diff --git a/package/lirc-tools/lirc-tools.mk b/package/lirc-tools/lirc-tools.mk
index a5165ad438..e468f2a25d 100644
--- a/package/lirc-tools/lirc-tools.mk
+++ b/package/lirc-tools/lirc-tools.mk
@@ -46,7 +46,7 @@ LIRC_TOOLS_DEPENDENCIES += libftdi1
 endif
 
 ifeq ($(BR2_PACKAGE_PYTHON3),y)
-LIRC_TOOLS_DEPENDENCIES += python3 host-python-setuptools
+LIRC_TOOLS_DEPENDENCIES += python3 host-python3-setuptools
 LIRC_TOOLS_MAKE_ENV += SETUPTOOLS_ENV="$(PKG_PYTHON_SETUPTOOLS_ENV)"
 endif
 
diff --git a/package/pkg-python.mk b/package/pkg-python.mk
index 1ee465ba5d..af8b86968d 100644
--- a/package/pkg-python.mk
+++ b/package/pkg-python.mk
@@ -180,16 +180,35 @@ endif
 endif # ($$($(2)_NEEDS_HOST_PYTHON),)
 endif # ($(4),target)
 
-# Setuptools based packages will need host-python-setuptools (both
-# host and target). We need to have a special exclusion for the
-# host-setuptools package itself: it is setuptools-based, but
-# shouldn't depend on host-setuptools (because it would otherwise
-# depend on itself!).
+# Setuptools based packages will need setuptools for the host Python
+# interpreter (both host and target).
+#
+# If we have a host package that says "I need Python 3", we install
+# setuptools for python3.
+#
+# If we have a host packge that says "I need Python 2", we install
+# setuptools for python2.
+#
+# If we have a target package, or a host package that doesn't have any
+# <pkg>_NEEDS_HOST_PYTHON, and BR2_PACKAGE_PYTHON3 is used, then
+# Python 3.x is the default Python interpreter, so we install
+# setuptools for python3.
+#
+# In all other cases, we install setuptools for python2. Those other
+# cases are: a target package or host package with
+# BR2_PACKAGE_PYTHON=y, or a host-package with neither
+# BR2_PACKAGE_PYTHON3=y or BR2_PACKAGE_PYTHON=y.
 ifeq ($$($(2)_SETUP_TYPE),setuptools)
-ifneq ($(2),HOST_PYTHON_SETUPTOOLS)
-$(2)_DEPENDENCIES += host-python-setuptools
-endif
+ifeq ($(4):$$($(2)_NEEDS_HOST_PYTHON),host:python3)
+$(2)_DEPENDENCIES += $$(if $$(filter host-python3-setuptools,$(1)),,host-python3-setuptools)
+else ifeq ($(4):$$($(2)_NEEDS_HOST_PYTHON),host:python2)
+$(2)_DEPENDENCIES += $$(if $$(filter host-python-setuptools,$(1)),,host-python-setuptools)
+else ifeq ($$(BR2_PACKAGE_PYTHON3),y)
+$(2)_DEPENDENCIES += $$(if $$(filter host-python3-setuptools,$(1)),,host-python3-setuptools)
+else
+$(2)_DEPENDENCIES += $$(if $$(filter host-python-setuptools,$(1)),,host-python-setuptools)
 endif
+endif # SETUP_TYPE
 
 # Python interpreter to use for building the package.
 #
diff --git a/package/python-setuptools/python-setuptools.mk b/package/python-setuptools/python-setuptools.mk
index cc6f991cdd..d915449c5d 100644
--- a/package/python-setuptools/python-setuptools.mk
+++ b/package/python-setuptools/python-setuptools.mk
@@ -10,6 +10,7 @@ PYTHON_SETUPTOOLS_SITE = https://files.pythonhosted.org/packages/37/1b/b25507861
 PYTHON_SETUPTOOLS_LICENSE = MIT
 PYTHON_SETUPTOOLS_LICENSE_FILES = LICENSE
 PYTHON_SETUPTOOLS_SETUP_TYPE = setuptools
+HOST_PYTHON_SETUPTOOLS_NEEDS_HOST_PYTHON = python2
 
 define PYTHON_SETUPTOOLS_EXTRACT_CMDS
 	$(UNZIP) -d $(@D) $(PYTHON_SETUPTOOLS_DL_DIR)/$(PYTHON_SETUPTOOLS_SOURCE)