diff --git a/doc/how_to_build_linux.md b/doc/how_to_build_linux.md
index e204de3..549f986 100644
--- a/doc/how_to_build_linux.md
+++ b/doc/how_to_build_linux.md
@@ -65,7 +65,7 @@ zypper in boost-devel git cmake gcc-c++ freeglut-devel freetype2-devel glew-deve
 $ git clone https://github.com/opentoonz/opentoonz
 ```
 
-### Installation of the stuff directory
+### Copying the stuff directory
 
 TODO: some parts should really be installed in $prefix/ instead... and some other in various cache or user-local places.
 cf. https://specifications.freedesktop.org/basedir-spec/basedir-spec-latest.html
@@ -141,6 +141,21 @@ You can now run the application:
 
 ```
 $ cd bin
-$ LD_LIBRARY_PATH=image:toonzlib:toonzfarm/tfarm:tnzbase:tnztools:stdfx:sound:tnzcore:tnzext:colorfx:toonzqt toonz/OpenToonz_1.0
+$ LD_LIBRARY_PATH=./lib/opentoonz:$LD_LIBRARY_PATH ./bin/OpenToonz_1.0
 ```
 
+### Performing a system installation
+
+The steps above show how to run OpenToonz from the build directory,
+however you may wish to install OpenToonz onto your system.
+
+OpenToonz will install to `/opt/opentoonz` by default, to do this run:
+
+```
+$ sudo make install
+```
+
+Then you can launch OpenToonz by running `/opt/opentoonz/bin/opentoonz`.
+
+You can change the installation path by modifying the `CMAKE_INSTALL_PREFIX` CMake variable.
+
diff --git a/toonz/sources/CMakeLists.txt b/toonz/sources/CMakeLists.txt
index a321fff..92964dd 100644
--- a/toonz/sources/CMakeLists.txt
+++ b/toonz/sources/CMakeLists.txt
@@ -322,11 +322,15 @@ elseif(APPLE)
 elseif(UNIX)
     set(EXECUTABLE_OUTPUT_PATH ${CMAKE_BINARY_DIR}/bin)
 
-    # For now put lib and runtime in the same path
-    # since its convenient to for launching.
-    set(CMAKE_ARCHIVE_OUTPUT_DIRECTORY ${CMAKE_BINARY_DIR}/lib)
-    set(CMAKE_LIBRARY_OUTPUT_DIRECTORY ${CMAKE_BINARY_DIR}/bin)
+    # Mirror relative bin/lib location for installation
+    # so the generated shell script works in both cases.
+    set(CMAKE_ARCHIVE_OUTPUT_DIRECTORY ${CMAKE_BINARY_DIR}/lib/opentoonz)
+    set(CMAKE_LIBRARY_OUTPUT_DIRECTORY ${CMAKE_BINARY_DIR}/lib/opentoonz)
     set(CMAKE_RUNTIME_OUTPUT_DIRECTORY ${CMAKE_BINARY_DIR}/bin)
+
+    if(CMAKE_INSTALL_PREFIX_INITIALIZED_TO_DEFAULT)
+        set(CMAKE_INSTALL_PREFIX "/opt/opentoonz" CACHE PATH "OpenToonz install prefix" FORCE)
+    endif()
 endif()
 
 if(MSVC AND MSVC_VERSION EQUAL 1800)
diff --git a/toonz/sources/toonz/CMakeLists.txt b/toonz/sources/toonz/CMakeLists.txt
index c7d50c7..f5d9b1d 100644
--- a/toonz/sources/toonz/CMakeLists.txt
+++ b/toonz/sources/toonz/CMakeLists.txt
@@ -405,4 +405,84 @@ if(APPLE)
     add_custom_command(TARGET OpenToonz_${VERSION} POST_BUILD COMMAND ${CMAKE_COMMAND} -E make_directory ${CMAKE_CURRENT_BINARY_DIR}/OpenToonz_${VERSION}.app/Contents/Resources)
     add_custom_command(TARGET OpenToonz_${VERSION} POST_BUILD COMMAND ${CMAKE_COMMAND} -E make_directory ${CMAKE_CURRENT_BINARY_DIR}/qss)
     add_custom_command(TARGET OpenToonz_${VERSION} POST_BUILD COMMAND ${CMAKE_COMMAND} -E copy ${CMAKE_SOURCE_DIR}/../install/SystemVar.ini ${CMAKE_CURRENT_BINARY_DIR}/OpenToonz_${VERSION}.app/Contents/Resources)
+elseif(UNIX)
+    # Setup files on Linux/Unix platform.
