diff --git a/package/sysklogd/sysklogd.mk b/package/sysklogd/sysklogd.mk
index de2edf409e..9e315bcdf3 100644
--- a/package/sysklogd/sysklogd.mk
+++ b/package/sysklogd/sysklogd.mk
@@ -14,6 +14,14 @@ ifeq ($(BR2_PACKAGE_BUSYBOX),y)
 SYSKLOGD_DEPENDENCIES = busybox
 endif
 
+# CS PowerPC 2012.03 triggers compiler bug.
+ifeq ($(BR2_TOOLCHAIN_EXTERNAL_CODESOURCERY_POWERPC_E500V2),y)
+define SYSKLOGD_WORKAROUND_COMPILER_BUG
+	$(SED) 's/-O3/-O2/' $(@D)/Makefile
+endef
+SYSKLOGD_POST_PATCH_HOOKS = SYSKLOGD_WORKAROUND_COMPILER_BUG
+endif
+
 define SYSKLOGD_BUILD_CMDS
 	$(MAKE) $(TARGET_CONFIGURE_OPTS) -C $(@D)
 endef