diff --git a/pkgs/compiler-pkgs/compiler-lib/compiler/commands/exe.rkt b/pkgs/compiler-pkgs/compiler-lib/compiler/commands/exe.rkt
index cdea3a3153..e1241b11f1 100644
--- a/pkgs/compiler-pkgs/compiler-lib/compiler/commands/exe.rkt
+++ b/pkgs/compiler-pkgs/compiler-lib/compiler/commands/exe.rkt
@@ -16,6 +16,7 @@
 (define exe-embedded-flags (make-parameter '("-U" "--")))
 (define exe-embedded-libraries (make-parameter null))
 (define exe-aux (make-parameter null))
+(define exe-embedded-config-path (make-parameter "etc"))
 (define exe-embedded-collects-path (make-parameter null))
 (define exe-embedded-collects-dest (make-parameter #f))
 
@@ -29,6 +30,8 @@
     (gui #t)]
    [("-l" "--launcher") "Generate a launcher"
     (launcher #t)]
+   [("--config-path") path "Set <path> as configuration directory for executable"
+    (exe-embedded-config-path path)]
    [("--collects-path") path "Set <path> as main collects for executable"
     (exe-embedded-collects-path path)]
    [("--collects-dest") dir "Write collection code to <dir>"
@@ -133,6 +136,7 @@
      #:cmdline (exe-embedded-flags)
      #:collects-path (exe-embedded-collects-path)
      #:collects-dest (exe-embedded-collects-dest)
-     #:aux (exe-aux))])
+     #:aux (cons `(config-dir . ,(exe-embedded-config-path))
+                 (exe-aux)))])
   (when (verbose)
     (printf " [output to \"~a\"]\n" dest)))
diff --git a/pkgs/compiler-pkgs/compiler-test/tests/compiler/embed/embed-me6b.rkt b/pkgs/compiler-pkgs/compiler-test/tests/compiler/embed/embed-me6b.rkt
new file mode 100644
index 0000000000..839af8e0b3
--- /dev/null
+++ b/pkgs/compiler-pkgs/compiler-test/tests/compiler/embed/embed-me6b.rkt
@@ -0,0 +1,8 @@
+(module embed-me6b racket/base
+  (with-output-to-file "stdout"
+    (lambda () 
+      (printf "This is 6\n")
+      (with-handlers ([void (lambda (exn) (printf "no etc.ss\n"))])
+	(printf "~a\n" (and (dynamic-require 'racket/fixnum #f) #t))))
+    #:exists 'append))
+
diff --git a/pkgs/compiler-pkgs/compiler-test/tests/compiler/embed/test.rkt b/pkgs/compiler-pkgs/compiler-test/tests/compiler/embed/test.rkt
index e82a2de4cb..a1e8945895 100644
--- a/pkgs/compiler-pkgs/compiler-test/tests/compiler/embed/test.rkt
+++ b/pkgs/compiler-pkgs/compiler-test/tests/compiler/embed/test.rkt
@@ -363,46 +363,64 @@
 	     (path->string (build-path (collection-path "tests" "compiler" "embed") "embed-me1.rkt")))
     (try-exe (mk-dest mred?) "This is 1\n" mred?)
 
-    ;; Check that etc.rkt isn't found if it's not included:
-    (printf ">>not included\n")
-    (system* mzc 
-	     (if mred? "--gui-exe" "--exe")
-	     (path->string (mk-dest mred?))
-	     (path->string (build-path (collection-path "tests" "compiler" "embed") "embed-me6.rkt")))
-    (try-exe (mk-dest mred?) "This is 6\nno etc.ss\n" mred?)
+    (define (check-collection-path prog lib in-main?)
+      ;; Check that etc.rkt isn't found if it's not included:
+      (printf ">>not included\n")
+      (system* mzc 
+               (if mred? "--gui-exe" "--exe")
+               (path->string (mk-dest mred?))
+               (path->string (build-path (collection-path "tests" "compiler" "embed") prog)))
+      (try-exe (mk-dest mred?) "This is 6\nno etc.ss\n" mred?)
 
-    ;; And it is found if it is included:
-    (printf ">>included\n")
-    (system* mzc 
-	     (if mred? "--gui-exe" "--exe")
-	     (path->string (mk-dest mred?))
-	     "++lib" "mzlib/etc.rkt"
-	     (path->string (build-path (collection-path "tests" "compiler" "embed") "embed-me6.rkt")))
-    (try-exe (mk-dest mred?) "This is 6\n#t\n" mred?)
+      ;; And it is found if it is included:
+      (printf ">>included\n")
+      (system* mzc 
+               (if mred? "--gui-exe" "--exe")
+               (path->string (mk-dest mred?))
+               "++lib" lib
+               (path->string (build-path (collection-path "tests" "compiler" "embed") prog)))
+      (try-exe (mk-dest mred?) "This is 6\n#t\n" mred?)
 
