diff --git a/Bindings/Python/CMakeLists.txt b/Bindings/Python/CMakeLists.txt
index 7759ab208f..222c4d8a9c 100644
--- a/Bindings/Python/CMakeLists.txt
+++ b/Bindings/Python/CMakeLists.txt
@@ -2,16 +2,6 @@
 # Find python.
 # ============
 
-# PythonInterp is supposed to come before PythonLibs.
-find_package(PythonInterp 2.7 REQUIRED)
-find_package(PythonLibs 2.7 REQUIRED)
-
-# We may need to update the python install dir to include the python version,
-# now that we know it. We replace the token "VERSION" with the actual python
-# version.
-string(REPLACE "VERSION" "${PYTHON_VERSION_MAJOR}.${PYTHON_VERSION_MINOR}"
-    OPENSIM_INSTALL_PYTHONDIR "${OPENSIM_INSTALL_PYTHONDIR}")
-
 # Location of the opensim python package in the build directory, for testing.
 if(MSVC OR XCODE)
     # Multi-configuration generators like MSVC and XCODE use one build tree for
@@ -160,11 +150,21 @@ macro(OpenSimAddPythonModule)
     endif()
     
     if(${OPENSIM_USE_INSTALL_RPATH})
+        # TODO @loader_path only makes sense on macOS, so we need to revisit
+        # for Linux (use $ORIGIN).
+        # We always set a relative RPATH but only use an absolute RPATH if the
+        # python package is not standalone, as the libraries are not copied
+        # into the python package.
+        # TODO consider using a relative path from the python package directory
+        # to the OpenSim library directory.
+        set(run_path_list "\@loader_path/")
+        if(NOT OPENSIM_PYTHON_STANDALONE)
+            list(APPEND run_path_list
+                    "${CMAKE_INSTALL_PREFIX}/${CMAKE_INSTALL_LIBDIR}")
+        endif()
         # Use APPEND to include the BTK RPATH, set in CMAKE_INSTALL_RPATH.
-        # TODO test that NOT using APPEND causes BTK to not be found.
         set_property(TARGET ${_libname} APPEND PROPERTY
-            INSTALL_RPATH "${CMAKE_INSTALL_PREFIX}/${CMAKE_INSTALL_LIBDIR}"
-            )
+            INSTALL_RPATH "${run_path_list}")
     endif()
 
     # Copy files into the build tree python package.
diff --git a/Bindings/Python/setup.py b/Bindings/Python/setup.py
index cb1bb17439..431552d5fb 100644
--- a/Bindings/Python/setup.py
+++ b/Bindings/Python/setup.py
@@ -15,7 +15,9 @@
       url='http://opensim.stanford.edu/',
       license='Apache 2.0',
       packages=['opensim'],
-      package_data={'opensim': ['_*.*']},
+      # The last 3 entries are for if OPENSIM_PYTHON_STANDALONE is ON.
+      # The asterisk after the extension is to handle version numbers on Linux.
+      package_data={'opensim': ['_*.*', '*.dylib', '*.dll', '*.so*']},
       include_package_data=True,
       classifiers=[
           'Intended Audience :: Science/Research',
diff --git a/CMakeLists.txt b/CMakeLists.txt
index 8860e53bc6..3bf1c93b80 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -101,6 +101,20 @@ for both OpenSim and Simbody. To make a distributable installation on macOS,
 this should be set to ON to avoid using absolute paths for RPATHs to Simbody
 libraries." ON)
 
+option(OPENSIM_PYTHON_STANDALONE "Make the Python package standalone, meaning
+the OpenSim (and Simbody and BTK) shared libraries it depends on are copied
+into the package. If you are building OpenSim on the same machine on which you
+plan to use it, you can leave this OFF. If you are distributing OpenSim to
+other computers, you should turn this ON. If macOS, this option affects how
+RPATH is set for the SWIG-generated shared libraries. This variable has no
+effect if BUILD_PYTHON_WRAPPING is OFF." OFF)
+# There are many potential ways to distribute the python bindings; here's how
+# you might want to set the above option for different ways of distributing:
+#   simtk.org GUI distribution, macOS: ON (since no env. vars are set)
+#   simtk.org GUI distrubution, Windows: OFF (PATH is set)
+#   pypi: ON (there is no way to install the C++ libraries otherwise)
+#   debian, homebrew, conda: OFF (can have a separate C++ library package)
+
 option(BUILD_API_ONLY "Build/install only headers, libraries,
 wrapping, tests; not applications (opensim, ik, rra, etc.)." OFF)
 
@@ -431,6 +445,21 @@ if(${BUILD_JAVA_WRAPPING})
     endif()
 endif()
 
