diff --git a/Makefile b/Makefile
index 0ab0bfd..43dea0d 100644
--- a/Makefile
+++ b/Makefile
@@ -8,6 +8,7 @@
 # Do not make changes here.
 #
 
+srcdir = .
 exec_prefix = /usr/local
 bindir = $(exec_prefix)/bin
 
@@ -16,8 +17,8 @@ includedir = $(prefix)/include
 libdir = $(prefix)/lib
 syslibdir = /lib
 
-SRCS = $(sort $(wildcard src/*/*.c arch/$(ARCH)/src/*.c))
-OBJS = $(SRCS:.c=.o)
+SRCS = $(sort $(wildcard $(srcdir)/src/*/*.c $(srcdir)/arch/$(ARCH)/src/*.c))
+OBJS = $(SRCS:$(srcdir)/%.c=%.o)
 LOBJS = $(OBJS:.o=.lo)
 GENH = include/bits/alltypes.h
 GENH_INT = src/internal/version.h
@@ -30,17 +31,19 @@ CFLAGS = -Os -pipe
 CFLAGS_C99FSE = -std=c99 -ffreestanding -nostdinc 
 
 CFLAGS_ALL = $(CFLAGS_C99FSE)
-CFLAGS_ALL += -D_XOPEN_SOURCE=700 -I./arch/$(ARCH) -I./src/internal -I./include
+CFLAGS_ALL += -D_XOPEN_SOURCE=700 -I$(srcdir)/arch/$(ARCH)
+CFLAGS_ALL += $(sort -I./src/internal -I$(srcdir)/src/internal) $(sort -I./include -I$(srcdir)/include)
 CFLAGS_ALL += $(CPPFLAGS) $(CFLAGS)
 CFLAGS_ALL_STATIC = $(CFLAGS_ALL)
 CFLAGS_ALL_SHARED = $(CFLAGS_ALL) -fPIC -DSHARED
 
 AR      = $(CROSS_COMPILE)ar
 RANLIB  = $(CROSS_COMPILE)ranlib
-INSTALL = ./tools/install.sh
+INSTALL = $(srcdir)/tools/install.sh
 
-ARCH_INCLUDES = $(wildcard arch/$(ARCH)/bits/*.h)
-ALL_INCLUDES = $(sort $(wildcard include/*.h include/*/*.h) $(GENH) $(ARCH_INCLUDES:arch/$(ARCH)/%=include/%))
+ARCH_INCLUDES = $(wildcard $(srcdir)/arch/$(ARCH)/bits/*.h)
+INCLUDES = $(wildcard $(srcdir)/include/*.h $(srcdir)/include/*/*.h)
+ALL_INCLUDES = $(sort $(INCLUDES:$(srcdir)/%=%) $(GENH) $(ARCH_INCLUDES:$(srcdir)/arch/$(ARCH)/%=include/%))
 
 EMPTY_LIB_NAMES = m rt pthread crypt util xnet resolv dl
 EMPTY_LIBS = $(EMPTY_LIB_NAMES:%=lib/lib%.a)
@@ -57,6 +60,19 @@ LDSO_PATHNAME = $(syslibdir)/ld-musl-$(ARCH)$(SUBARCH).so.1
 
 all: $(ALL_LIBS) $(ALL_TOOLS)
 
+ifneq ($(srcdir),.)
+VPATH = $(srcdir)
+$(ALL_TOOLS): tools/.dir
+$(ALL_LIBS): lib/.dir
+$(CRT_LIBS:lib/%=crt/%): crt/.dir
+$(OBJS) $(LOBJS): $(patsubst %/,%/.dir,$(sort $(dir $(OBJS))))
+include/bits: include/.dir arch/$(ARCH)/bits/.dir
+src/internal/version.h: src/internal/.dir
+%/.dir:
+	mkdir -p $*
+	touch $@
+endif
+
 install: install-libs install-headers install-tools
 
 clean:
@@ -75,24 +91,23 @@ include/bits:
 	@test "$(ARCH)" || { echo "Please set ARCH in config.mak before running make." ; exit 1 ; }
 	ln -sf ../arch/$(ARCH)/bits $@
 
-include/bits/alltypes.h.in: include/bits
-
-include/bits/alltypes.h: include/bits/alltypes.h.in include/alltypes.h.in tools/mkalltypes.sed
-	sed -f tools/mkalltypes.sed include/bits/alltypes.h.in include/alltypes.h.in > $@
+INS = $(srcdir)/arch/$(ARCH)/bits/alltypes.h.in $(srcdir)/include/alltypes.h.in
+include/bits/alltypes.h: $(srcdir)/tools/mkalltypes.sed $(INS) include/bits
+	sed -f $(srcdir)/tools/mkalltypes.sed $(INS) > $@
 
-src/internal/version.h: $(wildcard VERSION .git)
-	printf '#define VERSION "%s"\n' "$$(sh tools/version.sh)" > $@
+src/internal/version.h: $(wildcard $(srcdir)/VERSION $(srcdir)/.git)
+	printf '#define VERSION "%s"\n' "$$(cd $(srcdir); sh tools/version.sh)" > $@
 
 src/internal/version.lo: src/internal/version.h
 
 src/ldso/dynlink.lo: arch/$(ARCH)/reloc.h
 
-crt/crt1.o crt/Scrt1.o: $(wildcard arch/$(ARCH)/crt_arch.h)
+crt/crt1.o crt/Scrt1.o: $(wildcard $(srcdir)/arch/$(ARCH)/crt_arch.h)
 
 crt/Scrt1.o: CFLAGS += -fPIC
 
-OPTIMIZE_SRCS = $(wildcard $(OPTIMIZE_GLOBS:%=src/%))
-$(OPTIMIZE_SRCS:%.c=%.o) $(OPTIMIZE_SRCS:%.c=%.lo): CFLAGS += -O3
+OPTIMIZE_SRCS = $(wildcard $(OPTIMIZE_GLOBS:%=$(srcdir)/src/%))
+$(OPTIMIZE_SRCS:$(srcdir)/%.c=%.o) $(OPTIMIZE_SRCS:$(srcdir)/%.c=%.lo): CFLAGS += -O3
 
