diff --git a/CMakeLists.txt b/CMakeLists.txt
index 277aac87e1..07cff53827 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -422,6 +422,11 @@ else (build_errors)
   join_paths(pkgconfig_libdir "\${prefix}" "${CMAKE_INSTALL_LIBDIR}")
   join_paths(pkgconfig_includedir "\${prefix}" "${CMAKE_INSTALL_INCLUDEDIR}")
 
+  file(RELATIVE_PATH
+    PC_CONFIG_RELATIVE_PATH_TO_PREFIX
+    ${CMAKE_INSTALL_PREFIX}/${LIB_INSTALL_DIR}/pkgconfig
+    ${CMAKE_INSTALL_PREFIX}
+  )
   foreach (pkgconfig ${pkgconfig_files})
     configure_file(${CMAKE_SOURCE_DIR}/cmake/pkgconfig/${pkgconfig}.in ${CMAKE_CURRENT_BINARY_DIR}/cmake/pkgconfig/${pkgconfig}.pc @ONLY)
     install(FILES ${CMAKE_CURRENT_BINARY_DIR}/cmake/pkgconfig/${pkgconfig}.pc DESTINATION ${LIB_INSTALL_DIR}/pkgconfig COMPONENT pkgconfig)
@@ -475,9 +480,15 @@ else (build_errors)
     set(PKG_LIBRARIES ${PKG_LIBRARIES} gazebo_ccd)
   endif()
 
+  include(CMakePackageConfigHelpers)
   set(cmake_conf_file "cmake/gazebo-config.cmake")
   set(cmake_conf_version_file "cmake/gazebo-config-version.cmake")
-  configure_file("${CMAKE_CURRENT_SOURCE_DIR}/${cmake_conf_file}.in" "${CMAKE_CURRENT_BINARY_DIR}/${cmake_conf_file}" @ONLY)
+  set(DATAROOT_INSTALL_DIR ${CMAKE_INSTALL_DATAROOTDIR})
+  set(BASE_INSTALL_INCLUDEDIR ${CMAKE_INSTALL_INCLUDEDIR})
+  configure_package_config_file("${CMAKE_CURRENT_SOURCE_DIR}/${cmake_conf_file}.in" "${CMAKE_CURRENT_BINARY_DIR}/${cmake_conf_file}"
+          INSTALL_DESTINATION ${LIB_INSTALL_DIR}/cmake/${PROJECT_NAME_LOWER}/
+          PATH_VARS BASE_INSTALL_INCLUDEDIR LIB_INSTALL_DIR DATAROOT_INSTALL_DIR
+          )
   # Use write_basic_package_version_file to generate a ConfigVersion file that
   # allow users of gazebo to specify the API or version to depend on
   # TODO: keep this instruction until deprecate Ubuntu/Precise and update with
diff --git a/cmake/GazeboTestUtils.cmake b/cmake/GazeboTestUtils.cmake
index 7c42178b63..ca1768c42b 100644
--- a/cmake/GazeboTestUtils.cmake
+++ b/cmake/GazeboTestUtils.cmake
@@ -67,11 +67,9 @@ macro (gz_build_tests)
 	--gtest_output=xml:${CMAKE_BINARY_DIR}/test_results/${BINARY_NAME}.xml)
 
     set(_env_vars)
-    list(APPEND _env_vars "CMAKE_PREFIX_PATH=${CMAKE_BINARY_DIR}:$ENV{CMAKE_PREFIX_PATH}")
     list(APPEND _env_vars "GAZEBO_PLUGIN_PATH=${CMAKE_BINARY_DIR}/plugins:${CMAKE_BINARY_DIR}/plugins/events:${CMAKE_BINARY_DIR}/plugins/rest_web")
     list(APPEND _env_vars "GAZEBO_RESOURCE_PATH=${CMAKE_SOURCE_DIR}")
     list(APPEND _env_vars "PATH=${CMAKE_BINARY_DIR}/gazebo:${CMAKE_BINARY_DIR}/tools:$ENV{PATH}")
-    list(APPEND _env_vars "PKG_CONFIG_PATH=${CMAKE_BINARY_DIR}/cmake/pkgconfig:$ENV{PKG_CONFIG_PATH}")
     set_tests_properties(${BINARY_NAME} PROPERTIES
       TIMEOUT 240
       ENVIRONMENT "${_env_vars}")
@@ -137,11 +135,9 @@ if (VALID_DISPLAY)
       -xml -o ${CMAKE_BINARY_DIR}/test_results/${BINARY_NAME}.xml)
 
