diff --git a/configure.ac b/configure.ac
index d5e0d2d76..5b11dfc7e 100644
--- a/configure.ac
+++ b/configure.ac
@@ -1937,6 +1937,8 @@ QF_DEPS(QFDEFS,
 
 AC_DEFINE_UNQUOTED(PATH_SEPARATOR, '/', [Define this to your operating system's path separator character])
 AC_DEFINE_UNQUOTED(CPP_NAME, "$CPP_NAME", [Define this to the command line for the C preprocessor])
+AC_DEFINE_UNQUOTED(QFCC_INCLUDE_PATH, "$prefix/include/QF/ruamoko", [Define this to where qfcc should look for header files])
+AC_DEFINE_UNQUOTED(QFCC_LIB_PATH, "$prefix/lib/ruamoko", [Define this to where qfcc should look for lib files])
 
 AM_CONDITIONAL(BUILD_GL, test "$BUILD_GL" = "yes")
 AM_CONDITIONAL(BUILD_SW, test "$BUILD_SW" = "yes")
diff --git a/ruamoko/cl_menu/Makefile.am b/ruamoko/cl_menu/Makefile.am
index bad9d96f2..e6e2395d7 100644
--- a/ruamoko/cl_menu/Makefile.am
+++ b/ruamoko/cl_menu/Makefile.am
@@ -42,7 +42,7 @@ menu_src= \
 menu_obj=$(addsuffix .qfo,$(basename $(menu_src)))
 
 menu.dat$(GZ): $(menu_obj) $(QFCC_DEP) ../lib/libgui.a ../lib/libcsqc.a ../lib/libr.a
-	$(QFCC) $(QCFLAGS) -p $(STRIP) -o menu.dat $(menu_obj) -l../lib/libgui.a -l../lib/libcsqc.a -l../lib/libr.a
+	$(QFCC) $(QCFLAGS) -p $(STRIP) -o menu.dat $(menu_obj) ../lib/libgui.a ../lib/libcsqc.a ../lib/libr.a
 	$(GZIP)
 
 EXTRA_DIST= $(menu_src) \
diff --git a/ruamoko/game/Makefile.am b/ruamoko/game/Makefile.am
index f088b29df..ee3335937 100644
--- a/ruamoko/game/Makefile.am
+++ b/ruamoko/game/Makefile.am
@@ -30,7 +30,7 @@ game_src= Axe.r GameEntity.r World.r tempent.r
 game_obj=$(addsuffix .qfo,$(basename $(game_src)))
 
 game.dat: $(game_obj) ../lib/libr.a
-	$(QFCC) $(QCFLAGS) -p $(STRIP) -o game.dat $(game_obj) -l../lib/libr.a
+	$(QFCC) $(QCFLAGS) -p $(STRIP) -o game.dat $(game_obj) ../lib/libr.a
 
 EXTRA_DIST= $(game_src) Axe.h GameEntity.h tempent.h Weapon.h World.h
 CLEANFILES= *.dat *.sym *.gz *.qfo
diff --git a/ruamoko/lib/Makefile.am b/ruamoko/lib/Makefile.am
index bc8226767..f26707158 100644
--- a/ruamoko/lib/Makefile.am
+++ b/ruamoko/lib/Makefile.am
@@ -1,5 +1,7 @@
 AUTOMAKE_OPTIONS=	foreign
 
+libdir=$(prefix)/lib/ruamoko
+
 QFCC=$(top_builddir)/tools/qfcc/source/qfcc$(EXEEXT)
 QCFLAGS=-qq -g -Werror
 QCPPFLAGS=$(INCLUDES)
@@ -15,7 +17,7 @@ else
 libs=
 endif
 
-noinst_LIBRARIES= $(libs)
+lib_LIBRARIES= $(libs)
 EXTRA_LIBRARIES= $(ruamoko_libs)
 
 %.qfo: %.r
diff --git a/tools/qfcc/include/linker.h b/tools/qfcc/include/linker.h
index 361644085..048b7d408 100644
--- a/tools/qfcc/include/linker.h
+++ b/tools/qfcc/include/linker.h
@@ -35,6 +35,7 @@
 void linker_begin (void);
 int linker_add_object_file (const char *filename);
 int linker_add_lib (const char *libname);
+void linker_add_path (const char *path);
 struct qfo_s *linker_finish (void);
 
 #endif//__linker_h
diff --git a/tools/qfcc/source/linker.c b/tools/qfcc/source/linker.c
index bc3b3e1bc..62cd8990b 100644
--- a/tools/qfcc/source/linker.c
+++ b/tools/qfcc/source/linker.c
@@ -53,6 +53,7 @@ static const char rcsid[] =
 #include "QF/dstring.h"
 #include "QF/hash.h"
 #include "QF/pakfile.h"
+#include "QF/va.h"
 
 #include "def.h"
 #include "emit.h"
@@ -77,6 +78,11 @@ Xgroup(def)		// defgroup_t
 Xgroup(reloc)	// relocgroup_t
 Xgroup(func)	// funcgroup_t
 
+typedef struct path_s {
+	struct path_s *next;
+	const char *path;
+} path_t;
+
 static hashtab_t *extern_defs;
 static hashtab_t *defined_defs;
 static hashtab_t *field_defs;
@@ -103,6 +109,9 @@ static int      reloc_base;
 static int      func_base;
 static int      line_base;
 
