diff --git a/reactos/base/services/services.rbuild b/reactos/base/services/services.rbuild
index 3787fddc0e7..a5edc08116b 100644
--- a/reactos/base/services/services.rbuild
+++ b/reactos/base/services/services.rbuild
@@ -22,6 +22,9 @@
 	<directory name="tcpsvcs">
 		<xi:include href="tcpsvcs/tcpsvcs.rbuild" />
 	</directory>
+	<directory name="telnetd">
+		<xi:include href="telnetd/telnetd.rbuild" />
+	</directory>
 	<directory name="umpnpmgr">
 		<xi:include href="umpnpmgr/umpnpmgr.rbuild" />
 	</directory>
diff --git a/reactos/base/services/telnetd/serviceentry.c b/reactos/base/services/telnetd/serviceentry.c
index 015d057d00d..ee17e2a6f75 100644
--- a/reactos/base/services/telnetd/serviceentry.c
+++ b/reactos/base/services/telnetd/serviceentry.c
@@ -15,19 +15,15 @@
  * License along with this library; if not, write to the Free Software
  * Foundation, Inc., 51 Franklin St, Fifth Floor, Boston, MA 02110-1301, USA
  */
-#if 0
+
 #define WIN32_LEAN_AND_MEAN
 
 #include <windows.h>
+#include "wine/debug.h"
 
-#define WINE_FIXME printf
-#define WINE_TRACE printf
+WINE_DEFAULT_DEBUG_CHANNEL(telnetd);
 
-//#include "wine/debug.h"
-
-//WINE_DEFAULT_DEBUG_CHANNEL(spoolsv);
-
-static WCHAR telnetdW[] = {'T','e','l','n','e','t','D',0};
+static WCHAR telnetdW[] = {'t','e','l','n','e','t','d',0};
 
 static SERVICE_STATUS_HANDLE service_handle;
 static HANDLE stop_event;
@@ -106,6 +102,5 @@ int main(int argc, char **argv)
     StartServiceCtrlDispatcherW(servtbl);
     return 0;
 }
-#endif
 /* EOF */
 
diff --git a/reactos/base/services/telnetd/telnetd.c b/reactos/base/services/telnetd/telnetd.c
index 6dbd20ddc2d..6a6d24a6bd5 100644
--- a/reactos/base/services/telnetd/telnetd.c
+++ b/reactos/base/services/telnetd/telnetd.c
@@ -45,7 +45,7 @@ static int sock;
  * rename this function
  * int kickoff_telnetd(void)
  */
-int main(int argc, char **argv)
+int kickoff_telnetd(void)
 {
   printf("Attempting to start Simple TelnetD\n");
 
diff --git a/reactos/base/services/telnetd/telnetd.rbuild b/reactos/base/services/telnetd/telnetd.rbuild
index 3f6325a3665..3f6220463ce 100644
--- a/reactos/base/services/telnetd/telnetd.rbuild
+++ b/reactos/base/services/telnetd/telnetd.rbuild
@@ -6,6 +6,7 @@
 	<library>kernel32</library>
 	<library>advapi32</library>
 	<library>ws2_32</library>
+	<library>wine</library>
 
 	<file>telnetd.c</file>
 	<file>serviceentry.c</file>
diff --git a/reactos/boot/bootdata/hivesys_i386.inf b/reactos/boot/bootdata/hivesys_i386.inf
index 14c7c7b3a5e..3f70f138c60 100644
--- a/reactos/boot/bootdata/hivesys_i386.inf
+++ b/reactos/boot/bootdata/hivesys_i386.inf
@@ -1061,6 +1061,15 @@ HKLM,"SYSTEM\CurrentControlSet\Services\tcpsvcs","ImagePath",0x00020000,"%System
 HKLM,"SYSTEM\CurrentControlSet\Services\tcpsvcs","Start",0x00010001,0x00000003
 HKLM,"SYSTEM\CurrentControlSet\Services\tcpsvcs","Type",0x00010001,0x00000020
 
+; ReactOS Telnet Daemon
+HKLM,"SYSTEM\CurrentControlSet\Services\telnetd","Description",0x00000000,"ReactOS Telnet Daemon"
+HKLM,"SYSTEM\CurrentControlSet\Services\telnetd","DisplayName",0x00000000,"ReactOS Telnet Daemon"
+HKLM,"SYSTEM\CurrentControlSet\Services\telnetd","ErrorControl",0x00010001,0x00000001
+HKLM,"SYSTEM\CurrentControlSet\Services\telnetd","Group",0x00000000,"Network"
+HKLM,"SYSTEM\CurrentControlSet\Services\telnetd","ImagePath",0x00020000,"%SystemRoot%\system32\telnetd.exe"
+HKLM,"SYSTEM\CurrentControlSet\Services\telnetd","Start",0x00010001,0x00000002
+HKLM,"SYSTEM\CurrentControlSet\Services\telnetd","Type",0x00010001,0x00000020
+
 ; Sound Blaster (NT4)
 ;HKLM,"SYSTEM\CurrentControlSet\Services\sndblst","Description",0x00000000,"Sound Blaster (NT4)"
 ;HKLM,"SYSTEM\CurrentControlSet\Services\sndblst","ErrorControl",0x00010001,0x00000001
diff --git a/reactos/boot/bootdata/packages/reactos.dff b/reactos/boot/bootdata/packages/reactos.dff
index 1961332a173..6b306ec33c6 100644
--- a/reactos/boot/bootdata/packages/reactos.dff
+++ b/reactos/boot/bootdata/packages/reactos.dff
@@ -90,6 +90,7 @@ base\services\eventlog\eventlog.exe                 1
 base\services\rpcss\rpcss.exe                       1
 base\services\spoolsv\spoolsv.exe                   1
 base\services\tcpsvcs\tcpsvcs.exe                   1
+base\services\telnetd\telnetd.exe                   1
 base\services\tcpsvcs\quotes                        5
 base\services\umpnpmgr\umpnpmgr.exe                 1
 base\services\wlansvc\wlansvc.exe                   1