diff --git a/package/xterm/xterm.mk b/package/xterm/xterm.mk
index 56f692dd21..778b40cbd8 100644
--- a/package/xterm/xterm.mk
+++ b/package/xterm/xterm.mk
@@ -10,6 +10,8 @@ XTERM_SITE = ftp://invisible-island.net/xterm
 XTERM_DEPENDENCIES = ncurses xlib_libXaw
 XTERM_LICENSE = MIT
 XTERM_LICENSE_FILES = version.c
-XTERM_CONF_OPTS = --enable-256-color
+XTERM_CONF_OPTS = --enable-256-color \
+	--x-includes=$(STAGING_DIR)/usr/include \
+	--x-libraries=$(STAGING_DIR)/usr/lib
 
 $(eval $(autotools-package))