diff --git a/Makefile b/Makefile
index 44b4e944eb..57575eac54 100644
--- a/Makefile
+++ b/Makefile
@@ -40,11 +40,9 @@ else
 
 $(toolchain/stamp-install): $(tools/stamp-install)
 $(target/stamp-compile): $(toolchain/stamp-install) $(tools/stamp-install) $(BUILD_DIR)/.prepared
-$(package/stamp-cleanup): $(target/stamp-compile)
-$(package/stamp-compile): $(target/stamp-compile) $(package/stamp-cleanup)
+$(package/stamp-compile): $(target/stamp-compile)
 $(package/stamp-install): $(package/stamp-compile)
-$(package/stamp-rootfs-prepare): $(package/stamp-install)
-$(target/stamp-install): $(package/stamp-compile) $(package/stamp-install) $(package/stamp-rootfs-prepare)
+$(target/stamp-install): $(package/stamp-compile) $(package/stamp-install)
 
 printdb:
 	@true
@@ -86,7 +84,7 @@ prereq: $(target/stamp-prereq) tmp/.prereq_packages
 	fi
 
 prepare: .config $(tools/stamp-install) $(toolchain/stamp-install)
-world: prepare $(target/stamp-compile) $(package/stamp-cleanup) $(package/stamp-compile) $(package/stamp-install) $(package/stamp-rootfs-prepare) $(target/stamp-install) FORCE
+world: prepare $(target/stamp-compile) $(package/stamp-compile) $(package/stamp-install) $(target/stamp-install) FORCE
 	$(_SINGLE)$(SUBMAKE) -r package/index
 
 # update all feeds, re-create index files, install symlinks
diff --git a/include/package-ipkg.mk b/include/package-ipkg.mk
index 14520cfd95..665aac5d65 100644
--- a/include/package-ipkg.mk
+++ b/include/package-ipkg.mk
@@ -5,22 +5,6 @@
 # See /LICENSE for more information.
 #
 
-# where to build (and put) .ipk packages
-OPKG:= \
-  IPKG_TMP=$(TMP_DIR)/ipkg \
-  IPKG_INSTROOT=$(TARGET_DIR) \
-  IPKG_CONF_DIR=$(STAGING_DIR)/etc \
-  IPKG_OFFLINE_ROOT=$(TARGET_DIR) \
-  $(STAGING_DIR_HOST)/bin/opkg \
-	--offline-root $(TARGET_DIR) \
-	--force-depends \
-	--force-overwrite \
-	--force-postinstall \
-	--force-maintainer \
-	--add-dest root:/ \
-	--add-arch all:100 \
-	--add-arch $(if $(ARCH_PACKAGES),$(ARCH_PACKAGES),$(BOARD)):200
-
 # invoke ipkg-build with some default options
 IPKG_BUILD:= \
   ipkg-build -c -o 0 -g 0
@@ -89,7 +73,6 @@ ifeq ($(DUMP),)
   define BuildTarget/ipkg
     IPKG_$(1):=$(PACKAGE_DIR)/$(1)_$(VERSION)_$(PKGARCH).ipk
     IDIR_$(1):=$(PKG_BUILD_DIR)/ipkg-$(PKGARCH)/$(1)
-    INFO_$(1):=$(IPKG_STATE_DIR)/info/$(1).list
     KEEP_$(1):=$(strip $(call Package/$(1)/conffiles))
 
     ifeq ($(if $(VARIANT),$(BUILD_VARIANT)),$(VARIANT))
@@ -99,7 +82,15 @@ ifeq ($(DUMP),)
         compile: $$(IPKG_$(1)) $(PKG_INFO_DIR)/$(1).provides $(STAGING_DIR_ROOT)/stamp/.$(1)_installed
 
         ifeq ($(CONFIG_PACKAGE_$(1)),y)
-          install: $$(INFO_$(1))
+          .PHONY: $(PKG_INFO_DIR)/$(PKG_DIR_NAME).install.$(1)
+          compile: $(PKG_INFO_DIR)/$(PKG_DIR_NAME).install.$(1)
+          $(PKG_INFO_DIR)/$(PKG_DIR_NAME).install.$(1):
+			@if [ -f $(PKG_INFO_DIR)/$(PKG_DIR_NAME).install.clean ]; then \
+				rm -f \
+					$(PKG_INFO_DIR)/$(PKG_DIR_NAME).install \
+					$(PKG_INFO_DIR)/$(PKG_DIR_NAME).install.clean; \
+			fi; \
+			echo "$(1)" >> $(PKG_INFO_DIR)/$(PKG_DIR_NAME).install
         endif
       else
         compile: $(1)-disabled
@@ -188,11 +179,6 @@ ifeq ($(DUMP),)
 	$(IPKG_BUILD) $$(IDIR_$(1)) $(PACKAGE_DIR)
 	@[ -f $$(IPKG_$(1)) ]
 
