diff --git a/Makefile b/Makefile
index d5a522871..b4882cc31 100644
--- a/Makefile
+++ b/Makefile
@@ -1,4 +1,4 @@
-all mostlyclean clean:
+all mostlyclean clean install:
 	@$(MAKE) -C src    --no-print-directory $@
 	@$(MAKE) -C libsrc --no-print-directory $@
 
@@ -14,6 +14,6 @@ lib:
 %:
 	@$(MAKE) -C libsrc --no-print-directory $@
 
-.PHONY: all mostlyclean clean avail unavail bin lib
+.PHONY: all mostlyclean clean install avail unavail bin lib
 
 .SUFFIXES:
diff --git a/libsrc/Makefile b/libsrc/Makefile
index fb716067b..cbc778f11 100644
--- a/libsrc/Makefile
+++ b/libsrc/Makefile
@@ -50,10 +50,18 @@ endif
 
 .SUFFIXES:
 
-.PHONY: all lib $(TARGETS) mostlyclean clean
+.PHONY: all lib $(TARGETS) mostlyclean clean install
 
 ifndef TARGET
 
+datadir = $(prefix)/share/cc65
+
+INSTALLDIRS = ../asminc ../cfg ../include \
+              $(filter-out $(wildcard ../include/*.*),$(wildcard ../include/*)) \
+              ../lib ../targetutil $(addprefix ../,$(DRVTYPES))
+
+INSTALL = install
+
 all lib: $(TARGETS)
 
 $(TARGETS):
@@ -65,6 +73,21 @@ mostlyclean:
 clean:
 	$(call RMDIR,../wrk ../lib ../targetutil $(addprefix ../,$(DRVTYPES)))
 
+install:
+	$(foreach dir,$(INSTALLDIRS),$(INSTALL_recipe))
+
+##########
+
+define INSTALL_recipe
+
+$(if $(prefix),,$(error variable `prefix' must be set))
+$(INSTALL) -d $(subst ..,$(DESTDIR)$(datadir),$(dir))
+$(INSTALL) -m644 $(dir)/* $(subst ..,$(DESTDIR)$(datadir),$(dir))
+
+endef
+
+##########
+
 else # TARGET
 
 CA65FLAGS =
diff --git a/src/Makefile b/src/Makefile
index 7e6964579..051c7eb1f 100644
--- a/src/Makefile
+++ b/src/Makefile
@@ -12,19 +12,14 @@ PROGS = ar65  \
         sim65 \
         sp65
 
-ifdef prefix
-  CA65_INC = $(prefix)/lib/cc65/asminc
-  CC65_INC = $(prefix)/lib/cc65/include
-  LD65_LIB = $(prefix)/lib/cc65/lib
-  LD65_OBJ = $(prefix)/lib/cc65/lib
-  LD65_CFG = $(prefix)/lib/cc65/cfg
-else
-  CA65_INC := $(abspath ../asminc)
-  CC65_INC := $(abspath ../include)
-  LD65_LIB := $(abspath ../lib)
-  LD65_OBJ := $(abspath ../lib)
-  LD65_CFG := $(abspath ../cfg)
-endif
+bindir  := $(prefix)/bin
+datadir := $(if $(prefix),$(prefix)/share/cc65,$(abspath ..))
+
+CA65_INC = $(datadir)/asminc
+CC65_INC = $(datadir)/include
+LD65_LIB = $(datadir)/lib
+LD65_OBJ = $(datadir)/lib
+LD65_CFG = $(datadir)/cfg
 
 CFLAGS += -MMD -MP -O -std=c89 -I common \
           -Wall -Wextra -Wno-char-subscripts -Werror $(USER_CFLAGS) \
@@ -33,9 +28,11 @@ CFLAGS += -MMD -MP -O -std=c89 -I common \
 
 LDLIBS += -lm
 
+INSTALL = install
+
 .SUFFIXES:
 
-.PHONY: all bin $(PROGS) mostlyclean clean avail unavail
+.PHONY: all bin $(PROGS) mostlyclean clean install avail unavail
 
 all bin: $(PROGS)
 
@@ -45,6 +42,11 @@ mostlyclean:
 clean:
 	$(RM) -r ../wrk ../bin
 
+install:
+	$(if $(prefix),,$(error variable `prefix' must be set))
+	$(INSTALL) -d $(DESTDIR)$(bindir)
+	$(INSTALL) ../bin/* $(DESTDIR)$(bindir)
+
 avail:
 	$(foreach prog,$(PROGS),$(AVAIL_recipe))