diff --git a/.github/workflows/trigger-e2e-tests.yml b/.github/workflows/trigger-e2e-tests.yml
index 5c5423e252..fc03134ffa 100644
--- a/.github/workflows/trigger-e2e-tests.yml
+++ b/.github/workflows/trigger-e2e-tests.yml
@@ -112,7 +112,7 @@ jobs:
                 # This isn't exhaustive, just the paths that are most directly compute-related.
                 # For example, compute_ctl also depends on libs/utils, but we don't trigger
                 # an e2e run on that.
-                vendor/*|pgxn/*|compute_tools/*|libs/vm_monitor/*|compute/Dockerfile.compute-node)
+                vendor/*|pgxn/*|compute_tools/*|compute/Dockerfile.compute-node)
                   platforms=$(echo "${platforms}" | jq --compact-output '. += ["k8s-neonvm"] | unique')
                   ;;
                 *)
diff --git a/CODEOWNERS b/CODEOWNERS
index 606dbb4e22..105e427aaf 100644
--- a/CODEOWNERS
+++ b/CODEOWNERS
@@ -1,10 +1,10 @@
 /compute_tools/ @neondatabase/control-plane @neondatabase/compute
+/compute_tools/vm_monitor/ @neondatabase/autoscaling
 /storage_controller @neondatabase/storage
 /libs/pageserver_api/ @neondatabase/storage
 /libs/postgres_ffi/ @neondatabase/compute @neondatabase/storage
 /libs/remote_storage/ @neondatabase/storage
 /libs/safekeeper_api/ @neondatabase/storage
-/libs/vm_monitor/ @neondatabase/autoscaling
 /pageserver/ @neondatabase/storage
 /pgxn/ @neondatabase/compute
 /pgxn/neon/ @neondatabase/compute @neondatabase/storage
diff --git a/Cargo.toml b/Cargo.toml
index dde80f5020..d4eed0c1a6 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -2,6 +2,7 @@
 resolver = "2"
 members = [
     "compute_tools",
+    "compute_tools/vm_monitor",
     "control_plane",
     "control_plane/storcon_cli",
     "pageserver",
@@ -31,7 +32,6 @@ members = [
     "libs/remote_storage",
     "libs/tracing-utils",
     "libs/postgres_ffi/wal_craft",
-    "libs/vm_monitor",
     "libs/walproposer",
 ]
 
@@ -235,7 +235,7 @@ storage_controller_client = { path = "./storage_controller/client" }
 tenant_size_model = { version = "0.1", path = "./libs/tenant_size_model/" }
 tracing-utils = { version = "0.1", path = "./libs/tracing-utils/" }
 utils = { version = "0.1", path = "./libs/utils/" }
-vm_monitor = { version = "0.1", path = "./libs/vm_monitor/" }
+vm_monitor = { version = "0.1", path = "./compute_tools/vm_monitor/" }
 walproposer = { version = "0.1", path = "./libs/walproposer/" }
 
 ## Common library dependency
diff --git a/compute_tools/Cargo.toml b/compute_tools/Cargo.toml
index 91e0b9d5b8..733b4dbb26 100644
--- a/compute_tools/Cargo.toml
+++ b/compute_tools/Cargo.toml
@@ -44,7 +44,7 @@ compute_api.workspace = true
 utils.workspace = true
 workspace_hack.workspace = true
 remote_storage = { version = "0.1", path = "../libs/remote_storage/" }
-vm_monitor = { version = "0.1", path = "../libs/vm_monitor/" }
+vm_monitor = { version = "0.1", path = "vm_monitor/" }
 zstd = "0.13"
 bytes = "1.0"
 rust-ini = "0.20.0"
diff --git a/compute_tools/README.md b/compute_tools/README.md
index 8d84031efc..923332709c 100644
--- a/compute_tools/README.md
+++ b/compute_tools/README.md
@@ -20,7 +20,7 @@ Also `compute_ctl` spawns two separate service threads:
   last activity requests.
 
 If `AUTOSCALING` environment variable is set, `compute_ctl` will start the
-`vm-monitor` located in [`neon/libs/vm_monitor`]. For VM compute nodes,
+`vm-monitor` located in [`neon/compute_tools/vm_monitor`]. For VM compute nodes,
 `vm-monitor` communicates with the VM autoscaling system. It coordinates
 downscaling and requests immediate upscaling under resource pressure.
 
diff --git a/compute_tools/src/bin/compute_ctl.rs b/compute_tools/src/bin/compute_ctl.rs
index 284db005c8..ed4d815805 100644
--- a/compute_tools/src/bin/compute_ctl.rs
+++ b/compute_tools/src/bin/compute_ctl.rs
@@ -21,7 +21,7 @@
 //!   last activity requests.
 //!
 //! If `AUTOSCALING` environment variable is set, `compute_ctl` will start the
-//! `vm-monitor` located in [`neon/libs/vm_monitor`]. For VM compute nodes,
+//! `vm-monitor` located in [`neon/compute_tools/vm_monitor`]. For VM compute nodes,
 //! `vm-monitor` communicates with the VM autoscaling system. It coordinates
 //! downscaling and requests immediate upscaling under resource pressure.
 //!
diff --git a/libs/vm_monitor/Cargo.toml b/compute_tools/vm_monitor/Cargo.toml
similarity index 100%
rename from libs/vm_monitor/Cargo.toml
rename to compute_tools/vm_monitor/Cargo.toml
diff --git a/libs/vm_monitor/README.md b/compute_tools/vm_monitor/README.md
similarity index 100%
rename from libs/vm_monitor/README.md
rename to compute_tools/vm_monitor/README.md
diff --git a/libs/vm_monitor/src/bin/monitor.rs b/compute_tools/vm_monitor/src/bin/monitor.rs
similarity index 100%
rename from libs/vm_monitor/src/bin/monitor.rs
rename to compute_tools/vm_monitor/src/bin/monitor.rs
diff --git a/libs/vm_monitor/src/cgroup.rs b/compute_tools/vm_monitor/src/cgroup.rs
similarity index 100%
rename from libs/vm_monitor/src/cgroup.rs
rename to compute_tools/vm_monitor/src/cgroup.rs
diff --git a/libs/vm_monitor/src/dispatcher.rs b/compute_tools/vm_monitor/src/dispatcher.rs
similarity index 100%
rename from libs/vm_monitor/src/dispatcher.rs
rename to compute_tools/vm_monitor/src/dispatcher.rs
diff --git a/libs/vm_monitor/src/filecache.rs b/compute_tools/vm_monitor/src/filecache.rs
similarity index 100%
rename from libs/vm_monitor/src/filecache.rs
rename to compute_tools/vm_monitor/src/filecache.rs
diff --git a/libs/vm_monitor/src/lib.rs b/compute_tools/vm_monitor/src/lib.rs
similarity index 100%
rename from libs/vm_monitor/src/lib.rs
rename to compute_tools/vm_monitor/src/lib.rs
diff --git a/libs/vm_monitor/src/protocol.rs b/compute_tools/vm_monitor/src/protocol.rs
similarity index 100%
rename from libs/vm_monitor/src/protocol.rs
rename to compute_tools/vm_monitor/src/protocol.rs
diff --git a/libs/vm_monitor/src/runner.rs b/compute_tools/vm_monitor/src/runner.rs
similarity index 100%
rename from libs/vm_monitor/src/runner.rs
rename to compute_tools/vm_monitor/src/runner.rs