diff --git a/cmake/Modules/FindUG.cmake b/cmake/Modules/FindUG.cmake
new file mode 100644
index 000000000..b1f8ea6ae
--- /dev/null
+++ b/cmake/Modules/FindUG.cmake
@@ -0,0 +1,112 @@
+#
+# This module first tests for UG and then sets the necessary flags
+# and config.h defines. If UG is found UG_FOUND will be true.
+#
+
+# this function is required in order not to pollute the global
+# namespace with the macros defined in ug-config*.cmake
+function(opmFindUg)
+  if(NOT UG_ROOT)
+    # check whether UG is in /usr/local
+    if(EXISTS "/usr/local/include/ug")
+      set(UG_ROOT "/usr/local")
+
+      # check whether UG is in /usr
+    elseif(EXISTS "/usr/include/ug")
+      set(UG_ROOT "/usr")
+      
+      # oops
+    else()
+      message(STATUS "Could not find UG. It seems to be not installed.")
+      return()
+    endif()
+  endif()
+
+  if(UG_ROOT AND NOT UG_DIR)
+    # define the directory where the config file resides
+    if(EXISTS "${UG_ROOT}/lib/cmake/ug/ug-config.cmake")
+      set(UG_DIR ${UG_ROOT}/lib/cmake/ug)
+    elseif(EXISTS "${UG_ROOT}/lib64/cmake/ug/ug-config.cmake")
+      set(UG_DIR ${UG_ROOT}/lib64/cmake/ug)
+    else()
+      message(WARNING "Could not find file ug-config.cmake relative to given UG_ROOT")
+      return()
+    endif()
+  endif()
+
+  # include the config mode files kindly provided by UG...
+  include(${UG_DIR}/ug-config-version.cmake)
+  include(${UG_DIR}/ug-config.cmake)
+
+  set(UG_FOUND "1")
+  if(NOT UG_FOR_DUNE STREQUAL "yes")
+    set(UG_FOUND "0")
+    message(WARNING "UG was not configured for DUNE. Did pass --enable-dune to its configure?")
+    return()
+  endif()
+
+  set(HAVE_UG ${UG_FOUND})
+
+  # parse version
+  string(REGEX REPLACE "([0-9]*)\\.[0-9]*\\..*" "\\1" UG_VERSION_MAJOR "${PACKAGE_VERSION}")
+  string(REGEX REPLACE "[0-9]*\\.([0-9]*)\\..*" "\\1" UG_VERSION_MINOR "${PACKAGE_VERSION}")
+  string(REGEX REPLACE "[0-9]*\\.[0-9]*\\.([0-9]*).*" "\\1" UG_VERSION_REVISION "${PACKAGE_VERSION}")
+
+  string(REGEX REPLACE ".*-patch([0-9]*)" "\\1" TMP "${PACKAGE_VERSION}")
+  if(TMP STREQUAL "${PACKAGE_VERSION}")
+    set(UG_VERSION_PATCHLEVEL "")
+  else()
+    set(UG_VERSION_PATCHLEVEL "${TMP}")
+  endif()
+
+  # Adjust compiler/linker arguments
+  set(UG_LIBRARY_DIR "${libdir}")
+  
+  foreach (UG_RAW_LIB "-lugS2" "-lugS3" "-ldevS")
+    string(REGEX REPLACE "-l(.*)" "\\1" UG_LIB "${UG_RAW_LIB}")
+    set(UG_LIB_FILE  "${UG_LIBRARY_DIR}/lib${UG_LIB}.a")
+    if (EXISTS "${UG_LIB_FILE}")
+      set(UG_LIBS "${UG_LIBS}" ${UG_LIB_FILE})
+    else()
+      set(UG_LIBS "${UG_LIBS}" ${UG_LIB})
+    endif()
+  endforeach()
+
+  set(UG_LIBRARIES "${UG_LIBS}")
+
+  # export all variables which need to be seen globally
+  set(UG_FOUND "${UG_FOUND}" PARENT_SCOPE)
+  set(HAVE_UG "${HAVE_UG}" PARENT_SCOPE)
