diff --git a/packages/sysutils/busybox/config/busybox-init.conf b/packages/sysutils/busybox/config/busybox-init.conf
index edaf87fc06..23e0e73aad 100644
--- a/packages/sysutils/busybox/config/busybox-init.conf
+++ b/packages/sysutils/busybox/config/busybox-init.conf
@@ -1,7 +1,7 @@
 #
 # Automatically generated make config: don't edit
-# Busybox version: 1.25.0
-# Wed Jul 20 11:53:10 2016
+# Busybox version: 1.25.1
+# Thu Nov 24 23:29:54 2016
 #
 CONFIG_HAVE_DOT_CONFIG=y
 
@@ -25,7 +25,7 @@ CONFIG_FEATURE_VERBOSE_USAGE=y
 # CONFIG_FEATURE_COMPRESS_USAGE is not set
 CONFIG_BUSYBOX=y
 # CONFIG_FEATURE_INSTALLER is not set
-# CONFIG_INSTALL_NO_USR is not set
+CONFIG_INSTALL_NO_USR=y
 # CONFIG_LOCALE_SUPPORT is not set
 CONFIG_UNICODE_SUPPORT=y
 # CONFIG_UNICODE_USING_LOCALE is not set
diff --git a/packages/sysutils/busybox/config/busybox-target.conf b/packages/sysutils/busybox/config/busybox-target.conf
index a276c33e23..c40df53186 100644
--- a/packages/sysutils/busybox/config/busybox-target.conf
+++ b/packages/sysutils/busybox/config/busybox-target.conf
@@ -1,7 +1,7 @@
 #
 # Automatically generated make config: don't edit
-# Busybox version: 1.25.0
-# Wed Jul 20 11:54:40 2016
+# Busybox version: 1.25.1
+# Thu Nov 24 23:26:05 2016
 #
 CONFIG_HAVE_DOT_CONFIG=y
 
diff --git a/packages/sysutils/busybox/package.mk b/packages/sysutils/busybox/package.mk
index 4a76478274..d246d75afc 100644
--- a/packages/sysutils/busybox/package.mk
+++ b/packages/sysutils/busybox/package.mk
@@ -97,7 +97,7 @@ configure_target() {
     cp $BUSYBOX_CFG_FILE_TARGET .config
 
     # set install dir
-    sed -i -e "s|^CONFIG_PREFIX=.*$|CONFIG_PREFIX=\"$INSTALL\"|" .config
+    sed -i -e "s|^CONFIG_PREFIX=.*$|CONFIG_PREFIX=\"$INSTALL/usr\"|" .config
 
     if [ ! "$DEVTOOLS" = yes ]; then
       sed -i -e "s|^CONFIG_DEVMEM=.*$|# CONFIG_DEVMEM is not set|" .config
@@ -134,7 +134,7 @@ configure_init() {
     cp $BUSYBOX_CFG_FILE_INIT .config
 
     # set install dir
-    sed -i -e "s|^CONFIG_PREFIX=.*$|CONFIG_PREFIX=\"$INSTALL\"|" .config
+    sed -i -e "s|^CONFIG_PREFIX=.*$|CONFIG_PREFIX=\"$INSTALL/usr\"|" .config
 
     # optimize for size
     CFLAGS=`echo $CFLAGS | sed -e "s|-Ofast|-Os|"`
@@ -160,7 +160,6 @@ makeinstall_target() {
     cp $PKG_DIR/scripts/apt-get $INSTALL/usr/bin/
     cp $PKG_DIR/scripts/passwd $INSTALL/usr/bin/
     cp $PKG_DIR/scripts/sudo $INSTALL/usr/bin/
-    ln -sf /bin/busybox $INSTALL/usr/bin/env          #/usr/bin/env is needed for most python scripts
     cp $PKG_DIR/scripts/pastebinit $INSTALL/usr/bin/
     ln -sf pastebinit $INSTALL/usr/bin/paste
 
@@ -191,10 +190,6 @@ makeinstall_target() {
   # create /etc/hostname
     ln -sf /proc/sys/kernel/hostname $INSTALL/etc/hostname
 
-  # systemd wants /usr/bin/mkdir
-    mkdir -p $INSTALL/usr/bin
-      ln -sf /bin/busybox $INSTALL/usr/bin/mkdir
-
   # add webroot
     mkdir -p $INSTALL/usr/www
       echo "It works" > $INSTALL/usr/www/index.html
@@ -206,7 +201,7 @@ makeinstall_target() {
 post_install() {
   ROOT_PWD="`$ROOT/$TOOLCHAIN/bin/cryptpw -m sha512 $ROOT_PASSWORD`"
 
