diff --git a/linux/linux.mk b/linux/linux.mk
index 91a9f50..f7adffd 100644
--- a/linux/linux.mk
+++ b/linux/linux.mk
@@ -35,6 +35,7 @@ LINUX_PATCHES = $(call qstrip,$(BR2_LINUX_KERNEL_PATCH))
 
 LINUX_INSTALL_IMAGES = YES
 LINUX_DEPENDENCIES  += host-module-init-tools
+LINUX_SUPPORTS_OUT_OF_TREE = YES
 
 ifeq ($(BR2_LINUX_KERNEL_UBOOT_IMAGE),y)
 	LINUX_DEPENDENCIES += host-uboot-tools
@@ -106,22 +107,25 @@ endif
 # for bzImage, arch/i386 and arch/x86_64 do not exist when copying the
 # defconfig file.
 ifeq ($(KERNEL_ARCH),i386)
-KERNEL_ARCH_PATH=$(LINUX_DIR)/arch/x86
+KERNEL_ARCH_SUBDIR=arch/x86
 else ifeq ($(KERNEL_ARCH),x86_64)
-KERNEL_ARCH_PATH=$(LINUX_DIR)/arch/x86
+KERNEL_ARCH_SUBDIR=arch/x86
 else
-KERNEL_ARCH_PATH=$(LINUX_DIR)/arch/$(KERNEL_ARCH)
+KERNEL_ARCH_SUBDIR=arch/$(KERNEL_ARCH)
 endif
 
+KERNEL_ARCH_SRCDIR=$(LINUX_SRCDIR)/$(KERNEL_ARCH_SUBDIR)
+KERNEL_ARCH_BUILDDIR=$(LINUX_BUILDDIR)/$(KERNEL_ARCH_SUBDIR)
+
 ifeq ($(BR2_LINUX_KERNEL_VMLINUX),y)
-LINUX_IMAGE_PATH=$(LINUX_DIR)/$(LINUX_IMAGE_NAME)
+LINUX_IMAGE_PATH=$(LINUX_BUILDDIR)/$(LINUX_IMAGE_NAME)
 else ifeq ($(BR2_LINUX_KERNEL_VMLINUZ),y)
-LINUX_IMAGE_PATH=$(LINUX_DIR)/$(LINUX_IMAGE_NAME)
+LINUX_IMAGE_PATH=$(LINUX_BUILDDIR)/$(LINUX_IMAGE_NAME)
 else
 ifeq ($(KERNEL_ARCH),avr32)
-LINUX_IMAGE_PATH=$(KERNEL_ARCH_PATH)/boot/images/$(LINUX_IMAGE_NAME)
+LINUX_IMAGE_PATH=$(KERNEL_ARCH_BUILDDIR)/boot/images/$(LINUX_IMAGE_NAME)
 else
-LINUX_IMAGE_PATH=$(KERNEL_ARCH_PATH)/boot/$(LINUX_IMAGE_NAME)
+LINUX_IMAGE_PATH=$(KERNEL_ARCH_BUILDDIR)/boot/$(LINUX_IMAGE_NAME)
 endif
 endif # BR2_LINUX_KERNEL_VMLINUX
 
@@ -150,15 +154,22 @@ LINUX_POST_PATCH_HOOKS += LINUX_APPLY_PATCHES
 
 
 ifeq ($(BR2_LINUX_KERNEL_USE_DEFCONFIG),y)
-KERNEL_SOURCE_CONFIG = $(KERNEL_ARCH_PATH)/configs/$(call qstrip,$(BR2_LINUX_KERNEL_DEFCONFIG))_defconfig
+KERNEL_SOURCE_CONFIG = $(KERNEL_ARCH_SRCDIR)/configs/$(call qstrip,$(BR2_LINUX_KERNEL_DEFCONFIG))_defconfig
 else ifeq ($(BR2_LINUX_KERNEL_USE_CUSTOM_CONFIG),y)
 KERNEL_SOURCE_CONFIG = $(BR2_LINUX_KERNEL_CUSTOM_CONFIG_FILE)
 endif
 
