diff --git a/examples/ruby/pubsub/.gitignore b/examples/ruby/pubsub/.gitignore
new file mode 100644
index 00000000000..62fcb4fa943
--- /dev/null
+++ b/examples/ruby/pubsub/.gitignore
@@ -0,0 +1,15 @@
+/.bundle/
+/.yardoc
+/Gemfile.lock
+/_yardoc/
+/coverage/
+/doc/
+/pkg/
+/spec/reports/
+/tmp/
+*.bundle
+*.so
+*.o
+*.a
+mkmf.log
+vendor
diff --git a/examples/ruby/pubsub/Gemfile b/examples/ruby/pubsub/Gemfile
new file mode 100644
index 00000000000..4ee8ffe3d60
--- /dev/null
+++ b/examples/ruby/pubsub/Gemfile
@@ -0,0 +1,4 @@
+source 'https://rubygems.org/'
+
+gem 'grpc', '~> 1.0'
+gem 'googleauth', '>= 0.5.1', '< 0.7'
diff --git a/src/ruby/bin/apis/google/protobuf/empty.rb b/examples/ruby/pubsub/google/protobuf/empty.rb
similarity index 100%
rename from src/ruby/bin/apis/google/protobuf/empty.rb
rename to examples/ruby/pubsub/google/protobuf/empty.rb
diff --git a/src/ruby/bin/apis/pubsub_demo.rb b/examples/ruby/pubsub/pubsub_demo.rb
similarity index 100%
rename from src/ruby/bin/apis/pubsub_demo.rb
rename to examples/ruby/pubsub/pubsub_demo.rb
diff --git a/src/ruby/bin/apis/tech/pubsub/proto/pubsub.rb b/examples/ruby/pubsub/tech/pubsub/proto/pubsub.rb
similarity index 100%
rename from src/ruby/bin/apis/tech/pubsub/proto/pubsub.rb
rename to examples/ruby/pubsub/tech/pubsub/proto/pubsub.rb
diff --git a/src/ruby/bin/apis/tech/pubsub/proto/pubsub_services.rb b/examples/ruby/pubsub/tech/pubsub/proto/pubsub_services.rb
similarity index 100%
rename from src/ruby/bin/apis/tech/pubsub/proto/pubsub_services.rb
rename to examples/ruby/pubsub/tech/pubsub/proto/pubsub_services.rb
diff --git a/grpc.gemspec b/grpc.gemspec
index 1e4722d6350..5ab37136835 100644
--- a/grpc.gemspec
+++ b/grpc.gemspec
@@ -20,7 +20,9 @@ Gem::Specification.new do |s|
   s.files += Dir.glob('src/ruby/bin/**/*')
   s.files += Dir.glob('src/ruby/ext/**/*')
   s.files += Dir.glob('src/ruby/lib/**/*')
-  s.files += Dir.glob('src/ruby/pb/**/*')
+  s.files += Dir.glob('src/ruby/pb/**/*').reject do |f|
+    f.match(%r{^src/ruby/pb/test})
+  end
   s.files += Dir.glob('include/grpc/**/*')
   s.test_files = Dir.glob('src/ruby/spec/**/*')
   s.bindir = 'src/ruby/bin'
@@ -28,7 +30,6 @@ Gem::Specification.new do |s|
   s.platform      = Gem::Platform::RUBY
 
   s.add_dependency 'google-protobuf', '~> 3.1'
-  s.add_dependency 'googleauth',      '>= 0.5.1', '< 0.7'
   s.add_dependency 'googleapis-common-protos-types', '~> 1.0.0'
 
   s.add_development_dependency 'bundler',            '~> 1.9'
@@ -41,6 +42,7 @@ Gem::Specification.new do |s|
   s.add_development_dependency 'rspec',              '~> 3.6'
   s.add_development_dependency 'rubocop',            '~> 0.49.1'
   s.add_development_dependency 'signet',             '~> 0.7.0'
+  s.add_development_dependency 'googleauth',         '>= 0.5.1', '< 0.7'
 
   s.extensions = %w(src/ruby/ext/grpc/extconf.rb)
 
diff --git a/templates/grpc.gemspec.template b/templates/grpc.gemspec.template
index fb54de1c8e2..842035b664f 100644
--- a/templates/grpc.gemspec.template
+++ b/templates/grpc.gemspec.template
@@ -22,7 +22,9 @@
     s.files += Dir.glob('src/ruby/bin/**/*')
     s.files += Dir.glob('src/ruby/ext/**/*')
     s.files += Dir.glob('src/ruby/lib/**/*')
-    s.files += Dir.glob('src/ruby/pb/**/*')
+    s.files += Dir.glob('src/ruby/pb/**/*').reject do |f|
+      f.match(%r{^src/ruby/pb/test})
+    end
     s.files += Dir.glob('include/grpc/**/*')
     s.test_files = Dir.glob('src/ruby/spec/**/*')
     s.bindir = 'src/ruby/bin'
@@ -30,7 +32,6 @@
     s.platform      = Gem::Platform::RUBY
 
     s.add_dependency 'google-protobuf', '~> 3.1'
-    s.add_dependency 'googleauth',      '>= 0.5.1', '< 0.7'
     s.add_dependency 'googleapis-common-protos-types', '~> 1.0.0'
 
     s.add_development_dependency 'bundler',            '~> 1.9'
@@ -43,6 +44,7 @@
     s.add_development_dependency 'rspec',              '~> 3.6'
     s.add_development_dependency 'rubocop',            '~> 0.49.1'
     s.add_development_dependency 'signet',             '~> 0.7.0'
+    s.add_development_dependency 'googleauth',         '>= 0.5.1', '< 0.7'
 
     s.extensions = %w(src/ruby/ext/grpc/extconf.rb)