diff --git a/mk/install.mk b/mk/install.mk
index e8543f6b..e4bc734e 100644
--- a/mk/install.mk
+++ b/mk/install.mk
@@ -1,10 +1,11 @@
 # Add a rule for creating $(1) as a directory.  This template may be
 # called multiple times for the same directory.
 define create-dir
-  ifndef $(1)_SEEN
-    $(1)_SEEN = 1
-    $(1):
-	$$(trace-install) install -d $(1)
+   _i := $(DESTDIR)$$(strip $(1))
+  ifndef $$(_i)_SEEN
+    $$(_i)_SEEN = 1
+    $$(_i):
+	$$(trace-mkdir) install -d "$$@"
   endif
 endef
 
@@ -13,12 +14,14 @@ endef
 # The directory containing $(2) will be created automatically.
 define install-file-as
 
-  install: $(2)
+  _i := $(DESTDIR)$$(strip $(2))
 
-  $$(eval $$(call create-dir,$$(dir $(2))))
+  install: $$(_i)
 
-  $(2): $(1) | $$(dir $(2))
-	$$(trace-install) install -m $(3) $(1) $(2)
+  $$(_i): $(1) | $$(dir $$(_i))
+	$$(trace-install) install -m $(3) $(1) "$$@"
+
+  $$(eval $$(call create-dir, $$(dir $(2))))
 
 endef
 
@@ -43,12 +46,14 @@ endef
 # Install a symlink from $(2) to $(1).  Note that $(1) need not exist.
 define install-symlink
 
-  install: $(2)
+  _i := $(DESTDIR)$$(strip $(2))
 
-  $$(eval $$(call create-dir,$$(dir $(2))))
+  install: $$(_i)
 
-  $(2): | $$(dir $(2))
-	$$(trace-install) ln -sfn $(1) $(2)
+  $$(_i): | $$(dir $$(_i))
+	$$(trace-install) ln -sfn $(1) "$$@"
+
+  $$(eval $$(call create-dir, $$(dir $(2))))
 
 endef
 
diff --git a/mk/libraries.mk b/mk/libraries.mk
index 69dede9a..c4169479 100644
--- a/mk/libraries.mk
+++ b/mk/libraries.mk
@@ -50,6 +50,8 @@ define build-library
   $(1)_LDFLAGS_USE :=
   $(1)_LDFLAGS_USE_INSTALLED :=
 
+  $$(eval $$(call create-dir, $$(_d)))
+
   ifeq ($(BUILD_SHARED_LIBS), 1)
 
     ifdef $(1)_ALLOW_UNDEFINED
@@ -64,21 +66,21 @@ define build-library
 
     $(1)_PATH := $$(_d)/$$($(1)_NAME).$(SO_EXT)
 
-    $$($(1)_PATH): $$($(1)_OBJS) $$(_libs)
+    $$($(1)_PATH): $$($(1)_OBJS) $$(_libs) | $$(_d)
 	$$(trace-ld) $(CXX) -o $$@ -shared $(GLOBAL_LDFLAGS) $$($(1)_OBJS) $$($(1)_LDFLAGS) $$($(1)_LDFLAGS_PROPAGATED) $$(foreach lib, $$($(1)_LIBS), $$($$(lib)_LDFLAGS_USE))
 
     $(1)_LDFLAGS_USE += -L$$(_d) -Wl,-rpath,$$(abspath $$(_d)) -l$$(patsubst lib%,%,$$(strip $$($(1)_NAME)))
 
-    $(1)_INSTALL_PATH := $$($(1)_INSTALL_DIR)/$$($(1)_NAME).$(SO_EXT)
+    $(1)_INSTALL_PATH := $(DESTDIR)$$($(1)_INSTALL_DIR)/$$($(1)_NAME).$(SO_EXT)
 
     _libs_final := $$(foreach lib, $$($(1)_LIBS), $$($$(lib)_INSTALL_PATH))
 
-    $$(eval $$(call create-dir,$$($(1)_INSTALL_DIR)))
+    $$(eval $$(call create-dir, $$($(1)_INSTALL_DIR)))
 
-    $$($(1)_INSTALL_PATH): $$($(1)_OBJS) $$(_libs_final) | $$($(1)_INSTALL_DIR)
+    $$($(1)_INSTALL_PATH): $$($(1)_OBJS) $$(_libs_final) | $(DESTDIR)$$($(1)_INSTALL_DIR)
 	$$(trace-ld) $(CXX) -o $$@ -shared $(GLOBAL_LDFLAGS) $$($(1)_OBJS) $$($(1)_LDFLAGS) $$($(1)_LDFLAGS_PROPAGATED) $$(foreach lib, $$($(1)_LIBS), $$($$(lib)_LDFLAGS_USE_INSTALLED))
 
