--- a/mkoctfile.in
+++ b/mkoctfile.in
@@ -7,15 +7,37 @@
 
 set -e
 
+: ${SED=%OCTAVE_CONF_SED%}
+
 OCTAVE_VERSION=%OCTAVE_CONF_VERSION%
+OCTAVE_PREFIX=%OCTAVE_CONF_PREFIX%
+
+DEFAULT_OCTINCLUDEDIR=%OCTAVE_CONF_OCTINCLUDEDIR%
+DEFAULT_INCLUDEDIR=%OCTAVE_CONF_INCLUDEDIR%
+DEFAULT_OCTLIBDIR=%OCTAVE_CONF_OCTLIBDIR%
+
+if [ -n "$OCTAVE_HOME" ]; then
+  DEFAULT_OCTINCLUDEDIR="`echo $DEFAULT_OCTINCLUDEDIR | $SED "s,^$OCTAVE_CONF_PREFIX,$OCTAVE_HOME,"`"
+  DEFAULT_INCLUDEDIR="`echo $DEFAULT_INCLUDEDIR | $SED "s,^$OCTAVE_CONF_PREFIX,$OCTAVE_HOME,"`"
+  DEFAULT_OCTLIBDIR="`echo $DEFAULT_OCTLIBDIR | $SED "s,^$OCTAVE_CONF_PREFIX,$OCTAVE_HOME,"`"
+fi
+
+: ${OCTINCLUDEDIR=$DEFAULT_OCTINCLUDEDIR}
+: ${INCLUDEDIR=$DEFAULT_INCLUDEDIR}
+: ${OCTLIBDIR=$DEFAULT_OCTLIBDIR}
+
+DEFAULT_INCFLAGS="-I$OCTINCLUDEDIR -I$OCTINCLUDEDIR/octave"
+if [ "$INCLUDEDIR" != /usr/include ]; then
+  DEFAULT_INCFLAGS="$DEFAULT_INCFLAGS -I$INCLUDEDIR"
+fi
+
+DEFAULT_LFLAGS="-L$OCTLIBDIR"
 
 # Default values for these variables are filled in when Octave is
 # compiled. 
 
-: ${SED=%OCTAVE_CONF_SED%}
-
 : ${CPPFLAGS=%OCTAVE_CONF_CPPFLAGS%}
-: ${INCFLAGS=%OCTAVE_CONF_MKOCTFILE_INCFLAGS%}
+: ${INCFLAGS=$DEFAULT_INCFLAGS}
 : ${F2C=%OCTAVE_CONF_F2C%}
 : ${F2CFLAGS=%OCTAVE_CONF_F2CFLAGS%}
 : ${F77=%OCTAVE_CONF_F77%}
@@ -49,7 +71,7 @@
 : ${LD_CXX=%OCTAVE_CONF_LD_CXX%}
 : ${LDFLAGS=%OCTAVE_CONF_LDFLAGS%}
 : ${LD_STATIC_FLAG=%OCTAVE_CONF_LD_STATIC_FLAG%}
-: ${LFLAGS=%OCTAVE_CONF_MKOCTFILE_LFLAGS%}
+: ${LFLAGS=$DEFAULT_LFLAGS}
 
 : ${ALL_FFLAGS="$FFLAGS"}