-  echo "chmod 4755 $INSTALL/bin/busybox" >> $FAKEROOT_SCRIPT
+  echo "chmod 4755 $INSTALL/usr/bin/busybox" >> $FAKEROOT_SCRIPT
   echo "chmod 000 $INSTALL/etc/shadow" >> $FAKEROOT_SCRIPT
 
   add_user root "$ROOT_PWD" 0 0 "Root User" "/storage" "/bin/sh"
@@ -237,8 +232,8 @@ post_install() {
 
 makeinstall_init() {
   mkdir -p $INSTALL/bin
-    ln -sf busybox $INSTALL/bin/sh
-    chmod 4755 $INSTALL/bin/busybox
+    ln -sf busybox $INSTALL/usr/bin/sh
+    chmod 4755 $INSTALL/usr/bin/busybox
 
   mkdir -p $INSTALL/etc
     touch $INSTALL/etc/fstab
diff --git a/packages/sysutils/busybox/profile.d/98-busybox.conf b/packages/sysutils/busybox/profile.d/98-busybox.conf
index a5cc8ce02d..c9b9cc5ae4 100644
--- a/packages/sysutils/busybox/profile.d/98-busybox.conf
+++ b/packages/sysutils/busybox/profile.d/98-busybox.conf
@@ -17,8 +17,8 @@
 ################################################################################
 
 export HOME="/storage"
-export PATH="/bin:/sbin:/usr/bin:/usr/sbin"
-export LD_LIBRARY_PATH="/usr/lib:/lib"
+export PATH="/usr/bin:/usr/sbin"
+export LD_LIBRARY_PATH="/usr/lib"
 export HOSTNAME=`cat /etc/hostname`
 export PS1="\[\e[1;32m\]\h\[\e[1;32m\]:\[\e[1;34m\]\w \[\e[0m\]\\$ "
 # k0p
diff --git a/packages/sysutils/busybox/scripts/init b/packages/sysutils/busybox/scripts/init
index 1872bdbe0f..20f8651fd7 100755
--- a/packages/sysutils/busybox/scripts/init
+++ b/packages/sysutils/busybox/scripts/init
@@ -21,24 +21,24 @@
 ################################################################################
 
   # create directories
-  /bin/busybox mkdir -p /dev
-  /bin/busybox mkdir -p /proc
-  /bin/busybox mkdir -p /sys
-  /bin/busybox mkdir -p /tmp
-  /bin/busybox mkdir -p /flash
-  /bin/busybox mkdir -p /sysroot
-  /bin/busybox mkdir -p /storage
+  /usr/bin/busybox mkdir -p /dev
+  /usr/bin/busybox mkdir -p /proc
+  /usr/bin/busybox mkdir -p /sys
+  /usr/bin/busybox mkdir -p /tmp
+  /usr/bin/busybox mkdir -p /flash
+  /usr/bin/busybox mkdir -p /sysroot
+  /usr/bin/busybox mkdir -p /storage
 
   # mount all needed special filesystems
-  /bin/busybox mount -t devtmpfs devtmpfs /dev
-  /bin/busybox mount -t proc proc /proc
-  /bin/busybox mount -t sysfs sysfs /sys
+  /usr/bin/busybox mount -t devtmpfs devtmpfs /dev
+  /usr/bin/busybox mount -t proc proc /proc
+  /usr/bin/busybox mount -t sysfs sysfs /sys
 
   # common functions
   . /functions
 
   # set needed variables
-  MODULE_DIR=/lib/modules
+  MODULE_DIR=/usr/lib/modules
 
   UPDATE_ROOT=/storage/.update
   UPDATE_DIR="$UPDATE_ROOT"
@@ -271,19 +271,19 @@
     ISCSI_DEV="${1##*,}"
     ISCSI_OPTIONS="${1%,*}"
 
