diff --git a/NEWS b/NEWS
index 6778ea3d..c516b4aa 100644
--- a/NEWS
+++ b/NEWS
@@ -3,6 +3,9 @@ Changes on 1.3.1 since 1.3.0:
 * Fixed launching menu entries shortcuts on desktop which was broken by making
     them all executable in 1.3.0 - those should be launchable still.
 
+* Fixed installing modules into non-standard path: libtool cannot relink them
+    properly.
+
 
 Changes on 1.3.0 since 1.2.5:
 
diff --git a/src/modules/Makefile.am b/src/modules/Makefile.am
index 01c15bd4..6c6d73ec 100644
--- a/src/modules/Makefile.am
+++ b/src/modules/Makefile.am
@@ -11,6 +11,7 @@ AM_CPPFLAGS = \
 # tell libtool we compile module not library
 AM_LDFLAGS = \
 	-no-undefined -module -avoid-version -shared -export-dynamic \
+	-L$(libdir) -rpath $(libdir) \
 	$(GIO_LIBS)
 
 # the module should be linked only with libfm, not libfm-gtk or whatever