diff --git a/kerberos5/lib/libtelnet/Makefile b/kerberos5/lib/libtelnet/Makefile
index d6f4031a411..35e936e8de4 100644
--- a/kerberos5/lib/libtelnet/Makefile
+++ b/kerberos5/lib/libtelnet/Makefile
@@ -2,6 +2,10 @@
 
 LIB=		telnet
 
+INTERNALLIB=	yes
+INTERNALSTATICLIB=yes
+NOPIC=		yes
+
 SRCS=		genget.c getent.c misc.c encrypt.c auth.c kerberos.c \
 		enc_des.c pk.c sra.c
 
@@ -9,9 +13,8 @@ CFLAGS+=	-DHAS_CGETENT -DENCRYPTION -DDES_ENCRYPTION -DAUTHENTICATION \
 		-DKRB4 -DSRA -I${TELNETDIR} \
 		-I${KRB4DIR}/lib/krb
 
-NOPIC=		yes
-
-INCLUDES=	${TELNETDIR}/arpa/telnet.h 
+INCS=		${TELNETDIR}/arpa/telnet.h 
+INCDIR=		/usr/include/arpa
 
 #
 # Remove obsolete shared libraries, if any.  We don't bother moving them
diff --git a/kerberos5/libexec/telnetd/Makefile b/kerberos5/libexec/telnetd/Makefile
index 996add453bd..6b35fa4dffe 100644
--- a/kerberos5/libexec/telnetd/Makefile
+++ b/kerberos5/libexec/telnetd/Makefile
@@ -15,7 +15,7 @@ SRCS=		global.c slc.c state.c sys_term.c telnetd.c \
 
 DPADD=		${LIBUTIL} ${LIBTERMCAP} ${LIBTELNET} ${LIBCRYPTO} ${LIBKRB} \
 		${LIBCRYPT} ${LIBCOM_ERR}
-LDADD=		-lutil -ltermcap -L${TELNETOBJDIR} -ltelnet -lcrypto \
+LDADD=		-lutil -ltermcap ${LIBTELNET} -lcrypto \
 		-L${KRBOBJDIR} -lkrb -lcrypt -lcom_err -lmp
 
 .include <bsd.prog.mk>
diff --git a/kerberos5/usr.bin/telnet/Makefile b/kerberos5/usr.bin/telnet/Makefile
index e3c97f58099..8189235f0d0 100644
--- a/kerberos5/usr.bin/telnet/Makefile
+++ b/kerberos5/usr.bin/telnet/Makefile
@@ -11,7 +11,7 @@ SRCS=		authenc.c commands.c main.c network.c ring.c sys_bsd.c \
 
 DPADD=		${LIBTERMCAP} ${LIBTELNET} ${LIBCRYPTO} ${LIBKRB} ${LIBCRYPT} \
 		${LIBCOM_ERR} ${LIBIPSEC}
-LDADD=		-ltermcap -L${TELNETOBJDIR} -ltelnet -lcrypto \
+LDADD=		-ltermcap ${LIBTELNET} -lcrypto \
 		-L${KRBOBJDIR} -lkrb -lcrypt -lcom_err -lmp -lipsec
 
 .include <bsd.prog.mk>
diff --git a/kerberosIV/Makefile.inc b/kerberosIV/Makefile.inc
index 76e419892e8..e4157926530 100644
--- a/kerberosIV/Makefile.inc
+++ b/kerberosIV/Makefile.inc
@@ -64,9 +64,9 @@ SLOBJDIR=	${.CURDIR}/../../lib/libsl
 .endif
 
 .if exists(${.OBJDIR}/../../lib/libtelnet)
-TELNETOBJDIR=	${.OBJDIR}/../../lib/libtelnet
+LIBTELNET=	${.OBJDIR}/../../lib/libtelnet/libtelnet.a
 .else
-TELNETOBJDIR=	${.CURDIR}/../../lib/libtelnet
+LIBTELNET=	${.CURDIR}/../../lib/libtelnet/libtelnet.a
 .endif
 
 CFLAGS+= -I${.CURDIR}/../../include -Wall -DHAVE_CONFIG_H \
diff --git a/kerberosIV/lib/libtelnet/Makefile b/kerberosIV/lib/libtelnet/Makefile
index d6f4031a411..35e936e8de4 100644
--- a/kerberosIV/lib/libtelnet/Makefile
+++ b/kerberosIV/lib/libtelnet/Makefile
@@ -2,6 +2,10 @@
 
 LIB=		telnet
 
+INTERNALLIB=	yes
+INTERNALSTATICLIB=yes
+NOPIC=		yes
+
 SRCS=		genget.c getent.c misc.c encrypt.c auth.c kerberos.c \
 		enc_des.c pk.c sra.c
 
