diff --git a/meta/classes/chrpath.bbclass b/meta/classes/chrpath.bbclass
index 0c7ab77..ed4a0b2 100644
--- a/meta/classes/chrpath.bbclass
+++ b/meta/classes/chrpath.bbclass
@@ -55,9 +55,22 @@ def process_dir (directory, d):
                 rpath =  os.path.normpath(rpath)
                 # If the rpath shares a root with base_prefix determine a new dynamic rpath from the
                 # base_prefix shared root
-                if rpath.find(basedir) != -1:
-                    depth = fpath.partition(basedir)[2].count('/')
+                if len(basedir) > 0 and rpath.find(basedir) != -1:
+                    relfpath = fpath.partition(basedir)[2].strip()
                     libpath = rpath.partition(basedir)[2].strip()
+                    depth = relfpath.count('/')
+                    # Compare common parent directories to reduce the length of the new rpath.
+                    # Ignore the first (empty) element.
+                    libdirs = libpath.split('/')
+                    relfdirs = relfpath.split('/')
+                    nparents = 0
+                    for i in range(1, min(len(libdirs), len(relfdirs))):
+                        if libdirs[i] != relfdirs[i]:
+                            break
+                        nparents += 1
+                    if nparents > 0:
+                        libpath = '/'.join(libdirs[:-nparents])
+                        depth -= nparents
                 # otherwise (i.e. cross packages) determine a shared root based on the TMPDIR
                 # NOTE: This will not work reliably for cross packages, particularly in the case
                 # where your TMPDIR is a short path (i.e. /usr/poky) as chrpath cannot insert an