diff --git a/tools/Rules.mk b/tools/Rules.mk
index 6e135387bd..18cf83f5be 100644
--- a/tools/Rules.mk
+++ b/tools/Rules.mk
@@ -179,7 +179,7 @@ CFLAGS += $(CFLAGS-y)
 CFLAGS += $(EXTRA_CFLAGS_XEN_TOOLS)
 
 INSTALL_PYTHON_PROG = \
-	$(XEN_ROOT)/tools/python/install-wrap "$(PYTHON_PATH)" $(INSTALL_PROG)
+	$(XEN_ROOT)/tools/python/install-wrap "$(PYTHON_PATH) -s" $(INSTALL_PROG)
 
 %.opic: %.c
 	$(CC) $(CPPFLAGS) -DPIC $(CFLAGS) $(CFLAGS_$*.opic) -fPIC -c -o $@ $< $(APPEND_CFLAGS)
diff --git a/tools/pygrub/Makefile b/tools/pygrub/Makefile
index 29ad051321..4963bc89c6 100644
--- a/tools/pygrub/Makefile
+++ b/tools/pygrub/Makefile
@@ -18,8 +18,10 @@ build:
 .PHONY: install
 install: all
 	$(INSTALL_DIR) $(DESTDIR)/$(bindir)
+	$(INSTALL_DIR) $(DESTDIR)/$(LIBEXEC_BIN)
 	$(setup.py) install --record $(INSTALL_LOG) $(PYTHON_PREFIX_ARG) \
-		--root="$(DESTDIR)" --install-scripts=$(LIBEXEC_BIN) --force
+		--root="$(DESTDIR)" --force
+	$(INSTALL_PYTHON_PROG) src/pygrub $(DESTDIR)/$(LIBEXEC_BIN)/pygrub
 	set -e; if [ $(bindir) != $(LIBEXEC_BIN) -a \
 	             "`readlink -f $(DESTDIR)/$(bindir)`" != \
 	             "`readlink -f $(LIBEXEC_BIN)`" ]; then \
diff --git a/tools/pygrub/setup.py b/tools/pygrub/setup.py
index 0e4e3d02d3..502aa4df2d 100644
--- a/tools/pygrub/setup.py
+++ b/tools/pygrub/setup.py
@@ -23,7 +23,6 @@ setup(name='pygrub',
       author_email='katzj@redhat.com',
       license='GPL',
       package_dir={'grub': 'src', 'fsimage': 'src'},
-      scripts = ["src/pygrub"],
       packages=pkgs,
       ext_modules = [ xenfsimage ]
       )