     set(_env_vars)
-    list(APPEND _env_vars "CMAKE_PREFIX_PATH=${CMAKE_BINARY_DIR}:${CMAKE_PREFIX_PATH}")
     list(APPEND _env_vars "GAZEBO_PLUGIN_PATH=${CMAKE_BINARY_DIR}/plugins:${CMAKE_BINARY_DIR}/plugins/events:${CMAKE_BINARY_DIR}/plugins/rest_web")
     list(APPEND _env_vars "GAZEBO_RESOURCE_PATH=${CMAKE_SOURCE_DIR}")
     list(APPEND _env_vars "PATH=${CMAKE_BINARY_DIR}/gazebo:${CMAKE_BINARY_DIR}/tools:$ENV{PATH}")
-    list(APPEND _env_vars "PKG_CONFIG_PATH=${CMAKE_BINARY_DIR}/cmake/pkgconfig:$PKG_CONFIG_PATH")
     set_tests_properties(${BINARY_NAME} PROPERTIES
       TIMEOUT 240
       ENVIRONMENT "${_env_vars}")
diff --git a/cmake/gazebo-config.cmake.in b/cmake/gazebo-config.cmake.in
index e68584082c..dccc3f2a08 100644
--- a/cmake/gazebo-config.cmake.in
+++ b/cmake/gazebo-config.cmake.in
@@ -5,14 +5,21 @@ set(@PKG_NAME@_CONFIG_INCLUDED TRUE)
 set(@PKG_NAME@_VERSION @GAZEBO_VERSION@)
 set(@PKG_NAME@_MAJOR_VERSION @GAZEBO_MAJOR_VERSION@)
 
-set(@PKG_NAME@_PLUGIN_PATH "@CMAKE_INSTALL_FULL_LIBDIR@/gazebo-@GAZEBO_MAJOR_VERSION@/plugins")
+@PACKAGE_INIT@
+
+# Including Dartsim will overwrite the PACKAGE_PREFIX_DIR, therefore make gazebo-specific vars
+set(GAZEBO_INSTALL_DATAROOT_DIR @PACKAGE_DATAROOT_INSTALL_DIR@)
+set(GAZEBO_INSTALL_LIB_DIR @PACKAGE_LIB_INSTALL_DIR@)
+set(GAZEBO_INSTALL_INCLUDE_DIR @PACKAGE_BASE_INSTALL_INCLUDEDIR@)
+
+set(@PKG_NAME@_PLUGIN_PATH "${GAZEBO_INSTALL_LIB_DIR}/gazebo-@GAZEBO_MAJOR_VERSION@/plugins")
 
 # The media path contains the location on disk where images,
 # materials scripts, shaders, and other related resources are stored.
-set(@PKG_NAME@_MEDIA_PATH "@CMAKE_INSTALL_PREFIX@/share/gazebo-@GAZEBO_MAJOR_VERSION@/media")
+set(@PKG_NAME@_MEDIA_PATH "${GAZEBO_INSTALL_DATAROOT_DIR}/gazebo-@GAZEBO_MAJOR_VERSION@/media")
 
 # The model path contains the location on disk where models are stored.
-set(@PKG_NAME@_MODEL_PATH "@CMAKE_INSTALL_PREFIX@/share/gazebo-@GAZEBO_MAJOR_VERSION@/models")
+set(@PKG_NAME@_MODEL_PATH "${GAZEBO_INSTALL_DATAROOT_DIR}/gazebo-@GAZEBO_MAJOR_VERSION@/models")
 
