diff --git a/layerindex/recipeparse.py b/layerindex/recipeparse.py
index d8486e7..4d91d77 100644
--- a/layerindex/recipeparse.py
+++ b/layerindex/recipeparse.py
@@ -24,7 +24,24 @@ class RecipeParseError(Exception):
 
 
 
-def init_parser(settings, branch, bitbakepath, enable_tracking=False, nocheckout=False, classic=False, logger=None):
+def layer_addpylibs(layerdir):
+    """
+    Return the addpylib statements in a layer's conf/layer.conf, with LAYERDIR
+    expanded. The BitBake server only processes addpylib while parsing its base
+    configuration, so these need to go in bblayers.conf for its recipe parsing
+    to be able to use the libraries.
+    """
+    lines = []
+    try:
+        with open(os.path.join(layerdir, 'conf', 'layer.conf')) as f:
+            for line in f:
+                if re.match(r'\s*addpylib\s', line):
+                    lines.append(line.strip().replace('${LAYERDIR}', layerdir))
+    except FileNotFoundError:
+        pass
+    return lines
+
+def init_parser(settings, branch, bitbakepath, enable_tracking=False, nocheckout=False, classic=False, logger=None, pylib_layerdirs=None):
     if not (nocheckout or classic):
         # Check out the branch of BitBake appropriate for this branch and clean out any stale files (e.g. *.pyc)
         if re.match('[0-9a-f]{40}', branch.bitbake_branch):
@@ -86,6 +103,10 @@ def init_parser(settings, branch, bitbakepath, enable_tracking=False, nocheckout
             # We need this to avoid problems with AVAILABLE_LICENSES
             f.write('COREBASE = "%s"\n' % core_repodir)
             f.write('BBLAYERS = "%s"\n' % core_layerdir)
+            # Python libraries of the layer being parsed and its dependencies
+            for layerdir in pylib_layerdirs or []:
+                for line in layer_addpylibs(layerdir):
+                    f.write(line + '\n')
         pass
 
     if logger:
diff --git a/layerindex/update_layer.py b/layerindex/update_layer.py
index 3f21e8b..7e47269 100644
--- a/layerindex/update_layer.py
+++ b/layerindex/update_layer.py
@@ -428,8 +428,15 @@ def main():
                             logger.warn("Unable to checkout dependent layer %s - %s" % (layerdependency.dependency, str(e)))
 
                 logger.info("Collecting data for layer %s on branch %s" % (layer.name, branchdesc))
+                # Layers whose addpylib libraries recipes may use (the core
+                # layer's are loaded through BBLAYERS)
+                pylib_layerdirs = [layerdir]
+                for dep in layerbranch.dependencies_set.all():
+                    deplayerbranch = dep.dependency.get_layerbranch(branch.name)
+                    if deplayerbranch and dep.dependency.name != settings.CORE_LAYER_NAME:
+                        pylib_layerdirs.append(os.path.join(fetchdir, dep.dependency.get_fetch_dir(), deplayerbranch.vcs_subdir))
                 try:
-                    (tinfoil, tempdir) = recipeparse.init_parser(settings, branch, bitbakepath, nocheckout=options.nocheckout, logger=logger)
+                    (tinfoil, tempdir) = recipeparse.init_parser(settings, branch, bitbakepath, nocheckout=options.nocheckout, logger=logger, pylib_layerdirs=pylib_layerdirs)
                 except recipeparse.RecipeParseError as e:
                     logger.error(str(e))
                     sys.exit(1)
diff --git a/tests/test_update.py b/tests/test_update.py
index a0ac897..702a042 100644
--- a/tests/test_update.py
+++ b/tests/test_update.py
@@ -144,6 +144,26 @@ def test_upgrade_recipe(import_layer, repo, db_access_without_rollback_and_trunc
     assert recipe.filename == 'upgrademe_0.2.bb'
     assert recipe.filepath == 'recipes-example/upgrademe'
 
+def test_addpylib_used_in_recipe(import_layer, repo, db_access_without_rollback_and_truncate):
+    # [YOCTO #16192] a recipe can use a Python library the layer adds with
+    # addpylib in conf/layer.conf, as it can in a build
+    from layerindex.models import LayerBranch, Recipe
+    layerdir = os.path.join(repo, 'meta-layerindex-test')
+    os.makedirs(os.path.join(layerdir, 'lib', 'layerindextestlib'))
+    with open(os.path.join(layerdir, 'lib', 'layerindextestlib', '__init__.py'), 'w') as f:
+        f.write('def summary():\n    return "Summary from addpylib"\n')
+    with open(os.path.join(layerdir, 'conf', 'layer.conf'), 'a') as f:
+        f.write('\naddpylib ${LAYERDIR}/lib layerindextestlib\n')
+    os.makedirs(os.path.join(layerdir, 'recipes-example', 'pylib'))
+    with open(os.path.join(layerdir, 'recipes-example', 'pylib', 'pylib_1.0.bb'), 'w') as f:
+        f.write('SUMMARY = "${@layerindextestlib.summary()}"\nLICENSE = "MIT"\n')
+    run_cmd('git add -A && git commit -m "Add a recipe that uses addpylib"', cwd=repo)
+    run_cmd("layerindex/update.py -d -l meta-layerindex-test --nofetch --nocheckout")
+    layerbranch = LayerBranch.objects.get(layer__name='meta-layerindex-test')
+    recipe = Recipe.objects.filter(layerbranch=layerbranch, pn='pylib').first()
+    assert recipe, 'pylib recipe not found'
+    assert recipe.summary == 'Summary from addpylib'
+
 def test_add_recipe(import_layer, repo, db_access_without_rollback_and_truncate):
     from layerindex.models import LayerBranch, Recipe
     layerbranch = LayerBranch.objects.get(layer__name='meta-layerindex-test')