diff --git a/.gitignore b/.gitignore
index 8120c55843c..93ff5f27c98 100644
--- a/.gitignore
+++ b/.gitignore
@@ -84,7 +84,6 @@ dlls/rpcrt4/tests/server_c.c
 dlls/rpcrt4/tests/server_s.c
 dlls/setupx.dll16
 dlls/shdocvw/shdocvw_v1.tlb
-dlls/shell.dll16
 dlls/stdole2.tlb/std_ole_v2.tlb
 dlls/stdole32.tlb/std_ole_v1.tlb
 dlls/system.drv16
diff --git a/configure b/configure
index b45a122ccef..5468a78d429 100755
--- a/configure
+++ b/configure
@@ -26852,6 +26852,14 @@ ALL_MAKEFILE_DEPENDS="$ALL_MAKEFILE_DEPENDS
 dlls/shdocvw/tests/Makefile: dlls/shdocvw/tests/Makefile.in dlls/Maketest.rules"
 ac_config_files="$ac_config_files dlls/shdocvw/tests/Makefile"
 
+ALL_MAKEFILES="$ALL_MAKEFILES \\
+	dlls/shell.dll16/Makefile"
+test "x$enable_win16" != xno && ALL_DLL_DIRS="$ALL_DLL_DIRS \\
+	shell.dll16"
+ALL_MAKEFILE_DEPENDS="$ALL_MAKEFILE_DEPENDS
+dlls/shell.dll16/Makefile: dlls/shell.dll16/Makefile.in dlls/Makedll.rules"
+ac_config_files="$ac_config_files dlls/shell.dll16/Makefile"
+
 ALL_MAKEFILES="$ALL_MAKEFILES \\
 	dlls/shell32/Makefile"
 test "x$enable_shell32" != xno && ALL_DLL_DIRS="$ALL_DLL_DIRS \\
@@ -29204,6 +29212,7 @@ do
     "dlls/shdoclc/Makefile") CONFIG_FILES="$CONFIG_FILES dlls/shdoclc/Makefile" ;;
     "dlls/shdocvw/Makefile") CONFIG_FILES="$CONFIG_FILES dlls/shdocvw/Makefile" ;;
     "dlls/shdocvw/tests/Makefile") CONFIG_FILES="$CONFIG_FILES dlls/shdocvw/tests/Makefile" ;;
+    "dlls/shell.dll16/Makefile") CONFIG_FILES="$CONFIG_FILES dlls/shell.dll16/Makefile" ;;
     "dlls/shell32/Makefile") CONFIG_FILES="$CONFIG_FILES dlls/shell32/Makefile" ;;
     "dlls/shell32/tests/Makefile") CONFIG_FILES="$CONFIG_FILES dlls/shell32/tests/Makefile" ;;
     "dlls/shfolder/Makefile") CONFIG_FILES="$CONFIG_FILES dlls/shfolder/Makefile" ;;
diff --git a/configure.ac b/configure.ac
index a243045ec5e..e3d4b63870c 100644
--- a/configure.ac
+++ b/configure.ac
@@ -2188,6 +2188,7 @@ WINE_CONFIG_MAKEFILE([dlls/sfc_os/Makefile],[dlls/Makedll.rules],[dlls],[ALL_DLL
 WINE_CONFIG_MAKEFILE([dlls/shdoclc/Makefile],[dlls/Makedll.rules],[dlls],[ALL_DLL_DIRS])
 WINE_CONFIG_MAKEFILE([dlls/shdocvw/Makefile],[dlls/Makedll.rules],[dlls],[ALL_DLL_DIRS])
 WINE_CONFIG_MAKEFILE([dlls/shdocvw/tests/Makefile],[dlls/Maketest.rules],[dlls],[ALL_TEST_DIRS],[enable_tests])
+WINE_CONFIG_MAKEFILE([dlls/shell.dll16/Makefile],[dlls/Makedll.rules],[dlls],[ALL_DLL_DIRS],[enable_win16])
 WINE_CONFIG_MAKEFILE([dlls/shell32/Makefile],[dlls/Makedll.rules],[dlls],[ALL_DLL_DIRS])
 WINE_CONFIG_MAKEFILE([dlls/shell32/tests/Makefile],[dlls/Maketest.rules],[dlls],[ALL_TEST_DIRS],[enable_tests])
 WINE_CONFIG_MAKEFILE([dlls/shfolder/Makefile],[dlls/Makedll.rules],[dlls],[ALL_DLL_DIRS])
diff --git a/dlls/Makefile.in b/dlls/Makefile.in
index badffb68b21..498cb65ebc3 100644
--- a/dlls/Makefile.in
+++ b/dlls/Makefile.in
@@ -25,7 +25,6 @@ WIN16_FILES = \
 	mmsystem.dll16 \
 	msvideo.dll16 \
 	setupx.dll16 \
-	shell.dll16 \
 	system.drv16 \
 	toolhelp.dll16 \
 	user.exe16 \
@@ -58,9 +57,6 @@ msvideo.dll16:
 setupx.dll16:
 	echo "setupapi.dll" >$@
 
