diff --git a/src/.config b/src/.config
index 801eeefaa..40c8920e7 100644
--- a/src/.config
+++ b/src/.config
@@ -157,10 +157,11 @@ COPY_SOURCE_ISO=true
 # java       - installs Oracle's JRE or JDK. Manual preparations are required.
 # felix      - Apache Felix OSGi framework.
 # mll_utils  - set of executable utilities (mll-*).
+# lua        - scripting language
 #
 # Refer to the README file for more information.
 #
-#OVERLAY_BUNDLES=glibc_full,links,dropbear,java,felix,mll_utils
+#OVERLAY_BUNDLES=glibc_full,links,dropbear,java,felix,mll_utils,lua
 #OVERLAY_BUNDLES=mll_utils
 
 # This property enables the standard penguin boot logo in the upper left corner
diff --git a/src/README b/src/README
index 7de82b775..1d920115e 100644
--- a/src/README
+++ b/src/README
@@ -60,7 +60,7 @@ Currently available overlay bundles:
                This overlay bundle is currently experimental and its build
                process depends on the host machine.
 
-* Lua        - The Lua Scripting Language 5.3. Requires ~ 1.5MB additional
+* Lua        - The Lua Scripting Language 5.3. Requires ~ 800kb additional
                space. Use the "lua" command to run an interactive lua interpreter
 
                This overlay bundle requires GLIBC.
diff --git a/src/minimal_overlay/bundles/lua/02_build.sh b/src/minimal_overlay/bundles/lua/02_build.sh
index 6ac7b7de5..9b743d336 100755
--- a/src/minimal_overlay/bundles/lua/02_build.sh
+++ b/src/minimal_overlay/bundles/lua/02_build.sh
@@ -31,15 +31,15 @@ make clean -j $NUM_JOBS 2>/dev/null
 rm -rf ../lua_installed
 
 echo "Building Lua..."
-make generic -j $NUM_JOBS CFLAGS="$CFLAGS --sysroot=$MAIN_SRC_DIR/work/glibc/glibc_prepared/"
+make posix -j $NUM_JOBS CFLAGS="$CFLAGS --sysroot=$MAIN_SRC_DIR/work/glibc/glibc_prepared/"
 
-make install -j $NUM_JOBS INSTALL_TOP=../../lua_installed/usr/local
+make install -j $NUM_JOBS INSTALL_TOP=../../lua_installed/usr
 
 echo "Reducing Lua size..."
-strip -g ../lua_installed/usr/local/bin/* 2>/dev/null
+strip -g ../lua_installed/bin/* 2>/dev/null
 
-mkdir -p $MAIN_SRC_DIR/work/src/minimal_overlay/rootfs/usr/local
-cp -r ../lua_installed/usr/local/* $MAIN_SRC_DIR/work/src/minimal_overlay/rootfs/usr/local
+mkdir -p $MAIN_SRC_DIR/work/src/minimal_overlay/rootfs/usr/
+cp -r ../lua_installed/usr/* $MAIN_SRC_DIR/work/src/minimal_overlay/rootfs/usr
 
 echo "Lua has been installed."
 echo "*******************************************************************************"