diff --git a/pylibfdt/Makefile.pylibfdt b/pylibfdt/Makefile.pylibfdt
index 3d99fd4..861e67c 100644
--- a/pylibfdt/Makefile.pylibfdt
+++ b/pylibfdt/Makefile.pylibfdt
@@ -7,9 +7,8 @@ PYMODULE = $(PYLIBFDT_objdir)/_libfdt.so
 
 $(PYMODULE): $(PYLIBFDT_srcs) $(WRAP)
 	@$(VECHO) PYMOD $@
-	SOURCES="$^" CPPFLAGS="$(CPPFLAGS)" \
+	SOURCES="$^" CPPFLAGS="$(CPPFLAGS)" OBJDIR="$(PYLIBFDT_objdir)" \
 	python $(PYLIBFDT_objdir)/setup.py --quiet build_ext --inplace
-	mv _libfdt.so $(PYMODULE)
 
 $(WRAP): $(PYLIBFDT_srcdir)/libfdt.swig
 	@$(VECHO) SWIG $@
diff --git a/pylibfdt/setup.py b/pylibfdt/setup.py
index e45f110..ef6e2c0 100644
--- a/pylibfdt/setup.py
+++ b/pylibfdt/setup.py
@@ -5,6 +5,7 @@ setup.py file for SWIG libfdt
 
 Files to be built into the extension are provided in SOURCES
 C flags to use are provided in CPPFLAGS
+Object file directory is provided in OBJDIR
 """
 
 from distutils.core import setup, Extension
@@ -14,6 +15,7 @@ import sys
 progname = sys.argv[0]
 files = os.environ['SOURCES'].split()
 cflags = os.environ['CPPFLAGS'].split()
+objdir = os.environ['OBJDIR']
 
 libfdt_module = Extension(
     '_libfdt',
@@ -26,5 +28,6 @@ setup (name = 'libfdt',
        author      = "Simon Glass <sjg@chromium.org>",
        description = """Python binding for libfdt""",
        ext_modules = [libfdt_module],
+       package_dir = {'': objdir},
        py_modules = ["libfdt"],
        )