diff --git a/configure.py b/configure.py
index 895a0869cb..791c3e4a62 100755
--- a/configure.py
+++ b/configure.py
@@ -722,6 +722,12 @@ parser.add_argument('--shared',
     help='compile shared library for embedding node in another project. ' +
          '(This mode is not officially supported for regular applications)')
 
+parser.add_argument('--libdir',
+    action='store',
+    dest='libdir',
+    default='lib',
+    help='a directory to install the shared library into')
+
 parser.add_argument('--without-v8-platform',
     action='store_true',
     dest='without_v8_platform',
@@ -1293,6 +1299,7 @@ def configure_node(o):
   o['variables']['node_no_browser_globals'] = b(options.no_browser_globals)
 
   o['variables']['node_shared'] = b(options.shared)
+  o['variables']['libdir'] = options.libdir
   node_module_version = getmoduleversion.get_version()
 
   if options.dest_os == 'android':
diff --git a/tools/install.py b/tools/install.py
index 045d406d84..b3ef454199 100755
--- a/tools/install.py
+++ b/tools/install.py
@@ -121,22 +121,19 @@ def subdir_files(path, dest, action):
 
 def files(action):
   is_windows = sys.platform == 'win32'
-  output_file = 'node'
   output_prefix = 'out/Release/'
+  output_libprefix = output_prefix
 
-  if 'false' == variables.get('node_shared'):
-    if is_windows:
-      output_file += '.exe'
+  if is_windows:
+    output_bin = 'node.exe'
+    output_lib = 'node.dll'
   else:
-    if is_windows:
-      output_file += '.dll'
-    else:
-      output_file = 'lib' + output_file + '.' + variables.get('shlib_suffix')
+    output_bin = 'node'
+    output_lib = 'libnode.' + variables.get('shlib_suffix')
 
-  if 'false' == variables.get('node_shared'):
-    action([output_prefix + output_file], 'bin/' + output_file)
-  else:
-    action([output_prefix + output_file], 'lib/' + output_file)
+  action([output_prefix + output_bin], 'bin/' + output_bin)
+  if 'true' == variables.get('node_shared'):
+    action([output_libprefix + output_lib], variables.get('libdir') + '/' + output_lib)
 
   if 'true' == variables.get('node_use_dtrace'):
     action(['out/Release/node.d'], 'lib/dtrace/node.d')