['uuid']
+
+    # Notes(yjiang5): remove this check when instance object for
+    # compute manager is finished
+    if isinstance(instance, dict):
+        if 'pci_devices' not in instance:
+            instance['pci_devices'] = []
+        instance['pci_devices'].append(copy.copy(devobj))
+    else:
+        instance.pci_devices.objects.append(copy.copy(devobj))
+
+
+@check_device_status(dev_status=['available'])
+def remove(devobj):
+    devobj.status = 'removed'
+    devobj.instance_uuid = None
+
+
+@check_device_status(dev_status=['claimed', 'allocated'])
+def free(devobj, instance=None):
+    if instance and devobj.instance_uuid != instance['uuid']:
+        raise exception.PciDeviceInvalidOwner(
+            compute_node_id=devobj.compute_node_id,
+            address=devobj.address, owner=devobj.instance_uuid,
+            hopeowner=instance['uuid'])
+    old_status = devobj.status
+    devobj.status = 'available'
+    devobj.instance_uuid = None
+    if old_status == 'allocated' and instance:
+        # Notes(yjiang5): remove this check when instance object for
+        # compute manager is finished
+        existed = next((dev for dev in instance['pci_devices']
+            if dev.id == devobj.id))
+        if isinstance(instance, dict):
+            instance['pci_devices'].remove(existed)
+        else:
+            instance.pci_devices.objects.remove(existed)
+
+
+def update_device(devobj, dev_dict):
+    """Sync the content from device dictionary to device object.
+
+    The resource tracker updates the available devices periodically.
+    To avoid meaningless syncs with the database, we update the device
+    object only if a value changed.
+    """
+
+    # Note(yjiang5): status/instance_uuid should only be updated by
+    # functions like claim/allocate etc. The id is allocated by
+    # database. The extra_info is created by the object.
+    no_changes = ('status', 'instance_uuid', 'id', 'extra_info')
+    map(lambda x: dev_dict.pop(x, None),
+        [key for key in no_changes])
+
+    for k, v in dev_dict.items():
+        if k in devobj.fields.keys():
+            devobj[k] = v
+        else:
+            # Note (yjiang5) extra_info.update does not update
+            # obj_what_changed, set it explicitely
+            extra_info = devobj.extra_info
+            extra_info.update({k: v})
+            devobj.extra_info = extra_info
diff --git a/nova/tests/pci/test_pci_device.py b/nova/tests/pci/test_pci_device.py
new file mode 100644
index 000000000000..4b5cc1e37d96
--- /dev/null
+++ b/nova/tests/pci/test_pci_device.py
@@ -0,0 +1,119 @@
+# Copyright 2014 Intel Corporation
+# 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.
+
+from nova import context
+from nova import exception
+from nova.objects import instance
+from nova.objects import pci_device as pci_device_obj
+from nova.pci import pci_device
+from nova import test
+
+
+dev_dict = {
+    'created_at': None,
+    'updated_at': None,
+    'deleted_at': None,
+    'deleted': None,
+    'id': 1,
+    'compute_node_id': 1,
+    'address': 'a',
+    'vendor_id': 'v',
+    'product_id': 'p',
+    'dev_type': 't',
+    'status': 'available',
+    'dev_id': 'i',
+    'label': 'l',
+    'instance_uuid': None,
+    'extra_info': '{}',
+    }
+
+
+class PciDeviceTestCase(test.TestCase):
+    def setUp(self):
+        super(PciDeviceTestCase, self).setUp()
+        self.ctxt = context.get_admin_context()
+        self.inst = instance.Instance()
+        self.inst.uuid = 'fake-inst-uuid'
+        self.inst.pci_devices = pci_device_obj.PciDeviceList()
+        self.devobj = pci_device_obj.PciDevice._from_db_object(
+            self.ctxt,
+            pci_device_obj.PciDevice(),
+            dev_dict)
+
+    def test_claim_device(self):
+        pci_device.claim(self.devobj, self.inst)
+        self.assertEqual(self.devobj.status, 'claimed')
+        self.assertEqual(self.devobj.instance_uuid,
+                         self.inst.uuid)
+        self.assertEqual(len(self.inst.pci_devices), 0)
+
+    def test_claim_device_fail(self):
+        self.devobj.status = 'allocated'
+        self.assertRaises(exception.PciDeviceInvalidStatus,
+                          pci_device.claim, self.devobj, self.inst)
+
+    def test_allocate_device(self):
+        pci_device.claim(self.devobj, self.inst)
+        pci_device.allocate(self.devobj, self.inst)
+        self.assertEqual(self.devobj.status, 'allocated')
+        self.assertEqual(self.devobj.instance_uuid, 'fake-inst-uuid')
+        self.assertEqual(len(self.inst.pci_devices), 1)
+        self.assertEqual(self.inst.pci_devices[0]['vendor_id'], 'v')
+        self.assertEqual(self.inst.pci_devices[0]['status'], 'allocated')
+
+    def test_allocacte_device_fail_status(self):
+        self.devobj.status = 'removed'
+        self.assertRaises(exception.PciDeviceInvalidStatus,
+                          pci_device.allocate,
+                          self.devobj,
+                          self.inst)
+
+    def test_allocacte_device_fail_owner(self):
+        inst_2 = instance.Instance()
+        inst_2.uuid = 'fake-inst-uuid-2'
+        pci_device.claim(self.devobj, self.inst)
+        self.assertRaises(exception.PciDeviceInvalidOwner,
+                          pci_device.allocate,
+                          self.devobj, inst_2)
+
+    def test_free_claimed_device(self):
+        pci_device.claim(self.devobj, self.inst)
+        pci_device.free(self.devobj, self.inst)
+        self.assertEqual(self.devobj.status, 'available')
+        self.assertIsNone(self.devobj.instance_uuid)
+
+    def test_free_allocated_device(self):
+        pci_device.claim(self.devobj, self.inst)
+        pci_device.allocate(self.devobj, self.inst)
+        self.assertEqual(len(self.inst.pci_devices), 1)
+        pci_device.free(self.devobj, self.inst)
+        self.assertEqual(len(self.inst.pci_devices), 0)
+        self.assertEqual(self.devobj.status, 'available')
+        self.assertIsNone(self.devobj.instance_uuid)
+
+    def test_free_device_fail(self):
+        self.devobj.status = 'removed'
+        self.assertRaises(exception.PciDeviceInvalidStatus,
+                          pci_device.free, self.devobj)
+
+    def test_remove_device(self):
+        pci_device.remove(self.devobj)
+        self.assertEqual(self.devobj.status, 'removed')
+        self.assertIsNone(self.devobj.instance_uuid)
+
+    def test_remove_device_fail(self):
+        pci_device.claim(self.devobj, self.inst)
+        self.assertRaises(exception.PciDeviceInvalidStatus,
+                          pci_device.remove, self.devobj)