diff --git a/package/vim/vim.mk b/package/vim/vim.mk
index dbf71c573f..ee0c8b61e4 100644
--- a/package/vim/vim.mk
+++ b/package/vim/vim.mk
@@ -63,9 +63,15 @@ define VIM_REMOVE_DOCS
 endef
 
 # Avoid oopses with vipw/vigr, lack of $EDITOR and 'vi' command expectation
+ifeq ($(BR2_ROOTFS_MERGED_USR),y)
 define VIM_INSTALL_VI_SYMLINK
-	ln -sf /usr/bin/vim $(TARGET_DIR)/bin/vi
+	ln -sf vim $(TARGET_DIR)/usr/bin/vi
 endef
+else
+define VIM_INSTALL_VI_SYMLINK
+	ln -sf ../usr/bin/vim $(TARGET_DIR)/bin/vi
+endef
+endif
 VIM_POST_INSTALL_TARGET_HOOKS += VIM_INSTALL_VI_SYMLINK
 
 ifeq ($(BR2_PACKAGE_VIM_RUNTIME),y)