diff --git a/Makefile.common b/Makefile.common
index d11d06c4ce..e8567377ab 100644
--- a/Makefile.common
+++ b/Makefile.common
@@ -557,12 +557,14 @@ ifeq ($(WANT_MINIZ),1)
 			 deps/rzlib/ioapi.o \
 			 deps/rzlib/unzip.o
 else
+ifeq ($(HAVE_ZLIB),1)
 ZLIB_OBJS = deps/rzlib/unzip.o deps/rzlib/ioapi.o
 OBJ += $(ZLIB_OBJS)
 RETROLAUNCH_OBJ += $(ZLIB_OBJS)
 JOYCONFIG_OBJ += $(ZLIB_OBJS)
 HAVE_ZLIB_DEFLATE = 1
 endif
+endif
 
 ifeq ($(HAVE_ZLIB_DEFLATE),1)
 DEFINES += -DHAVE_ZLIB_DEFLATE
diff --git a/file_path.c b/file_path.c
index 4ff3f5911a..b9f505075b 100644
--- a/file_path.c
+++ b/file_path.c
@@ -417,6 +417,22 @@ void fill_pathname_base(char *out, const char *in_path, size_t size)
    else
       ptr = in_path;
 
+   /* In case of compression, we also have to consider paths like
+    *   /path/to/archive.7z#mygame.img
+    *   and
+    *   /path/to/archive.7z#folder/mygame.img
+    *   basename would be mygame.img in both cases
+    */
+
+#ifdef HAVE_COMPRESSION
+   const char *ptr_bak = ptr;
+   ptr = strchr(ptr_bak,'#');
+   if (ptr)
+      ptr++;
+   else
+      ptr = ptr_bak;
+#endif
+
    rarch_assert(strlcpy(out, ptr, size) < size);
 }
 
@@ -450,7 +466,16 @@ void path_basedir(char *path)
    if (strlen(path) < 2)
       return;
 
-   char *last = find_last_slash(path);
+   char *last;
+
+#ifdef HAVE_COMPRESSION
+   /* We want to find the directory with the zipfile in basedir. */
+   last = strchr(path,'#');
+   if (last)
+      *last = '\0';
+#endif
+
+   last = find_last_slash(path);
 
    if (last)
       last[1] = '\0';
@@ -470,6 +495,15 @@ const char *path_basename(const char *path)
 {
    const char *last = find_last_slash(path);
 
+   /* We cut either at the last hash or the last slash; whichever comes last */
+#ifdef HAVE_COMPRESSION
+   const char *last_hash = strchr(path,'#');
+   if (last_hash > last)
+   {
+      return last_hash + 1;
+   }
+#endif
+
    if (last)
       return last + 1;
    return path;
diff --git a/retroarch.c b/retroarch.c
index 117b7fc3c3..b62a348471 100644
--- a/retroarch.c
+++ b/retroarch.c
@@ -1023,6 +1023,29 @@ static void set_basename(const char *path)
 
    strlcpy(g_extern.fullpath, path, sizeof(g_extern.fullpath));
    strlcpy(g_extern.basename, path, sizeof(g_extern.basename));
+   /* Removing extension is a bit tricky for compressed files.
+    * Basename means:
+    * /file/to/path/game.extension should be:
+    * /file/to/path/game
+    *
+    * Two things to consider here are: /file/to/path/ is expected
+    * to be a directory and "game" is a single file. This is used for
+    * states and srm default paths
+    *
+    * For compressed files we have:
+    *
+    * /file/to/path/comp.7z#game.extension and
+    * /file/to/path/comp.7z#folder/game.extension
+    *
+    * The choice I take here is:
+    * /file/to/path/game as basename. We might end up in a writable dir then
+    * and the name of srm and states are meaningful.
+    *
+    */
+#ifdef HAVE_COMPRESSION
+   path_basedir(g_extern.basename);
+   fill_pathname_dir(g_extern.basename,path,"",sizeof(g_extern.basename));
+#endif
 
    if ((dst = strrchr(g_extern.basename, '.')))
       *dst = '\0';