diff --git a/Mac/Lib/py_resource.py b/Mac/Lib/py_resource.py
index 3c1343e4f24..85d67e5f589 100644
--- a/Mac/Lib/py_resource.py
+++ b/Mac/Lib/py_resource.py
@@ -28,9 +28,18 @@ def open(dst):
 	Res.UseResFile(output)
 	return output
 
-def writemodule(name, id, data, type='PYC ', preload=0):
+def writemodule(name, id, data, type='PYC ', preload=0, ispackage=0):
 	"""Write pyc code to a PYC resource with given name and id."""
 	# XXXX Check that it doesn't exist
+	
+	# Normally, byte 4-7 are the time stamp, but that is not used
+	# for 'PYC ' resources. We abuse byte 4 as a flag to indicate
+	# that it is a package rather than an ordinary module. 
+	# See also macimport.c. (jvr)
+	if ispackage:
+		data = data[:4] + '\377\0\0\0' + data[8:] # flag resource as package
+	else:
+		data = data[:4] + '\0\0\0\0' + data[8:] # clear mod date field, used as package flag
 	res = Res.Resource(data)
 	res.AddResource(type, id, name)
 	if preload:
@@ -40,22 +49,23 @@ def writemodule(name, id, data, type='PYC ', preload=0):
 	res.WriteResource()
 	res.ReleaseResource()
 		
-def frompycfile(file, name=None, preload=0):
+def frompycfile(file, name=None, preload=0, ispackage=0):
 	"""Copy one pyc file to the open resource file"""
 	if name == None:
 		d, name = os.path.split(file)
 		name = name[:-4]
 	id = findfreeid()
-	writemodule(name, id, __builtin__.open(file, 'rb').read(), preload=preload)
+	data = __builtin__.open(file, 'rb').read()
+	writemodule(name, id, data, preload=preload, ispackage=ispackage)
 	return id, name
 
-def frompyfile(file, name=None, preload=0):
+def frompyfile(file, name=None, preload=0, ispackage=0):
 	"""Compile python source file to pyc file and add to resource file"""
 	import py_compile
 	
 	py_compile.compile(file)
 	file = file +'c'
-	return frompycfile(file, name, preload=preload)	
+	return frompycfile(file, name, preload=preload, ispackage=ispackage)
 
 # XXXX Note this is incorrect, it only handles one type and one file....
 
diff --git a/Mac/Python/macimport.c b/Mac/Python/macimport.c
index cf9254378ea..f5f4e209ada 100644
--- a/Mac/Python/macimport.c
+++ b/Mac/Python/macimport.c
@@ -332,14 +332,45 @@ char *filename;
 			co = NULL;
 		} else {
 			co = PyMarshal_ReadObjectFromString((*h)+8, size-8);
+			/*
+			** Normally, byte 4-7 are the time stamp, but that is not used
+			** for 'PYC ' resources. We abuse byte 4 as a flag to indicate
+			** that it is a package rather than an ordinary module. 
+			** See also py_resource.py. (jvr)
+			*/
+			if ((*h)[4] & 0xff) {
+				/* it's a package */
+				/* Set __path__ to the package name */
+				PyObject *d, *s;
+				int err;
+				
+				m = PyImport_AddModule(module);
+				if (m == NULL) {
+					co = NULL;
+					goto packageerror;
+				}
+				d = PyModule_GetDict(m);
+				s = PyString_InternFromString(module);
+				if (s == NULL) {
+					co = NULL;
+					goto packageerror;
+				}
+				err = PyDict_SetItemString(d, "__path__", s);
+				Py_DECREF(s);
+				if (err != 0) {
+					co = NULL;
+					goto packageerror;
+				}
+			}
 		}
 	}
+packageerror:
 	HUnlock(h);
 	if ( filerh != -1 )
 		CloseResFile(filerh);
 	UseResFile(oldrh);
 	if ( co ) {
-		m = PyImport_ExecCodeModule(module, co);
+		m = PyImport_ExecCodeModuleEx(module, co, "<pyc resource>");
 		Py_DECREF(co);
 	} else {
 		m = NULL;
diff --git a/Mac/Tools/macfreeze/macgen_bin.py b/Mac/Tools/macfreeze/macgen_bin.py
index a4ee8289153..e293b63f892 100644
--- a/Mac/Tools/macfreeze/macgen_bin.py
+++ b/Mac/Tools/macfreeze/macgen_bin.py
@@ -128,10 +128,12 @@ def getfragname(path, dynamicfiles):
 
 
 def addpythonmodules(module_dict):
+	# XXX should really use macgen_rsrc.generate(), this does the same, but skips __main__
 	items = module_dict.items()
 	items.sort()
 	for name, module in items:
-		if module.gettype() != 'module' or name == "__main__":
+		mtype = module.gettype()
+		if mtype not in ['module', 'package'] or name == "__main__":
 			continue
 		location = module.__file__
 		
@@ -143,7 +145,8 @@ def addpythonmodules(module_dict):
 			continue
 		
 		print 'Adding module ³%s²' % name
-		id, name = py_resource.frompyfile(location, name, preload=0)
+		id, name = py_resource.frompyfile(location, name, preload=0, 
+				ispackage=mtype=='package')
 
 def Pstring(str):
 	if len(str) > 255:
diff --git a/Mac/Tools/macfreeze/macgen_rsrc.py b/Mac/Tools/macfreeze/macgen_rsrc.py
index 107e7346448..2619a6a6d66 100644
--- a/Mac/Tools/macfreeze/macgen_rsrc.py
+++ b/Mac/Tools/macfreeze/macgen_rsrc.py
@@ -6,9 +6,10 @@ import sys
 
 def generate(output, module_dict, debug=0, preload=1):
 	fsid = py_resource.create(output)
-
+	
 	for name, module in module_dict.items():
-		if module.gettype() != 'module':
+		mtype = module.gettype()
+		if mtype not in ['module', 'package']:
 			continue
 		location = module.__file__
 		
@@ -19,10 +20,11 @@ def generate(output, module_dict, debug=0, preload=1):
 			print '*** skipping', location
 			continue
 			
-		id, name = py_resource.frompyfile(location, name, preload=preload)
+		id, name = py_resource.frompyfile(location, name, preload=preload, 
+				ispackage=mtype=='package')
 		if debug > 0:
 			print 'PYC resource %5d\t%s\t%s'%(id, name, location)
-
+	
 	Res.CloseResFile(fsid)
 	
 def warnings(module_dict):