diff --git a/reactos/subsys/system/setup/makefile b/reactos/subsys/system/setup/makefile
index 6250944eb37..61e69472db8 100644
--- a/reactos/subsys/system/setup/makefile
+++ b/reactos/subsys/system/setup/makefile
@@ -10,7 +10,7 @@ TARGET_NAME = setup
 
 TARGET_INSTALLDIR = system32
 
-TARGET_SDKLIBS = kernel32.a
+TARGET_SDKLIBS = kernel32.a userenv.a ntdll.a
 
 TARGET_CFLAGS = -Wall -Werror -D__USE_W32API -D_WIN32_IE=0x0400
 
diff --git a/reactos/subsys/system/setup/setup.c b/reactos/subsys/system/setup/setup.c
index 2ff39fca58c..6c1b26cdd6d 100644
--- a/reactos/subsys/system/setup/setup.c
+++ b/reactos/subsys/system/setup/setup.c
@@ -27,6 +27,7 @@
 #include <windows.h>
 #include <tchar.h>
 #include <syssetup.h>
+#include <userenv.h>
 
 #define NDEBUG
 #include <debug.h>
@@ -59,6 +60,9 @@ RunNewSetup (HINSTANCE hInstance)
   HMODULE hDll;
   PINSTALL_REACTOS InstallReactOS;
 
+  /* some dlls (loaded by syssetup) need a valid user profile */
+  InitializeProfiles();
+
   hDll = LoadLibrary (TEXT("syssetup"));
   if (hDll == NULL)
     {