diff --git a/tools/encrypt_fw/Makefile b/tools/encrypt_fw/Makefile
index 96dff23..60bd8ea 100644
--- a/tools/encrypt_fw/Makefile
+++ b/tools/encrypt_fw/Makefile
@@ -1,5 +1,5 @@
 #
-# Copyright (c) 2019-2020, Linaro Limited. All rights reserved.
+# Copyright (c) 2019-2022, Linaro Limited. All rights reserved.
 #
 # SPDX-License-Identifier: BSD-3-Clause
 #
@@ -39,7 +39,14 @@
 # Make soft links and include from local directory otherwise wrong headers
 # could get pulled in from firmware tree.
 INC_DIR := -I ./include -I ../../include/tools_share -I ${OPENSSL_DIR}/include
-LIB_DIR := -L ${OPENSSL_DIR}/lib
+
+# Include library directories where OpenSSL library files are located.
+# For a normal installation (i.e.: when ${OPENSSL_DIR} = /usr or
+# /usr/local), binaries are located under the ${OPENSSL_DIR}/lib/
+# directory. However, for a local build of OpenSSL, the built binaries are
+# located under the main project directory (i.e.: ${OPENSSL_DIR}, not
+# ${OPENSSL_DIR}/lib/).
+LIB_DIR := -L ${OPENSSL_DIR}/lib -L ${OPENSSL_DIR}
 LIB := -lssl -lcrypto
 
 HOSTCC ?= gcc