diff --git a/ChangeLog b/ChangeLog
index 5d8793aa5..824a79636 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,11 @@
+2012-02-25  Vladimir Serbinenko  <phcoder@gmail.com>
+
+	Remove GRUB_PREFIX.
+
+	* util/grub-mkconfig.in: Remove GRUB_PREFIX.
+	* util/grub.d/00_header.in: Compute prefix in the only place it's still
+	used for backward compatibility.
+
 2012-02-25  Vladimir Serbinenko  <phcoder@gmail.com>
 
 	Add new all_video module.
@@ -10,7 +18,7 @@
 	* grub-core/normal/main.c (features): Add feature_all_video_module.
 	* util/grub.d/00_header.in: Define locale_dir based on $prefix and
 	don't do explicit search again.
-	insmod all_vidoe in load_video if available.
+	insmod all_video in load_video if available.
 
 2012-02-25  Vladimir Serbinenko  <phcoder@gmail.com>
 
diff --git a/util/grub-mkconfig.in b/util/grub-mkconfig.in
index 198bd37a9..2e986b398 100644
--- a/util/grub-mkconfig.in
+++ b/util/grub-mkconfig.in
@@ -42,8 +42,6 @@ self=`basename $0`
 grub_probe="${sbindir}/`echo grub-probe | sed "${transform}"`"
 grub_script_check="${bindir}/`echo grub-script-check | sed "${transform}"`"
 
-GRUB_PREFIX=`echo '/@bootdirname@/@grubdirname@' | sed "s,//*,/,g"`
-
 . "${pkgdatadir}/grub-mkconfig_lib"
 
 # Usage: usage
@@ -126,8 +124,6 @@ else
     exit 1
 fi
 
-mkdir -p ${GRUB_PREFIX}
-
 # Device containing our userland.  Typically used for root= parameter.
 GRUB_DEVICE="`${grub_probe} --target=device /`"
 GRUB_DEVICE_UUID="`${grub_probe} --device ${GRUB_DEVICE} --target=fs_uuid 2> /dev/null`" || true
@@ -174,8 +170,7 @@ export GRUB_DEVICE \
   GRUB_DEVICE_BOOT_UUID \
   GRUB_FS \
   GRUB_FONT \
-  GRUB_PRELOAD_MODULES \
-  GRUB_PREFIX
+  GRUB_PRELOAD_MODULES
 
 # These are optional, user-defined variables.
 export GRUB_DEFAULT \
diff --git a/util/grub.d/00_header.in b/util/grub.d/00_header.in
index a319d58b5..b738a028b 100644
--- a/util/grub.d/00_header.in
+++ b/util/grub.d/00_header.in
@@ -129,25 +129,24 @@ if [ "x$gfxterm" = x1 ]; then
     cat << EOF
 if loadfont `make_system_path_relative_to_its_root "${GRUB_FONT}"` ; then
 EOF
-	else
-	    for dir in ${pkgdatadir} ${GRUB_PREFIX} /usr/share/grub ; do
-		for basename in unicode unifont ascii; do
-		    path="${dir}/${basename}.pf2"
-		    if is_path_readable_by_grub ${path} > /dev/null ; then
-			font_path=${path}
-		    else
-			continue
-		    fi
-		    break 2
-		done
+    else
+	for dir in "${pkgdatadir}" "`echo '/@bootdirname@/@grubdirname@' | sed "s,//*,/,g"`" /usr/share/grub ; do
+	    for basename in unicode unifont ascii; do
+		path="${dir}/${basename}.pf2"
+		if is_path_readable_by_grub "${path}" > /dev/null ; then
+		    font_path="${path}"
+		else
+		    continue
+		fi
+		break 2
 	    done
-	    if [ -n "${font_path}" ] ; then
+	done
+	if [ -n "${font_path}" ] ; then
     cat << EOF
 if [ x\$feature_default_font_path = xy ] ; then
    font=unicode
 else
 EOF
-
                 # Make the font accessible
 		prepare_grub_to_access_device `${grub_probe} --target=device "${font_path}"`
     cat << EOF