diff --git a/icu4c/source/common/Makefile.in b/icu4c/source/common/Makefile.in
index dbe30ed5ae0..b3fb587ee92 100644
--- a/icu4c/source/common/Makefile.in
+++ b/icu4c/source/common/Makefile.in
@@ -68,6 +68,11 @@ LDFLAGS += $(LDFLAGSICUUC)
 # for plugin configuration
 CPPFLAGS += "-DDEFAULT_ICU_PLUGINS=\"$(libdir)/icu\" "
 
+# for icu data location
+ifeq ($(PKGDATA_MODE),common)
+CPPFLAGS += "-DU_ICU_DATA_DEFAULT_DIR=\"$(ICUDATA_DIR)\""
+endif
+
 # $(LIBICUDT) is either stub data or the real DLL common data.
 LIBS = $(LIBICUDT) $(DEFAULT_LIBS)
 
diff --git a/icu4c/source/common/putil.c b/icu4c/source/common/putil.c
index cc474304428..667ef2934e7 100644
--- a/icu4c/source/common/putil.c
+++ b/icu4c/source/common/putil.c
@@ -1184,10 +1184,20 @@ u_getDataDirectory(void) {
     path=getenv("ICU_DATA");
 #   endif
 
-    /* ICU_DATA_DIR may be set as a compile option */
-#   ifdef ICU_DATA_DIR
+    /* ICU_DATA_DIR may be set as a compile option.
+     * U_ICU_DATA_DEFAULT_DIR is provided and is set by ICU at compile time
+     * and is used only when data is built in archive mode eliminating the need
+     * for ICU_DATA_DIR to be set. U_ICU_DATA_DEFAULT_DIR is set to the installation
+     * directory of the data dat file. Users should use ICU_DATA_DIR if they want to
+     * set their own path.
+     */
+#if defined(ICU_DATA_DIR) || defined(U_ICU_DATA_DEFAULT_DIR)
     if(path==NULL || *path==0) {
+#   ifdef ICU_DATA_DIR
         path=ICU_DATA_DIR;
+#   else
+        path=U_ICU_DATA_DEFAULT_DIR;
+#   endif
 #if defined(U_DARWIN) && TARGET_IPHONE_SIMULATOR
         simulator_root=getenv("IPHONE_SIMULATOR_ROOT");
         if (simulator_root != NULL) {