diff --git a/harbour/ChangeLog b/harbour/ChangeLog
index 7835102f4c..fbe406b921 100644
--- a/harbour/ChangeLog
+++ b/harbour/ChangeLog
@@ -16,6 +16,10 @@
    The license applies to all entries newer than 2009-04-28.
 */
 
+2012-06-19 16:24 UTC+0200 Viktor Szakats (harbour syenar.net)
+  * config/win/watcom.mk
+    ! fixed RC compilation for watcom
+
 2012-06-19 14:29 UTC+0200 Viktor Szakats (harbour syenar.net)
   * utils/hbmk2/hbmk2.prg
     * deleted all remaining "hbmk2" occurrences from comments
diff --git a/harbour/config/win/watcom.mk b/harbour/config/win/watcom.mk
index 4ebe265592..7d5c8df2f0 100644
--- a/harbour/config/win/watcom.mk
+++ b/harbour/config/win/watcom.mk
@@ -56,7 +56,7 @@ endif
 
 RC := wrc
 RC_OUT := -fo=
-RCFLAGS += -I. -I$(HB_HOST_INC) -q -r -zm -bt=nt
+RCFLAGS += -i. -i$(GRANDP) -i$(HB_HOST_INC) -q -r -zm -bt=nt
 
 LD := wlink
 ifeq ($(HB_BUILD_DEBUG),yes)