-    ;; Or, it's found if we set the collection path:
-    (printf ">>set coll path\n")
-    (system* mzc 
-	     (if mred? "--gui-exe" "--exe")
-	     (path->string (mk-dest mred?))
-	     "--collects-path"
-	     (path->string (find-collects-dir))
-	     (path->string (build-path (collection-path "tests" "compiler" "embed") "embed-me6.rkt")))
-    ;; Don't try a distribution for this one:
-    (try-one-exe (mk-dest mred?) "This is 6\n#t\n" mred?)
+      ;; Or, it's found if we set the collection path and the config path (where the latter
+      ;; finds links for packages):
+      (printf ">>set coll path\n")
+      (system* mzc 
+               (if mred? "--gui-exe" "--exe")
+               (path->string (mk-dest mred?))
+               "--collects-path"
+               (path->string (find-collects-dir))
+               (path->string (build-path (collection-path "tests" "compiler" "embed") prog)))
+      ;; Don't try a distribution for this one:
+      (try-one-exe (mk-dest mred?) (if in-main? "This is 6\n#t\n" "This is 6\nno etc.ss\n") mred?)
 
-    ;; Try --collects-dest mode
-    (printf ">>--collects-dest\n")
-    (system* mzc 
-	     (if mred? "--gui-exe" "--exe")
-	     (path->string (mk-dest mred?))
-	     "++lib" "mzlib/etc.rkt"
-	     "--collects-dest" "cts"
-	     "--collects-path" "cts"
-	     (path->string (build-path (collection-path "tests" "compiler" "embed") "embed-me6.rkt")))
-    (try-exe (mk-dest mred?) "This is 6\n#t\n" mred? void "cts") ; <- cts copied to distribution
-    (delete-directory/files "cts")
-    (test #f system* (mk-dest mred?))
+      ;; Or, it's found if we set the collection path and the config path (where the latter
+      ;; finds links for packages):
+      (printf ">>set coll path plus config\n")
+      (system* mzc 
+               (if mred? "--gui-exe" "--exe")
+               (path->string (mk-dest mred?))
+               "--collects-path"
+               (path->string (find-collects-dir))
+               "--config-path"
+               (path->string (find-config-dir))
+               (path->string (build-path (collection-path "tests" "compiler" "embed") prog)))
+      ;; Don't try a distribution for this one:
+      (try-one-exe (mk-dest mred?) "This is 6\n#t\n" mred?)
+
+      ;; Try --collects-dest mode
+      (printf ">>--collects-dest\n")
+      (system* mzc 
+               (if mred? "--gui-exe" "--exe")
+               (path->string (mk-dest mred?))
+               "++lib" lib
+               "--collects-dest" "cts"
+               "--collects-path" "cts"
+               (path->string (build-path (collection-path "tests" "compiler" "embed") prog)))
+      (try-exe (mk-dest mred?) "This is 6\n#t\n" mred? void "cts") ; <- cts copied to distribution
+      (delete-directory/files "cts")
+      (test #f system* (mk-dest mred?)))
+    (check-collection-path "embed-me6b.rkt" "racket/fixnum.rkt" #t)
+    (check-collection-path "embed-me6.rkt" "mzlib/etc.rkt" #f)
   
     (void)))
 
