diff --git a/makepanda/makepandacore.py b/makepanda/makepandacore.py
index c766dc946b..95af98b493 100644
--- a/makepanda/makepandacore.py
+++ b/makepanda/makepandacore.py
@@ -2481,6 +2481,10 @@ def SetupBuildEnvironment(compiler):
             dyldpath.insert(0, os.path.join(builtdir, 'lib'))
             os.environ["DYLD_LIBRARY_PATH"] = os.pathsep.join(dyldpath)
 
+            # OS X 10.11 removed DYLD_LIBRARY_PATH, but we still need to pass
+            # on our lib directory to ppackage, so add it to PATH instead.
+            os.environ["PATH"] = os.path.join(builtdir, 'lib') + ':' + os.environ.get("PATH", "")
+
         # Workaround around compile issue on PCBSD
         if (os.path.exists("/usr/PCBSD")):
             os.environ["LD_LIBRARY_PATH"] += os.pathsep + "/usr/PCBSD/local/lib"