 # Set whether Gazebo was built with Bullet support
 set (GAZEBO_HAS_BULLET @HAVE_BULLET@)
@@ -72,23 +79,23 @@ include (FindPkgConfig)
 # target_link_libraries(your_package @PKG_NAME@_PROTO_LIBRARIES)
 #
 set(@PKG_NAME@_PROTO_PATH
-  "@CMAKE_INSTALL_FULL_INCLUDEDIR@/gazebo-@GAZEBO_MAJOR_VERSION@/gazebo/msgs/proto")
+  "${GAZEBO_INSTALL_INCLUDE_DIR}/gazebo-@GAZEBO_MAJOR_VERSION@/gazebo/msgs/proto")
 find_library(gazebo_proto_msgs_lib gazebo_msgs
-  PATHS "@CMAKE_INSTALL_FULL_LIBDIR@" NO_DEFAULT_PATH)
+  PATHS "${GAZEBO_INSTALL_LIB_DIR}" NO_DEFAULT_PATH)
 list(APPEND @PKG_NAME@_PROTO_LIBRARIES ${gazebo_proto_msgs_lib})
 list(APPEND @PKG_NAME@_PROTO_INCLUDE_DIRS
-  "@CMAKE_INSTALL_FULL_INCLUDEDIR@/gazebo-@GAZEBO_MAJOR_VERSION@/gazebo/msgs")
+  "${GAZEBO_INSTALL_INCLUDE_DIR}/gazebo-@GAZEBO_MAJOR_VERSION@/gazebo/msgs")
 # End @PKG_NAME@_PROTO_PATH, @PKG_NAME@_PROTO_INCLUDE_DIRS, and
 # @PKG_NAME@_PROTO_LIBRARIES
 
-list(APPEND @PKG_NAME@_INCLUDE_DIRS @CMAKE_INSTALL_FULL_INCLUDEDIR@)
-list(APPEND @PKG_NAME@_INCLUDE_DIRS @CMAKE_INSTALL_FULL_INCLUDEDIR@/gazebo-@GAZEBO_MAJOR_VERSION@)
+list(APPEND @PKG_NAME@_INCLUDE_DIRS ${GAZEBO_INSTALL_INCLUDE_DIR})
+list(APPEND @PKG_NAME@_INCLUDE_DIRS ${GAZEBO_INSTALL_INCLUDE_DIR}/gazebo-@GAZEBO_MAJOR_VERSION@)
 
-list(APPEND @PKG_NAME@_LIBRARY_DIRS @CMAKE_INSTALL_FULL_LIBDIR@)
-list(APPEND @PKG_NAME@_LIBRARY_DIRS @CMAKE_INSTALL_FULL_LIBDIR@/gazebo-@GAZEBO_MAJOR_VERSION@/plugins)
+list(APPEND @PKG_NAME@_LIBRARY_DIRS ${GAZEBO_INSTALL_LIB_DIR})
+list(APPEND @PKG_NAME@_LIBRARY_DIRS ${GAZEBO_INSTALL_LIB_DIR}/gazebo-@GAZEBO_MAJOR_VERSION@/plugins)
 
-list(APPEND @PKG_NAME@_CFLAGS -I@CMAKE_INSTALL_FULL_INCLUDEDIR@)
-list(APPEND @PKG_NAME@_CFLAGS -I@CMAKE_INSTALL_FULL_INCLUDEDIR@/gazebo-@GAZEBO_MAJOR_VERSION@)
+list(APPEND @PKG_NAME@_CFLAGS -I${GAZEBO_INSTALL_INCLUDE_DIR})
+list(APPEND @PKG_NAME@_CFLAGS -I${GAZEBO_INSTALL_INCLUDE_DIR}/gazebo-@GAZEBO_MAJOR_VERSION@)
 
