diff --git a/3rdparty/everest/CMakeLists.txt b/3rdparty/everest/CMakeLists.txt
index ff9da7af7..4ad367e17 100644
--- a/3rdparty/everest/CMakeLists.txt
+++ b/3rdparty/everest/CMakeLists.txt
@@ -23,5 +23,5 @@ endif(INSTALL_MBEDTLS_HEADERS)
 
 install(TARGETS everest
   EXPORT MbedTLSTargets
-  DESTINATION ${LIB_INSTALL_DIR}
+  DESTINATION ${CMAKE_INSTALL_LIBDIR}
   PERMISSIONS OWNER_READ OWNER_WRITE GROUP_READ WORLD_READ)
diff --git a/CMakeLists.txt b/CMakeLists.txt
index 9006c2da3..b97368fbb 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -39,6 +39,8 @@ else()
     project("mbed TLS" C)
 endif()
 
+include(GNUInstallDirs)
+
 # Determine if mbed TLS is being built as a subproject using add_subdirectory()
 if(NOT DEFINED MBEDTLS_AS_SUBPROJECT)
   set(MBEDTLS_AS_SUBPROJECT ON)
@@ -252,8 +254,7 @@ if(CMAKE_BUILD_TYPE STREQUAL "Coverage")
 endif(CMAKE_BUILD_TYPE STREQUAL "Coverage")
 
 if(LIB_INSTALL_DIR)
-else()
-    set(LIB_INSTALL_DIR lib)
+    set(CMAKE_INSTALL_LIBDIR "${LIB_INSTALL_DIR}")
 endif()
 
 add_subdirectory(include)
diff --git a/ChangeLog.d/cmake_fix_dll_install.txt b/ChangeLog.d/cmake_fix_dll_install.txt
new file mode 100644
index 000000000..df51c650b
--- /dev/null
+++ b/ChangeLog.d/cmake_fix_dll_install.txt
@@ -0,0 +1,3 @@
+Changes
+   * cmake: Fix runtime library install location in mingw
+     This install DLLs in bin directory instead of lib.
diff --git a/ChangeLog.d/cmake_use_GnuInstallDirs.txt b/ChangeLog.d/cmake_use_GnuInstallDirs.txt
new file mode 100644
index 000000000..d8487555d
--- /dev/null
+++ b/ChangeLog.d/cmake_use_GnuInstallDirs.txt
@@ -0,0 +1,5 @@
+Changes
+   * cmake: Use GnuInstallDirs to customize install directories
+     Replace custom LIB_INSTALL_DIR variable with standard CMAKE_INSTALL_LIBDIR
+     variable. For backward compatibility, set CMAKE_INSTALL_LIBDIR if
+     LIB_INSTALL_DIR is set.
diff --git a/library/CMakeLists.txt b/library/CMakeLists.txt
index 6bb2ad38c..a726e11ff 100644
--- a/library/CMakeLists.txt
+++ b/library/CMakeLists.txt
@@ -291,7 +291,9 @@ foreach(target IN LISTS target_libraries)
     install(
         TARGETS ${target}
         EXPORT MbedTLSTargets
-        DESTINATION ${LIB_INSTALL_DIR}
+        ARCHIVE DESTINATION ${CMAKE_INSTALL_LIBDIR}
+        LIBRARY DESTINATION ${CMAKE_INSTALL_LIBDIR}
+        RUNTIME DESTINATION ${CMAKE_INSTALL_BINDIR}
         PERMISSIONS OWNER_READ OWNER_WRITE GROUP_READ WORLD_READ)
 endforeach(target)