diff --git a/pkgs/mzscheme-pkgs/mzscheme-lib/compiler/main.rkt b/pkgs/mzscheme-pkgs/mzscheme-lib/compiler/main.rkt
index 4b9166f3c2..86f7eea671 100644
--- a/pkgs/mzscheme-pkgs/mzscheme-lib/compiler/main.rkt
+++ b/pkgs/mzscheme-pkgs/mzscheme-lib/compiler/main.rkt
@@ -56,6 +56,7 @@
 (define exe-embedded-flags (make-parameter '("-U" "--")))
 (define exe-embedded-libraries (make-parameter null))
 (define exe-aux (make-parameter null))
+(define exe-embedded-config-path (make-parameter "etc"))
 (define exe-embedded-collects-path (make-parameter #f))
 (define exe-embedded-collects-dest (make-parameter #f))
 (define exe-dir-add-collects-dirs (make-parameter null))
@@ -196,6 +197,10 @@
      [help-labels
       "--------------------- executable configuration flags ------------------------"]
      [once-each
+      [("--config-path")
+       ,(lambda (f i)
+          (exe-embedded-config-path i))
+       ("Set <path> configuration directory path in --[gui-]exe" "path")]
       [("--collects-path")
        ,(lambda (f i)
           (exe-embedded-collects-path i))
@@ -536,7 +541,8 @@
       #:cmdline (exe-embedded-flags)
       #:collects-path (exe-embedded-collects-path)
       #:collects-dest (exe-embedded-collects-dest)
-      #:aux (exe-aux))
+      #:aux (cons `(config-dir . ,(exe-embedded-config-path))
+                  (exe-aux)))
      (when (compiler:option:somewhat-verbose)
        (printf " [output to \"~a\"]\n" dest)))]
   [(c-mods)
diff --git a/racket/collects/compiler/embed.rkt b/racket/collects/compiler/embed.rkt
index 1ec236486e..a3b8ebef40 100644
--- a/racket/collects/compiler/embed.rkt
+++ b/racket/collects/compiler/embed.rkt
@@ -1411,32 +1411,35 @@
                     (let-values ([(orig-dir name dir?) (split-path 
                                                         (path->complete-path orig-exe))])
                       (update-dll-dir dest (build-path orig-dir dir))))))))
-        (let ([m (or (assq 'config-dir aux)
-                     (and relative? '(config-dir . #f)))]
-              [dest->executable (lambda (dest)
-                                  (if osx?
-                                      (mac-dest->executable dest mred?)
-                                      dest))])
-          (if m
-              (if (cdr m)
-                  (update-config-dir (dest->executable dest) (cdr m))
-                  (when mred?
-                    (cond
-                     [osx?
-                      ;; adjust relative path (since GRacket is off by one):
-                      (update-config-dir (mac-dest->executable dest mred?)
-                                         "../../../etc/")]
-                     [(eq? 'windows (system-type))
-                      (unless keep-exe?
+        (define (adjust-config-dir)
+          (let ([m (or (assq 'config-dir aux)
+                       (and relative? '(config-dir . #f)))]
+                [dest->executable (lambda (dest)
+                                    (if osx?
+                                        (mac-dest->executable dest mred?)
+                                        dest))])
+            (if m
+                (if (cdr m)
+                    (update-config-dir (dest->executable dest) (cdr m))
+                    (when mred?
+                      (cond
+                       [osx?
                         ;; adjust relative path (since GRacket is off by one):
-                        (update-config-dir dest "etc/"))])))
-              ;; Check whether we need an absolute path to config:
-              (let ([dir (get-current-config-dir (dest->executable dest))])
-                (when (relative-path? dir)
-                  (let-values ([(orig-dir name dir?) (split-path 
-                                                      (path->complete-path orig-exe))])
-                    (update-config-dir (dest->executable dest)
-                                       (build-path orig-dir dir)))))))
+                        (update-config-dir (mac-dest->executable dest mred?)
+                                           "../../../etc/")]
+                       [(eq? 'windows (system-type))
+                        (unless keep-exe?
+                          ;; adjust relative path (since GRacket is off by one):
+                          (update-config-dir dest "etc/"))])))
+                ;; Check whether we need an absolute path to config:
+                (let ([dir (get-current-config-dir (dest->executable dest))])
+                  (when (relative-path? dir)
+                    (let-values ([(orig-dir name dir?) (split-path 
+                                                        (path->complete-path orig-exe))])
+                      (update-config-dir (dest->executable dest)
+                                         (build-path orig-dir dir))))))))
+        (unless unix-starter? ; need to delay adjustment for Unix starter; see below
+          (adjust-config-dir))
         (let ([write-module
                (lambda (s)
                  (define pos #f)
@@ -1525,24 +1528,24 @@
                             ;; Unix starter: Maybe ELF, in which case we 
                             ;; can add a proper section
                             (let-values ([(s e dl p)
-					      (if unix-starter?
-						  (add-racket-section 
-						   orig-exe 
-						   dest-exe
-						   (if launcher? #".rackcmdl" #".rackprog")
-						   (lambda (start)
-						     (let ([s (open-output-bytes)])
-						       (define decl-len (write-module s))
-						       (let ([p (file-position s)])
-							 (display (make-starter-cmdline
-								   (make-full-cmdline start 
+                                          (if unix-starter?
+                                              (add-racket-section 
+                                               orig-exe 
+                                               dest-exe
+                                               (if launcher? #".rackcmdl" #".rackprog")
+                                               (lambda (start)
+                                                 (let ([s (open-output-bytes)])
+                                                   (define decl-len (write-module s))
+                                                   (let ([p (file-position s)])
+                                                     (display (make-starter-cmdline
+                                                               (make-full-cmdline start 
                                                                                   (+ start decl-len)
                                                                                   (+ start p)))
-								  s)
-							 (values (get-output-bytes s) decl-len p)))))
-						  (values #f #f #f #f))])
+                                                              s)
+                                                     (values (get-output-bytes s) decl-len p)))))
+                                              (values #f #f #f #f))])
                               (if (and s e)
-				      ;; ELF succeeded:
+                                  ;; ELF succeeded:
                                   (values s (+ s dl) (+ s p) e)
                                   ;; Otherwise, just add to the end of the file:
                                   (let ([start (file-size dest-exe)])
@@ -1550,6 +1553,8 @@
                                       (call-with-output-file* dest-exe write-module 
                                                               #:exists 'append))
                                     (values start decl-end (file-size dest-exe) #f)))))])
+            (when unix-starter?
+              (adjust-config-dir))
             (when verbose?
               (eprintf "Setting command line\n"))
             (let ()