diff --git a/docs/manual/known-issues.txt b/docs/manual/known-issues.txt
index 08469e9370..5eaded98c6 100644
--- a/docs/manual/known-issues.txt
+++ b/docs/manual/known-issues.txt
@@ -3,6 +3,10 @@
 
 = Known issues
 
+* It is not possible to pass extra linker options via +BR2_TARGET_LDFLAGS+
+  if such options contain a +$+ sign. For example, the following is known
+  to break: +BR2_TARGET_LDFLAGS="-Wl,-rpath=\'$ORIGIN/../lib'"+
+
 * The +ltp-testsuite+ package does not build with the default uClibc
   configuration used by the Buildroot toolchain backend. The LTP
   testsuite uses several functions that are considered obsolete, such
diff --git a/toolchain/toolchain-common.in b/toolchain/toolchain-common.in
index 13de9e5c56..2df8ddb637 100644
--- a/toolchain/toolchain-common.in
+++ b/toolchain/toolchain-common.in
@@ -132,6 +132,9 @@ config BR2_TARGET_LDFLAGS
 	help
 	  Extra options to pass to the linker when building for the target.
 
+	  Note that options with a '$' sign (eg. -Wl,-rpath='$ORIGIN/../lib')
+	  are not supported.
+
 config BR2_ECLIPSE_REGISTER
 	bool "Register toolchain within Eclipse Buildroot plug-in"
 	help