diff --git a/GPy/examples/unsupervised.py b/GPy/examples/unsupervised.py
new file mode 100644
index 00000000..08d81e05
--- /dev/null
+++ b/GPy/examples/unsupervised.py
@@ -0,0 +1,25 @@
+"""
+Usupervised learning with Gaussian Processes.
+"""
+import pylab as pb
+import numpy as np
+import GPy
+
+
+######################################
+## Oil data subsampled to 100 points.
+def oil_100():
+    data = GPy.util.datasets.oil_100()
+
+    # create simple GP model
+    m = GPy.models.GPLVM(data['X'], 2)
+
+
+    # optimize
+    m.ensure_default_constraints()
+    m.optimize()
+
+    # plot
+    print(m)
+    return m
+