+if(${BUILD_PYTHON_WRAPPING})
+    # PythonInterp is supposed to come before PythonLibs.
+    find_package(PythonInterp 2.7 REQUIRED)
+    find_package(PythonLibs 2.7 REQUIRED)
+
+    # We update the python install dir to include the python version,
+    # now that we know it. We replace the token "VERSION" with the actual python
+    # version.
+    string(REPLACE "VERSION" "${PYTHON_VERSION_MAJOR}.${PYTHON_VERSION_MINOR}"
+        OPENSIM_INSTALL_PYTHONDIR "${OPENSIM_INSTALL_PYTHONDIR}")
+    # This must be done before adding the OpenSim libraries, since
+    # OPENSIM_INSTALL_PYTHONDIR is used in OpenSimAddLibrary (in
+    # OpenSimMacros.cmake).
+endif()
+
 if(WIN32)
     add_definitions(-D_CRT_SECURE_NO_DEPRECATE)
 endif()
@@ -461,7 +490,7 @@ endif()
 
 
 ## RPATH 
-# If it is necesasry to not put RPATHS in the installed binaries, set
+# If it is necessary to not put RPATHS in the installed binaries, set
 # set CMAKE_SKIP_INSTALL_RPATH to OFF.
 if(APPLE)
     # CMake 2.8.12 introduced the ability to set RPATH for shared libraries
@@ -526,6 +555,10 @@ if(WITH_BTK)
     include(${BTK_USE_FILE})
     add_definitions(-DWITH_BTK)
     CopyDependencyDLLsForWin(BTK ${BTK_INSTALL_PREFIX})
+    if(BUILD_PYTHON_WRAPPING AND OPENSIM_PYTHON_STANDALONE)
+    OpenSimInstallDependencyLibraries(BTK "${BTK_INSTALL_PREFIX}"
+        "${BTK_LIBRARY_DIRS}" "${OPENSIM_INSTALL_PYTHONDIR}/opensim")
+    endif()
     # TODO this should be handled separately between macOS and Linux.
     set(CMAKE_INSTALL_RPATH "${CMAKE_INSTALL_RPATH};${BTK_LIBRARY_DIRS}")
 endif()
@@ -624,12 +657,11 @@ if(${OPENSIM_COPY_SIMBODY})
     # is only needed for programmers goes in sdk/lib.
     # TODO use SimbodyConfig.cmake variables instead of these globs.
     if(WIN32)
-        file(GLOB SIMBODY_BIN_FILES
-            ${Simbody_BIN_DIR}/*.dll
-            ${Simbody_BIN_DIR}/*.exe)
-        file(GLOB SIMBODY_ARCHIVE_FILES
-            ${Simbody_LIB_DIR}/*.lib)
+        file(GLOB SIMBODY_BIN_FILES ${Simbody_BIN_DIR}/*.dll
+                                    ${Simbody_BIN_DIR}/*.exe)
+        file(GLOB SIMBODY_ARCHIVE_FILES ${Simbody_LIB_DIR}/*.lib)
     else()
+        # TODO simbody-visualizer executable probably isn't even there.
         file(GLOB SIMBODY_BIN_FILES
             ${Simbody_BIN_DIR}/simbody*) # executables only (e.g., visualizer).
         # If the LIB_DIR is some common place for libraries (e.g., /usr/lib/),
@@ -690,6 +722,10 @@ if(${OPENSIM_COPY_SIMBODY})
         endforeach()
     endif()
 endif()
+if(BUILD_PYTHON_WRAPPING AND OPENSIM_PYTHON_STANDALONE)
+    OpenSimInstallDependencyLibraries(SimTK "${Simbody_BIN_DIR}"
+        "${Simbody_LIB_DIR}" "${OPENSIM_INSTALL_PYTHONDIR}/opensim")
+endif()
 