@@ -9,9 +13,8 @@ CFLAGS+=	-DHAS_CGETENT -DENCRYPTION -DDES_ENCRYPTION -DAUTHENTICATION \
 		-DKRB4 -DSRA -I${TELNETDIR} \
 		-I${KRB4DIR}/lib/krb
 
-NOPIC=		yes
-
-INCLUDES=	${TELNETDIR}/arpa/telnet.h 
+INCS=		${TELNETDIR}/arpa/telnet.h 
+INCDIR=		/usr/include/arpa
 
 #
 # Remove obsolete shared libraries, if any.  We don't bother moving them
diff --git a/kerberosIV/libexec/telnetd/Makefile b/kerberosIV/libexec/telnetd/Makefile
index 996add453bd..6b35fa4dffe 100644
--- a/kerberosIV/libexec/telnetd/Makefile
+++ b/kerberosIV/libexec/telnetd/Makefile
@@ -15,7 +15,7 @@ SRCS=		global.c slc.c state.c sys_term.c telnetd.c \
 
 DPADD=		${LIBUTIL} ${LIBTERMCAP} ${LIBTELNET} ${LIBCRYPTO} ${LIBKRB} \
 		${LIBCRYPT} ${LIBCOM_ERR}
-LDADD=		-lutil -ltermcap -L${TELNETOBJDIR} -ltelnet -lcrypto \
+LDADD=		-lutil -ltermcap ${LIBTELNET} -lcrypto \
 		-L${KRBOBJDIR} -lkrb -lcrypt -lcom_err -lmp
 
 .include <bsd.prog.mk>
diff --git a/kerberosIV/usr.bin/telnet/Makefile b/kerberosIV/usr.bin/telnet/Makefile
index e3c97f58099..8189235f0d0 100644
--- a/kerberosIV/usr.bin/telnet/Makefile
+++ b/kerberosIV/usr.bin/telnet/Makefile
@@ -11,7 +11,7 @@ SRCS=		authenc.c commands.c main.c network.c ring.c sys_bsd.c \
 
 DPADD=		${LIBTERMCAP} ${LIBTELNET} ${LIBCRYPTO} ${LIBKRB} ${LIBCRYPT} \
 		${LIBCOM_ERR} ${LIBIPSEC}
-LDADD=		-ltermcap -L${TELNETOBJDIR} -ltelnet -lcrypto \
+LDADD=		-ltermcap ${LIBTELNET} -lcrypto \
 		-L${KRBOBJDIR} -lkrb -lcrypt -lcom_err -lmp -lipsec
 
 .include <bsd.prog.mk>
diff --git a/lib/libtelnet/Makefile b/lib/libtelnet/Makefile
index 9e791748797..8ee712971c5 100644
--- a/lib/libtelnet/Makefile
+++ b/lib/libtelnet/Makefile
@@ -2,9 +2,13 @@
 # $FreeBSD$
 
 LIB=	telnet
+
+INTERNALLIB=yes
+INTERNALSTATICLIB=yes
+NOPIC=	yes
+
 SRCS=	genget.c getent.c misc.c
 CFLAGS+= -DHAS_CGETENT
-NOPIC=	true
 
 #
 # Remove obsolete shared libraries, if any.  We don't bother moving them
diff --git a/libexec/telnetd/Makefile b/libexec/telnetd/Makefile
index 20acad94933..f366f536072 100644
--- a/libexec/telnetd/Makefile
+++ b/libexec/telnetd/Makefile
@@ -9,8 +9,15 @@ CFLAGS+=-I${.CURDIR}/../../lib
 CFLAGS+=-DINET6
 SRCS=	global.c slc.c state.c sys_term.c telnetd.c \
 	termstat.c utility.c
+
+.if exists(${.OBJDIR}/../../lib/libtelnet)
+LIBTELNET=	${.OBJDIR}/../../lib/libtelnet/libtelnet.a
+.else
+LIBTELNET=	${.CURDIR}/../../lib/libtelnet/libtelnet.a
+.endif
+
 DPADD=	${LIBUTIL} ${LIBTERMCAP} ${LIBTELNET}
-LDADD=	-lutil -ltermcap -ltelnet
+LDADD=	-lutil -ltermcap ${LIBTELNET}
 MAN=	telnetd.8
 
 .include <bsd.prog.mk>
diff --git a/secure/Makefile.inc b/secure/Makefile.inc
index ca5d1f4b7d5..9770b35b07b 100644
--- a/secure/Makefile.inc
+++ b/secure/Makefile.inc
@@ -3,6 +3,11 @@
 DISTRIBUTION?=crypto
 
 TELNETDIR=	${.CURDIR}/../../../crypto/telnet
+.if exists(${.OBJDIR}/../../lib/libtelnet)
+LIBTELNET=	${.OBJDIR}/../../lib/libtelnet/libtelnet.a
+.else
+LIBTELNET=	${.CURDIR}/../../lib/libtelnet/libtelnet.a
+.endif
 