 if (GAZEBO_HAS_BULLET)
   if (PKG_CONFIG_FOUND)
@@ -139,7 +146,7 @@ endif ()
 foreach(lib @PKG_LIBRARIES@)
   set(onelib "${lib}-NOTFOUND")
   find_library(onelib ${lib}
-    PATHS "@CMAKE_INSTALL_FULL_LIBDIR@"
+    PATHS "${GAZEBO_INSTALL_LIB_DIR}"
     NO_DEFAULT_PATH
     )
   if(NOT onelib)
@@ -216,6 +223,6 @@ list(APPEND @PKG_NAME@_INCLUDE_DIRS ${IGNITION-FUEL_TOOLS_INCLUDE_DIRS})
 list(APPEND @PKG_NAME@_LIBRARY_DIRS ${IGNITION-FUEL_TOOLS_LIBRARY_DIRS})
 list(APPEND @PKG_NAME@_LIBRARIES ${IGNITION-FUEL_TOOLS_LIBRARIES})
 
-list(APPEND @PKG_NAME@_LDFLAGS -Wl,-rpath,@CMAKE_INSTALL_FULL_LIBDIR@/gazebo-@GAZEBO_MAJOR_VERSION@/plugins)
-list(APPEND @PKG_NAME@_LDFLAGS -L@CMAKE_INSTALL_FULL_LIBDIR@)
-list(APPEND @PKG_NAME@_LDFLAGS -L@CMAKE_INSTALL_FULL_LIBDIR@/gazebo-@GAZEBO_MAJOR_VERSION@/plugins)
+list(APPEND @PKG_NAME@_LDFLAGS -Wl,-rpath,${GAZEBO_INSTALL_LIB_DIR}/gazebo-@GAZEBO_MAJOR_VERSION@/plugins)
+list(APPEND @PKG_NAME@_LDFLAGS -L${GAZEBO_INSTALL_LIB_DIR})
+list(APPEND @PKG_NAME@_LDFLAGS -L${GAZEBO_INSTALL_LIB_DIR}/gazebo-@GAZEBO_MAJOR_VERSION@/plugins)
diff --git a/cmake/pkgconfig/gazebo.in b/cmake/pkgconfig/gazebo.in
index 16cc62e562..091bbcb06e 100644
--- a/cmake/pkgconfig/gazebo.in
+++ b/cmake/pkgconfig/gazebo.in
@@ -1,4 +1,4 @@
-prefix=@CMAKE_INSTALL_PREFIX@
+prefix=${pcfiledir}/@PC_CONFIG_RELATIVE_PATH_TO_PREFIX@
 libdir=@pkgconfig_libdir@
 includedir=@pkgconfig_includedir@
 
diff --git a/cmake/pkgconfig/gazebo_ode.in b/cmake/pkgconfig/gazebo_ode.in
index 2516a73c0f..fdd319963a 100644
--- a/cmake/pkgconfig/gazebo_ode.in
+++ b/cmake/pkgconfig/gazebo_ode.in
@@ -1,4 +1,4 @@
-prefix=@CMAKE_INSTALL_PREFIX@
+prefix=${pcfiledir}/@PC_CONFIG_RELATIVE_PATH_TO_PREFIX@
 libdir=@pkgconfig_libdir@
 includedir=@pkgconfig_includedir@
 
diff --git a/cmake/pkgconfig/gazebo_transport.in b/cmake/pkgconfig/gazebo_transport.in
index f3ac1de4a2..dcfdd6e32d 100644
--- a/cmake/pkgconfig/gazebo_transport.in
+++ b/cmake/pkgconfig/gazebo_transport.in
@@ -1,4 +1,4 @@
-prefix=@CMAKE_INSTALL_PREFIX@
+prefix=${pcfiledir}/@PC_CONFIG_RELATIVE_PATH_TO_PREFIX@
 libdir=@pkgconfig_libdir@
 includedir=@pkgconfig_includedir@