-    $$(INFO_$(1)): $$(IPKG_$(1))
-	@[ -d $(TARGET_DIR)/tmp ] || mkdir -p $(TARGET_DIR)/tmp
-	$(OPKG) install $$(IPKG_$(1))
-	$(if $(filter-out essential,$(PKG_FLAGS)),for flag in $(filter-out essential,$(PKG_FLAGS)); do $(OPKG) flag $$$$flag $(1); done,$(OPKG) flag ok $(1))
-
     $(1)-clean:
 	rm -f $(PACKAGE_DIR)/$(1)_*
 
diff --git a/include/package.mk b/include/package.mk
index 3ec5ffdadd..8b8cb1aae9 100644
--- a/include/package.mk
+++ b/include/package.mk
@@ -13,7 +13,6 @@ PKG_BUILD_DIR ?= $(BUILD_DIR)/$(PKG_NAME)$(if $(PKG_VERSION),-$(PKG_VERSION))
 PKG_INSTALL_DIR ?= $(PKG_BUILD_DIR)/ipkg-install
 PKG_MD5SUM ?= unknown
 PKG_BUILD_PARALLEL ?=
-PKG_INFO_DIR := $(STAGING_DIR)/pkginfo
 
 ifneq ($(CONFIG_PKG_BUILD_USE_JOBSERVER),)
   MAKE_J:=$(if $(MAKE_JOBSERVER),$(MAKE_JOBSERVER) -j)
@@ -52,6 +51,8 @@ ifneq ($(if $(CONFIG_SRC_TREE_OVERRIDE),$(wildcard ./git-src)),)
   QUILT:=1
 endif
 
+PKG_DIR_NAME:=$(lastword $(subst /,$(space),$(CURDIR)))
+
 include $(INCLUDE_DIR)/download.mk
 include $(INCLUDE_DIR)/quilt.mk
 include $(INCLUDE_DIR)/package-defaults.mk
@@ -250,6 +251,11 @@ Build/DistCheck=$(call Build/DistCheck/Default,)
 
 .NOTPARALLEL:
 
+.PHONY: prepare-package-install
+prepare-package-install:
+	@touch $(PKG_INFO_DIR)/$(PKG_DIR_NAME).install.clean
+	@echo "$(filter-out essential,$(PKG_FLAGS))" > $(PKG_INFO_DIR)/$(PKG_DIR_NAME).install.flags
+
 $(PACKAGE_DIR):
 	mkdir -p $@
 	
@@ -257,8 +263,8 @@ dumpinfo:
 download:
 prepare:
 configure:
-compile:
-install:
+compile: prepare-package-install
+install: compile
 clean-staging: FORCE
 	rm -f $(STAMP_INSTALLED)
 	@-(\
diff --git a/package/Makefile b/package/Makefile
index 5d942ca783..63fdb92bae 100644
--- a/package/Makefile
+++ b/package/Makefile
@@ -9,23 +9,16 @@ curdir:=package
 
 -include $(TMP_DIR)/.packagedeps
 $(curdir)/builddirs:=$(sort $(package-) $(package-y) $(package-m))
+$(curdir)/builddirs-install:=.
 ifeq ($(SDK),1)
-  $(curdir)/builddirs-install:=.
 else
   $(curdir)/builddirs-default:=. $(sort $(package-y) $(package-m))
   $(curdir)/builddirs-prereq:=. $(sort $(prereq-y) $(prereq-m))
-  $(curdir)/builddirs-install:=. $(filter-out base-files,$(sort $(package-y))) $(filter base-files,$(package-y))
 endif
 ifneq ($(IGNORE_ERRORS),)
   $(curdir)/builddirs-ignore-compile:= $(if $(filter n m y, $(IGNORE_ERRORS)),$(foreach m,$(IGNORE_ERRORS),$(package-$(subst n,,$(m)))),$(package-m) $(package-))
 endif
 