+define LINUX_COPY_DTS
+	cp $(BR2_LINUX_KERNEL_CUSTOM_DTS_PATH) $(KERNEL_ARCH_SRCDIR)/boot/dts/)
+endef
+
+ifneq ($(BR2_LINUX_KERNEL_USE_CUSTOM_DTS),)
+LINUX_POST_PATCH_HOOKS += LINUX_COPY_DTS
+endif
+
 define LINUX_CONFIGURE_CMDS
-	cp $(KERNEL_SOURCE_CONFIG) $(KERNEL_ARCH_PATH)/configs/buildroot_defconfig
-	$(TARGET_MAKE_ENV) $(MAKE1) $(LINUX_MAKE_FLAGS) -C $(@D) buildroot_defconfig
-	rm $(KERNEL_ARCH_PATH)/configs/buildroot_defconfig
+	cp $(KERNEL_SOURCE_CONFIG) $(@D)/.config
+	yes '' | $(TARGET_MAKE_ENV) $(MAKE1) $(LINUX_MAKE_FLAGS) -C $(LINUX_SRCDIR) O=$(@D) oldconfig
 	$(if $(BR2_ARM_EABI),
 		$(call KCONFIG_ENABLE_OPT,CONFIG_AEABI,$(@D)/.config),
 		$(call KCONFIG_DISABLE_OPT,CONFIG_AEABI,$(@D)/.config))
@@ -194,8 +205,8 @@ endef
 define LINUX_INSTALL_DTB
 	# dtbs moved from arch/$ARCH/boot to arch/$ARCH/boot/dts since 3.8-rc1
 	cp $(addprefix \
-		$(KERNEL_ARCH_PATH)/boot/$(if $(wildcard \
-		$(addprefix $(KERNEL_ARCH_PATH)/boot/dts/,$(KERNEL_DTBS))),dts/),$(KERNEL_DTBS)) \
+		$(KERNEL_ARCH_BUILDDIR)/boot/$(if $(wildcard \
+		$(addprefix $(KERNEL_ARCH_BUILDDIR)/boot/dts/,$(KERNEL_DTBS))),dts/),$(KERNEL_DTBS)) \
 		$(BINARIES_DIR)/
 endef
 endif
@@ -204,11 +215,11 @@ endif
 ifeq ($(BR2_LINUX_KERNEL_APPENDED_DTB),y)
 # dtbs moved from arch/$ARCH/boot to arch/$ARCH/boot/dts since 3.8-rc1
 define LINUX_APPEND_DTB
-	if [ -e $(KERNEL_ARCH_PATH)/boot/$(KERNEL_DTS_NAME).dtb ]; then \
-		cat $(KERNEL_ARCH_PATH)/boot/$(KERNEL_DTS_NAME).dtb; \
+	if [ -e $(KERNEL_ARCH_BUILDDIR)/boot/$(KERNEL_DTS_NAME).dtb ]; then \
+		cat $(KERNEL_ARCH_BUILDDIR)/boot/$(KERNEL_DTS_NAME).dtb; \
 	else \
-		cat $(KERNEL_ARCH_PATH)/boot/dts/$(KERNEL_DTS_NAME).dtb; \
-	fi >> $(KERNEL_ARCH_PATH)/boot/zImage
+		cat $(KERNEL_ARCH_BUILDDIR)/boot/dts/$(KERNEL_DTS_NAME).dtb; \
+	fi >> $(KERNEL_ARCH_BUILDDIR)/boot/zImage
 endef
 ifeq ($(BR2_LINUX_KERNEL_APPENDED_UIMAGE),y)
 # We need to generate the uImage here after that so that the uImage is
@@ -220,8 +231,6 @@ endif
 # Compilation. We make sure the kernel gets rebuilt when the
 # configuration has changed.
 define LINUX_BUILD_CMDS
-	$(if $(BR2_LINUX_KERNEL_USE_CUSTOM_DTS),
-		cp $(BR2_LINUX_KERNEL_CUSTOM_DTS_PATH) $(KERNEL_ARCH_PATH)/boot/dts/)
 	$(TARGET_MAKE_ENV) $(MAKE) $(LINUX_MAKE_FLAGS) -C $(@D) $(LINUX_IMAGE_TARGET)
 	@if grep -q "CONFIG_MODULES=y" $(@D)/.config; then 	\
 		$(TARGET_MAKE_ENV) $(MAKE) $(LINUX_MAKE_FLAGS) -C $(@D) modules ;	\