+  set(UG_INCLUDE_DIRS "${UG_INCLUDES}" PARENT_SCOPE)
+  set(UG_LIBRARIES "${UG_LIBRARIES}" PARENT_SCOPE)
+  set(UG_VERSION_MAJOR "${UG_VERSION_MAJOR}" PARENT_SCOPE)
+  set(UG_VERSION_MINOR "${UG_VERSION_MINOR}" PARENT_SCOPE)
+  set(UG_VERSION_REVISION "${UG_VERSION_REVISION}" PARENT_SCOPE)
+  set(UG_VERSION_PATCHLEVEL "${UG_VERSION_PATCHLEVEL}" PARENT_SCOPE)
+
+  set(UG_DEFINITIONS "${UG_COMPILE_FLAGS}" PARENT_SCOPE)
+endfunction()
+
+if (NOT HAVE_UG)
+  opmFindUg()
+  
+  set(HAVE_UG "${HAVE_UG}" CACHE BOOL "UG library is available")
+  set(UG_INCLUDE_DIRS "${UG_INCLUDE_DIRS}" CACHE STRING "Directory containing the headers of the UG library")
+  set(UG_LIBRARIES "${UG_LIBRARIES}" CACHE STRING "The libraries which need to be linked to be able to use the UG library")
+  set(UG_DEFINITIONS "${UG_DEFINITIONS}" CACHE STRING "The compiler flags for the UG library")
+  set(UG_VERSION_MAJOR "${UG_VERSION_MAJOR}" CACHE INT "Major version of the UG release")
+  set(UG_VERSION_MINOR "${UG_VERSION_MINOR}" CACHE INT "Minor version of the UG release")
+  set(UG_VERSION_REVISION "${UG_VERSION_REVISION}" CACHE INT "Revision of the UG release")
+  set(UG_VERSION_PATCHLEVEL "${UG_VERSION_PATCHLEVEL}" CACHE INT "Patchlevel of the UG release")
+
+  mark_as_advanced(HAVE_UG)
+  mark_as_advanced(UG_INCLUDE_DIRS)
+  mark_as_advanced(UG_LIBRARIES)
+  mark_as_advanced(UG_DEFINITIONS)
+  mark_as_advanced(UG_VERSION_MAJOR)
+  mark_as_advanced(UG_VERSION_MINOR)
+  mark_as_advanced(UG_VERSION_REVISION)
+  mark_as_advanced(UG_VERSION_PATCHLEVEL)
+else()
+  set(UG_FOUND "0")
+endif()
diff --git a/cmake/Modules/Finddune-grid.cmake b/cmake/Modules/Finddune-grid.cmake
index dd04e0de6..4fa53ae8b 100644
--- a/cmake/Modules/Finddune-grid.cmake
+++ b/cmake/Modules/Finddune-grid.cmake
@@ -23,7 +23,8 @@ find_opm_package (
   dune-common REQUIRED;
   dune-geometry REQUIRED;
   MPI;
-  ALUGrid
+  ALUGrid;
+  UG
   "
   # header to search for
   "dune/grid/onedgrid.hh"
diff --git a/cmake/Scripts/configure b/cmake/Scripts/configure
index 69ba2ce45..c87eecf18 100755
--- a/cmake/Scripts/configure
+++ b/cmake/Scripts/configure
@@ -36,6 +36,7 @@ Optional Features:
   --config-cache          Reuse build configuration cache from a previous run
 
 Optional Packages:
+  --with-ug=PATH          use the UG libraries from a specified location
   --with-alugrid=PATH     use the ALUGrid library from a specified location
   --with-metis=PATH       use the METIS graph partitioning library from a specified location
   --with-boost=PATH       use Boost library from a specified location
@@ -256,6 +257,7 @@ for OPT in "$@"; do
             superlu     |\
             SuiteSparse |\
             TinyXML     |\
+            ug          |\
             opm         |\
             opm-*       |\
             dune        |\