diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1c5ff2d0368..92e1ccc5fb7 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -17,9 +17,9 @@ This is a bug-fix release.
 ### Fixed
 
 * Resolved an issue with Compute Follows Data inconsistency in `dpnp.extract` function [#2172](https://github.com/IntelPython/dpnp/pull/2172)
+* Resolves an import error when using `dpnp` in virtual environment on Linux [#2199](https://github.com/IntelPython/dpnp/pull/2199)
 * Resolved a compilation error when building with DPC++ 2025.1 compiler [#2211](https://github.com/IntelPython/dpnp/pull/2211)
 
-
 ## [0.16.0] - 10/14/2024
 
 This release reaches an important milestone by making offloading fully asynchronous. Calls to `dpnp` submit tasks for execution to DPC++ runtime and return without waiting for execution of these tasks to finish. The sequential semantics a user comes to expect from execution of Python script is preserved though.
diff --git a/CMakeLists.txt b/CMakeLists.txt
index 45e2ffb51c4..8e2b260cb39 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -6,8 +6,9 @@ project(dpnp
   DESCRIPTION "NumPy-like API accelerated by SYCL."
 )
 
-option(DPNP_GENERATE_COVERAGE "Enable build DPNP with coverage instrumentation" FALSE)
-option(DPNP_BACKEND_TESTS "Enable building of DPNP backend test suite" FALSE)
+option(DPNP_GENERATE_COVERAGE "Enable build DPNP with coverage instrumentation" OFF)
+option(DPNP_BACKEND_TESTS "Enable building of DPNP backend test suite" OFF)
+option(DPNP_WITH_REDIST "Build DPNP assuming DPC++ redistributable is installed into Python prefix" OFF)
 
 set(CMAKE_CXX_STANDARD 17)
 set(CMAKE_CXX_STANDARD_REQUIRED True)
diff --git a/conda-recipe/bld.bat b/conda-recipe/bld.bat
index 922b6949d2f..3dcdf754e27 100644
--- a/conda-recipe/bld.bat
+++ b/conda-recipe/bld.bat
@@ -16,7 +16,7 @@ if DEFINED OVERRIDE_INTEL_IPO (
    set "SKBUILD_ARGS=%SKBUILD_ARGS% -DCMAKE_INTERPROCEDURAL_OPTIMIZATION:BOOL=FALSE"
 )
 
-FOR %%V IN (14.0.0 14 15.0.0 15 16.0.0 16 17.0.0 17) DO @(
+FOR %%V IN (17.0.0 17 18.0.0 18 19.0.0 19) DO @(
   REM set DIR_HINT if directory exists
   IF EXIST "%BUILD_PREFIX%\Library\lib\clang\%%V\" (
     SET "SYCL_INCLUDE_DIR_HINT=%BUILD_PREFIX%\Library\lib\clang\%%V"
diff --git a/conda-recipe/build.sh b/conda-recipe/build.sh
index fa4b5a1c6e6..d4523cae7be 100755
--- a/conda-recipe/build.sh
+++ b/conda-recipe/build.sh
@@ -1,7 +1,7 @@
 #!/bin/bash
 
 # This is necessary to help DPC++ find Intel libraries such as SVML, IRNG, etc in build prefix
-export LD_LIBRARY_PATH="$LD_LIBRARY_PATH:${BUILD_PREFIX}/lib"
+export LIBRARY_PATH="$LIBRARY_PATH:${BUILD_PREFIX}/lib"
 
 # Intel LLVM must cooperate with compiler and sysroot from conda
 echo "--gcc-toolchain=${BUILD_PREFIX} --sysroot=${BUILD_PREFIX}/${HOST}/sysroot -target ${HOST}" > icpx_for_conda.cfg
@@ -18,6 +18,7 @@ export DPL_ROOT_HINT=$PREFIX
 export MKL_ROOT_HINT=$PREFIX
 SKBUILD_ARGS=(-- "-DCMAKE_C_COMPILER:PATH=icx" "-DCMAKE_CXX_COMPILER:PATH=icpx" "-DCMAKE_VERBOSE_MAKEFILE:BOOL=ON")
 SKBUILD_ARGS=("${SKBUILD_ARGS[@]}" "-DCMAKE_VERBOSE_MAKEFILE:BOOL=ON")
+SKBUILD_ARGS=("${SKBUILD_ARGS[@]}" "-DDPNP_WITH_REDIST:BOOL=ON")
 
 # Build wheel package
 WHEELS_BUILD_ARGS=("-p" "manylinux_2_28_x86_64")
diff --git a/dpnp/CMakeLists.txt b/dpnp/CMakeLists.txt
index da46cf99e3f..d07004acde9 100644
--- a/dpnp/CMakeLists.txt
+++ b/dpnp/CMakeLists.txt
@@ -1,6 +1,5 @@
 function(build_dpnp_cython_ext _trgt _src _dest)
   set(options SYCL)
-  cmake_parse_arguments(BUILD_DPNP_EXT "${options}" "" "" ${ARGN})
   add_cython_target(${_trgt} ${_src} CXX OUTPUT_VAR _generated_src)
   message(STATUS "Using ${_trgt}")
 
