diff --git a/configure.ac b/configure.ac
index 28d94a62..c5b0d23a 100644
--- a/configure.ac
+++ b/configure.ac
@@ -217,16 +217,16 @@ tinc_READLINE
 tinc_ZLIB
 tinc_LZO
 
-if test "$with_libgcrypt" = yes; then
+if test "x$with_libgcrypt" != "xno"; then
 	gcrypt=true
-	AM_PATH_LIBGCRYPT([1.4.0], [], [])
+	tinc_LIBGCRYPT
 else
 	openssl=true
 	tinc_OPENSSL
 fi
 	
 AM_CONDITIONAL(OPENSSL, test -n "$openssl")
-AM_CONDITIONAL(GCRYPT, test "$gcrypt" = true)
+AM_CONDITIONAL(GCRYPT, test -n "$gcrypt")
 
 dnl Check if support for jumbograms is requested 
 AC_ARG_ENABLE(jumbograms,
diff --git a/m4/libgcrypt.m4 b/m4/libgcrypt.m4
new file mode 100644
index 00000000..01c7478f
--- /dev/null
+++ b/m4/libgcrypt.m4
@@ -0,0 +1,33 @@
+dnl Check to find the libgcrypt headers/libraries
+
+AC_DEFUN([tinc_LIBGCRYPT],
+[
+  AC_ARG_WITH(libgcrypt,
+    AS_HELP_STRING([--with-libgcrypt=DIR], [libgcrypt base directory, or:]),
+    [libgcrypt="$withval"
+     CPPFLAGS="$CPPFLAGS -I$withval/include"
+     LDFLAGS="$LDFLAGS -L$withval/lib"]
+  )
+
+  AC_ARG_WITH(libgcrypt-include,
+    AS_HELP_STRING([--with-libgcrypt-include=DIR], [libgcrypt headers directory (without trailing /libgcrypt)]),
+    [libgcrypt_include="$withval"
+     CPPFLAGS="$CPPFLAGS -I$withval"]
+  )
+
+  AC_ARG_WITH(libgcrypt-lib,
+    AS_HELP_STRING([--with-libgcrypt-lib=DIR], [libgcrypt library directory]),
+    [libgcrypt_lib="$withval"
+     LDFLAGS="$LDFLAGS -L$withval"]
+  )
+
+  AC_CHECK_HEADERS([gcrypt.h],
+    [],
+    [AC_MSG_ERROR([libgcrypt header files not found.]); break]
+  )
+
+  AC_CHECK_LIB(gcrypt, gcry_cipher_encrypt,
+    [LIBS="-lgcrypt $LIBS"],
+    [AC_MSG_ERROR([libgcrypt libraries not found.])]
+  )
+])
diff --git a/src/Makefile.am b/src/Makefile.am
index ccb966ca..64c845d6 100644
--- a/src/Makefile.am
+++ b/src/Makefile.am
@@ -197,7 +197,7 @@ endif
 tinc_LDADD = $(READLINE_LIBS) $(CURSES_LIBS)
 sptps_speed_LDADD = -lrt
 
-LIBS = @LIBS@ @LIBGCRYPT_LIBS@
+LIBS = @LIBS@
 
 if TUNEMU
 LIBS += -lpcap