diff --git a/Makefile.in b/Makefile.in
index 9b832fe..e88ee33 100644
--- a/Makefile.in
+++ b/Makefile.in
@@ -21,14 +21,14 @@ all:
 	$(CC) -o ssh2_sample.o ssh2_sample.c $(CFLAGS)
 	$(CC) -o ssh2_sample ssh2_sample.o $(LIBS)
 install:
-	$(top_srcdir)/mkinstalldirs $(incldir)
-	$(top_srcdir)/mkinstalldirs $(libdir)
+	$(top_srcdir)/mkinstalldirs $(DESTDIR)$(incldir)
+	$(top_srcdir)/mkinstalldirs $(DESTDIR)$(libdir)
 	@for dir in ${subdirs}; do \
 		(cd $$dir && $(MAKE) install) \
 		|| case "$(MFLAGS)" in *k*) fail=yes;; *) exit 1;; esac; \
 	done && test -z "$$fail"
-	$(INSTALL) -m 644 include/libssh2.h $(incldir)/
-	$(INSTALL) -m 644 include/libssh2_sftp.h $(incldir)/
+	$(INSTALL) -m 644 include/libssh2.h $(DESTDIR)$(incldir)/
+	$(INSTALL) -m 644 include/libssh2_sftp.h $(DESTDIR)$(incldir)/
 clean:
 	@for dir in ${subdirs}; do \
 		(cd $$dir && $(MAKE) clean) \
diff --git a/README b/README
index c8191ce..39474a7 100644
--- a/README
+++ b/README
@@ -1,6 +1,11 @@
 libssh2 - SSH2 library
 ======================
 
+Version 0.5
+-----------
+
+  Added DESTDIR support to makefiles (Adam Gołębiowski -- I hope that character set translates right)
+
 Version 0.4
 -----------
 
diff --git a/src/Makefile.in b/src/Makefile.in
index 22299a1..9d992c6 100644
--- a/src/Makefile.in
+++ b/src/Makefile.in
@@ -57,7 +57,7 @@ libssh2.a: $(OBJECTS)
 	ar q libssh2.a $(OBJECTS)
 	@RANLIB@ libssh2.a
 install: all
-	$(INSTALL) libssh2.@SHLIB_SUFFIX_NAME@ $(libdir)
+	$(INSTALL) libssh2.@SHLIB_SUFFIX_NAME@ $(DESTDIR)$(libdir)
 clean:
 	rm -f *~ libssh2.a libssh2.@SHLIB_SUFFIX_NAME@ *.o