-    $(1)_LDFLAGS_USE_INSTALLED += -L$$($(1)_INSTALL_DIR) -Wl,-rpath,$$($(1)_INSTALL_DIR) -l$$(patsubst lib%,%,$$(strip $$($(1)_NAME)))
+    $(1)_LDFLAGS_USE_INSTALLED += -L$$(DESTDIR)$$($(1)_INSTALL_DIR) -Wl,-rpath,$$($(1)_INSTALL_DIR) -l$$(patsubst lib%,%,$$(strip $$($(1)_NAME)))
 
     ifdef $(1)_FORCE_INSTALL
       install: $$($(1)_INSTALL_PATH)
@@ -88,7 +90,7 @@ define build-library
 
     $(1)_PATH := $$(_d)/$$($(1)_NAME).a
 
-    $$($(1)_PATH): $$($(1)_OBJS)
+    $$($(1)_PATH): $$($(1)_OBJS) | $$(_d)
 	$(trace-ar) ar crs $$@ $$?
 
     $(1)_LDFLAGS_USE += $$($(1)_PATH) $$($(1)_LDFLAGS)
diff --git a/mk/programs.mk b/mk/programs.mk
index 74f2982a..ab04ff93 100644
--- a/mk/programs.mk
+++ b/mk/programs.mk
@@ -22,26 +22,28 @@ define build-program
   _libs := $$(foreach lib, $$($(1)_LIBS), $$($$(lib)_PATH))
   $(1)_PATH := $$(_d)/$(1)
 
-  $$($(1)_PATH): $$($(1)_OBJS) $$(_libs)
+  $$(eval $$(call create-dir, $$(_d)))
+
+  $$($(1)_PATH): $$($(1)_OBJS) $$(_libs) | $$(_d)
 	$$(trace-ld) $(CXX) -o $$@ $(GLOBAL_LDFLAGS) $$($(1)_OBJS) $$($(1)_LDFLAGS) $$(foreach lib, $$($(1)_LIBS), $$($$(lib)_LDFLAGS_USE))
 
   $(1)_INSTALL_DIR ?= $$(bindir)
   $(1)_INSTALL_PATH := $$($(1)_INSTALL_DIR)/$(1)
 
-  $$(eval $$(call create-dir,$$($(1)_INSTALL_DIR)))
+  $$(eval $$(call create-dir, $$($(1)_INSTALL_DIR)))
 
-  install: $$($(1)_INSTALL_PATH)
+  install: $(DESTDIR)$$($(1)_INSTALL_PATH)
 
   ifeq ($(BUILD_SHARED_LIBS), 1)
 
     _libs_final := $$(foreach lib, $$($(1)_LIBS), $$($$(lib)_INSTALL_PATH))
 
-    $$($(1)_INSTALL_PATH): $$($(1)_OBJS) $$(_libs_final) | $$($(1)_INSTALL_DIR)
+    $(DESTDIR)$$($(1)_INSTALL_PATH): $$($(1)_OBJS) $$(_libs_final) | $(DESTDIR)$$($(1)_INSTALL_DIR)
 	$$(trace-ld) $(CXX) -o $$@ $(GLOBAL_LDFLAGS) $$($(1)_OBJS) $$($(1)_LDFLAGS) $$(foreach lib, $$($(1)_LIBS), $$($$(lib)_LDFLAGS_USE_INSTALLED))
 
   else
 
-    $$($(1)_INSTALL_PATH): $$($(1)_PATH) | $$($(1)_INSTALL_DIR)
+    $(DESTDIR)$$($(1)_INSTALL_PATH): $$($(1)_PATH) | $(DESTDIR)$$($(1)_INSTALL_DIR)
 	install -t $$($(1)_INSTALL_DIR) $$<
 
   endif
diff --git a/mk/tests.mk b/mk/tests.mk
index 6bdb4e57..004a4802 100644
--- a/mk/tests.mk
+++ b/mk/tests.mk
@@ -3,9 +3,6 @@ define run-install-test
 
   installcheck: $1
 
-  # Run the test in its own directory to mimick Automake behaviour.
-  $1.run: $1 $(_PREV_TEST)
-
   _installcheck-list += $1
 
 endef
diff --git a/mk/tracing.mk b/mk/tracing.mk
index 08c4ec10..13912d3c 100644
--- a/mk/tracing.mk
+++ b/mk/tracing.mk
@@ -10,6 +10,7 @@ ifeq ($(V), 0)
   trace-install = @echo "  INST  " $@;
   trace-javac   = @echo "  JAVAC " $@;
   trace-jar     = @echo "  JAR   " $@;
+  trace-mkdir   = @echo "  MKDIR " $@;
 
   suppress  = @