diff --git a/Makefile.lib b/Makefile.lib
index 3ebb8df7c..d197fa6c1 100644
--- a/Makefile.lib
+++ b/Makefile.lib
@@ -50,21 +50,25 @@ endif
 libs_list :=
 
 define LIBS_template =
-  _d := $$($(1)_DIR)
+  _d := $$(strip $$($(1)_DIR))
   _srcs := $$(foreach src, $$($(1)_SOURCES), $$(_d)/$$(src))
   _objs := $$(addsuffix .o, $$(basename $$(_srcs)))
 
+  $(1)_LDFLAGS_USE :=
+
   ifeq ($(BUILD_SHARED_LIBS), 1)
     _lib := $$(_d)/$(1).so
     $$(_lib): $$(_objs)
 	$(QUIET) $(CC) -o $$@ -shared $$^ $$($(1)_LDFLAGS)
+    $(1)_LDFLAGS_USE += -L$$(_d) -Wl,-rpath,$$(abspath $$(_d)) -l$$(patsubst lib%,%,$$(strip $(1)))
   else
     _lib := $$(_d)/$(1).a
     $$(_lib): $$(_objs)
 	$(QUIET) ar crs $$@ $$?
-    $(1)_LDFLAGS_PROPAGATED += $$($(1)_LDFLAGS)
+    $(1)_LDFLAGS_USE += $$(_lib) $$($(1)_LDFLAGS)
   endif
 
+  $(1)_LDFLAGS_USE += $$($(1)_LDFLAGS_PROPAGATED)
   $(1)_NAME := $$(_lib)
 
   # Propagate CXXFLAGS to the individual object files.
@@ -86,15 +90,15 @@ programs_list :=
 define PROGRAMS_template =
   _d := $$($(1)_DIR)
   _srcs := $$(foreach src, $$($(1)_SOURCES), $$(_d)/$$(src))
-  _objs := $$(addsuffix .o, $$(basename $$(_srcs)))
+  $(1)_OBJS := $$(addsuffix .o, $$(basename $$(_srcs)))
   _libs := $$(foreach lib, $$($(1)_LIBS), $$($$(lib)_NAME))
   _prog := $$(_d)/$(1)
 
-  $$(_prog): $$(_objs) $$(_libs)
-	$(QUIET) $(CXX) -o $$@ -Wl,--no-copy-dt-needed-entries $$^ $$($(1)_LDFLAGS) $$(foreach lib, $$($(1)_LIBS), $$($$(lib)_LDFLAGS_PROPAGATED))
+  $$(_prog): $$($(1)_OBJS) $$(_libs)
+	$(QUIET) $(CXX) -o $$@ -Wl,--no-copy-dt-needed-entries $$($(1)_OBJS) $$($(1)_LDFLAGS) $$(foreach lib, $$($(1)_LIBS), $$($$(lib)_LDFLAGS_USE))
 
   # Propagate CXXFLAGS to the individual object files.
-  $$(foreach obj, $$(_objs), $$(eval $$(obj)_CXXFLAGS=$$($(1)_CXXFLAGS)))
+  $$(foreach obj, $$($(1)_OBJS), $$(eval $$(obj)_CXXFLAGS=$$($(1)_CXXFLAGS)))
 
   include $$(wildcard $$(_d)/*.dep)
 
diff --git a/src/nix-env/Makefile.new b/src/nix-env/Makefile.new
index 303af603a..04545231c 100644
--- a/src/nix-env/Makefile.new
+++ b/src/nix-env/Makefile.new
@@ -2,6 +2,6 @@ PROGRAMS += nix-env
 
 nix-env_DIR := $(d)
 
-nix-env_SOURCES = nix-env.cc profiles.cc profiles.hh user-env.cc user-env.hh
+nix-env_SOURCES = nix-env.cc profiles.cc user-env.cc
 
 nix-env_LIBS = libexpr libmain libstore libutil libformat