diff --git a/openpower/package/Config.in b/openpower/package/Config.in
index 52662e6..34468f5 100755
--- a/openpower/package/Config.in
+++ b/openpower/package/Config.in
@@ -14,8 +14,6 @@
 source "$BR2_EXTERNAL_OP_BUILD_PATH/package/skiboot/Config.in"
 source "$BR2_EXTERNAL_OP_BUILD_PATH/package/libflash/Config.in"
 source "$BR2_EXTERNAL_OP_BUILD_PATH/package/loadkeys/Config.in"
-source "$BR2_EXTERNAL_OP_BUILD_PATH/package/ppe42-binutils/Config.in"
-source "$BR2_EXTERNAL_OP_BUILD_PATH/package/ppe42-gcc/Config.in"
 source "$BR2_EXTERNAL_OP_BUILD_PATH/package/ima-catalog/Config.in"
 source "$BR2_EXTERNAL_OP_BUILD_PATH/package/sbe/Config.in"
 source "$BR2_EXTERNAL_OP_BUILD_PATH/package/sb-signing-utils/Config.in"
diff --git a/openpower/package/ppe42-binutils/Config.in b/openpower/package/ppe42-binutils/Config.in
index 824e557..a878732 100644
--- a/openpower/package/ppe42-binutils/Config.in
+++ b/openpower/package/ppe42-binutils/Config.in
@@ -1,6 +1,5 @@
 config BR2_PACKAGE_HOST_PPE42_BINUTILS
         bool "ppe42-binutils"
-        default y if (BR2_OPENPOWER_PLATFORM && BR2_OPENPOWER_POWER9)
         select BR2_CPP
         help
             Project to build the PPE42 PORE binutils
diff --git a/openpower/package/ppe42-binutils/ppe42-binutils.mk b/openpower/package/ppe42-binutils/ppe42-binutils.mk
index 0c365b8..90abbf4 100644
--- a/openpower/package/ppe42-binutils/ppe42-binutils.mk
+++ b/openpower/package/ppe42-binutils/ppe42-binutils.mk
@@ -10,8 +10,8 @@
 
 PPE42_BINUTILS_DEPENDENCIES = host-binutils
 
-PPE42_BINUTILS_DIR = $(STAGING_DIR)/ppe42-binutils
-PPE42_BINUTILS_BIN = $(STAGING_DIR)/ppe42-binutils/linux
+PPE42_BINUTILS_DIR = $(HOST_DIR)/$(PPE42_TOOLCHAIN_DIR)
+PPE42_BINUTILS_BIN = $(HOST_DIR)/$(PPE42_TOOLCHAIN_BIN)
 
 define HOST_PPE42_BINUTILS_BUILD_CMDS
         cd $(@D) && \
diff --git a/openpower/package/ppe42-gcc/Config.in b/openpower/package/ppe42-gcc/Config.in
index 33f5276..b7361bb 100644
--- a/openpower/package/ppe42-gcc/Config.in
+++ b/openpower/package/ppe42-gcc/Config.in
@@ -1,7 +1,7 @@
 config BR2_PACKAGE_HOST_PPE42_GCC
         bool "ppe42-gcc"
-        default y if (BR2_OPENPOWER_PLATFORM && BR2_OPENPOWER_POWER9)
         select BR2_PACKAGE_HAS_PPE42_TOOLCHAIN
+        select BR2_PACKAGE_PPE42_BINUTILS
         select BR2_CPP
         help
             Project to build the PPE42 gcc
diff --git a/openpower/package/ppe42-gcc/ppe42-gcc.mk b/openpower/package/ppe42-gcc/ppe42-gcc.mk
index a59071d..8aa73ce 100644
--- a/openpower/package/ppe42-gcc/ppe42-gcc.mk
+++ b/openpower/package/ppe42-gcc/ppe42-gcc.mk
@@ -12,8 +12,8 @@
 HOST_PPE42_GCC_DEPENDENCIES = host-ppe42-binutils host-gmp host-mpfr host-mpc
 PPE42_GCC_PROVIDES = ppe42-toolchain
 
-PPE42_GCC_DIR = $(STAGING_DIR)/ppe42-binutils
-PPE42_GCC_BIN = $(STAGING_DIR)/ppe42-binutils/linux
+PPE42_GCC_DIR = $(HOST_DIR)/$(PPE42_TOOLCHAIN_DIR)
+PPE42_GCC_BIN = $(HOST_DIR)/$(PPE42_TOOLCHAIN_BIN)
 
 define HOST_PPE42_GCC_BUILD_CMDS
         cd $(@D) && \
diff --git a/openpower/package/ppe42-toolchain-external/Config.in b/openpower/package/ppe42-toolchain-external/Config.in
new file mode 100644
index 0000000..10b58db
--- /dev/null
+++ b/openpower/package/ppe42-toolchain-external/Config.in
@@ -0,0 +1,18 @@
+config BR2_PACKAGE_PPE42_TOOLCHAIN_EXTERNAL
+	bool "ppe42-toolchain-external"
+	select BR2_PACKAGE_HAS_PPE42_TOOLCHAIN
+	help
+	  Use an external PPE42 toolchain
+
+if BR2_PACKAGE_PPE42_TOOLCHAIN_EXTERNAL
+config BR2_PACKAGE_PROVIDES_PPE42_TOOLCHAIN
+	default "ppe42-toolchain-external"
+
+config BR2_PPE42_TOOLCHAIN_EXTERNAL_PATH
+	string "External PPE42 toolchain path"
+	help
+	  Pathname to where the external PPE42 toolchain is
+	  installed. The compiler is expected to be fully
+	  contained within the "sysroot/ppe42-toolchain"
+	  directory
+endif
diff --git a/openpower/package/ppe42-toolchain-external/ppe42-toolchain-external.mk b/openpower/package/ppe42-toolchain-external/ppe42-toolchain-external.mk
new file mode 100644
index 0000000..1fb9f00
--- /dev/null
+++ b/openpower/package/ppe42-toolchain-external/ppe42-toolchain-external.mk
@@ -0,0 +1,23 @@
+################################################################################
+#
+# ppe42-toolchain-external
+#
+################################################################################
+PPE42_TOOLCHAIN_EXTERNAL_REDISTRIBUTE = NO
+PPE42_TOOLCHAIN_EXTERNAL_SITE =
+PPE42_TOOLCHAIN_EXTERNAL_SOURCE =
+PPE42_TOOLCHAIN_EXTERNAL_PROVIDES = ppe42-toolchain
+PPE42_TOOLCHAIN_EXTERNAL_PATH = \
+	$(call qstrip,$(BR2_PPE42_TOOLCHAIN_EXTERNAL_PATH))/$(PPE42_TOOLCHAIN_DIR)
+
+define HOST_PPE42_TOOLCHAIN_EXTERNAL_CONFIGURE_CMDS
+        test -e $(PPE42_TOOLCHAIN_EXTERNAL_PATH)
+endef
+
+define HOST_PPE42_TOOLCHAIN_EXTERNAL_INSTALL_CMDS
+        ln -snf $(PPE42_TOOLCHAIN_EXTERNAL_PATH) $(HOST_DIR)/$(PPE42_TOOLCHAIN_DIR)
+
+endef
+
+$(eval $(host-generic-package))
+