diff --git a/tools/python/Makefile b/tools/python/Makefile
index 3a42f6047f..a676cdf0e9 100644
--- a/tools/python/Makefile
+++ b/tools/python/Makefile
@@ -6,8 +6,13 @@ all: build
 build:
 	CFLAGS="$(CFLAGS)" python setup.py build
 
+ifndef XEN_PYTHON_NATIVE_INSTALL
 install: all
 	CFLAGS="$(CFLAGS)" python setup.py install --home="$(DESTDIR)/usr"
+else
+install: all
+	CFLAGS="$(CFLAGS)" python setup.py install --root="$(DESTDIR)"
+endif
 
 clean:
 	rm -rf build *.pyc *.pyo *.o *.a *~