diff --git a/Makefile b/Makefile
index dee50a51c1..71799b5be8 100644
--- a/Makefile
+++ b/Makefile
@@ -176,31 +176,11 @@ postgres-check-%: postgres-%
 
 .PHONY: neon-pg-ext-%
 neon-pg-ext-%: postgres-%
-	+@echo "Compiling neon $*"
-	mkdir -p $(BUILD_DIR)/neon-$*
+	+@echo "Compiling neon-specific Postgres extensions for $*"
+	mkdir -p $(BUILD_DIR)/pgxn-$*
 	$(MAKE) PG_CONFIG=$(POSTGRES_INSTALL_DIR)/$*/bin/pg_config COPT='$(COPT)' \
-		-C $(BUILD_DIR)/neon-$* \
-		-f $(ROOT_PROJECT_DIR)/pgxn/neon/Makefile install
-	+@echo "Compiling neon_walredo $*"
-	mkdir -p $(BUILD_DIR)/neon-walredo-$*
-	$(MAKE) PG_CONFIG=$(POSTGRES_INSTALL_DIR)/$*/bin/pg_config COPT='$(COPT)' \
-		-C $(BUILD_DIR)/neon-walredo-$* \
-		-f $(ROOT_PROJECT_DIR)/pgxn/neon_walredo/Makefile install
-	+@echo "Compiling neon_rmgr $*"
-	mkdir -p $(BUILD_DIR)/neon-rmgr-$*
-	$(MAKE) PG_CONFIG=$(POSTGRES_INSTALL_DIR)/$*/bin/pg_config COPT='$(COPT)' \
-		-C $(BUILD_DIR)/neon-rmgr-$* \
-		-f $(ROOT_PROJECT_DIR)/pgxn/neon_rmgr/Makefile install
-	+@echo "Compiling neon_test_utils $*"
-	mkdir -p $(BUILD_DIR)/neon-test-utils-$*
-	$(MAKE) PG_CONFIG=$(POSTGRES_INSTALL_DIR)/$*/bin/pg_config COPT='$(COPT)' \
-		-C $(BUILD_DIR)/neon-test-utils-$* \
-		-f $(ROOT_PROJECT_DIR)/pgxn/neon_test_utils/Makefile install
-	+@echo "Compiling neon_utils $*"
-	mkdir -p $(BUILD_DIR)/neon-utils-$*
-	$(MAKE) PG_CONFIG=$(POSTGRES_INSTALL_DIR)/$*/bin/pg_config COPT='$(COPT)' \
-		-C $(BUILD_DIR)/neon-utils-$* \
-		-f $(ROOT_PROJECT_DIR)/pgxn/neon_utils/Makefile install
+		-C $(BUILD_DIR)/pgxn-$*\
+		-f $(ROOT_PROJECT_DIR)/pgxn/Makefile  install
 
 # Build walproposer as a static library. walproposer source code is located
 # in the pgxn/neon directory.
diff --git a/compute/compute-node.Dockerfile b/compute/compute-node.Dockerfile
index 685ac564b7..13972269ae 100644
--- a/compute/compute-node.Dockerfile
+++ b/compute/compute-node.Dockerfile
@@ -1634,18 +1634,7 @@ FROM pg-build AS neon-ext-build
 ARG PG_VERSION
 
 COPY pgxn/ pgxn/
-RUN make -j $(getconf _NPROCESSORS_ONLN) \
-        -C pgxn/neon \
-        -s install && \
-    make -j $(getconf _NPROCESSORS_ONLN) \
-        -C pgxn/neon_utils \
-        -s install && \
-    make -j $(getconf _NPROCESSORS_ONLN) \
-        -C pgxn/neon_test_utils \
-        -s install && \
-    make -j $(getconf _NPROCESSORS_ONLN) \
-        -C pgxn/neon_rmgr \
-        -s install
+RUN make -j $(getconf _NPROCESSORS_ONLN) -C pgxn -s install-compute
 
 #########################################################################################
 #
diff --git a/pgxn/Makefile b/pgxn/Makefile
new file mode 100644
index 0000000000..8f190668ea
--- /dev/null
+++ b/pgxn/Makefile
@@ -0,0 +1,28 @@
+# This makefile assumes that 'pg_config' is in the path, or is passed in the
+# PG_CONFIG variable.
+#
+# This is used in two different ways:
+#
+# 1. The main makefile calls this, when you invoke the `make neon-pg-ext-%`
+#    target. It passes PG_CONFIG pointing to pg_install/%/bin/pg_config.
+#    This is a VPATH build; the current directory is build/pgxn-%, and
+#    the path to the Makefile is passed with the -f argument.
+#
+# 2. compute-node.Dockerfile invokes this to build the compute extensions
+#    for the specific Postgres version. It relies on pg_config already
+#    being in $(PATH).
+
+srcdir = $(dir $(firstword $(MAKEFILE_LIST)))
+
+PG_CONFIG = pg_config
+
+subdirs = neon neon_rmgr neon_walredo neon_utils neon_test_utils
+
+.PHONY: install install-compute install-storage $(subdirs)
+install: $(subdirs)
+install-compute: neon neon_utils neon_test_utils neon_rmgr
+install-storage: neon_rmgr neon_walredo
+
+$(subdirs): %:
+	mkdir -p $*
+	$(MAKE) PG_CONFIG=$(PG_CONFIG) -C $* -f $(abspath $(srcdir)/$@/Makefile) install