diff --git a/conf/distro/include/toolchain-external.inc b/conf/distro/include/toolchain-external.inc
index 59b6470..cf8b79a 100644
--- a/conf/distro/include/toolchain-external.inc
+++ b/conf/distro/include/toolchain-external.inc
@@ -8,3 +8,5 @@ PREFERRED_PROVIDER_virtual/${TARGET_PREFIX}g++ = "external-toolchain-${TOOLCHAIN
 
 TOOLCHAIN_VENDOR ?= "${TARGET_VENDOR}"
 TARGET_VENDOR := "${TOOLCHAIN_VENDOR}"
+
+LIBTOOL_HAS_SYSROOT = "no"
diff --git a/recipes/libtool/libtool.inc b/recipes/libtool/libtool.inc
index 97fdb30..71bd243 100644
--- a/recipes/libtool/libtool.inc
+++ b/recipes/libtool/libtool.inc
@@ -18,7 +18,7 @@ SRC_URI = "${GNU_MIRROR}/libtool/libtool-${PV}.tar.gz \
            file://trailingslash.patch \
           file://prefix-manpage-fix.patch \
           file://resolve-sysroot.patch \
-          file://use-sysroot-in-libpath.patch \
+          ${@['file://do-not-use-sysroot-in-libpath.patch','file://use-sysroot-in-libpath.patch'][bb.data.getVar('LIBTOOL_HAS_SYSROOT', d, 1) == 'yes']} \
           "
 do_configure_prepend () {
        if ${@['true', 'false'][bb.data.inherits_class('native', d) or bb.data.inherits_class('sdk', d) or (bb.data.getVar('PN', d, 1) == 'libtool-cross')]}
--- /dev/null
+++ b/recipes/libtool/libtool-2.4/do-not-use-sysroot-in-libpath.patch
@@ -0,0 +1,18 @@
+When using sysroot we should append it to libdir which is helpful in cross builds
+as the system is staged in the sysroot. For normal build i.e. when lt_sysroot is not
+set it will still behave same and add -L/usr/lib to relink command
+
+-Khem
+
+Index: libtool-2.4/libltdl/config/ltmain.m4sh
+===================================================================
+--- libtool-2.4.orig/libltdl/config/ltmain.m4sh
++++ libtool-2.4/libltdl/config/ltmain.m4sh
+@@ -6122,7 +6122,6 @@ func_mode_link ()
+ 	      fi
+ 	    else
+ 	      # We cannot seem to hardcode it, guess we'll fake it.
+-	      add_dir="-L$libdir"
+ 	      # Try looking first in the location we're being installed to.
+ 	      if test -n "$inst_prefix_dir"; then
+ 		case $libdir in