-shell.dll16:
-	echo "shell32.dll" >$@
-
 ddeml.dll16 user.exe16:
 	echo "user32.dll" >$@
 
diff --git a/dlls/shell.dll16/Makefile.in b/dlls/shell.dll16/Makefile.in
new file mode 100644
index 00000000000..07cf620edca
--- /dev/null
+++ b/dlls/shell.dll16/Makefile.in
@@ -0,0 +1,19 @@
+TOPSRCDIR = @top_srcdir@
+TOPOBJDIR = ../..
+SRCDIR    = @srcdir@
+VPATH     = @srcdir@
+MODULE    = shell.dll16
+IMPORTS   = shell32 user32 advapi32 kernel32
+
+EXTRADLLFLAGS = -Wb,--subsystem,win16,--main-module,shell32.dll
+EXTRARCFLAGS  = -O res16
+
+SPEC_SRCS = shell.dll16.spec
+
+C_SRCS = shell.c
+
+RC_SRCS = version.rc
+
+@MAKE_DLL_RULES@
+
+@DEPENDENCIES@  # everything below this line is overwritten by make depend
diff --git a/dlls/shell32/shell.c b/dlls/shell.dll16/shell.c
similarity index 98%
rename from dlls/shell32/shell.c
rename to dlls/shell.dll16/shell.c
index db49c29deae..9964b60c2d8 100644
--- a/dlls/shell32/shell.c
+++ b/dlls/shell.dll16/shell.c
@@ -42,7 +42,6 @@
 #include "shlwapi.h"
 
 #include "wine/winbase16.h"
-#include "shell32_main.h"
 
 #include "wine/debug.h"
 
@@ -52,6 +51,11 @@ extern HINSTANCE WINAPI WOWShellExecute(HWND hWnd, LPCSTR lpOperation,LPCSTR lpF
                                         LPCSTR lpParameters,LPCSTR lpDirectory,
                                         INT iShowCmd, void *callback);
 
+#define HICON_16(h32)		(LOWORD(h32))
+#define HICON_32(h16)		((HICON)(ULONG_PTR)(h16))
+#define HINSTANCE_32(h16)	((HINSTANCE)(ULONG_PTR)(h16))
+#define HINSTANCE_16(h32)	(LOWORD(h32))
+
 typedef struct {     /* structure for dropped files */
  WORD     wSize;
  POINT16  ptMousePos;
@@ -170,7 +174,9 @@ HINSTANCE16 WINAPI FindExecutable16( LPCSTR lpFile, LPCSTR lpDirectory,
  */
 BOOL16 WINAPI AboutDlgProc16( HWND16 hWnd, UINT16 msg, WPARAM16 wParam,
                                LPARAM lParam )
-{ return (BOOL16)AboutDlgProc( HWND_32(hWnd), msg, wParam, lParam );
+{
+    FIXME( "stub\n" );
+    return FALSE;
 }
 
 
diff --git a/dlls/shell32/shell.spec b/dlls/shell.dll16/shell.dll16.spec
similarity index 100%
rename from dlls/shell32/shell.spec
rename to dlls/shell.dll16/shell.dll16.spec
diff --git a/dlls/shell32/version16.rc b/dlls/shell.dll16/version.rc
similarity index 100%
rename from dlls/shell32/version16.rc
rename to dlls/shell.dll16/version.rc
diff --git a/dlls/shell32/Makefile.in b/dlls/shell32/Makefile.in
index d416eecec88..6900d312aba 100644
--- a/dlls/shell32/Makefile.in
+++ b/dlls/shell32/Makefile.in
@@ -64,22 +64,10 @@ SVG_SRCS = \
 	mydocs.svg \
 	trash_file.svg
 
-C_SRCS16  = shell.c
-RC_SRCS16 = version16.rc
-SPEC_SRCS16 = shell.spec
-
 EXTRA_OBJS = authors.o
 
