diff --git a/reactos/subsys/system/explorer/Makefile b/reactos/subsys/system/explorer/Makefile
index 0ccb6286f07..2aa2431dcad 100644
--- a/reactos/subsys/system/explorer/Makefile
+++ b/reactos/subsys/system/explorer/Makefile
@@ -4,26 +4,40 @@
 #  Makefile
 #
 
+# Windows is default host environment
+ifeq ($(HOST),)
+HOST = mingw32-windows
+endif
+
 ifeq ($(HOST),mingw32-linux)
 CC = mingw32-gcc
 CXX = mingw32-g++
 LINK = mingw32-g++
 RC = mingw32-windres
 CD_PREFIX := ./
-else
+PREFIX = mingw32-
+EXE_POSTFIX :=
+EXE_PREFIX := ./
+endif
+
+ifeq ($(HOST),mingw32-windows)
 CC = gcc
 CXX = g++
 LINK = g++
 RC = windres
 CD_PREFIX := 
+PREFIX =
+EXE_PREFIX :=
+EXE_POSTFIX := .exe
 endif
 
+PATH_TO_TOP = ../../..
+TOOLS_PATH = $(PATH_TO_TOP)/tools
+
 ifndef UNICODE
 UNICODE = 1
 endif
 
-TOOLS_PATH = ../../../tools
-
 CFLAGS	= -DWIN32 -D_ROS_ -D_WIN32_IE=0x0501 -D_WIN32_WINNT=0x0501 -fexceptions -Wall
 RCFLAGS	= -DWIN32 -D_ROS_
 LFLAGS	= -Wl,--subsystem,windows
@@ -81,6 +95,8 @@ OBJECTS = \
 
 LIBS = gdi32 comctl32 ole32 uuid wsock32
 
+.PHONY: all depends implib clean install dist bootcd depends
+
 all: buildno.h $(TARGET)
 
 docu: doxy-footer.html
@@ -111,14 +127,14 @@ clean:
 	$(TOOLS_PATH)/rdel $(TARGET) $(OBJECTS) $(PROGRAM)$(RES_SUFFIX)
 
 # Use environment var ROS_INSTALL to override default install dir
-ifeq ($(ROS_INSTALL),)
+ifneq ($(ROS_INSTALL),)
+INSTALL_DIR = $(ROS_INSTALL)
+else
 ifeq ($(HOST),mingw32-windows)
 INSTALL_DIR = C:/reactos
 else
 INSTALL_DIR = $(PATH_TO_TOP)/reactos
 endif
-else
-INSTALL_DIR = $(ROS_INSTALL)
 endif
 
 implib:
@@ -127,3 +143,26 @@ install:
 	-$(TOOLS_PATH)/rcopy $(TARGET) $(INSTALL_DIR)/$(TARGET)
 
 bootcd:
+
+
+# dependency scanning
+
+DEP_FILTERED := $(filter-out $(DEP_EXCLUDE_FILTER), $(OBJECTS:.o=.d))
+DEP_FILES := $(join $(dir $(DEP_FILTERED)), $(addprefix ., $(notdir $(DEP_FILTERED))))
+
+ifneq ($(MAKECMDGOALS),clean)
+-include $(DEP_FILES)
+endif
+
+ifeq ($(HOST),mingw32-windows)
+DEPENDS_EXE := ..\..\..\tools\depends
+else
+DEPENDS_EXE := $(TOOLS_PATH)/depends
+endif
+
+.%.d: %.c $(PATH_TO_TOP)/tools/depends$(EXE_POSTFIX)
+	$(CC) $(CFLAGS) -M $< | $(DEPENDS_EXE) $(@D) $@
+
+.%.d: %.cpp $(PATH_TO_TOP)/tools/depends$(EXE_POSTFIX)
+	$(CC) $(CFLAGS) -M $< | $(DEPENDS_EXE) $(@D) $@
+