diff --git a/src/cmd/goinstall/main.go b/src/cmd/goinstall/main.go
index 1736ffc0307..b0f08efdf26 100644
--- a/src/cmd/goinstall/main.go
+++ b/src/cmd/goinstall/main.go
@@ -174,28 +174,25 @@ func install(pkg, parent string) {
 	}
 
 	// Install prerequisites.
-	files, m, pkgname, err := goFiles(dir, parent == "")
+	dirInfo, err := scanDir(dir, parent == "")
 	if err != nil {
 		fmt.Fprintf(os.Stderr, "%s: %s: %s\n", argv0, pkg, err)
 		errors = true
 		visit[pkg] = done
 		return
 	}
-	if len(files) == 0 {
+	if len(dirInfo.goFiles) == 0 {
 		fmt.Fprintf(os.Stderr, "%s: %s: package has no files\n", argv0, pkg)
 		errors = true
 		visit[pkg] = done
 		return
 	}
-	for p := range m {
-		if p == "C" {
-			fmt.Fprintf(os.Stderr, "%s: %s: cgo packages are not supported yet. Try installing manually.\n", argv0, pkg)
-			errors = true
-			return
+	for _, p := range dirInfo.imports {
+		if p != "C" {
+			install(p, pkg)
 		}
-		install(p, pkg)
 	}
-	if pkgname == "main" {
+	if dirInfo.pkgName == "main" {
 		if !errors {
 			fmt.Fprintf(os.Stderr, "%s: %s's dependencies are installed.\n", argv0, pkg)
 		}
diff --git a/src/cmd/goinstall/make.go b/src/cmd/goinstall/make.go
index 58ba5be0a6c..c95156c0396 100644
--- a/src/cmd/goinstall/make.go
+++ b/src/cmd/goinstall/make.go
@@ -44,12 +44,38 @@ func domake(dir, pkg string, local bool) (err os.Error) {
 // installing as package pkg.  It includes all *.go files in the directory
 // except those in package main and those ending in _test.go.
 func makeMakefile(dir, pkg string) ([]byte, os.Error) {
-	files, _, _, err := goFiles(dir, false)
+	dirInfo, err := scanDir(dir, false)
 	if err != nil {
 		return nil, err
 	}
+
+	if len(dirInfo.cgoFiles) == 0 && len(dirInfo.cFiles) > 0 {
+		// When using cgo, .c files are compiled with gcc.  Without cgo,
+		// they may be intended for 6c.  Just error out for now.
+		return nil, os.ErrorString("C files found in non-cgo package")
+	}
+
+	cgoFiles := dirInfo.cgoFiles
+	isCgo := make(map[string]bool, len(cgoFiles))
+	for _, file := range cgoFiles {
+		isCgo[file] = true
+	}
+
+	oFiles := make([]string, 0, len(dirInfo.cFiles))
+	for _, file := range dirInfo.cFiles {
+		oFiles = append(oFiles, file[:len(file)-2]+".o")
+	}
+
+	goFiles := make([]string, 0, len(dirInfo.goFiles))
+	for _, file := range dirInfo.goFiles {
+		if !isCgo[file] {
+			goFiles = append(goFiles, file)
+		}
+	}
+
 	var buf bytes.Buffer
-	if err := makefileTemplate.Execute(&makedata{pkg, files}, &buf); err != nil {
+	md := makedata{pkg, goFiles, cgoFiles, oFiles}
+	if err := makefileTemplate.Execute(&md, &buf); err != nil {
 		return nil, err
 	}
 	return buf.Bytes(), nil
@@ -57,19 +83,38 @@ func makeMakefile(dir, pkg string) ([]byte, os.Error) {
 
 // makedata is the data type for the makefileTemplate.
 type makedata struct {
-	pkg   string   // package import path
-	files []string // list of .go files
+	pkg      string   // package import path
+	goFiles  []string // list of non-cgo .go files
+	cgoFiles []string // list of cgo .go files
+	oFiles   []string // list of ofiles for cgo
 }
 
 var makefileTemplate = template.MustParse(`
 include $(GOROOT)/src/Make.inc
 
 TARG={pkg}
+
+{.section goFiles}
 GOFILES=\
-{.repeated section files}
+{.repeated section goFiles}
 	{@}\
 {.end}
 
