diff --git a/toolchain/binutils/Makefile b/toolchain/binutils/Makefile
index 0022202d4..9d12721de 100644
--- a/toolchain/binutils/Makefile
+++ b/toolchain/binutils/Makefile
@@ -79,7 +79,11 @@ define Host/Compile
 endef
 
 define Host/Install
-	$(MAKE) -C $(HOST_BUILD_DIR) install
+	mkdir -p $(TOOLCHAIN_DIR)/initial
+	$(MAKE) -C $(HOST_BUILD_DIR) \
+		prefix=$(TOOLCHAIN_DIR)/initial \
+		install
+	$(CP) $(TOOLCHAIN_DIR)/initial/. $(TOOLCHAIN_DIR)/
 	$(CP) $(TOOLCHAIN_DIR)/bin/$(REAL_GNU_TARGET_NAME)-readelf $(REAL_STAGING_DIR_HOST)/bin/readelf
 endef
 
diff --git a/toolchain/gcc/initial/Makefile b/toolchain/gcc/initial/Makefile
index f3f78b0b2..3d8ab61cd 100644
--- a/toolchain/gcc/initial/Makefile
+++ b/toolchain/gcc/initial/Makefile
@@ -19,14 +19,17 @@ endef
 
 define Host/Install
 	$(GCC_MAKE) -C $(GCC_BUILD_DIR) \
+		prefix="$(TOOLCHAIN_DIR)/initial" \
 		install-gcc \
 		$(if $(GCC_BUILD_TARGET_LIBGCC),install-target-libgcc)
 
 	# XXX: glibc insists on linking against libgcc_eh
-	( cd $(TOOLCHAIN_DIR)/lib/gcc/$(REAL_GNU_TARGET_NAME)/$(PKG_VERSION) ; \
+	( cd $(TOOLCHAIN_DIR)/initial/lib/gcc/$(REAL_GNU_TARGET_NAME)/$(PKG_VERSION) ; \
 		[ -e libgcc_eh.a ] || ln -sf libgcc.a libgcc_eh.a ; \
 		cp libgcc.a libgcc_initial.a; \
 	)
+
+	$(CP) $(TOOLCHAIN_DIR)/initial/. $(TOOLCHAIN_DIR)/
 endef
 
 $(eval $(call HostBuild))
diff --git a/toolchain/uClibc/Makefile b/toolchain/uClibc/Makefile
index 6e7e9ddd8..315e0446c 100644
--- a/toolchain/uClibc/Makefile
+++ b/toolchain/uClibc/Makefile
@@ -93,7 +93,7 @@ CPU_CFLAGS = \
 	--std=gnu99 -ffunction-sections -fdata-sections \
 	$(TARGET_CFLAGS)
 
-UCLIBC_MAKE = PATH='$(TARGET_PATH)' $(MAKE) -C $(HOST_BUILD_DIR) \
+UCLIBC_MAKE = PATH='$(TOOLCHAIN_DIR)/initial/bin:$(TARGET_PATH)' $(MAKE) -C $(HOST_BUILD_DIR) \
 	$(TARGET_CONFIGURE_OPTS) \
 	DEVEL_PREFIX=/ \
 	RUNTIME_PREFIX=/ \