diff --git a/CMakeLists.txt b/CMakeLists.txt
index 657b6fc68..bd35fa3ad 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -210,6 +210,11 @@ if (OPM_ENABLE_PYTHON)
     endif()
     set(PYTHON_INCLUDE_DIRS ${PYTHON_INCLUDE_DIR})
   endif()
+  find_package(pybind11 2.2 CONFIG)
+  if (NOT pybind11_FOUND)
+    # Use full path for reuse with pypi
+    set(pybind11_INCLUDE_DIRS ${PROJECT_SOURCE_DIR}/python/pybind11/include ${PYTHON_INCLUDE_DIRS})
+  endif()
 endif()
 
 
@@ -356,6 +361,10 @@ if (OPM_ENABLE_PYTHON)
   set(opm-common_PYTHON_PACKAGE_VERSION ${OPM_PYTHON_PACKAGE_VERSION_TAG})
 
   # Generate versioned setup.py
+  if (pybind11_INCLUDE_DIRS)
+    string(REGEX REPLACE ";" "', '"  _tmp "${pybind11_INCLUDE_DIRS}" )
+    set(SETUP_PY_PYBIND_INCLUDE_DIR "'${_tmp}'")
+  endif()
   configure_file (${PROJECT_SOURCE_DIR}/python/setup.py.in ${PROJECT_BINARY_DIR}/python/setup.py)
   file(COPY ${PROJECT_SOURCE_DIR}/python/README.md DESTINATION ${PROJECT_BINARY_DIR}/python)
   execute_process(COMMAND ${Python3_EXECUTABLE} target_name.py
@@ -433,7 +442,7 @@ if (OPM_ENABLE_PYTHON)
 
   # -------------------------------------------------------------------------
   # 2: Embed the Python interpreter for keywords like PYACTION and PYINPUT
-  target_include_directories(opmcommon SYSTEM PRIVATE "python/pybind11/include;${PYTHON_INCLUDE_DIRS}")
+  target_include_directories(opmcommon SYSTEM PRIVATE "${pybind11_INCLUDE_DIRS}")
   if (OPM_ENABLE_EMBEDDED_PYTHON)
     target_link_libraries(opmcommon PUBLIC ${PYTHON_LIBRARY})
     add_definitions(-DEMBEDDED_PYTHON)
diff --git a/python/setup.py.in b/python/setup.py.in
index 88afc1229..5eb544d13 100644
--- a/python/setup.py.in
+++ b/python/setup.py.in
@@ -65,7 +65,7 @@ ext_modules = [
         libraries=libs,
         language='c++',
         undef_macros=["NDEBUG"],
-        include_dirs=["pybind11/include"],
+        include_dirs=[@SETUP_PY_PYBIND_INCLUDE_DIR@],
         extra_compile_args=['-std=c++17', '-fopenmp'],
         extra_link_args=['-fopenmp', @opm-common_PYTHON_LINKAGE@]
     )