diff --git a/administrator/components/com_installer/models/extension.php b/administrator/components/com_installer/models/extension.php
index 26979bbd0e2f5..a6726fe68664d 100644
--- a/administrator/components/com_installer/models/extension.php
+++ b/administrator/components/com_installer/models/extension.php
@@ -182,8 +182,15 @@ protected function translate(&$items)
 						$lang->load("$extension.sys", JPATH_SITE, null, false, true);
 				break;
 				case 'library':
-					$extension = 'lib_' . $item->element;
-						$lang->load("$extension.sys", JPATH_SITE, null, false, true);
+					$parts = explode('/', $item->element);
+					$vendor = (isset($parts[1]) ? $parts[0] : null);
+					$extension = 'lib_' . ($vendor ? implode('_', $parts) : $item->element);
+
+					if (!$lang->load("$extension.sys", $path, null, false, true))
+					{
+						$source = $path . '/libraries/' . ($vendor ? $vendor . '/' . $parts[1] : $item->element);
+						$lang->load("$extension.sys", $source, null, false, true);
+					}
 				break;
 				case 'module':
 					$extension = $item->element;
diff --git a/libraries/src/Installer/Adapter/LibraryAdapter.php b/libraries/src/Installer/Adapter/LibraryAdapter.php
index f08d2f2caa5d0..80248a04637a7 100644
--- a/libraries/src/Installer/Adapter/LibraryAdapter.php
+++ b/libraries/src/Installer/Adapter/LibraryAdapter.php
@@ -106,7 +106,15 @@ protected function finaliseInstall()
 		{
 			$manifest = array();
 			$manifest['src'] = $this->parent->getPath('manifest');
-			$manifest['dest'] = JPATH_MANIFESTS . '/libraries/' . basename($this->parent->getPath('manifest'));
+			$manifest['dest'] = JPATH_MANIFESTS . '/libraries/' . $this->element . '.xml';
+
+			$destFolder = dirname($manifest['dest']);
+
+			if (!is_dir($destFolder) && !@mkdir($destFolder))
+			{
+				// Install failed, rollback changes
+				throw new \RuntimeException(\JText::_('JLIB_INSTALLER_ABORT_LIB_INSTALL_COPY_SETUP'));
+			}
 
 			if (!$this->parent->copyFiles(array($manifest), true))
 			{
@@ -150,8 +158,7 @@ public function getElement($element = null)
 	{
 		if (!$element)
 		{
-			$manifestPath = \JPath::clean($this->parent->getPath('manifest'));
-			$element = preg_replace('/\.xml/', '', basename($manifestPath));
+			$element  = (string) $this->getManifest()->libraryname;
 		}
 
 		return $element;
@@ -175,7 +182,7 @@ public function loadLanguage($path = null)
 			$this->parent->setPath('source', JPATH_PLATFORM . '/' . $this->getElement());
 		}
 
-		$extension = 'lib_' . $this->getElement();
+		$extension = 'lib_' . str_replace('/', '_', $this->getElement());
 		$librarypath = (string) $this->getManifest()->libraryname;
 		$source = $path ?: JPATH_PLATFORM . '/' . $librarypath;
 
@@ -457,6 +464,15 @@ public function uninstall($id)
 		$this->parent->removeFiles($xml->media);
 		$this->parent->removeFiles($xml->languages);
 
+		$elementParts = explode('/', $row->element);
+
+		// Delete empty vendor folders
+		if (2 === count($elementParts))
+		{
+			@rmdir(JPATH_MANIFESTS . '/libraries/' . $elementParts[0]);
+			@rmdir(JPATH_PLATFORM . '/' . $elementParts[0]);
+		}
+
 		$row->delete($row->extension_id);
 		unset($row);
 
@@ -473,20 +489,29 @@ public function uninstall($id)
 	public function discover()
 	{
 		$results = array();
-		$file_list = \JFolder::files(JPATH_MANIFESTS . '/libraries', '\.xml$');
 
-		foreach ($file_list as $file)
+
+		$mainFolder = JPATH_MANIFESTS . '/libraries';
+		$folder = new \RecursiveDirectoryIterator($mainFolder);
+		$iterator = new \RegexIterator(
+			new \RecursiveIteratorIterator($folder),
+			'/\.xml$/i',
+			\RecursiveRegexIterator::GET_MATCH
+		);
+
+		foreach ($iterator as $file => $pattern)
 		{
-			$manifest_details = Installer::parseXMLInstallFile(JPATH_MANIFESTS . '/libraries/' . $file);
-			$file = \JFile::stripExt($file);
+			$element = str_replace(array($mainFolder . DIRECTORY_SEPARATOR, '.xml'), '', $file);
+			$manifestCache = Installer::parseXMLInstallFile($file);
+
 			$extension = Table::getInstance('extension');
 			$extension->set('type', 'library');
 			$extension->set('client_id', 0);
-			$extension->set('element', $file);
+			$extension->set('element', $element);
 			$extension->set('folder', '');
-			$extension->set('name', $file);
+			$extension->set('name', $element);
 			$extension->set('state', -1);
-			$extension->set('manifest_cache', json_encode($manifest_details));
+			$extension->set('manifest_cache', json_encode($manifestCache));
 			$extension->set('params', '{}');
 			$results[] = $extension;
 		}