-    if [ ! -f "/sbin/iscsistart" ]; then
+    if [ ! -f "/usr/sbin/iscsistart" ]; then
       error "iscsistart" "iSCSI support not available"
     fi
 
     if [ "$ISCSI_OPTIONS" = "auto" ]; then
       progress "Network configuration based on iBFT"
-      /sbin/iscsistart -N >&$SILENT_OUT 2>&1 || \
+      /usr/sbin/iscsistart -N >&$SILENT_OUT 2>&1 || \
         error "iscsistart" "Unable to configure network"
       progress "iSCSI auto connect based on iBFT"
-      /sbin/iscsistart -b >&$SILENT_OUT 2>&1 || \
+      /usr/sbin/iscsistart -b >&$SILENT_OUT 2>&1 || \
         error "iscsistart" "Unable to auto connect"
     else
-      /sbin/iscsistart $(get_iscsistart_options "$ISCSI_OPTIONS") >&$SILENT_OUT 2>&1 || \
+      /usr/sbin/iscsistart $(get_iscsistart_options "$ISCSI_OPTIONS") >&$SILENT_OUT 2>&1 || \
         error "iscsistart" "Unable to connect to ISCSI target"
     fi
 
@@ -554,16 +554,16 @@
     sync
 
     # unmount filesystems
-    if /bin/busybox mountpoint -q /flash ; then
-      /bin/busybox umount /flash
+    if /usr/bin/busybox mountpoint -q /flash ; then
+      /usr/bin/busybox umount /flash
     fi
 
-    if /bin/busybox mountpoint -q /storage ; then
-      /bin/busybox umount /storage
+    if /usr/bin/busybox mountpoint -q /storage ; then
+      /usr/bin/busybox umount /storage
     fi
 
     usleep 2000000
-    /bin/busybox reboot
+    /usr/bin/busybox reboot
   }
 
   force_fsck() {
@@ -577,7 +577,7 @@
     if [ "$?" -ne "0" -o "$?" -gt "128" ] ; then
       echo "Repairing filesystem..."
       echo ""
-      /sbin/fsck -T -M -y $RUN_FSCK_DISKS
+      /usr/sbin/fsck -T -M -y $RUN_FSCK_DISKS
       FSCK_RET="$?"
       if [ "$(( $FSCK_RET & 8 ))" = 8 ] ; then
         # fubar
@@ -601,7 +601,7 @@
   check_disks() {
     if [ "$RUN_FSCK" = "yes" -a -n "$RUN_FSCK_DISKS" ]; then
       progress "Checking disk(s): $RUN_FSCK_DISKS"
-      /sbin/fsck -T -M -p -a $RUN_FSCK_DISKS > /dev/null 2>&1
+      /usr/sbin/fsck -T -M -p -a $RUN_FSCK_DISKS > /dev/null 2>&1
       FSCK_RET="$?"
 
       # FSCK_RET is the bit-wise OR of the exit codes for each filesystem that is checked.
@@ -991,7 +991,7 @@
     mount --move /flash /sysroot/flash
     mount --move /storage /sysroot/storage
 
-    if [ ! -d "/sysroot/lib/modules/$(uname -r)/" -a -f "/sysroot/usr/lib/systemd/systemd" ]; then
+    if [ ! -d "/sysroot/usr/lib/modules/$(uname -r)/" -a -f "/sysroot/usr/lib/systemd/systemd" ]; then
       echo ""
       echo "NEVER TOUCH boot= in extlinux.conf / cmdline.txt!"
       echo "If you don't know what you are doing,"
@@ -1040,10 +1040,10 @@
     fi
   done
   # move some special filesystems
-  /bin/busybox mount --move /dev /sysroot/dev
-  /bin/busybox mount --move /proc /sysroot/proc
-  /bin/busybox mount --move /sys /sysroot/sys
-  /bin/busybox rm -fr /tmp
+  /usr/bin/busybox mount --move /dev /sysroot/dev
+  /usr/bin/busybox mount --move /proc /sysroot/proc
+  /usr/bin/busybox mount --move /sys /sysroot/sys
+  /usr/bin/busybox rm -fr /tmp
 
   # tell OE settings addon to disable updates
   if [ "$UPDATE_DISABLED" = "yes" ] ; then
@@ -1068,6 +1068,6 @@
   fi
 
   # switch to new sysroot and start real init
-  exec /bin/busybox switch_root /sysroot /usr/lib/systemd/systemd $INIT_ARGS $INIT_UNIT
+  exec /usr/bin/busybox switch_root /sysroot /usr/lib/systemd/systemd $INIT_ARGS $INIT_UNIT
 
   error "switch_root" "Error in initramfs. Could not switch to new root"