diff --git a/.eslintignore b/.eslintignore
deleted file mode 100644
index a6821676629..00000000000
--- a/.eslintignore
+++ /dev/null
@@ -1,6 +0,0 @@
-theme/bootstrapbase/amd/src/bootstrap.js
-lib/amd/src/mustache.js
-lib/amd/src/loglevel.js
-lib/editor/atto/yui/src/rangy/
-**/yui/src/*/meta/*.js
-lib/yui/src/notification/js/shared.js
diff --git a/.gitignore b/.gitignore
index 1dab0f7a5c1..71a7224e0ab 100644
--- a/.gitignore
+++ b/.gitignore
@@ -36,3 +36,4 @@ composer.phar
 /lib/yuilib/*/*/*-coverage.js
 atlassian-ide-plugin.xml
 /node_modules/
+.eslintignore
diff --git a/Gruntfile.js b/Gruntfile.js
index 2ec167eaa64..3cc3bb07530 100644
--- a/Gruntfile.js
+++ b/Gruntfile.js
@@ -27,7 +27,10 @@
 module.exports = function(grunt) {
     var path = require('path'),
         tasks = {},
-        cwd = process.env.PWD || process.cwd();
+        cwd = process.env.PWD || process.cwd(),
+        async = require('async'),
+        DOMParser = require('xmldom').DOMParser,
+        xpath = require('xpath');
 
     // Windows users can't run grunt in a subdirectory, so allow them to set
     // the root by passing --root=path/to/dir.
@@ -63,6 +66,55 @@ module.exports = function(grunt) {
         return destPath;
     };
 
+    /**
+     * Find thirdpartylibs.xml and generate an array of paths contained within
+     * them (used to generate ignore files and so on).
+     *
+     * @return {array} The list of thirdparty paths.
+     */
+    var getThirdPartyPathsFromXML = function() {
+        var thirdpartyfiles = grunt.file.expand('*/**/thirdpartylibs.xml');
+        var libs = ['node_modules/', 'vendor/'];
+
+        thirdpartyfiles.forEach( function(file) {
+          var dirname = path.dirname(file);
+
+          var doc = new DOMParser().parseFromString(grunt.file.read(file));
+          var nodes = xpath.select("/libraries/library/location/text()", doc);
+
+          nodes.forEach(function(node) {
+            var lib = path.join(dirname, node.toString());
+            if (grunt.file.isDir(lib)) {
+                // Ensure trailing slash on dirs.
+                lib = lib.replace(/\/?$/, '/');
+            }
+
+            // Look for duplicate paths before adding to array.
+            if (libs.indexOf(lib) === -1) {
+                libs.push(lib);
+            }
+          });
+        });
+        return libs;
+    };
+
+    // An array of paths to third party directories.
+    var thirdPartyPaths = getThirdPartyPathsFromXML();
+
+    /**
+     * Determine if the file is a Moodle file, or its listed in
+     * the thirdpartylibs.xml file paths as a third party file.
+     *
+     * @param {string} file The file path to determine if thirdparty
+     * @return {bool} false If thid party file.
+     */
+    var isMoodleFile = function(file) {
+      if (grunt.file.isMatch(thirdPartyPaths, file)) {
+        return false;
+      }
+      return true;
+    };
+
     // Project configuration.
     grunt.initConfig({
         jshint: {
@@ -70,20 +122,20 @@ module.exports = function(grunt) {
             amd: { src: amdSrc }
         },
         eslint: {
-            // Even though warnings dont stop the build we don't display warnings by default because:
-            // * At this moment we've got too many core warnings
-            // * It will complain about ignored files (https://github.com/sindresorhus/grunt-eslint/issues/119)
-            // * It's better experience to use editor integrations or eslint natively
+            // Even though warnings dont stop the build we don't display warnings by default because
+            // at this moment we've got too many core warnings.
             options: { quiet: !grunt.option('show-lint-warnings') },
             // Check AMD files. We add some stricter rules which we can't apply to the default configuration due
             // to YUI rollups.
             amd: {
               src: amdSrc,
+              filter: isMoodleFile,
               options: { rules: {'no-undef': 'error', 'no-unused-vars': 'error', 'no-empty': 'error', 'no-unused-expressions': 'error'} }
             },
             // Check YUI module source files.
             yui: {
-               src: ['**/yui/src/**/*.js']
+               src: ['**/yui/src/**/*.js', '!*/**/yui/src/*/meta/*.js'],
+               filter: isMoodleFile
             }
         },
         uglify: {
@@ -131,6 +183,15 @@ module.exports = function(grunt) {
         }
     });
 
+    /**
+     * Generate ignore files (utilising thirdpartylibs.xml data)
+     */
+    tasks.ignorefiles = function() {
+      // Generate .eslintignore.
+      var eslintIgnores = ['# Generated by "grunt ignorefiles"', '*/**/yui/src/*/meta/', '*/**/build/'].concat(thirdPartyPaths);
+      grunt.file.write('.eslintignore', eslintIgnores.join('\n'));
+    };
+
     /**
      * Shifter task. Is configured with a path to a specific file or a directory,
      * in the case of a specific file it will work out the right module to be built.
@@ -139,8 +200,7 @@ module.exports = function(grunt) {
      * so be careful to to call done().
      */
     tasks.shifter = function() {
-        var async = require('async'),
-            done = this.async(),
+        var done = this.async(),
             options = grunt.config('shifter.options');
 
         // Run the shifter processes one at a time to avoid confusing output.
@@ -260,6 +320,7 @@ module.exports = function(grunt) {
 
     // Register JS tasks.
     grunt.registerTask('shifter', 'Run Shifter against the current directory', tasks.shifter);
+    grunt.registerTask('ignorefiles', 'Generate ignore files for linters', tasks.ignorefiles);
     grunt.registerTask('yui', ['eslint:yui', 'shifter']);
     grunt.registerTask('amd', ['eslint:amd', 'jshint', 'uglify']);
     grunt.registerTask('js', ['amd', 'yui']);
diff --git a/npm-shrinkwrap.json b/npm-shrinkwrap.json
index 45c770463de..6411bc5d0b2 100644
--- a/npm-shrinkwrap.json
+++ b/npm-shrinkwrap.json
@@ -1969,6 +1969,16 @@
       "from": "xml2js@>=0.2.0 <0.3.0",
       "resolved": "https://registry.npmjs.org/xml2js/-/xml2js-0.2.8.tgz"
     },
+    "xmldom": {
+      "version": "0.1.22",
+      "from": "xmldom@latest",
+      "resolved": "https://registry.npmjs.org/xmldom/-/xmldom-0.1.22.tgz"
+    },
+    "xpath": {
+      "version": "0.0.23",
+      "from": "xpath@latest",
+      "resolved": "https://registry.npmjs.org/xpath/-/xpath-0.0.23.tgz"
+    },
     "xregexp": {
       "version": "3.1.1",
       "from": "xregexp@>=3.0.0 <4.0.0",
diff --git a/package.json b/package.json
index d6d275db0c5..5989a0ea0c3 100644
--- a/package.json
+++ b/package.json
@@ -10,6 +10,8 @@
     "grunt-contrib-uglify": "0.11.0",
     "grunt-contrib-watch": "0.6.1",
     "grunt-eslint": "^18.1.0",
-    "shifter": "0.5.0"
+    "shifter": "0.5.0",
+    "xmldom": "^0.1.22",
+    "xpath": "0.0.23"
   }
 }