diff --git a/llvm/cmake/modules/AddLLVM.cmake b/llvm/cmake/modules/AddLLVM.cmake
--- a/llvm/cmake/modules/AddLLVM.cmake
+++ b/llvm/cmake/modules/AddLLVM.cmake
@@ -865,7 +865,7 @@
 
   if(NOT ARG_NO_INSTALL_RPATH)
     llvm_setup_rpath(${name})
-  else()
+  elseif(NOT "${LLVM_LOCAL_RPATH}" STREQUAL "")
     # Enable BUILD_WITH_INSTALL_RPATH unless CMAKE_BUILD_RPATH is set.
     if("${CMAKE_BUILD_RPATH}" STREQUAL "")
       set_property(TARGET ${name} PROPERTY BUILD_WITH_INSTALL_RPATH ON)