diff --git a/Makefile.inc1 b/Makefile.inc1
index 625e8324587c..7d828ec9d081 100644
--- a/Makefile.inc1
+++ b/Makefile.inc1
@@ -97,11 +97,22 @@ SUBDIR+=contrib/ofed
 #
 SUBDIR+=etc
 
-# These are last, since it is nice to at least get the base system
-# rebuilt before you do them.
-.for _DIR in ${LOCAL_LIB_DIRS} ${LOCAL_DIRS}
+# Local directories are last, since it is nice to at least get the base
+# system rebuilt before you do them.
+.for _DIR in ${LOCAL_DIRS}
 .if exists(${.CURDIR}/${_DIR}/Makefile)
-SUBDIR+= ${_DIR}
+SUBDIR+=	${_DIR}
+.endif
+.endfor
+# Add LOCAL_LIB_DIRS, but only if they will not be picked up as a SUBDIR
+# of a LOCAL_DIRS directory.  This allows LOCAL_DIRS=foo and
+# LOCAL_LIB_DIRS=foo/lib to behave as expected.
+.for _DIR in ${LOCAL_DIRS:M*/} ${LOCAL_DIRS:N*/:S|$|/|}
+_REDUNDENT_LIB_DIRS+=    ${LOCAL_LIB_DIRS:M${_DIR}*}
+.endfor
+.for _DIR in ${LOCAL_LIB_DIRS}
+.if empty(_REDUNDENT_LIB_DIRS:M${_DIR}) && exists(${.CURDIR}/${_DIR}/Makefile)
+SUBDIR+=	${_DIR}
 .endif
 .endfor
 .endif