 .if exists(${.CURDIR}/../../lib/libcrypt/obj)
 CRYPTOBJDIR=	${.CURDIR}/../../lib/libcrypt/obj
diff --git a/secure/lib/libtelnet/Makefile b/secure/lib/libtelnet/Makefile
index 23a0d0e4380..10760d51b87 100644
--- a/secure/lib/libtelnet/Makefile
+++ b/secure/lib/libtelnet/Makefile
@@ -2,14 +2,16 @@
 
 LIB=		telnet
 
+INTERNALLIB=	yes
+INTERNALSTATICLIB=yes
+NOPIC=		yes
+
 SRCS=		genget.c getent.c misc.c encrypt.c auth.c \
 		enc_des.c pk.c
 
 CFLAGS+=        -DHAS_CGETENT -DENCRYPTION -DDES_ENCRYPTION -DAUTHENTICATION \
                 -I${TELNETDIR}
 
-NOPIC=          yes
-
 INCS=		${TELNETDIR}/arpa/telnet.h
 INCDIR=		/usr/include/arpa
 
diff --git a/secure/libexec/telnetd/Makefile b/secure/libexec/telnetd/Makefile
index 20ec331dc62..7dffb39d699 100644
--- a/secure/libexec/telnetd/Makefile
+++ b/secure/libexec/telnetd/Makefile
@@ -15,7 +15,7 @@ SRCS=		global.c slc.c state.c sys_term.c telnetd.c \
 
 DPADD=		${LIBUTIL} ${LIBTERMCAP} ${LIBTELNET} ${LIBCRYPTO} ${LIBMP} \
                 ${LIBCRYPT}
-LDADD=		-lutil -ltermcap -ltelnet -lcrypto -lcrypt -lmp
+LDADD=		-lutil -ltermcap ${LIBTELNET} -lcrypto -lcrypt -lmp
 
 .include <bsd.prog.mk>
 
diff --git a/secure/usr.bin/telnet/Makefile b/secure/usr.bin/telnet/Makefile
index 0e9db53c08e..3e6aae23440 100644
--- a/secure/usr.bin/telnet/Makefile
+++ b/secure/usr.bin/telnet/Makefile
@@ -11,7 +11,7 @@ SRCS=		authenc.c commands.c main.c network.c ring.c sys_bsd.c \
 
 DPADD=		${LIBTERMCAP} ${LIBTELNET} ${LIBCRYPTO} ${LIBCRYPT} ${LIBMP}
 DPADD+=		${LIBIPSEC}
-LDADD=		-ltermcap -ltelnet -lcrypto -lcrypt -lmp
+LDADD=		-ltermcap ${LIBTELNET} -lcrypto -lcrypt -lmp
 LDADD+=		-lipsec
 
 .include <bsd.prog.mk>
diff --git a/share/mk/bsd.libnames.mk b/share/mk/bsd.libnames.mk
index b53af03ed26..87981809287 100644
--- a/share/mk/bsd.libnames.mk
+++ b/share/mk/bsd.libnames.mk
@@ -89,7 +89,6 @@ LIBSS?=		${DESTDIR}${LIBDIR}/libss.a
 LIBSSL?=	${DESTDIR}${LIBDIR}/libssl.a	# XXX in secure dist, not base
 LIBSTDCPLUSPLUS?= ${DESTDIR}${LIBDIR}/libstdc++.a
 LIBTACPLUS?=	${DESTDIR}${LIBDIR}/libtacplus.a
-LIBTELNET?=	${DESTDIR}${LIBDIR}/libtelnet.a
 LIBTERMCAP?=	${DESTDIR}${LIBDIR}/libtermcap.a
 LIBTERMLIB?=	"don't use LIBTERMLIB, use LIBTERMCAP"
 LIBUTIL?=	${DESTDIR}${LIBDIR}/libutil.a
diff --git a/usr.bin/telnet/Makefile b/usr.bin/telnet/Makefile
index 7ff18c8da0c..0458220ca37 100644
--- a/usr.bin/telnet/Makefile
+++ b/usr.bin/telnet/Makefile
@@ -41,8 +41,14 @@ CFLAGS+=-DENV_HACK
 CFLAGS+=-DSKEY
 CFLAGS+=-I${.CURDIR}/../../lib
 
+.if exists(${.OBJDIR}/../../lib/libtelnet)
+LIBTELNET=	${.OBJDIR}/../../lib/libtelnet/libtelnet.a
+.else
+LIBTELNET=	${.CURDIR}/../../lib/libtelnet/libtelnet.a
+.endif
+
 DPADD=	${LIBTERMCAP} ${LIBTELNET}
-LDADD=	-ltermcap -ltelnet
+LDADD=	-ltermcap ${LIBTELNET}
 
 .if !defined(RELEASE_CRUNCH)
 CFLAGS+=-DINET6