+static path_t  *path_head;
+static path_t **path_tail = &path_head;
+
 #define DATA(x) (data->data + (x))
 #define STRING(x) (strings->strings + (x))
 #define TYPE_STRING(x) (type_strings->strings + (x))
@@ -640,22 +649,47 @@ linker_add_object_file (const char *filename)
 int
 linker_add_lib (const char *libname)
 {
-	pack_t     *pack = pack_open (libname);
+	pack_t     *pack;
+	path_t      start = {path_head, "."};
+	path_t     *path = &start;
+	const char *path_name;
 	int         i, j;
 	int         did_something;
 
+	if (strncmp (libname, "-l", 2) == 0) {
+		while (path) {
+			path_name = va ("%s/lib%s.a", path->path, libname + 2);
+			pack = pack_open (path_name);
+			if (pack)
+				break;
+			if (errno != ENOENT) {
+				if (errno)
+					perror (libname);
+				return 1;
+			}
+			path = path->next;
+		}
+	} else {
+		path_name = libname;
+		pack = pack_open (path_name);
+	}
+
 	if (!pack) {
 		if (errno)
 			perror (libname);
 		return 1;
 	}
+
+	if (options.verbosity > 1)
+		puts (path_name);
+
 	do {
 		did_something = 0;
 		for (i = 0; i < pack->numfiles; i++) {
 			QFile      *f;
 			qfo_t      *qfo;
 
-			f = Qsubopen (libname, pack->files[i].filepos,
+			f = Qsubopen (path_name, pack->files[i].filepos,
 						  pack->files[i].filelen, 1);
 			qfo = qfo_read (f);
 			Qclose (f);
@@ -735,3 +769,13 @@ linker_finish (void)
 	qfo->entity_fields = entity->size;
 	return qfo;
 }
+
+void
+linker_add_path (const char *path)
+{
+	path_t     *p = malloc (sizeof (path_t));
+	p->next = 0;
+	p->path = path;
+	*path_tail = p;
+	path_tail = &p->next;
+}
diff --git a/tools/qfcc/source/options.c b/tools/qfcc/source/options.c
index 1c3859531..78614dae7 100644
--- a/tools/qfcc/source/options.c
+++ b/tools/qfcc/source/options.c
@@ -49,6 +49,7 @@ static const char rcsid[] =
 #include "QF/va.h"
 
 #include "cpp.h"
+#include "linker.h"
 #include "options.h"
 #include "qfcc.h"
 
@@ -82,6 +83,7 @@ static struct option const long_options[] = {
 static const char *short_options =
 	"-"		// magic option parsing mode doohicky (must come first)
 	"l:"	// lib file
+	"L:"	// lib path
 	"o:"	// output file
 	"c"		// separate compilation
 	"r"		// partial linking
@@ -138,7 +140,7 @@ add_file (const char *file)
 		files_size += 16;
 		source_files = realloc (source_files, files_size * sizeof (char *));
 	}
-	source_files[num_files++] = strdup (file);
+	source_files[num_files++] = save_string (file);
 	source_files[num_files] = 0;
 }
 
@@ -174,12 +176,15 @@ DecodeArgs (int argc, char **argv)
 							 this_program);
 					exit (1);
 				} else {
-					options.output_file = strdup (optarg);
+					options.output_file = save_string (optarg);
 				}
 				break;
 			case 'l':					// lib file
 				add_file (va ("-l%s", optarg));
 				break;
+			case 'L':
+				linker_add_path (optarg);
+				break;
 			case 'h':					// help
 				usage (0);
 				break;
@@ -188,10 +193,10 @@ DecodeArgs (int argc, char **argv)
 				exit (0);
 				break;
 			case 's':					// src dir
-				sourcedir = strdup (optarg);
+				sourcedir = save_string (optarg);
 				break;
 			case 'P':					// progs-src
-				progs_src = strdup (optarg);
+				progs_src = save_string (optarg);
 				break;
 			case 'p':
 				options.strip_path = atoi (optarg);
@@ -307,7 +312,7 @@ DecodeArgs (int argc, char **argv)
 				}
 				break;
 			case 256:					// --cpp=
-				cpp_name = strdup (optarg);
+				cpp_name = save_string (optarg);
 				break;
 			case 'S':					// save temps
 				options.save_temps = true;
@@ -361,6 +366,11 @@ DecodeArgs (int argc, char **argv)
 				usage (1);
 		}
 	}
+
+	// add the default paths
+	add_cpp_def (nva ("-I%s", QFCC_INCLUDE_PATH));
+	linker_add_path (QFCC_LIB_PATH);
+
 	if (options.verbosity >= 3)
 		yydebug = 1;
 	return optind;
diff --git a/tools/qfcc/source/qfcc.c b/tools/qfcc/source/qfcc.c
index cc06a0fa2..981474e18 100644
--- a/tools/qfcc/source/qfcc.c
+++ b/tools/qfcc/source/qfcc.c
@@ -561,10 +561,16 @@ separate_compile (void)
 		qfo_t      *qfo;
 		linker_begin ();
 		for (file = source_files; *file; file++) {
-			if (strncmp (*file, "-l", 2))
-				err = linker_add_object_file (*file);
-			else
-				err = linker_add_lib (*file + 2);
+			if (strncmp (*file, "-l", 2)) {
+				if (strlen (*file) >= 2
+					&& strcmp (*file + strlen (*file) - 2, ".a") == 0) {
+					err = linker_add_lib (*file);
+				} else {
+					err = linker_add_object_file (*file);
+				}
+			} else {
+				err = linker_add_lib (*file);
+			}
 			if (err)
 				return err;
 		}