 @MAKE_DLL_RULES@
 
-# Special rules for 16-bit resource files
-
-version16.res: version16.rc
-	$(LDPATH) $(RC16) $(RC16FLAGS) -fo$@ $(SRCDIR)/version16.rc
-
-shell.spec.o: shell.spec version16.res
-	$(WINEBUILD) $(WINEBUILDFLAGS) --dll -o $@ --main-module $(MODULE) --res version16.res --export $(SRCDIR)/shell.spec
-
 authors.c: $(TOPSRCDIR)/AUTHORS
 	(LC_ALL=C; export LC_ALL; echo 'const char * const SHELL_Authors[] = {' && \
 	 sed -e '1,2d' -e 's/\(.*\)/  \"\1\",/' $(TOPSRCDIR)/AUTHORS && \
diff --git a/dlls/shell32/shell32_main.h b/dlls/shell32/shell32_main.h
index 973e5264c6a..eea2e18299a 100644
--- a/dlls/shell32/shell32_main.h
+++ b/dlls/shell32/shell32_main.h
@@ -35,7 +35,6 @@
 #include "undocshell.h"
 #include "shlobj.h"
 #include "shellapi.h"
-#include "wine/windef16.h"
 #include "wine/unicode.h"
 
 /*******************************************
@@ -153,20 +152,6 @@ void FreeChangeNotifications(void);
 
 BOOL SHELL_ConfirmYesNoW(HWND hWnd, int nKindOfDialog, LPCWSTR szDir);
 
-/* 16-bit functions */
-void        WINAPI DragAcceptFiles16(HWND16 hWnd, BOOL16 b);
-UINT16      WINAPI DragQueryFile16(HDROP16 hDrop, WORD wFile, LPSTR lpszFile, WORD wLength);
-void        WINAPI DragFinish16(HDROP16 h);
-BOOL16      WINAPI DragQueryPoint16(HDROP16 hDrop, POINT16 *p);
-HINSTANCE16 WINAPI ShellExecute16(HWND16,LPCSTR,LPCSTR,LPCSTR,LPCSTR,INT16);
-HICON16     WINAPI ExtractIcon16(HINSTANCE16,LPCSTR,UINT16);
-HICON16     WINAPI ExtractAssociatedIcon16(HINSTANCE16,LPSTR,LPWORD);
-HICON16     WINAPI ExtractIconEx16 ( LPCSTR, INT16, HICON16 *, HICON16 *, UINT16 );
-HINSTANCE16 WINAPI FindExecutable16(LPCSTR,LPCSTR,LPSTR);
-HGLOBAL16   WINAPI InternalExtractIcon16(HINSTANCE16,LPCSTR,UINT16,WORD);
-BOOL16      WINAPI ShellAbout16(HWND16,LPCSTR,LPCSTR,HICON16);
-BOOL16      WINAPI AboutDlgProc16(HWND16,UINT16,WPARAM16,LPARAM);
-
 static inline BOOL SHELL_OsIsUnicode(void)
 {
     /* if high-bit of version is 0, we are emulating NT */
@@ -205,12 +190,6 @@ static inline WCHAR * __SHCloneStrAtoW(WCHAR ** target, const char * source)
 	return *target;
 }
 
-/* handle conversions */
-#define HICON_16(h32)		(LOWORD(h32))
-#define HICON_32(h16)		((HICON)(ULONG_PTR)(h16))
-#define HINSTANCE_32(h16)	((HINSTANCE)(ULONG_PTR)(h16))
-#define HINSTANCE_16(h32)	(LOWORD(h32))
-
 typedef UINT_PTR (*SHELL_ExecuteW32)(const WCHAR *lpCmd, WCHAR *env, BOOL shWait,
 			    const SHELLEXECUTEINFOW *sei, LPSHELLEXECUTEINFOW sei_out);
 
diff --git a/dlls/shell32/shellreg.c b/dlls/shell32/shellreg.c
index fe87e9619ca..37f3d9e4484 100644
--- a/dlls/shell32/shellreg.c
+++ b/dlls/shell32/shellreg.c
@@ -33,7 +33,6 @@
 #include "winreg.h"
 
 #include "undocshell.h"
-#include "wine/winbase16.h"
 
 #include "wine/debug.h"
 
diff --git a/dlls/shell32/shlexec.c b/dlls/shell32/shlexec.c
index 3be59627b81..201791faaee 100644
--- a/dlls/shell32/shlexec.c
+++ b/dlls/shell32/shlexec.c
@@ -42,7 +42,6 @@
 #include "shlwapi.h"
 #include "ddeml.h"
 
-#include "wine/winbase16.h"
 #include "shell32_main.h"
 #include "pidl.h"
 #include "shresdef.h"