 
 # Other than Windows we can debug without debuggable SimTK libraries
diff --git a/OpenSim/Utilities/simmFileWriterDLL/CMakeLists.txt b/OpenSim/Utilities/simmFileWriterDLL/CMakeLists.txt
index 4fe254f24d..3d4c5c11d9 100644
--- a/OpenSim/Utilities/simmFileWriterDLL/CMakeLists.txt
+++ b/OpenSim/Utilities/simmFileWriterDLL/CMakeLists.txt
@@ -5,6 +5,7 @@ file(GLOB INCLUDES *.h)
 OpenSimAddLibrary(
     KIT SimmFileWriter
     AUTHORS "Peter_Loan"
+    EXCLUDEFROMPYTHON
     LINKLIBS osimCommon osimSimulation osimActuators ${Simbody_LIBRARIES}
     INCLUDES ${INCLUDES}
     SOURCES ${SOURCES}
diff --git a/cmake/OpenSimMacros.cmake b/cmake/OpenSimMacros.cmake
index a1891d23d3..3434a8199c 100644
--- a/cmake/OpenSimMacros.cmake
+++ b/cmake/OpenSimMacros.cmake
@@ -5,6 +5,7 @@ include(CMakeParseArguments)
 #   argument. Otherwise, omit.
 # LOWERINCLUDEDIRNAME: When installing the headers for this library, make the
 #   name of the library all lower-case (e.g., Lepton -> lepton).
+# EXCLUDEFROMPYTHON: Do not install this library into the python package.
 # KIT: Name of the library (e.g., Common).
 # AUTHORS: A string listing authors of the library.
 # LINKLIBS: List of libraries (targets) to link against.
@@ -33,7 +34,7 @@ function(OpenSimAddLibrary)
     # Parse arguments.
     # ----------------
     # http://www.cmake.org/cmake/help/v2.8.9/cmake.html#module:CMakeParseArguments
-    set(options VENDORLIB LOWERINCLUDEDIRNAME)
+    set(options VENDORLIB LOWERINCLUDEDIRNAME EXCLUDEFROMPYTHON)
     set(oneValueArgs KIT AUTHORS)
     set(multiValueArgs LINKLIBS INCLUDES SOURCES TESTDIRS INCLUDEDIRS)
     cmake_parse_arguments(
@@ -97,6 +98,16 @@ function(OpenSimAddLibrary)
         RUNTIME DESTINATION "${CMAKE_INSTALL_BINDIR}"
         LIBRARY DESTINATION "${CMAKE_INSTALL_LIBDIR}"
         ARCHIVE DESTINATION "${OPENSIM_INSTALL_ARCHIVEDIR}")
+    if(BUILD_PYTHON_WRAPPING AND OPENSIM_PYTHON_STANDALONE
+            AND NOT OSIMADDLIB_EXCLUDEFROMPYTHON)
+        if (WIN32)
+            install(TARGETS ${OSIMADDLIB_LIBRARY_NAME}
+                RUNTIME DESTINATION "${OPENSIM_INSTALL_PYTHONDIR}/opensim")
+        else()
+            install(TARGETS ${OSIMADDLIB_LIBRARY_NAME}
+                LIBRARY DESTINATION "${OPENSIM_INSTALL_PYTHONDIR}/opensim")
+        endif()
+    endif()
 
     # Install headers.
     # ----------------
@@ -150,6 +161,8 @@ function(OpenSimAddLibrary)
         #    list(APPEND run_path_list
         #           "\@loader_path/${lib_dir_to_simbody_lib_dir}")
         #endif()
+        # It is possible that on UNIX (APPLE and Linux), we will install
+        # Simbody and BTK beside OpenSim, rather than in their own directories.
         # Use APPEND to include the BTK RPATH, set in CMAKE_INSTALL_RPATH.
         set_property(TARGET ${OSIMADDLIB_LIBRARY_NAME} APPEND PROPERTY
             INSTALL_RPATH "${run_path_list}"
@@ -304,6 +317,38 @@ function(OpenSimAddApplication)
 endfunction()
 
 
+# Function to install shared libraries (any platform) from a dependency install
+# directory into the OpenSim installation. One use case is to install libraries
+# into the python package.
+# PREFIX: A common part of the library file names (e.g., 'SimTK' or 'BTK').
+#         This is to avoid copying unrelated files from a folder like /usr/lib.
+# DEP_LIBS_DIR_WIN: Directory to search for the dependency's library, on
+#         Windows.
+# DEP_LIBS_DIR_UNIX: Directory to search for the dependency's library, on
+#         UNIX (APPLE and Linux). Specify only the lib directory to avoid
+#         searching all of /usr/local (if the dependency is installed to a
+#         system location like this).
+# OSIM_DESTINATION: Destination of the libraries within OpenSim's installation.
+function(OpenSimInstallDependencyLibraries PREFIX DEP_LIBS_DIR_WIN
+        DEP_LIBS_DIR_UNIX OSIM_DESTINATION)
+    if(WIN32)
+        file(GLOB_RECURSE LIBS "${DEP_LIBS_DIR_WIN}/${PREFIX}*.dll")
+    else()
+        if(APPLE)
+            set(lib_ext "dylib")
+        else()
+            set(lib_ext "so*") # Trailing * for version #s.
+        endif()
+        file(GLOB_RECURSE LIBS "${DEP_LIBS_DIR_UNIX}/lib${PREFIX}*.${lib_ext}")
+    endif()
+    if(NOT LIBS)
+        message(FATAL_ERROR "Zero shared libraries found in directory "
+            "${DEP_INSTALL_DIR}.")
+    endif()
+    install(FILES ${LIBS} DESTINATION "${OSIM_DESTINATION}")
+endfunction()
+
+
 # Function to copy DLL files from dependency install directory into OpenSim 
 # build and install directories. This is a Windows specific function enabled 
 # only for Windows platform. Intention is to allow runtime loader to find all