diff --git a/utils/mksh/Makefile b/utils/mksh/Makefile
index e1dd6f9e2..e9a3bf3f1 100644
--- a/utils/mksh/Makefile
+++ b/utils/mksh/Makefile
@@ -9,12 +9,12 @@
 include $(TOPDIR)/rules.mk
 
 PKG_NAME:=mksh
-PKG_VERSION:=39
-PKG_RELEASE:=2
+PKG_VERSION:=40d
+PKG_RELEASE:=1
 
 PKG_SOURCE:=$(PKG_NAME)-R$(PKG_VERSION).cpio.gz
 PKG_SOURCE_URL:=http://www.mirbsd.org/MirOS/dist/mir/mksh
-PKG_MD5SUM:=b2eeb4fe4ccac2704e1440e53cd2672c
+PKG_MD5SUM:=c6428401103367730a95b99284bf47dc
 
 PKG_BUILD_DIR:=$(BUILD_DIR)/$(PKG_NAME)
 
@@ -35,13 +35,14 @@ milar to the original AT&T Korn shell; mksh is the only pdksh
 derivate currently being actively developed.  It includes bug
 fixes and feature improvements, in order to produce a modern,
 robust shell good for interactive and especially script use.
-mksh has UTF-8 support (e.g. in the emacs editing mode); R38c
-corresponds to OpenBSD 4.5-current ksh (without GNU bash-like
-$PS1 and fancy character classes).  The code has throughoutly
+mksh has UTF-8 support (in substring operations and the Emacs
+editing mode) and, while R40d corresponds to OpenBSD 5.0-cur-
+rent ksh (without GNU bash-like PS1 and fancy character clas-
+ses), adheres to SUSv4 and is much more robust.  The code has
 been cleaned up and simplified, bugs fixed, standards compli-
 ance added, and several enhancements (for extended compatibi-
 lity to other modern shells - as well as a couple of its own)
-have been placed.
+are available. It has sensible defaults as usual with BSD.
 endef
 
 define Build/Compile
@@ -50,17 +51,14 @@ define Build/Compile
 	#	UTF-8 mode, neither use setlocale/nl_langinfo
 	#	nor look at $LC_* and $LANG (not recommended)
 	# HAVE_CAN_FSTACKPROTECTORALL=0 ⇒ nuke libssp dependency
-	# HAVE_REALPATH=x ⇒ add the realpath builtin, which was
-	#	disabled by MKSH_SMALL, back if realpath() exists
 	cd $(PKG_BUILD_DIR); \
 		CC="$(TARGET_CC)" \
 		TARGET_OS="$(shell uname -s)" \
 		CFLAGS="$(TARGET_CFLAGS)" \
 		CPPFLAGS="-DMKSH_SMALL=1 -DMKSH_ASSUME_UTF8=0" \
 		HAVE_CAN_FSTACKPROTECTORALL=0 \
-		HAVE_REALPATH=x \
 		LDFLAGS="$(TARGET_LDFLAGS)" \
-			$(BASH) Build.sh -Q -r
+			$(BASH) Build.sh -Q -r -c lto
 endef
 
 define Package/mksh/postinst
diff --git a/utils/mksh/patches/100-dot_mkshrc b/utils/mksh/patches/100-dot_mkshrc
index a47b29d3b..f326ae744 100644
--- a/utils/mksh/patches/100-dot_mkshrc
+++ b/utils/mksh/patches/100-dot_mkshrc
@@ -2,36 +2,37 @@ $Id$
 
 	• Part of the FreeWRT patches:
 	  – no hostname(1)
-	  – ls has no -o
-	• OpenWrt fix:
+	  – ls(1) has no -o option
+	• OpenWrt and FreeWRT-1.0 fix:
 	  – since this is not ~/.mkshrc make sure subshells find it
 
---- a/dot.mkshrc
-+++ b/dot.mkshrc
-@@ -20,7 +20,7 @@
+--- a/dot.mkshrc	Sat Nov 26 18:15:38 2011
++++ b/dot.mkshrc	Sun Dec 11 21:31:27 2011
+@@ -21,7 +21,7 @@
  #-
- # ~/.mkshrc: mksh initialisation file for interactive shells
+ # ${ENV:-~/.mkshrc}: mksh initialisation file for interactive shells
  
 -: ${EDITOR:=/bin/ed} ${TERM:=vt100} ${HOSTNAME:=$(ulimit -c 0;hostname -s 2>&-)}
 +: ${EDITOR:=/bin/ed} ${TERM:=vt100} ${HOSTNAME:=$(</proc/sys/kernel/hostname)}
  [[ $HOSTNAME = @(localhost|*([	 ])) ]] && HOSTNAME=$(ulimit -c 0;hostname 2>&-)
  : ${HOSTNAME:=nil}; if (( USER_ID )); then PS1='$'; else PS1='#'; fi
  function precmd {
-@@ -38,7 +38,7 @@ unalias ls
+@@ -40,7 +40,7 @@ unalias ls
  alias l='ls -F'
  alias la='l -a'
  alias ll='l -l'
 -alias lo='l -alo'
 +alias lo='l -al'
- alias which='whence -p'
  whence -p rot13 >&- || alias rot13='tr \
      abcdefghijklmnopqrstuvwxyzABCDEFGHIJKLMNOPQRSTUVWXYZ \
-@@ -304,4 +304,8 @@ function Lstripcom {
- 	done; }
- }
+     nopqrstuvwxyzabcdefghijklmNOPQRSTUVWXYZABCDEFGHIJKLM'
+@@ -365,5 +365,9 @@ alias cls='print -n \\033c'
+ #export LANG=C LC_CTYPE=$p LC_MEASUREMENT=$p LC_MESSAGES=$p LC_PAPER=$p
  
+ unset p
++
 +# we need this in OpenWrt for subshells that are not login shells
 +: ${ENV=/etc/mkshrc}
 +[[ -z $ENV ]] || export ENV
-+
- : place customsations above this line
+ 
+ : place customisations above this line