diff --git a/README.pod b/README.pod
index 76ee4f1..489a4a9 100644
--- a/README.pod
+++ b/README.pod
@@ -131,8 +131,8 @@ In order to do that you have to add a hint via the -h option.
 =head1 CONFIGURATION
 
 An example configuration file is included (usually /usr/share/dunst/dunstrc).
-To change the configuration, copy this file to ~/.config/dunstrc and edit it
-accordingly.
+To change the configuration, copy this file to ~/.config/dunst/dunstrc and edit
+it accordingly.
 
 =head1 AUTHOR
 
diff --git a/config.mk b/config.mk
index 2af7fd8..a79f899 100644
--- a/config.mk
+++ b/config.mk
@@ -17,8 +17,8 @@ XINERAMAFLAGS = -DXINERAMA
 INIFLAGS = -DINI_ALLOW_MULTILINE=0
 
 # includes and libs
-INCS = -I${X11INC} -I/usr/lib/dbus-1.0/include -I/usr/include/dbus-1.0 ${XFTINC}
-LIBS = -L${X11LIB} -lX11 -lXss -ldbus-1 ${XFTLIBS} ${XINERAMALIBS}
+INCS = -I${X11INC} $(shell pkg-config --cflags dbus-1 libxdg-basedir) ${XFTINC}
+LIBS = -L${X11LIB} -lX11 -lXss ${XFTLIBS} ${XINERAMALIBS} $(shell pkg-config --libs dbus-1 libxdg-basedir)
 
 # flags
 CPPFLAGS = -D_BSD_SOURCE -DVERSION=\"${VERSION}\" ${XINERAMAFLAGS} ${INIFLAGS}
diff --git a/dunst.c b/dunst.c
index 8cdbc8b..afc70fa 100644
--- a/dunst.c
+++ b/dunst.c
@@ -16,6 +16,8 @@
 #include <X11/extensions/Xinerama.h>
 #endif
 #include <X11/extensions/scrnsaver.h>
+#include <basedir.h>
+#include <basedir_fs.h>
 
 #include "dunst.h"
 #include "draw.h"
@@ -1056,33 +1058,32 @@ dunst_ini_handle(void *user_data, const char *section,
 void
 parse_dunstrc(void) {
 
-    char *config_path = NULL;
+    xdgHandle xdg;
+    FILE *config_file;
 
     dunst_printf(DEBUG, "Begin parsing of dunstrc\n");
 
+    xdgInitHandle(&xdg);
+
+    config_file = xdgConfigOpen("dunst/dunstrc", "r", &xdg);
     if (config_file == NULL) {
-        config_file = malloc(sizeof(char) * BUFSIZ);
-        memset(config_file, '\0', BUFSIZ);
-
-        config_path = getenv("XDG_CONFIG_HOME");
-
-        if (!config_path) {
+        /* Fall back to just "dunstrc", which was used before 2012-06-23
+         * (before v0.2). */
+        config_file = xdgConfigOpen("dunstrc", "r", &xdg);
+        if (config_file == NULL) {
             puts("no dunstrc found -> skipping\n");
+            xdgWipeHandle(&xdg);
             return;
         }
-
-
-        strcat(config_file, config_path);
-        strcat(config_file, "/");
-        strcat(config_file, "dunstrc");
     }
 
-    dunst_printf(DEBUG, "Reading %s\n", config_file);
-
-    if (ini_parse(config_file, dunst_ini_handle, NULL) < 0) {
-        puts("no dunstrc found -> skipping\n");
+    if (ini_parse_file(config_file, dunst_ini_handle, NULL) < 0) {
+        puts("dunstrc could not be parsed -> skipping\n");
     }
 
+    fclose(config_file);
+    xdgWipeHandle(&xdg);
+
     print_rules();
 }