-$(curdir)/install:=$(curdir)/install-cleanup
-
-$(curdir)/cleanup: $(TMP_DIR)/.build
-	- find $(STAGING_DIR_ROOT) -type d | $(XARGS) chmod 0755
-	rm -rf $(TARGET_DIR) $(STAGING_DIR_ROOT)
-
 ifdef CONFIG_USE_MKLIBS
   define mklibs
 	rm -rf $(TMP_DIR)/mklibs-progs $(TMP_DIR)/mklibs-out
@@ -61,7 +54,36 @@ ifdef CONFIG_USE_MKLIBS
   endef
 endif
 
-$(curdir)/rootfs-prepare: $(TMP_DIR)/.build
+# where to build (and put) .ipk packages
+OPKG:= \
+  IPKG_TMP=$(TMP_DIR)/ipkg \
+  IPKG_INSTROOT=$(TARGET_DIR) \
+  IPKG_CONF_DIR=$(STAGING_DIR)/etc \
+  IPKG_OFFLINE_ROOT=$(TARGET_DIR) \
+  $(STAGING_DIR_HOST)/bin/opkg \
+	--offline-root $(TARGET_DIR) \
+	--force-depends \
+	--force-overwrite \
+	--force-postinstall \
+	--force-maintainer \
+	--add-dest root:/ \
+	--add-arch all:100 \
+	--add-arch $(if $(ARCH_PACKAGES),$(ARCH_PACKAGES),$(BOARD)):200
+
+PACKAGE_INSTALL:=$(sort $(foreach pkg,$(package-y),$(lastword $(subst /,$(space),$(pkg)))))
+PACKAGE_INSTALL_FILES:=$(patsubst %,$(PKG_INFO_DIR)/%.install,$(PACKAGE_INSTALL))
+
+$(curdir)/install: $(TMP_DIR)/.build
+	- find $(STAGING_DIR_ROOT) -type d | $(XARGS) chmod 0755
+	rm -rf $(TARGET_DIR) $(STAGING_DIR_ROOT)
+	[ -d $(TARGET_DIR)/tmp ] || mkdir -p $(TARGET_DIR)/tmp
+	$(OPKG) install `cat $(PACKAGE_INSTALL_FILES) | sed -e 's,^\(.*\)$$,$(PACKAGE_DIR)/\1_*.ipk,'`
+	@for pkg in $(PACKAGE_INSTALL); do \
+		[ -s $(PKG_INFO_DIR)/$${pkg}.install.flags ] || continue; \
+		for flag in `cat $(PKG_INFO_DIR)/$${pkg}.install.flags`; do \
+			$(OPKG) flag $$flag `cat $(PKG_INFO_DIR)/$${pkg}.install`; \
+		done; \
+	done || true
 	@-$(MAKE) package/preconfig
 	@if [ -d $(TOPDIR)/files ]; then \
 		( cd $(TOPDIR)/files; find -type f ) | \
@@ -94,12 +116,12 @@ $(curdir)/index: FORCE
 		gzip -9c Packages > Packages.gz \
 	)
 
+$(curdir)/preconfig:
+
 $(curdir)/flags-install:= -j1
 
 $(eval $(call stampfile,$(curdir),package,prereq,.config))
-$(eval $(call stampfile,$(curdir),package,cleanup,$(TMP_DIR)/.build))
 $(eval $(call stampfile,$(curdir),package,compile,$(TMP_DIR)/.build))
 $(eval $(call stampfile,$(curdir),package,install,$(TMP_DIR)/.build))
-$(eval $(call stampfile,$(curdir),package,rootfs-prepare,$(TMP_DIR)/.build))
 
 $(eval $(call subdir,$(curdir)))
diff --git a/rules.mk b/rules.mk
index e657eec791..34c86ca49c 100644
--- a/rules.mk
+++ b/rules.mk
@@ -105,6 +105,7 @@ TARGET_ROOTFS_DIR?=$(if $(call qstrip,$(CONFIG_TARGET_ROOTFS_DIR)),$(call qstrip
 TARGET_DIR:=$(TARGET_ROOTFS_DIR)/root-$(BOARD)
 STAGING_DIR_ROOT:=$(STAGING_DIR)/root-$(BOARD)
 BUILD_LOG_DIR:=$(TOPDIR)/logs
+PKG_INFO_DIR := $(STAGING_DIR)/pkginfo
 
 TARGET_PATH:=$(STAGING_DIR_HOST)/bin:$(subst $(space),:,$(filter-out .,$(filter-out ./,$(subst :,$(space),$(PATH)))))
 TARGET_CFLAGS:=$(TARGET_OPTIMIZATION)$(if $(CONFIG_DEBUG), -g3)