diff --git a/INSTALL.md b/INSTALL.md
index 7080fce8c..dbc3ebde9 100644
--- a/INSTALL.md
+++ b/INSTALL.md
@@ -30,7 +30,7 @@ A detailed dependency list can be found in
 
 Minimum version requirements of major components:
 
-   - gettext
+   - gettext >= 0.19
    - python >= 3.4
    - gtk3 >= 3.22
    - libvirt-python >= 0.6.0
diff --git a/data/virt-manager.desktop.in b/data/virt-manager.desktop.in
index 33765ec3b..41cc26a13 100644
--- a/data/virt-manager.desktop.in
+++ b/data/virt-manager.desktop.in
@@ -1,6 +1,6 @@
 [Desktop Entry]
-_Name=Virtual Machine Manager
-_Comment=Manage virtual machines
+Name=Virtual Machine Manager
+Comment=Manage virtual machines
 Icon=virt-manager
 Exec=virt-manager
 Type=Application
diff --git a/setup.py b/setup.py
index 95d9a7a10..34532e124 100755
--- a/setup.py
+++ b/setup.py
@@ -61,7 +61,7 @@ _appdata_files = [
 
 def _generate_meta_potfiles_in():
     potfiles = ""
-    for ignore, filelist in _desktop_files + _appdata_files:
+    for ignore, filelist in _appdata_files:
         potfiles += "\n".join(filelist) + "\n"
     return potfiles
 
@@ -107,9 +107,35 @@ class my_build_i18n(distutils.command.build.build):
             targetpath = os.path.join("share/locale", lang, "LC_MESSAGES")
             self.distribution.data_files.append((targetpath, (mo_file,)))
 
+        # Merge .in with translations using gettext
+        for (file_set, switch) in [(_desktop_files, "--desktop")]:
+            for (target, files) in file_set:
+                build_target = os.path.join("build", target)
+                if not os.path.exists(build_target):
+                    os.makedirs(build_target)
+
+                files_merged = []
+                for f in files:
+                    if f.endswith(".in"):
+                        file_merged = os.path.basename(f[:-3])
+                    else:
+                        file_merged = os.path.basename(f)
+
+                    file_merged = os.path.join(build_target, file_merged)
+                    cmd = ["msgfmt", switch, "--template", f, "-d", po_dir,
+                           "-o", file_merged]
+                    mtime_merged = (os.path.exists(file_merged) and
+                                    os.path.getmtime(file_merged)) or 0
+                    mtime_file = os.path.getmtime(f)
+                    if (mtime_merged < max_po_mtime or
+                        mtime_merged < mtime_file):
+                        # Only build if output is older than input (.po,.in)
+                        self.spawn(cmd)
+                    files_merged.append(file_merged)
+                self.distribution.data_files.append((target, files_merged))
+
         # merge .in with translation
-        for (file_set, switch) in [(_desktop_files, "-d"),
-                                   (_appdata_files, "-x")]:
+        for (file_set, switch) in [(_appdata_files, "-x")]:
             for (target, files) in file_set:
                 build_target = os.path.join("build", target)
                 if not os.path.exists(build_target):
@@ -685,6 +711,11 @@ class ExtractMessages(distutils.core.Command):
         finally:
             os.unlink(potpath)
 
+        # Extract the messages from the desktop files
+        desktop_files = [f for sublist in _desktop_files for f in sublist[1]]
+        cmd = xgettext_args + ["-j", "-L", "Desktop"] + desktop_files
+        self.spawn(cmd)
+
         # Extract the messages from the Python sources
         py_sources = list(Path("virtManager").rglob("*.py"))
         py_sources += list(Path("virtinst").rglob("*.py"))