diff --git a/ChangeLog b/ChangeLog
index f227f5dbc..5eef8a821 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,9 @@
+2010-01-22  Vladimir Serbinenko  <phcoder@gmail.com>
+
+	* kern/ieee1275/init.c (grub_machine_set_prefix): Don't check for
+	presence of "prefix" variable as it breaks when normal.mod is
+	embedded.
+
 2010-01-21  Vladimir Serbinenko  <phcoder@gmail.com>
 
 	* term/ieee1275/ofconsole.c (grub_ofconsole_dimensions): Allocate on
diff --git a/kern/ieee1275/init.c b/kern/ieee1275/init.c
index 04e4e2dca..f3a4f4d81 100644
--- a/kern/ieee1275/init.c
+++ b/kern/ieee1275/init.c
@@ -75,10 +75,6 @@ grub_machine_set_prefix (void)
   char *filename;
   char *prefix;
 
-  if (grub_env_get ("prefix"))
-    /* We already set prefix in grub_machine_init().  */
-    return;
-
   if (grub_prefix[0])
     {
       grub_env_set ("prefix", grub_prefix);