+    # not essential since the binary can run in-place,
+    # but useful for package managers.
+    #
+    # Note that its assumed the destination can be either
+    # - /opt/opentoonz
+    # - /usr
+    install(
+        TARGETS
+            OpenToonz_${VERSION}
+        DESTINATION bin
+    )
+
+    # Shell script that copies files to the home directory as needed
+    # and sets the library preload path.
+    file(WRITE ${CMAKE_BINARY_DIR}/bin/opentoonz
+"#!/bin/sh
+OPENTOONZ_BASE=\$(dirname \"\$0\")/..
+
+if [ ! -d \$HOME/.config/OpenToonz ]; then
+    mkdir -p \$HOME/.config/OpenToonz
+fi
+
+if [ ! -d \$HOME/.config/OpenToonz/stuff ]; then
+    cp -r \$OPENTOONZ_BASE/share/opentoonz/stuff \$HOME/.config/OpenToonz
+fi
+
+if [ ! -e \$HOME/.config/OpenToonz/SystemVar.ini ]; then
+    cat << EOF > $HOME/.config/OpenToonz/SystemVar.ini
+[General]
+OPENTOONZROOT="\$HOME/.config/OpenToonz/stuff"
+OpenToonzPROFILES="\$HOME/.config/OpenToonz/stuff/profiles"
+TOONZCACHEROOT="\$HOME/.config/OpenToonz/stuff/cache"
+TOONZCONFIG="\$HOME/.config/OpenToonz/stuff/config"
+TOONZFXPRESETS="\$HOME/.config/OpenToonz/stuff/projects/fxs"
+TOONZLIBRARY="\$HOME/.config/OpenToonz/stuff/projects/library"
+TOONZPROFILES="\$HOME/.config/OpenToonz/stuff/profiles"
+TOONZPROJECTS="$HOME/.config/OpenToonz/stuff/projects"
+TOONZROOT="\$HOME/.config/OpenToonz/stuff"
+TOONZSTUDIOPALETTE="\$HOME/.config/OpenToonz/stuff/projects/studiopalette"
+EOF
+fi
+
+export LD_LIBRARY_PATH=\${OPENTOONZ_BASE}/lib/opentoonz:\${LD_LIBRARY_PATH}
+
+exec \$OPENTOONZ_BASE/bin/OpenToonz_${VERSION} \"\$@\"
+")
+    # only needed for executing without installing
+    execute_process(COMMAND chmod +x ${CMAKE_BINARY_DIR}/bin/opentoonz)
+
+    install(
+        PROGRAMS
+            ${CMAKE_BINARY_DIR}/bin/opentoonz
+        DESTINATION bin
+    )
+
+    install(
+        FILES
+            "$<TARGET_FILE:tnzcore>"
+            "$<TARGET_FILE:tnzbase>"
+            "$<TARGET_FILE:toonzlib>"
+            "$<TARGET_FILE:colorfx>"
+            "$<TARGET_FILE:tnzext>"
+            "$<TARGET_FILE:image>"
+            "$<TARGET_FILE:sound>"
+            "$<TARGET_FILE:toonzqt>"
+            "$<TARGET_FILE:tnztools>"
+            "$<TARGET_FILE:tnzstdfx>"
+            "$<TARGET_FILE:tfarm>"
+        DESTINATION lib/opentoonz
+    )
+
+    install(
+        DIRECTORY
+            ${CMAKE_SOURCE_DIR}/../../stuff
+        DESTINATION share/opentoonz
+    )
+
 endif()
+