diff --git a/gtsam/CMakeLists.txt b/gtsam/CMakeLists.txt
index 50ec1d4de..fb732ca51 100644
--- a/gtsam/CMakeLists.txt
+++ b/gtsam/CMakeLists.txt
@@ -94,7 +94,10 @@ if (GTSAM_BUILD_STATIC_LIBRARY)
     install(TARGETS gtsam-static EXPORT GTSAM-exports ARCHIVE DESTINATION lib)
     list(APPEND GTSAM_EXPORTED_TARGETS gtsam-static)
     set(GTSAM_EXPORTED_TARGETS "${GTSAM_EXPORTED_TARGETS}" PARENT_SCOPE)
-    set(gtsam-lib "gtsam-static")
+    set(gtsam-lib gtsam-static)
+	if(NOT GTSAM_BUILD_SHARED_LIBRARY)
+		set(gtsam-prefer-shared gtsam-static)
+	endif()
 endif (GTSAM_BUILD_STATIC_LIBRARY)
 
 if (GTSAM_BUILD_SHARED_LIBRARY)
@@ -112,6 +115,7 @@ if (GTSAM_BUILD_SHARED_LIBRARY)
     if (NOT GTSAM_BUILD_STATIC_LIBRARY)
         set(gtsam-lib "gtsam-shared")
     endif()
+	set(gtsam-prefer-shared gtsam-shared)
 endif(GTSAM_BUILD_SHARED_LIBRARY)
 
 # Create the matlab toolbox for the gtsam library
@@ -132,9 +136,11 @@ if (GTSAM_BUILD_WRAP)
     endif()
     
     # Generate, build and install toolbox
-    set(mexFlags "${GTSAM_BUILD_MEX_BINARY_FLAGS} ${CMAKE_CXX_FLAGS} -I${Boost_INCLUDE_DIR} -I${MEX_INCLUDE_ROOT} -I${MEX_INCLUDE_ROOT}/gtsam -I${MEX_INCLUDE_ROOT}/gtsam/base -I${MEX_INCLUDE_ROOT}/gtsam/geometry -I${MEX_INCLUDE_ROOT}/gtsam/linear -I${MEX_INCLUDE_ROOT}/gtsam/discrete -I${MEX_INCLUDE_ROOT}/gtsam/inference -I${MEX_INCLUDE_ROOT}/gtsam/nonlinear -I${MEX_INCLUDE_ROOT}/gtsam/slam -L${GTSAM_LIB_DIR} -lgtsam")
-    string(TOUPPER "${CMAKE_BUILD_TYPE}" cmake_build_type_toupper)
-	set(mexFlags "${mexFlags} -g COMPFLAGS='/c /DMATLAB_MEX_FILE ${CMAKE_CXX_FLAGS_${cmake_build_type_toupper}}'")
+	string(TOUPPER ${CMAKE_BUILD_TYPE} build_type_toupper)
+	get_target_property(gtsam_library_file ${gtsam-prefer-shared} LOCATION_${build_type_toupper})
+    set(mexFlags "${GTSAM_BUILD_MEX_BINARY_FLAGS} -I${Boost_INCLUDE_DIR} -I${MEX_INCLUDE_ROOT} -I${MEX_INCLUDE_ROOT}/gtsam -I${MEX_INCLUDE_ROOT}/gtsam/base -I${MEX_INCLUDE_ROOT}/gtsam/geometry -I${MEX_INCLUDE_ROOT}/gtsam/linear -I${MEX_INCLUDE_ROOT}/gtsam/discrete -I${MEX_INCLUDE_ROOT}/gtsam/inference -I${MEX_INCLUDE_ROOT}/gtsam/nonlinear -I${MEX_INCLUDE_ROOT}/gtsam/slam ${gtsam_library_file}")
+	# Lots of escapes '\' here because they get eaten during subsequent calls to 'set'
+	set(mexFlags "${mexFlags} -g COMPFLAGS=\\\"$$COMPFLAGS ${CMAKE_CXX_FLAGS} ${CMAKE_CXX_FLAGS_${build_type_toupper}}\\\"")
 
     # Macro to handle details of setting up targets
     # FIXME: issue with dependency between wrap_gtsam and wrap_gtsam_build, only shows up on CMake 2.8.3