diff --git a/target/linux/kernel.mk b/target/linux/kernel.mk
index e710d7d9c9..8e0b197e16 100644
--- a/target/linux/kernel.mk
+++ b/target/linux/kernel.mk
@@ -40,7 +40,7 @@ $(LINUX_DIR)/.configured: $(LINUX_DIR)/.patched
 	touch $@
 endif
 
-$(LINUX_DIR)/vmlinux: $(STAMP_DIR)/.linux-compile FORCE
+$(LINUX_DIR)/vmlinux: $(STAMP_DIR)/.linux-compile pkg-install FORCE
 	$(MAKE) -C $(LINUX_DIR) CROSS_COMPILE="$(KERNEL_CROSS)" ARCH=$(LINUX_KARCH) PATH=$(TARGET_PATH)
 
 $(LINUX_KERNEL): $(LINUX_DIR)/vmlinux
@@ -72,6 +72,9 @@ $(BUILD_DIR)/kernel.mk: FORCE
 	echo "LINUX_VERSION:=$(LINUX_VERSION)" >> $@
 	echo "LINUX_RELEASE:=$(LINUX_RELEASE)" >> $@
 
+pkg-install:
+	@{ [ "$(INSTALL_TARGETS)" != "" ] && $(IPKG) install $(INSTALL_TARGETS) || true; }
+
 source: $(DL_DIR)/$(LINUX_SOURCE)
 prepare: $(BUILD_DIR)/kernel.mk
 	@mkdir -p $(STAMP_DIR) $(PACKAGE_DIR)
@@ -99,4 +102,6 @@ clean:
 	rm -f $(STAMP_DIR)/.linux-compile
 	rm -rf $(LINUX_BUILD_DIR)
 	rm -f $(TARGETS)
+	
+.PHONY: source prepare compile install mostlyclean rebuild clean pkg-install
 
diff --git a/target/linux/rules.mk b/target/linux/rules.mk
index 092b81b414..1b40ab7762 100644
--- a/target/linux/rules.mk
+++ b/target/linux/rules.mk
@@ -13,7 +13,6 @@ LINUX_DIR := $(LINUX_BUILD_DIR)/linux-$(LINUX_VERSION)
 LINUX_KERNEL:=$(LINUX_BUILD_DIR)/vmlinux
 
 LINUX_TARGET_DIR:=$(LINUX_BUILD_DIR)/root
-IPKG_KERNEL:=IPKG_TMP=$(BUILD_DIR)/tmp IPKG_INSTROOT=$(LINUX_TARGET_DIR) IPKG_CONF_DIR=$(LINUX_BUILD_DIR) $(SCRIPT_DIR)/ipkg -force-defaults -force-depends
 
 LINUX_KARCH:=$(shell echo $(ARCH) | sed -e 's/i[3-9]86/i386/' \
 	-e 's/mipsel/mips/' \
@@ -75,7 +74,6 @@ ifneq ($(6),)
 endif
 	$(8)
 	$(IPKG_BUILD) $$(I_$(1)) $(PACKAGE_DIR)
-
 endef
 
 KERNEL_IPKG:=$(LINUX_BUILD_DIR)/kernel_$(LINUX_VERSION)-$(BOARD)-$(LINUX_RELEASE)_$(ARCH).ipk