diff --git a/Makefile b/Makefile
index 577db8e90..78c6fbed2 100644
--- a/Makefile
+++ b/Makefile
@@ -8,6 +8,9 @@ VERSION=$(shell git describe HEAD)
 # subdirectory we use to build the installation bundle
 INSTALL_DIR=koreader
 
+# subdirectory we use to setup emulation environment
+EMU_DIR=emu
+
 # files to copy from main directory
 LUA_FILES=reader.lua
 
@@ -30,10 +33,16 @@ clean:
 cleanthirdparty:
 	cd koreader-base && make cleanthirdparty
 
-setupemu:
-	test -d libs-emu || ln -s koreader-base/libs-emu ./
-	test -d fonts || ln -s koreader-base/fonts ./
-	test -d data || ln -s koreader-base/data ./
+bootstrapemu:
+	test -d $(EMU_DIR) || mkdir $(EMU_DIR)
+	test -d $(EMU_DIR)/libs-emu || (cd $(EMU_DIR) && ln -s ../koreader-base/libs-emu ./)
+	test -d $(EMU_DIR)/fonts || (cd $(EMU_DIR) && ln -s ../koreader-base/fonts ./)
+	test -d $(EMU_DIR)/data || (cd $(EMU_DIR) && ln -s ../koreader-base/data ./)
+	test -d $(EMU_DIR)/frontend || (cd $(EMU_DIR) && ln -s ../frontend ./)
+	test -d $(EMU_DIR)/resources || (cd $(EMU_DIR) && ln -s ../resources ./)
+	test -e $(EMU_DIR)/koreader-base || (cd $(EMU_DIR) && ln -s ../koreader-base/koreader-base ./)
+	test -e $(EMU_DIR)/extr || (cd $(EMU_DIR) && ln -s ../koreader-base/extr ./)
+	test -e $(EMU_DIR)/reader.lua || (cd $(EMU_DIR) && ln -s ../reader.lua ./)
 
 customupdate: koreader-base/koreader-base koreader-base/extr
 	# ensure that the binaries were built for ARM
diff --git a/README.md b/README.md
index 0893d4b9d..b205319f1 100644
--- a/README.md
+++ b/README.md
@@ -73,19 +73,19 @@ In emulator
 -----------
 You need to first compile koreader-base in emulation mode.
   * If you have built koreader in real mode before, you need to clean it up:
-```
+```bash
 make clean && make cleanthirdparty
 ```
   * Then compile with emulation mode flag:
-```
-EMULATE_READER_W=600 EMULATE_READER_H=800 EMULATE_READER=1 make
+```bash
+EMULATE_READER=1 make
 ```
   * You may want to see README.md in koreader-base for more information.
 
-Next run `make setupemu` to setup basic runtime environment needed by emulation
-mode.
+Next run `make bootstrapemu` to setup basic runtime environment needed by
+emulation mode. A new emu directory will be created.
 
 Last, run the emulator with following command:
 ```
-./koreader-base/koreader-base reader.lua -d ./
+cd emu && reader.lua -d ./
 ```