diff --git a/racket/collects/setup/dirs.rkt b/racket/collects/setup/dirs.rkt
index ed953d61bc..4d93a7e25f 100644
--- a/racket/collects/setup/dirs.rkt
+++ b/racket/collects/setup/dirs.rkt
@@ -191,7 +191,9 @@
    (combine-search
     (to-path (hash-ref (force host-config) 'lib-search-dirs #f))
     (list (find-user-lib-dir)
-          (build-path
-           (exe-relative-path->complete-path (find-system-path 'host-collects-dir))
-           'up
-           "lib")))))
+          (let ([coll-dir (exe-relative-path->complete-path
+                           (find-system-path 'host-collects-dir))])
+            (or (let ([p (hash-ref (force host-config) 'lib-dir #f)])
+                  (and p
+                       (path->complete-path p coll-dir)))
+                (build-path coll-dir 'up "lib")))))))