diff --git a/entity.links.action.yml b/entity.links.action.yml
new file mode 100644
index 0000000..5e02edc
--- /dev/null
+++ b/entity.links.action.yml
@@ -0,0 +1,2 @@
+entity.entity_actions:
+  deriver: Drupal\entity\Plugin\Derivative\EntityActionsDeriver
diff --git a/src/Menu/EntityAddLocalAction.php b/src/Menu/EntityAddLocalAction.php
new file mode 100644
index 0000000..8b7a04e
--- /dev/null
+++ b/src/Menu/EntityAddLocalAction.php
@@ -0,0 +1,81 @@
+<?php
+
+namespace Drupal\entity\Menu;
+
+use Drupal\Core\Entity\EntityTypeInterface;
+use Drupal\Core\Menu\LocalActionDefault;
+use Drupal\Core\Routing\RouteProviderInterface;
+use Drupal\Core\StringTranslation\StringTranslationTrait;
+use Drupal\Core\StringTranslation\TranslationInterface;
+use Symfony\Component\DependencyInjection\ContainerInterface;
+use Symfony\Component\HttpFoundation\Request;
+
+/**
+ * Provides a local action to add an entity.
+ */
+class EntityAddLocalAction extends LocalActionDefault {
+
+  use StringTranslationTrait;
+
+  /**
+   * The entity type.
+   *
+   * @var \Drupal\Core\Entity\EntityTypeInterface
+   */
+  protected $entityType;
+
+  /**
+   * Constructs a EntityAddLocalAction object.
+   *
+   * @param array $configuration
+   *   A configuration array containing information about the plugin instance.
+   * @param string $plugin_id
+   *   The plugin_id for the plugin instance.
+   * @param mixed $plugin_definition
+   *   The plugin implementation definition.
+   * @param \Drupal\Core\Routing\RouteProviderInterface $route_provider
+   *   The route provider to load routes by name.
+   * @param \Drupal\Core\Entity\EntityTypeInterface $entity_type
+   *   The entity type.
+   * @param \Drupal\Core\StringTranslation\TranslationInterface $string_translation
+   *   The string translation service.
+   */
+  public function __construct(array $configuration, $plugin_id, $plugin_definition, RouteProviderInterface $route_provider, EntityTypeInterface $entity_type, TranslationInterface $string_translation) {
+    parent::__construct($configuration, $plugin_id, $plugin_definition, $route_provider);
+
+    $this->entityType = $entity_type;
+    $this->setStringTranslation($string_translation);
+  }
+
+  /**
+   * {@inheritdoc}
+   */
+  public static function create(ContainerInterface $container, array $configuration, $plugin_id, $plugin_definition) {
+    /* @var \Drupal\Core\Entity\EntityTypeManagerInterface */
+    $entity_type_manager = $container->get('entity_type.manager');
+    // The plugin ID is of the form
+    // "entity.entity_actions:entity.$entity_type_id.collection".
+    // @see entity.links.action.yml
+    // @see \Drupal\entity\Menu\EntityCollectionLocalActionProvider::buildLocalActions()
+    list(, $derivate_id) = explode(':', $plugin_id);
+    list(, $entity_type_id, ) = explode('.', $derivate_id);
+    return new static(
+      $configuration,
+      $plugin_id,
+      $plugin_definition,
+      $container->get('router.route_provider'),
+      $entity_type_manager->getDefinition($entity_type_id),
+      $container->get('string_translation')
+    );
+  }
+
+  /**
+   * {@inheritdoc}
+   */
+  public function getTitle(Request $request = NULL) {
+    return (string) $this->t('Add @entity', [
+      '@entity' => (string) $this->entityType->getSingularLabel(),
+    ]);
+  }
+
+}
diff --git a/src/Menu/EntityCollectionLocalActionProvider.php b/src/Menu/EntityCollectionLocalActionProvider.php
new file mode 100644
index 0000000..b010370
--- /dev/null
+++ b/src/Menu/EntityCollectionLocalActionProvider.php
@@ -0,0 +1,41 @@
+<?php
+
+namespace Drupal\entity\Menu;
+
+use Drupal\Core\Entity\EntityTypeInterface;
+
+/**
+ * Provides a action link to the add page or add form on the collection.
+ */
+class EntityCollectionLocalActionProvider implements EntityLocalActionProviderInterface {
+
+  /**
+   * {@inheritdoc}
+   */
+  public function buildLocalActions(EntityTypeInterface $entity_type) {
+    $actions = [];
+    if ($entity_type->hasLinkTemplate('collection')) {
+      $entity_type_id = $entity_type->id();
+
+      if ($entity_type->hasLinkTemplate('add-page')) {
+        $route_name = "entity.$entity_type_id.add_page";
+      }
+      elseif ($entity_type->hasLinkTemplate('add-form')) {
+        $route_name = "entity.$entity_type_id.add_form";
+      }
+
+      if (isset($route_name)) {
+        $actions[$route_name] = [
+          // The title is translated at runtime by EntityAddLocalAction.
+          /* @see \Drupal\entity\Menu\EntityAddLocalAction::getTitle() */
+          'title' => 'Add ' . $entity_type->getSingularLabel(),
+          'route_name' => $route_name,
+          'appears_on' => ["entity.$entity_type_id.collection"],
+          'class' => EntityAddLocalAction::class,
+        ];
+      }
+    }
+    return $actions;
+  }
+
+}
diff --git a/src/Menu/EntityLocalActionProviderInterface.php b/src/Menu/EntityLocalActionProviderInterface.php
new file mode 100644
index 0000000..bba16c3
--- /dev/null
+++ b/src/Menu/EntityLocalActionProviderInterface.php
@@ -0,0 +1,23 @@
+<?php
+
+namespace Drupal\entity\Menu;
+
+use Drupal\Core\Entity\EntityTypeInterface;
+
+/**
+ * Provides an interface for entity local action providers.
