diff --git a/package/openvmtools/openvmtools.mk b/package/openvmtools/openvmtools.mk
index e0ec6d6b34..f8230b2cae 100644
--- a/package/openvmtools/openvmtools.mk
+++ b/package/openvmtools/openvmtools.mk
@@ -67,9 +67,9 @@ endef
 
 define OPENVMTOOLS_INSTALL_INIT_SYSTEMD
 	$(INSTALL) -D -m 644 package/openvmtools/vmtoolsd.service \
-		$(TARGET_DIR)/etc/systemd/system/vmtoolsd.service
+		$(TARGET_DIR)/usr/lib/systemd/system/vmtoolsd.service
 	mkdir -p $(TARGET_DIR)/etc/systemd/system/multi-user.target.wants
-	ln -fs ../vmtoolsd.service \
+	ln -fs ../../../../usr/lib/systemd/system/vmtoolsd.service \
 		$(TARGET_DIR)/etc/systemd/system/multi-user.target.wants/vmtoolsd.service
 endef