diff --git a/cmd/ipfs/dist/install.sh b/cmd/ipfs/dist/install.sh
index fb26a3aae..caeca7e5e 100755
--- a/cmd/ipfs/dist/install.sh
+++ b/cmd/ipfs/dist/install.sh
@@ -3,7 +3,9 @@
 # Installation script for ipfs. It tries to move $bin in one of the
 # directories stored in $binpaths.
 
-bin=ipfs
+INSTALL_DIR=`dirname $0`
+
+bin=$INSTALL_DIR/ipfs
 binpaths="/usr/local/bin /usr/bin"
 
 # This variable contains a nonzero length string in case the script fails