+ */
+interface EntityLocalActionProviderInterface {
+
+  /**
+   * Builds local actions for the given entity type.
+   *
+   * @param \Drupal\Core\Entity\EntityTypeInterface $entity_type
+   *   The entity type.
+   *
+   * @return array[]
+   *   An array of local action definitions.
+   */
+  public function buildLocalActions(EntityTypeInterface $entity_type);
+
+}
diff --git a/src/Plugin/Derivative/EntityActionsDeriver.php b/src/Plugin/Derivative/EntityActionsDeriver.php
new file mode 100644
index 0000000..568ad7e
--- /dev/null
+++ b/src/Plugin/Derivative/EntityActionsDeriver.php
@@ -0,0 +1,58 @@
+<?php
+
+namespace Drupal\entity\Plugin\Derivative;
+
+use Drupal\Component\Plugin\Derivative\DeriverBase;
+use Drupal\Core\Entity\EntityTypeManagerInterface;
+use Drupal\Core\Plugin\Discovery\ContainerDeriverInterface;
+use Symfony\Component\DependencyInjection\ContainerInterface;
+
+/**
+ * Derives local actions for entity types.
+ */
+class EntityActionsDeriver extends DeriverBase implements ContainerDeriverInterface {
+
+  /**
+   * The entity type manager.
+   *
+   * @var \Drupal\Core\Entity\EntityTypeManagerInterface
+   */
+  protected $entityTypeManager;
+
+  /**
+   * Constructs an entity local actions deriver.
+   *
+   * @param \Drupal\Core\Entity\EntityTypeManagerInterface $entity_type_manager
+   *   The entity type manager.
+   */
+  public function __construct(EntityTypeManagerInterface $entity_type_manager) {
+    $this->entityTypeManager = $entity_type_manager;
+  }
+
+  /**
+   * {@inheritdoc}
+   */
+  public static function create(ContainerInterface $container, $base_plugin_id) {
+    return new static($container->get('entity_type.manager'));
+  }
+
+  /**
+   * {@inheritdoc}
+   */
+  public function getDerivativeDefinitions($base_plugin_definition) {
+    if (!$this->derivatives) {
+      foreach ($this->entityTypeManager->getDefinitions() as $entity_type_id => $entity_type) {
+        $handlers = $entity_type->getHandlerClasses();
+        if (isset($handlers['local_action_provider'])) {
+          foreach ($handlers['local_action_provider'] as $class) {
+            /** @var \Drupal\entity\Menu\EntityLocalActionProviderInterface $handler */
+            $handler = $this->entityTypeManager->createHandlerInstance($class, $entity_type);
+            $this->derivatives += $handler->buildLocalActions($entity_type);
+          }
+        }
+      }
+    }
+    return $this->derivatives;
+  }
+
+}
diff --git a/tests/modules/entity_module_test/src/Entity/EnhancedEntity.php b/tests/modules/entity_module_test/src/Entity/EnhancedEntity.php
index 51e074b..3838835 100644
--- a/tests/modules/entity_module_test/src/Entity/EnhancedEntity.php
+++ b/tests/modules/entity_module_test/src/Entity/EnhancedEntity.php
@@ -26,6 +26,9 @@ use Drupal\entity\Revision\RevisionableContentEntityBase;
  *       "revision" = "\Drupal\entity\Routing\RevisionRouteProvider",
  *       "delete-multiple" = "\Drupal\entity\Routing\DeleteMultipleRouteProvider",
  *     },
+ *     "local_action_provider" = {
+ *       "collection" = "\Drupal\entity\Menu\EntityCollectionLocalActionProvider",
+ *     },
  *     "list_builder" = "\Drupal\Core\Entity\EntityListBuilder",
  *   },
  *   base_table = "entity_test_enhanced",
diff --git a/tests/src/Functional/Menu/EntityLocalActionTest.php b/tests/src/Functional/Menu/EntityLocalActionTest.php
new file mode 100644
index 0000000..42dd04b
--- /dev/null
+++ b/tests/src/Functional/Menu/EntityLocalActionTest.php
@@ -0,0 +1,44 @@
+<?php
+
+namespace Drupal\Tests\entity\Functional\Menu;
+
+use Drupal\Tests\BrowserTestBase;
+
+/**
+ * Tests that entity local actions are generated correctly.
+ *
+ * @group entity
+ *
+ * @runTestsInSeparateProcesses
+ *
+ * @preserveGlobalState disabled
+ */
+class EntityLocalActionTest extends BrowserTestBase {
+
+  /**
+   * {@inheritdoc}
+   */
+  protected static $modules = ['block', 'entity', 'entity_module_test'];
+
+  /**
+   * {@inheritdoc}
+   */
+  protected function setUp() {
+    parent::setUp();
+
+    $this->drupalPlaceBlock('local_actions_block');
+
+    $account = $this->drupalCreateUser(['administer entity_test_enhanced']);
+    $this->drupalLogin($account);
+  }
+
+  /**
+   * Tests the local action on the collection is provided correctly.
+   */
+  public function testCollectionLocalAction() {
+    $this->drupalGet('/entity_test_enhanced');
+    $this->assertSession()->linkByHrefExists('/entity_test_enhanced/add');
+    $this->assertSession()->linkExists('Add entity test with enhancements');
+  }
+
+}