diff --git a/Makefile b/Makefile
index 7cc9658003..fe11db460b 100644
--- a/Makefile
+++ b/Makefile
@@ -236,9 +236,10 @@ CFLAGS +=-Wwrite-strings -Wredundant-decls -Wno-trigraphs
 CFLAGS += -Werror-implicit-function-declaration -Wstrict-aliasing -Wshadow 
 CFLAGS += -fno-common -ffreestanding -fno-builtin -fomit-frame-pointer
 
-CBFS_COMPRESS_FLAG:=
-ifeq ($(CONFIG_COMPRESSED_PAYLOAD_LZMA),y)
 CBFS_COMPRESS_FLAG:=l
+CBFS_PAYLOAD_COMPRESS_FLAG:=
+ifeq ($(CONFIG_COMPRESSED_PAYLOAD_LZMA),y)
+CBFS_PAYLOAD_COMPRESS_FLAG:=l
 endif
 
 coreboot: prepare prepare2 $(obj)/coreboot.rom
diff --git a/src/arch/i386/Makefile.inc b/src/arch/i386/Makefile.inc
index 24a1654212..9d83ff2bac 100644
--- a/src/arch/i386/Makefile.inc
+++ b/src/arch/i386/Makefile.inc
@@ -25,7 +25,7 @@ ifeq ($(CONFIG_PAYLOAD_NONE),y)
 	@printf "    PAYLOAD    none (as specified by user)\n"
 else
 	@printf "    PAYLOAD    $(CONFIG_FALLBACK_PAYLOAD_FILE) $(COMPRESSFLAG)\n"
-	$(CBFSTOOL) ./build/coreboot.rom add-payload $(CONFIG_FALLBACK_PAYLOAD_FILE)  fallback/payload $(CBFS_COMPRESS_FLAG)
+	$(CBFSTOOL) ./build/coreboot.rom add-payload $(CONFIG_FALLBACK_PAYLOAD_FILE)  fallback/payload $(CBFS_PAYLOAD_COMPRESS_FLAG)
 ifeq ($(CONFIG_VGA_BIOS),y)
 	@printf "    VGABIOS    $(CONFIG_FALLBACK_VGA_BIOS_FILE) $(CONFIG_FALLBACK_VGA_BIOS_ID)\n"
 	$(CBFSTOOL) ./build/coreboot.rom add $(CONFIG_FALLBACK_VGA_BIOS_FILE) "pci$(CONFIG_FALLBACK_VGA_BIOS_ID).rom" optionrom