@@ -41,15 +40,19 @@ function(build_dpnp_cython_ext _trgt _src _dest)
            VERBATIM COMMENT "Copying Cython-generated source for target ${_trgt} to dpnp source layout"
        )
   endif()
+
+  set(_rpath_value "$ORIGIN/..")
+  if (DPNP_WITH_REDIST)
+    set(_rpath_value "${_rpath_value}:$ORIGIN/../../../../")
+  endif()
+  set_target_properties(${_trgt} PROPERTIES INSTALL_RPATH ${_rpath_value})
+
   install(TARGETS ${_trgt} LIBRARY DESTINATION ${_dest})
 endfunction()
 
 function(build_dpnp_cython_ext_with_backend _trgt _src _dest)
   build_dpnp_cython_ext(${_trgt} ${_src} ${_dest})
   target_link_libraries(${_trgt} PRIVATE dpnp_backend_library)
-  if (UNIX)
-    set_target_properties(${_trgt} PROPERTIES INSTALL_RPATH "$ORIGIN/..")
-  endif()
 endfunction()
 
 add_subdirectory(backend)
diff --git a/dpnp/backend/CMakeLists.txt b/dpnp/backend/CMakeLists.txt
index 64d1e81c9c2..2cc65864f91 100644
--- a/dpnp/backend/CMakeLists.txt
+++ b/dpnp/backend/CMakeLists.txt
@@ -102,6 +102,10 @@ add_library(dpnp_backend_library INTERFACE IMPORTED GLOBAL)
 target_include_directories(dpnp_backend_library BEFORE INTERFACE ${CMAKE_CURRENT_SOURCE_DIR}/include ${CMAKE_CURRENT_SOURCE_DIR}/src)
 target_link_libraries(dpnp_backend_library INTERFACE ${_trgt})
 
+if (DPNP_WITH_REDIST)
+    set_target_properties(${python_module_name} PROPERTIES INSTALL_RPATH "$ORIGIN/../../../")
+endif()
+
 if (DPNP_BACKEND_TESTS)
   add_subdirectory(tests)
 endif()
diff --git a/dpnp/backend/extensions/blas/CMakeLists.txt b/dpnp/backend/extensions/blas/CMakeLists.txt
index 1695785e794..0aafd1ba8b4 100644
--- a/dpnp/backend/extensions/blas/CMakeLists.txt
+++ b/dpnp/backend/extensions/blas/CMakeLists.txt
@@ -93,6 +93,10 @@ else()
     target_link_libraries(${python_module_name} PUBLIC MKL::MKL_SYCL::BLAS)
 endif()
 
+if (DPNP_WITH_REDIST)
+    set_target_properties(${python_module_name} PROPERTIES INSTALL_RPATH "$ORIGIN/../../../../../../")
+endif()
+
 install(TARGETS ${python_module_name}
   DESTINATION "dpnp/backend/extensions/blas"
 )
diff --git a/dpnp/backend/extensions/fft/CMakeLists.txt b/dpnp/backend/extensions/fft/CMakeLists.txt
index 939848a12d6..f9fd08a30cc 100644
--- a/dpnp/backend/extensions/fft/CMakeLists.txt
+++ b/dpnp/backend/extensions/fft/CMakeLists.txt
@@ -89,6 +89,10 @@ else()
     target_link_libraries(${python_module_name} PUBLIC MKL::MKL_SYCL::DFT)
 endif()
 
+if (DPNP_WITH_REDIST)
+    set_target_properties(${python_module_name} PROPERTIES INSTALL_RPATH "$ORIGIN/../../../../../../")
+endif()
+
 install(TARGETS ${python_module_name}
   DESTINATION "dpnp/backend/extensions/fft"
 )
diff --git a/dpnp/backend/extensions/lapack/CMakeLists.txt b/dpnp/backend/extensions/lapack/CMakeLists.txt
index 8d5dd5342b5..de37e25443e 100644
--- a/dpnp/backend/extensions/lapack/CMakeLists.txt
+++ b/dpnp/backend/extensions/lapack/CMakeLists.txt
@@ -107,6 +107,10 @@ else()
     target_link_libraries(${python_module_name} PUBLIC MKL::MKL_SYCL::LAPACK)
 endif()
 
+if (DPNP_WITH_REDIST)
+    set_target_properties(${python_module_name} PROPERTIES INSTALL_RPATH "$ORIGIN/../../../../../../")
+endif()
+
 install(TARGETS ${python_module_name}
   DESTINATION "dpnp/backend/extensions/lapack"
 )
diff --git a/dpnp/backend/extensions/ufunc/CMakeLists.txt b/dpnp/backend/extensions/ufunc/CMakeLists.txt
index 3580c29ef08..e138537dc0a 100644
--- a/dpnp/backend/extensions/ufunc/CMakeLists.txt
+++ b/dpnp/backend/extensions/ufunc/CMakeLists.txt
@@ -97,6 +97,10 @@ if (DPNP_GENERATE_COVERAGE)
     target_link_options(${python_module_name} PRIVATE -fprofile-instr-generate -fcoverage-mapping)
 endif()
 
+if (DPNP_WITH_REDIST)
+    set_target_properties(${python_module_name} PROPERTIES INSTALL_RPATH "$ORIGIN/../../../../../../")
+endif()
+
 install(TARGETS ${python_module_name}
   DESTINATION "dpnp/backend/extensions/ufunc"
 )
diff --git a/dpnp/backend/extensions/vm/CMakeLists.txt b/dpnp/backend/extensions/vm/CMakeLists.txt
index 0bbf6476aa5..79b2238b74d 100644
--- a/dpnp/backend/extensions/vm/CMakeLists.txt
+++ b/dpnp/backend/extensions/vm/CMakeLists.txt
@@ -120,6 +120,10 @@ else()
     target_link_libraries(${python_module_name} PUBLIC MKL::MKL_SYCL::VM)
 endif()
 
+if (DPNP_WITH_REDIST)
+    set_target_properties(${python_module_name} PROPERTIES INSTALL_RPATH "$ORIGIN/../../../../../../")
+endif()
+
 install(TARGETS ${python_module_name}
   DESTINATION "dpnp/backend/extensions/vm"
 )