diff --git a/HISTORY.rst b/HISTORY.rst
index 2c946a5b..5dbb1ba7 100644
--- a/HISTORY.rst
+++ b/HISTORY.rst
@@ -18,7 +18,8 @@ PlatformIO 4.0
 
 * **Library Management**
 
-  - Install all project dependencies declared via `lib_deps <http://docs.platformio.org/page/projectconf/section_env_library.html#lib-deps>`__ option using `platformio lib install <http://docs.platformio.org/page/userguide/lib/cmd_install.html>`__ command (`issue #2147 <https://github.com/platformio/platformio-core/issues/2147>`_)
+  - Save libraries passed to `platformio lib install <http://docs.platformio.org/page/userguide/lib/cmd_install.html>`__ command into the project dependency list (`lib_deps <http://docs.platformio.org/page/projectconf/section_env_library.html#lib-deps>`__) with a new ``--save`` flag (`issue #1028 <https://github.com/platformio/platformio-core/issues/1028>`_)
+  - Install all project dependencies declared via `lib_deps <http://docs.platformio.org/page/projectconf/section_env_library.html#lib-deps>`__ option using a simple `platformio lib install <http://docs.platformio.org/page/userguide/lib/cmd_install.html>`__ command (`issue #2147 <https://github.com/platformio/platformio-core/issues/2147>`_)
   - Use isolated library dependency storage per project build environment (`issue #1696 <https://github.com/platformio/platformio-core/issues/1696>`_)
   - Override default source and include directories for a library via `library.json <http://docs.platformio.org/page/librarymanager/config.html>`__ manifest using ``includeDir`` and ``srcDir`` fields
   - Use workspace ``.pio/libdeps`` folder for project dependencies instead of ``.piolibdeps``
diff --git a/docs b/docs
index 51593ac3..2ed6a490 160000
--- a/docs
+++ b/docs
@@ -1 +1 @@
-Subproject commit 51593ac34b0a5db3dbff589e7b2672d940ce635e
+Subproject commit 2ed6a490e5853bd71afaa08bc34750970293d43d
diff --git a/platformio/commands/lib.py b/platformio/commands/lib.py
index 777ab237..af0e2105 100644
--- a/platformio/commands/lib.py
+++ b/platformio/commands/lib.py
@@ -33,6 +33,8 @@ try:
 except ImportError:
     from urllib import quote
 
+CTX_META_INPUT_DIRS_KEY = __name__ + ".input_dirs"
+CTX_META_PROJECT_ENVIRONMENTS_KEY = __name__ + ".project_environments"
 CTX_META_STORAGE_DIRS_KEY = __name__ + ".storage_dirs"
 CTX_META_STORAGE_LIBDEPS_KEY = __name__ + ".storage_lib_deps"
 
@@ -87,6 +89,8 @@ def cli(ctx, **options):
                                         join(util.get_home_dir(), "lib"),
                                         ctx.invoked_subcommand)
 
+    ctx.meta[CTX_META_PROJECT_ENVIRONMENTS_KEY] = options['environment']
+    ctx.meta[CTX_META_INPUT_DIRS_KEY] = storage_dirs
     ctx.meta[CTX_META_STORAGE_DIRS_KEY] = []
     ctx.meta[CTX_META_STORAGE_LIBDEPS_KEY] = {}
     for storage_dir in storage_dirs:
@@ -110,11 +114,10 @@ def cli(ctx, **options):
 
 @cli.command("install", short_help="Install library")
 @click.argument("libraries", required=False, nargs=-1, metavar="[LIBRARY...]")
-# @click.option(
-#     "--save",
-#     is_flag=True,
-#     help="Save installed libraries into the project's platformio.ini "
-#     "library dependencies")
+@click.option(
+    "--save",
+    is_flag=True,
+    help="Save installed libraries into the `platformio.ini` dependency list")
 @click.option(
     "-s", "--silent", is_flag=True, help="Suppress progress reporting")
 @click.option(
@@ -127,9 +130,29 @@ def cli(ctx, **options):
     is_flag=True,
     help="Reinstall/redownload library if exists")
 @click.pass_context
-def lib_install(ctx, libraries, silent, interactive, force):
-    storage_libdeps = ctx.meta[CTX_META_STORAGE_LIBDEPS_KEY]
+def lib_install(  # pylint: disable=too-many-arguments
+        ctx, libraries, save, silent, interactive, force):
     storage_dirs = ctx.meta[CTX_META_STORAGE_DIRS_KEY]
+    input_dirs = ctx.meta.get(CTX_META_INPUT_DIRS_KEY, [])
+    storage_libdeps = ctx.meta.get(CTX_META_STORAGE_LIBDEPS_KEY, [])
+
+    if save and libraries:
+        project_environments = ctx.meta[CTX_META_PROJECT_ENVIRONMENTS_KEY]
+        for input_dir in input_dirs:
+            config = ProjectConfig.get_instance(
+                join(input_dir, "platformio.ini"))
+            config.validate(project_environments)
+            for env in config.envs():
+                if project_environments and env not in project_environments:
+                    continue
+                config.expand_interpolations = False
+                lib_deps = (config.getlist(
+                    "env:" + env, "lib_deps") if config.has_option(
+                        "env:" + env, "lib_deps") else [])
+                lib_deps.extend(l for l in libraries if l not in lib_deps)
+                config.set("env:" + env, "lib_deps", lib_deps)
+                config.save()
+
     for storage_dir in storage_dirs:
         if not silent and (libraries or storage_dir in storage_libdeps):
             print_storage_header(storage_dirs, storage_dir)
diff --git a/platformio/project/config.py b/platformio/project/config.py
index a7f9b7b8..27557d56 100644
--- a/platformio/project/config.py
+++ b/platformio/project/config.py
@@ -230,6 +230,8 @@ class ProjectConfig(object):
     def set(self, section, option, value):
         if isinstance(value, (list, tuple)):
             value = "\n".join(value)
+            if value:
+                value = "\n" + value  # start from a new line
         self._parser.set(section, option, value)
 
     def get(self, section, option):
diff --git a/platformio/telemetry.py b/platformio/telemetry.py
index 6bdb48a1..7564a03d 100644
--- a/platformio/telemetry.py
+++ b/platformio/telemetry.py
@@ -391,7 +391,7 @@ def backup_reports(items):
 
     for params in items:
         # skip static options
-        for key in params.keys():
+        for key in list(params.keys()):
             if key in ("v", "tid", "cid", "cd1", "cd2", "sr", "an"):
                 del params[key]