--- a/tools/Makefile
+++ b/tools/Makefile
@@ -245,6 +245,7 @@ subdir-all-qemu-xen-dir: qemu-xen-dir-fi
 		$(EXTRA_CFLAGS_QEMU_XEN)" \
 		--extra-ldflags="$(QEMU_UPSTREAM_RPATH)" \
 		--bindir=$(LIBEXEC_BIN) \
+		--sysconfdir=/etc/xen \
 		--datadir=$(SHAREDIR)/qemu-xen \
 		--localstatedir=$(localstatedir) \
 		--docdir=$(LIBEXEC)/share/doc \