diff --git a/conf/bitbake.conf b/conf/bitbake.conf
index 96e7799..bb99d3c 100644
--- a/conf/bitbake.conf
+++ b/conf/bitbake.conf
@@ -345,7 +345,7 @@ IMAGE_CMD_ext2.gz = "install -d ${DEPLOY_DIR_IMAGE}/tmp.gz ; genext2fs -b ${ROOT
 IMAGE_CMD_ext3 = "genext2fs -b ${ROOTFS_SIZE} -d ${IMAGE_ROOTFS} ${DEPLOY_DIR_IMAGE}/${IMAGE_NAME}.rootfs.ext3 ${EXTRA_IMAGECMD}; tune2fs -j ${DEPLOY_DIR_IMAGE}/${IMAGE_NAME}.rootfs.ext3"
 IMAGE_CMD_ext3.gz = "install -d ${DEPLOY_DIR_IMAGE}/tmp.gz ; genext2fs -b ${ROOTFS_SIZE} -d ${IMAGE_ROOTFS} ${DEPLOY_DIR_IMAGE}/tmp.gz/${IMAGE_NAME}.rootfs.ext3 ${EXTRA_IMAGECMD}; tune2fs -j ${DEPLOY_DIR_IMAGE}/tmp.gz/${IMAGE_NAME}.rootfs.ext3; gzip -f -9 ${DEPLOY_DIR_IMAGE}/tmp.gz/${IMAGE_NAME}.rootfs.ext3; mv ${DEPLOY_DIR_IMAGE}/tmp.gz/${IMAGE_NAME}.rootfs.ext3.gz ${DEPLOY_DIR_IMAGE}/${IMAGE_NAME}.rootfs.ext3.gz"
 IMAGE_CMD_squashfs = "mksquashfs ${IMAGE_ROOTFS} ${DEPLOY_DIR_IMAGE}/${IMAGE_NAME}.rootfs.squashfs ${EXTRA_IMAGECMD} -noappend"
-IMAGE_CMD_squashfs-lzma = "mksquashfs ${IMAGE_ROOTFS} ${DEPLOY_DIR_IMAGE}/${IMAGE_NAME}.rootfs.squashfs-lzma ${EXTRA_IMAGECMD} -noappend -lzma"
+IMAGE_CMD_squashfs-lzma = "mksquashfs ${IMAGE_ROOTFS} ${DEPLOY_DIR_IMAGE}/${IMAGE_NAME}.rootfs.squashfs-lzma ${EXTRA_IMAGECMD} -noappend -comp lzma"
 IMAGE_CMD_tar = "cd ${IMAGE_ROOTFS} && tar -cvf ${DEPLOY_DIR_IMAGE}/${IMAGE_NAME}.rootfs.tar ."
 IMAGE_CMD_tar.gz = "cd ${IMAGE_ROOTFS} && tar -zcvf ${DEPLOY_DIR_IMAGE}/${IMAGE_NAME}.rootfs.tar.gz ."
 IMAGE_CMD_tar.bz2 = "cd ${IMAGE_ROOTFS} && tar -jcvf ${DEPLOY_DIR_IMAGE}/${IMAGE_NAME}.rootfs.tar.bz2 ."
diff --git a/conf/distro/include/sane-srcdates.inc b/conf/distro/include/sane-srcdates.inc
index 422145c..4ea318f 100644
--- a/conf/distro/include/sane-srcdates.inc
+++ b/conf/distro/include/sane-srcdates.inc
@@ -41,6 +41,7 @@ SRCDATE_rdesktop ?= "20080917"
 SRCDATE_roadster ?= "20060814"
 SRCDATE_rosetta ?= "20090514"
 SRCDATE_sctzap ?= "20060814"
+SRCDATE_squashfs ?= "20091110"
 SRCDATE_tslib ?= "20051101"
 SRCDATE_waimea ?= "20060814"
 SRCDATE_xcompmgr ?= "20060814"
diff --git a/recipes/squashfs-tools/squashfs-tools-native_4.0.bb b/recipes/squashfs-tools/squashfs-tools-native_4.0.bb
index 8fc80a6..cc01604 100644
--- a/recipes/squashfs-tools/squashfs-tools-native_4.0.bb
+++ b/recipes/squashfs-tools/squashfs-tools-native_4.0.bb
@@ -1,13 +1,12 @@
-require squashfs-tools_${PV}.bb
+require squashfs-tools_4.0.bb
 
 inherit native
 
-DEPENDS = "zlib-native lzma-native "
-
-PR = "${INC_PR}.1"
+DEPENDS = "zlib-native"
 
 PACKAGES = ""
 
 do_stage () {
 	install -m 0755 mksquashfs ${STAGING_BINDIR}/
 }
+
diff --git a/recipes/squashfs-tools/squashfs-tools_4.0.bb b/recipes/squashfs-tools/squashfs-tools_4.0.bb
index 17ab6dc..4e18489 100644
--- a/recipes/squashfs-tools/squashfs-tools_4.0.bb
+++ b/recipes/squashfs-tools/squashfs-tools_4.0.bb
@@ -1,14 +1,36 @@
-require squashfs-tools.inc
-DEPENDS += "lzma"
-PR = "${INC_PR}.1"
+DESCRIPTION = "Squashfs is a highly compressed read-only filesystem for Linux."
+SECTION = "base"
+LICENSE = "GPLv2"
+DEPENDS = "zlib"
+PR = "r2"
 
-EXTRA_OEMAKE = "USE_LZMA=1 \
-                LZMA_CFLAGS='-I${STAGING_INCDIR}/lzma -DUSE_LZMA' \
-                LZMA_LIB='${STAGING_LIBDIR}/liblzma.a'"
+# 2009-10-22 snapshot
+#SRC_URI = "http://www.kernel.org/pub/linux/kernel/people/pkl/squashfs4.0-lzma-snapshot.tgz"
+#S = "${WORKDIR}/squashfs4.0-lzma-snapshot/squashfs-tools"
 
-DEFAULT_PREFERENCE = "-1"
-DEFAULT_PREFERENCE_angstrom = "1"
+SRC_URI  = "cvs://anonymous@squashfs.cvs.sourceforge.net/cvsroot/squashfs;module=squashfs;date=${SRCDATE}"
+S = "${WORKDIR}/squashfs/squashfs-tools"
 
-SRC_URI += " file://portability.patch;patch=1;pnum=2 \
-             file://lzma-support.patch;patch=1;pnum=2"
+SRC_URI += "http://downloads.sourceforge.net/sevenzip/lzma465.tar.bz2"
+
+COMP_DEFAULT = gzip
+
+EXTRA_OEMAKE += "LZMA_SUPPORT=1 LZMA_DIR=../.."
+
+TARGET_CC_ARCH += "${LDFLAGS}"
+
+# the COMP_DEFAULT macro should result in a string including quotes: "gzip"
+CFLAGS_append = ' -I. -I../../C -D_FILE_OFFSET_BITS=64 -D_LARGEFILE_SOURCE \
+ -D_GNU_SOURCE -DLZMA_SUPPORT -DCOMP_DEFAULT=\\"${COMP_DEFAULT}\\" '
+
+prefix = ""
+
+do_compile() {
+	oe_runmake mksquashfs
+}
+
+do_install () {
+	install -d ${D}${sbindir}
+	install -m 0755 mksquashfs ${D}${sbindir}/
+}