diff --git a/package/gpsd/gpsd.mk b/package/gpsd/gpsd.mk
index 79d2ccfeaa..9268b2fe6b 100644
--- a/package/gpsd/gpsd.mk
+++ b/package/gpsd/gpsd.mk
@@ -25,7 +25,8 @@ GPSD_SCONS_OPTS = \
 	strip=no \
 	python=no \
 	qt=no \
-	ntpshm=yes
+	ntpshm=yes \
+	systemd=$(if $(BR2_INIT_SYSTEMD),yes,no)
 
 ifeq ($(BR2_PACKAGE_NCURSES),y)
 GPSD_DEPENDENCIES += ncurses
@@ -214,7 +215,7 @@ define GPSD_INSTALL_TARGET_CMDS
 		DESTDIR=$(TARGET_DIR) \
 		$(HOST_DIR)/bin/python2 $(SCONS) \
 		$(GPSD_SCONS_OPTS) \
-		install)
+		$(if $(BR2_PACKAGE_HAS_UDEV),udev-install,install))
 endef
 
 define GPSD_INSTALL_INIT_SYSV
@@ -222,6 +223,14 @@ define GPSD_INSTALL_INIT_SYSV
 	$(SED) 's,^DEVICES=.*,DEVICES=$(BR2_PACKAGE_GPSD_DEVICES),' $(TARGET_DIR)/etc/init.d/S50gpsd
 endef
 
+# systemd unit files are installed automatically, but need to update the
+# /usr/local path references in the provided files to /usr.
+define GPSD_INSTALL_INIT_SYSTEMD
+	$(SED) 's%/usr/local%/usr%' \
+		$(TARGET_DIR)/usr/lib/systemd/system/gpsd.service \
+		$(TARGET_DIR)/usr/lib/systemd/system/gpsdctl@.service
+endef
+
 define GPSD_INSTALL_STAGING_CMDS
 	(cd $(@D); \
 		$(GPSD_SCONS_ENV) \
@@ -231,16 +240,10 @@ define GPSD_INSTALL_STAGING_CMDS
 		install)
 endef
 
-# After installing the udev rule, make it writable so that this
+# After the udev rule is installed, make it writable so that this
 # package can be re-built/re-installed.
 ifeq ($(BR2_PACKAGE_HAS_UDEV),y)
 define GPSD_INSTALL_UDEV_RULES
-	(cd $(@D); \
-		$(GPSD_SCONS_ENV) \
-		DESTDIR=$(TARGET_DIR) \
-		$(HOST_DIR)/bin/python2 $(SCONS) \
-		$(GPSD_SCONS_OPTS) \
-		udev-install)
 	chmod u+w $(TARGET_DIR)/lib/udev/rules.d/25-gpsd.rules
 endef