 MEMOPS_SRCS = src/string/memcpy.c src/string/memmove.c src/string/memcmp.c src/string/memset.c
 $(MEMOPS_SRCS:%.c=%.o) $(MEMOPS_SRCS:%.c=%.lo): CFLAGS += $(CFLAGS_MEMOPS)
@@ -101,9 +116,9 @@ $(MEMOPS_SRCS:%.c=%.o) $(MEMOPS_SRCS:%.c=%.lo): CFLAGS += $(CFLAGS_MEMOPS)
 # force the corresponding object file to be rebuilt, even if the implicit
 # rule below goes indirectly through a .sub file.
 define mkasmdep
-$(dir $(patsubst %/,%,$(dir $(1))))$(notdir $(1:.s=.o)): $(1)
+$(dir $(patsubst $(srcdir)/%/,%,$(dir $(1))))$(notdir $(1:.s=.o)): $(1)
 endef
-$(foreach s,$(wildcard src/*/$(ARCH)*/*.s),$(eval $(call mkasmdep,$(s))))
+$(foreach s,$(wildcard $(srcdir)/src/*/$(ARCH)*/*.s),$(eval $(call mkasmdep,$(s))))
 
 %.o: $(ARCH)$(ASMSUBARCH)/%.sub
 	$(CC) $(CFLAGS_ALL_STATIC) -c -o $@ $(dir $<)$(shell cat $<)
diff --git a/configure b/configure
index c622366..9ed785a 100755
--- a/configure
+++ b/configure
@@ -9,6 +9,9 @@ VAR=VALUE.  See below for descriptions of some of the useful variables.
 
 Defaults for the options are specified in brackets.
 
+Configuration:
+  --srcdir=DIR            source directory [detected]
+
 Installation directories:
   --prefix=PREFIX         main installation prefix [/usr/local/musl]
   --exec-prefix=EPREFIX   installation prefix for executable files [PREFIX]
@@ -113,6 +116,7 @@ CFLAGS_AUTO=
 CFLAGS_MEMOPS=
 LDFLAGS_AUTO=
 OPTIMIZE_GLOBS=
+srcdir=
 prefix=/usr/local/musl
 exec_prefix='$(prefix)'
 bindir='$(exec_prefix)/bin'
@@ -129,6 +133,7 @@ static=yes
 for arg ; do
 case "$arg" in
 --help) usage ;;
+--srcdir=*) srcdir=${arg#*=} ;;
 --prefix=*) prefix=${arg#*=} ;;
 --exec-prefix=*) exec_prefix=${arg#*=} ;;
 --bindir=*) bindir=${arg#*=} ;;
@@ -162,11 +167,28 @@ LIBCC=*) LIBCC=${arg#*=} ;;
 esac
 done
 
-for i in prefix exec_prefix bindir libdir includedir syslibdir ; do
+for i in srcdir prefix exec_prefix bindir libdir includedir syslibdir ; do
 stripdir $i
 done
 
 #
+# Get the musl source dir for out-of-tree builds
+#
+if test -z "$srcdir" ; then
+srcdir="${0%/configure}"
+stripdir srcdir
+fi
+abs_builddir="$(pwd)" || fail "$0: cannot determine current directory"
+abs_srcdir="$(cd $srcdir && pwd)" || fail "$0: invalid source directory $srcdir"
+test "$abs_srcdir" = "$abs_builddir" && srcdir=.
+printf "source directory: %s\n" "$srcdir"
+if test -f Makefile ; then
+echo "using existing Makefile"
+else
+cp $srcdir/Makefile . || fail "$0: cannot create Makefile"
+fi
+
+#
 # Get a temp filename we can use
 #
 i=0
@@ -258,7 +280,7 @@ __attribute__((__may_alias__))
 #endif
 x;
 EOF
-if $CC $CFLAGS_C99FSE -I./arch/$ARCH -I./include $CPPFLAGS $CFLAGS \
+if $CC $CFLAGS_C99FSE -I$srcdir/arch/$ARCH -I$srcdir/include $CPPFLAGS $CFLAGS \
   -c -o /dev/null "$tmpc" >/dev/null 2>&1 ; then
 printf "no\n"
 else
@@ -445,7 +467,7 @@ echo '#include <float.h>' > "$tmpc"
 echo '#if LDBL_MANT_DIG == 53' >> "$tmpc"
 echo 'typedef char ldcheck[9-(int)sizeof(long double)];' >> "$tmpc"
 echo '#endif' >> "$tmpc"
-if $CC $CFLAGS_C99FSE -I./arch/$ARCH -I./include $CPPFLAGS $CFLAGS \
+if $CC $CFLAGS_C99FSE -I$srcdir/arch/$ARCH -I$srcdir/include $CPPFLAGS $CFLAGS \
   -c -o /dev/null "$tmpc" >/dev/null 2>&1 ; then
 printf "yes\n"
 else
@@ -468,6 +490,7 @@ cat << EOF
 ARCH = $ARCH
 SUBARCH = $SUBARCH
 ASMSUBARCH = $ASMSUBARCH
+srcdir = $srcdir
 prefix = $prefix
 exec_prefix = $exec_prefix
 bindir = $bindir