diff --git a/package/pkg-download.mk b/package/pkg-download.mk
index 73ea2a69f8..0def845cbc 100644
--- a/package/pkg-download.mk
+++ b/package/pkg-download.mk
@@ -32,8 +32,8 @@ else
 BR2_DL_DIR = $(DL_DIR)
 endif
 
-# ensure it exists and a absolute path
-DL_DIR := $(shell mkdir -p $(DL_DIR) && cd $(DL_DIR) >/dev/null && pwd)
+# ensure it exists and a absolute path, derefrecing symlinks
+DL_DIR := $(shell mkdir -p $(DL_DIR) && cd $(DL_DIR) >/dev/null && pwd -P)
 
 #
 # URI scheme helper functions