+{.end}
+{.section cgoFiles}
+CGOFILES=\
+{.repeated section cgoFiles}
+	{@}\
+{.end}
+
+{.end}
+{.section oFiles}
+CGO_OFILES=\
+{.repeated section oFiles}
+	{@}\
+{.end}
+
+{.end}
 include $(GOROOT)/src/Make.pkg
 `,
 	nil)
diff --git a/src/cmd/goinstall/parse.go b/src/cmd/goinstall/parse.go
index deae436e44c..679edfabcaa 100644
--- a/src/cmd/goinstall/parse.go
+++ b/src/cmd/goinstall/parse.go
@@ -16,34 +16,58 @@ import (
 	"go/parser"
 )
 
-// goFiles returns a list of the *.go source files in dir, excluding
-// those in package main (unless allowMain is true) or ending in
-// _test.go.  It also returns a map giving the packages imported by
-// those files, and the package name.
-// The map keys are the imported paths.  The key's value
-// is one file that imports that path.
-func goFiles(dir string, allowMain bool) (files []string, imports map[string]string, pkgName string, err os.Error) {
+
+type dirInfo struct {
+	goFiles  []string // .go files within dir (including cgoFiles)
+	cgoFiles []string // .go files that import "C"
+	cFiles   []string // .c files within dir
+	imports  []string // All packages imported by goFiles
+	pkgName  string   // Name of package within dir
+}
+
+// scanDir returns a structure with details about the Go content found
+// in the given directory. The list of files will NOT contain the
+// following entries:
+//
+// - Files in package main (unless allowMain is true)
+// - Files ending in _test.go
+// - Files starting with _ (temporary)
+// - Files containing .cgo in their names
+//
+// The imports map keys are package paths imported by listed Go files,
+// and the values are the Go files importing the respective package paths.
+func scanDir(dir string, allowMain bool) (info *dirInfo, err os.Error) {
 	f, err := os.Open(dir, os.O_RDONLY, 0)
 	if err != nil {
-		return nil, nil, "", err
+		return nil, err
 	}
 	dirs, err := f.Readdir(-1)
 	f.Close()
 	if err != nil {
-		return nil, nil, "", err
+		return nil, err
 	}
 
-	files = make([]string, 0, len(dirs))
-	imports = make(map[string]string)
+	goFiles := make([]string, 0, len(dirs))
+	cgoFiles := make([]string, 0, len(dirs))
+	cFiles := make([]string, 0, len(dirs))
+	importsm := make(map[string]bool)
+	pkgName := ""
 	for i := range dirs {
 		d := &dirs[i]
+		if strings.HasPrefix(d.Name, "_") || strings.Index(d.Name, ".cgo") != -1 {
+			continue
+		}
+		if strings.HasSuffix(d.Name, ".c") {
+			cFiles = append(cFiles, d.Name)
+			continue
+		}
 		if !strings.HasSuffix(d.Name, ".go") || strings.HasSuffix(d.Name, "_test.go") {
 			continue
 		}
 		filename := path.Join(dir, d.Name)
 		pf, err := parser.ParseFile(fset, filename, nil, parser.ImportsOnly)
 		if err != nil {
-			return nil, nil, "", err
+			return nil, err
 		}
 		s := string(pf.Name.Name)
 		if s == "main" && !allowMain {
@@ -57,13 +81,11 @@ func goFiles(dir string, allowMain bool) (files []string, imports map[string]str
 			// A mix of main and another package reverts
 			// to the original (allowMain=false) behaviour.
 			if s == "main" || pkgName == "main" {
-				return goFiles(dir, false)
+				return scanDir(dir, false)
 			}
-			return nil, nil, "", os.ErrorString("multiple package names in " + dir)
+			return nil, os.ErrorString("multiple package names in " + dir)
 		}
-		n := len(files)
-		files = files[0 : n+1]
-		files[n] = filename
+		goFiles = append(goFiles, d.Name)
 		for _, decl := range pf.Decls {
 			for _, spec := range decl.(*ast.GenDecl).Specs {
 				quoted := string(spec.(*ast.ImportSpec).Path.Value)
@@ -71,9 +93,18 @@ func goFiles(dir string, allowMain bool) (files []string, imports map[string]str
 				if err != nil {
 					log.Panicf("%s: parser returned invalid quoted string: <%s>", filename, quoted)
 				}
-				imports[unquoted] = filename
+				importsm[unquoted] = true
+				if unquoted == "C" {
+					cgoFiles = append(cgoFiles, d.Name)
+				}
 			}
 		}
 	}
-	return files, imports, pkgName, nil
+	imports := make([]string, len(importsm))
+	i := 0
+	for p := range importsm {
+		imports[i] = p
+		i++
+	}
+	return &dirInfo{goFiles, cgoFiles, cFiles, imports, pkgName}, nil
 }