diff --git a/CHANGES b/CHANGES
index ac5b8cf45..1179ac549 100644
--- a/CHANGES
+++ b/CHANGES
@@ -3,7 +3,7 @@
 	Ccache support reworked. Now used for both host and target
 	compilation, and cache is stored in ~/.buildroot-ccache.
 
-	Updated/fixed packages: at, busybox, dbus, cloop, cups,
+	Updated/fixed packages: at, busybox, bzip2, dbus, cloop, cups,
 	gdk-pixbuf, hostapd, i2c-tools, libconfig, m4, openssh,
 	openssl, pango, qt, rsync, sdl_gfx, sdl_sound, udev, usbutils,
 	xz, zlib
diff --git a/package/bzip2/bzip2.mk b/package/bzip2/bzip2.mk
index 3f341ee7a..123e579fc 100644
--- a/package/bzip2/bzip2.mk
+++ b/package/bzip2/bzip2.mk
@@ -39,7 +39,9 @@ define BZIP2_BUILD_CMDS
 endef
 
 define BZIP2_INSTALL_STAGING_CMDS
-	cp $(@D)/bzlib.h $(STAGING_DIR)/usr/include/
+	$(TARGET_MAKE_ENV) $(TARGET_CONFIGURE_OPTS) \
+	$(MAKE) PREFIX=$(STAGING_DIR)/usr -C $(@D) install
+	$(INSTALL) -m 0755 -d $(STAGING_DIR)/usr/lib
 	cp $(@D)/libbz2.so.$(BZIP2_SONAME) $(STAGING_DIR)/usr/lib/
 	cp $(@D)/libbz2.a $(STAGING_DIR)/usr/lib/
 	(cd $(STAGING_DIR)/usr/lib/; \