diff --git a/package/xterm/xterm.mk b/package/xterm/xterm.mk
index 778b40cbd8..e7afff210d 100644
--- a/package/xterm/xterm.mk
+++ b/package/xterm/xterm.mk
@@ -7,11 +7,19 @@
 XTERM_VERSION = 314
 XTERM_SOURCE = xterm-$(XTERM_VERSION).tgz
 XTERM_SITE = ftp://invisible-island.net/xterm
-XTERM_DEPENDENCIES = ncurses xlib_libXaw
+XTERM_DEPENDENCIES = ncurses xlib_libXaw host-pkgconf
 XTERM_LICENSE = MIT
 XTERM_LICENSE_FILES = version.c
 XTERM_CONF_OPTS = --enable-256-color \
 	--x-includes=$(STAGING_DIR)/usr/include \
 	--x-libraries=$(STAGING_DIR)/usr/lib
 
+ifeq ($(BR2_PACKAGE_XLIB_LIBXFT),y)
+XTERM_DEPENDENCIES += xlib_libXft
+XTERM_CONF_OPTS += --enable-freetype \
+	--with-freetype-config=auto
+else
+XTERM_CONF_OPTS += --disable-freetype
+endif
+
 $(eval $(autotools-package))