diff --git a/Makefile.am b/Makefile.am
index ba8127a952..dcdbcfc548 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -70,7 +70,8 @@ gnucash-config: gnucash-config.in
 	rm -f $@.tmp
 	sed < $@.in > $@.tmp \
             -e 's:@-VERSION-@:${VERSION}:g' \
-            -e 's:@-GNC_INCLUDE_DIR-@:${GNC_INCLUDE_DIR}:g'
+            -e 's:@-GNUCASH_ENGINE_CFLAGS-@:${GNUCASH_ENGINE_CFLAGS}:g' \
+            -e 's:@-GNUCASH_ENGINE_LIBS-@:${GNUCASH_ENGINE_LIBS}:g'
 	chmod +x $@.tmp
 	mv $@.tmp $@
 
diff --git a/configure.in b/configure.in
index bd5c330094..0fd4af4b23 100644
--- a/configure.in
+++ b/configure.in
@@ -124,6 +124,7 @@ fi
 
 GNC_ACCOUNTS_DIR=${GNC_SHAREDIR}/accounts
 GNC_GLADE_DIR=${GNC_SHAREDIR}/glade
+GNC_MODULE_DIR='${pkglibdir}'
 GNC_PIXMAP_DIR='${datadir}/pixmaps/gnucash'
 
 AC_SUBST(GNC_ACCOUNTS_DIR)
@@ -132,6 +133,7 @@ AC_SUBST(GNC_DOC_INSTALL_DIR)
 AC_SUBST(GNC_GLADE_DIR)
 AC_SUBST(GNC_INCLUDE_DIR)
 AC_SUBST(GNC_LIBDIR)
+AC_SUBST(GNC_MODULE_DIR)
 AC_SUBST(GNC_PIXMAP_DIR)
 AC_SUBST(GNC_SCM_INSTALL_DIR)
 AC_SUBST(GNC_SHAREDIR)
@@ -614,6 +616,22 @@ AC_TRY_RUN([
 ])
 CFLAGS="$GNC_OLDCFLAGS"
 
+
+### --------------------------------------------------------------------------
+### GnuCash flags and libs configuration
+
+GNUCASH_ENGINE_BASE_LIBS="${GUILE_LIBS} ${GLIB_LIBS}"
+GNUCASH_ENGINE_LIBS="-L${GNC_MODULE_DIR} ${GNUCASH_ENGINE_BASE_LIBS} libgncmod-engine.la libgw-engine.la libgw-glib.la"
+
+GNUCASH_ENGINE_BASE_CFLAGS="${GLIB_CFLAGS} ${G_WRAP_COMPILE_ARGS} ${GUILE_INCS}"
+GNUCASH_ENGINE_CFLAGS="-I${GNC_INCLUDE_DIR} ${GNUCASH_ENGINE_BASE_CFLAGS}"
+
+AC_SUBST(GNUCASH_ENGINE_BASE_LIBS)
+AC_SUBST(GNUCASH_ENGINE_LIBS)
+AC_SUBST(GNUCASH_ENGINE_BASE_CFLAGS)
+AC_SUBST(GNUCASH_ENGINE_CFLAGS)
+
+
 ### --------------------------------------------------------------------------
 ### Makefile creation
 
diff --git a/gnucash-config.in b/gnucash-config.in
index 6c286739bb..d42c1edd7a 100644
--- a/gnucash-config.in
+++ b/gnucash-config.in
@@ -25,8 +25,6 @@ if test $# -eq 0; then
 	usage 1 1>&2
 fi
 
-lib_gnucash=yes
-
 while test $# -gt 0; do
   case "$1" in
   -*=*) optarg=`echo "$1" | sed 's/[-_a-zA-Z0-9]*=//'` ;;
@@ -64,6 +62,7 @@ while test $# -gt 0; do
       lib_engine=yes
       ;;
     gnucash)
+      lib_engine=yes
       lib_gnucash=yes
       ;;
     *)
@@ -74,17 +73,26 @@ while test $# -gt 0; do
 done
 
 if test "$echo_prefix" = "yes"; then
-	echo $prefix
+    echo $prefix
 fi
 
 if test "$echo_exec_prefix" = "yes"; then
-	echo $exec_prefix
+    echo $exec_prefix
 fi
 
 if test "$echo_cflags" = "yes"; then
-	echo -I@-GNC_INCLUDE_DIR-@
+    cflags=""
+    if test "$lib_engine" = "yes"; then
+        cflags="$cflags @-GNUCASH_ENGINE_CFLAGS-@"
+    fi
+
+    echo $cflags
 fi
 
 if test "$echo_libs" = "yes"; then
-	echo ""
+    libs=""
+    if test "$lib_engine" = "yes"; then
+        libs="$libs @-GNUCASH_ENGINE_LIBS-@"
+    fi
+    echo $libs
 fi
diff --git a/src/engine/Makefile.am b/src/engine/Makefile.am
index 65a0fd5491..417c4c6d3d 100644
--- a/src/engine/Makefile.am
+++ b/src/engine/Makefile.am
@@ -2,9 +2,9 @@ SUBDIRS = . test-core test
 
 pkglib_LTLIBRARIES = libgncmod-engine.la
 
-CFLAGS = @CFLAGS@ ${GLIB_CFLAGS} ${G_WRAP_COMPILE_ARGS}
+CFLAGS = @CFLAGS@ ${GNUCASH_ENGINE_BASE_CFLAGS}
 
-INCLUDES = -I${top_srcdir}/src/gnc-module ${GUILE_INCS} -I../
+INCLUDES = -I${top_srcdir}/src/gnc-module -I../
 
 libgncmod_engine_la_SOURCES = \
   Account.c \
@@ -83,7 +83,7 @@ noinst_HEADERS = \
   md5.h
 
 libgncmod_engine_la_LDFLAGS = -module
-libgncmod_engine_la_LIBADD = ${GUILE_LIBS} ${GLIB_LIBS}
+libgncmod_engine_la_LIBADD = ${GNUCASH_ENGINE_BASE_LIBS}
 
 libgw_glib_la_SOURCES=gw-glib.c glib-helpers.c
 libgw_glib_la_LDFLAGS=-module -lg-wrap-runtime-guile