diff --git a/libselinux/src/Makefile b/libselinux/src/Makefile
index 261c22d4..c855e759 100644
--- a/libselinux/src/Makefile
+++ b/libselinux/src/Makefile
@@ -10,7 +10,7 @@ PKG_CONFIG ?= pkg-config
 # Installation directories.
 PREFIX ?= /usr
 LIBDIR ?= $(PREFIX)/lib
-SHLIBDIR ?= /lib
+SHLIBDIR ?= $(PREFIX)/lib
 INCLUDEDIR ?= $(PREFIX)/include
 PYINC ?= $(shell $(PKG_CONFIG) --cflags $(PYPREFIX))
 PYLIBS ?= $(shell $(PKG_CONFIG) --libs $(PYPREFIX))
diff --git a/libsepol/src/Makefile b/libsepol/src/Makefile
index a1aed072..f8574d70 100644
--- a/libsepol/src/Makefile
+++ b/libsepol/src/Makefile
@@ -2,7 +2,7 @@
 PREFIX ?= /usr
 INCLUDEDIR ?= $(PREFIX)/include
 LIBDIR ?= $(PREFIX)/lib
-SHLIBDIR ?= /lib
+SHLIBDIR ?= $(PREFIX)/lib
 RANLIB ?= ranlib
 CILDIR ?= ../cil