diff --git a/usr/src/tools/sgs/libld/Makefile b/usr/src/tools/sgs/libld/Makefile
index 2760ed34dc4b..6897a0b18d70 100644
--- a/usr/src/tools/sgs/libld/Makefile
+++ b/usr/src/tools/sgs/libld/Makefile
@@ -31,12 +31,19 @@ include		$(SGSHOME)/libld/Makefile.com
 
 .KEEP_STATE:
 
+#
+# By using libld's Makefile.com LDLIBS ends up pointing to the proto
+# area and many of the directories of cmd/sgs. As such, we need to reset
+# that and just make sure to find everything relative to the tools proto
+# area.
+#
+LDLIBS =
 CW_LINKER =
 
 CPPFLAGS = $(NATIVE_CPPFLAGS) -DUSE_LIBLD_MALLOC -I$(SRC)/lib/libc/inc \
 		    -I$(SRC)/uts/common/krtld -I$(SRC)/uts/sparc \
 		    $(VAR_LIBLD_CPPFLAGS)
-LDLIBS +=	-L$(ROOTONBLDLIBMACH) -L../libconv -lconv -llddbg -lelf -lc
+LDLIBS +=	-L../libconv -lconv -L$(ROOTONBLDLIBMACH) -llddbg -lelf -lc
 NATIVE_LIBS +=	libc.so
 
 DYNFLAGS +=	$(VERSREF) '-R$$ORIGIN'