diff --git a/modulecmd.tcl.in b/modulecmd.tcl.in
index 843e178..8e77ec7 100644
--- a/modulecmd.tcl.in
+++ b/modulecmd.tcl.in
@@ -9066,7 +9066,7 @@ proc cmdModuleAutoinit {} {
    pushMode load
 
    # default MODULESHOME
-   setenv MODULESHOME @prefix@
+   setenv MODULESHOME [file dirname @initdir@]
 
    # register command location
    setenv MODULES_CMD [getAbsolutePath $::argv0]