diff --git a/Makefile b/Makefile
index 12f8675f7e11..22e5113d06bd 100644
--- a/Makefile
+++ b/Makefile
@@ -519,8 +519,8 @@ scripts: scripts_basic include/config/auto.conf include/config/tristate.conf
 	$(Q)$(MAKE) $(build)=$(@)
 
 
-core-y     := arch/ kernel/ misc/ net/
-platform-y := drivers/
+core-y := lib/ arch/ kernel/ misc/ net/
+platform-y  := drivers/
 
 ifneq ($(strip $(PROJECT)),)
 core-y += $(SOURCE_DIR)
@@ -551,14 +551,10 @@ include/config/auto.conf: ;
 endif # $(dot-config)
 
 ifdef CONFIG_MINIMAL_LIBC
-# Objects we will link into the kernel / subdirs we need to visit
-KLIBC_DIR := lib/libc/minimal
-libs-y := $(KLIBC_DIR)/
 ZEPHYRINCLUDE += -I$(srctree)/lib/libc/minimal/include
 endif
 
 ifdef CONFIG_TOOLCHAIN_NEWLIB
-libs-y += lib/libc/newlib/
 ALL_LIBS += c m
 endif
 
diff --git a/lib/Makefile b/lib/Makefile
new file mode 100644
index 000000000000..7a484c417c2f
--- /dev/null
+++ b/lib/Makefile
@@ -0,0 +1 @@
+obj-y := libc/
diff --git a/lib/libc/Makefile b/lib/libc/Makefile
index 2e5063bfea3f..1546361a3a66 100644
--- a/lib/libc/Makefile
+++ b/lib/libc/Makefile
@@ -1,2 +1,2 @@
-libs-$(CONFIG_MINIMAL_LIBC) += minimal/
-libs-$(CONFIG_NEWLIB) += newlib/
+obj-$(CONFIG_MINIMAL_LIBC) += minimal/
+obj-$(CONFIG_NEWLIB) += newlib/
diff --git a/lib/libc/minimal/Makefile b/lib/libc/minimal/Makefile
index 8888360ebdbb..2049e9782f9d 100644
--- a/lib/libc/minimal/Makefile
+++ b/lib/libc/minimal/Makefile
@@ -1,5 +1 @@
-lib-y := source/stdout/fprintf.o
-lib-y += source/stdout/prf.o
-lib-y += source/stdout/sprintf.o
-lib-y += source/stdout/stdout_console.o
-lib-y += source/string/string.o
+obj-y := source/
diff --git a/lib/libc/minimal/source/Makefile b/lib/libc/minimal/source/Makefile
new file mode 100644
index 000000000000..2a7d847fb71c
--- /dev/null
+++ b/lib/libc/minimal/source/Makefile
@@ -0,0 +1,2 @@
+obj-y := stdout/
+obj-y += string/
diff --git a/lib/libc/minimal/source/stdout/Makefile b/lib/libc/minimal/source/stdout/Makefile
new file mode 100644
index 000000000000..d52ca6c36c69
--- /dev/null
+++ b/lib/libc/minimal/source/stdout/Makefile
@@ -0,0 +1,2 @@
+
+obj-y = fprintf.o  prf.o  sprintf.o  stdout_console.o
diff --git a/lib/libc/minimal/source/string/Makefile b/lib/libc/minimal/source/string/Makefile
new file mode 100644
index 000000000000..e5d4d36a81b6
--- /dev/null
+++ b/lib/libc/minimal/source/string/Makefile
@@ -0,0 +1 @@
+obj-y := string.o
diff --git a/lib/libc/newlib/Makefile b/lib/libc/newlib/Makefile
index a4d561090b90..34ea9c1f2b8b 100644
--- a/lib/libc/newlib/Makefile
+++ b/lib/libc/newlib/Makefile
@@ -1 +1 @@
-lib-y := libc-hooks.o
+obj-y := libc-hooks.o