diff --git a/CMakeLists.txt b/CMakeLists.txt
index 5c5dc2f4..8dda3fb8 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -30,20 +30,6 @@ set(RGL_BUILD_PCL_EXTENSION OFF CACHE BOOL
     "Enables building PCL extension.")
 set(RGL_BUILD_ROS2_EXTENSION OFF CACHE BOOL
     "Enables building ROS2 extension. It requires installed and sourced ROS2.")
-set(RGL_BUILD_ROS2_EXTENSION_STANDALONE OFF CACHE BOOL
-    "Enables building ROS2 extension in standalone mode. It requires installed and sourced ROS2.")
-
-if (RGL_BUILD_ROS2_EXTENSION_STANDALONE)
-    set(RGL_BUILD_ROS2_EXTENSION ON)
-endif()
-
-# Include ros2_standalone
-# Needs to be added before add_subdirectory(external) to prevent overriding OS libraries by RGL
-# E.g., RGL populate spdlog using FetchContent (statically linked object) which overrides spdlog installed on OS (shared object)
-# It causes the standalone build not to find spdlog which looks for shared objects only
-if(RGL_BUILD_ROS2_EXTENSION_STANDALONE)
-    add_subdirectory(ros2_standalone)
-endif()
 
 # Hide automatically generated CTest targets
 set_property(GLOBAL PROPERTY CTEST_TARGETS_ADDED 1)
diff --git a/ros2_standalone/CMakeLists.txt b/ros2_standalone/CMakeLists.txt
index 49883831..4b99247d 100644
--- a/ros2_standalone/CMakeLists.txt
+++ b/ros2_standalone/CMakeLists.txt
@@ -1,5 +1,9 @@
 # This file is based on https://github.com/RobotecAI/ros2cs/blob/develop/src/ros2cs/ros2cs_core/CMakeLists.txt
 
+cmake_minimum_required(VERSION 3.18)
+
+project(RobotecGPULidar_ros2_standalone)
+
 find_program(PATCHELF "patchelf")
 if(UNIX)
     if(NOT PATCHELF)
@@ -172,7 +176,7 @@ macro(install_standalone_dependencies)
                     string(SUBSTRING "${_remainingPath}" 0 ${_lastDotPos} _tempPos)
                     get_filename_component(_libPathFilename "${_tempPos}" NAME)
                     get_filename_component(_resolvedFilename "${_resolvedFile}" NAME)
-                    install(CODE "execute_process(COMMAND ln -s ${_resolvedFilename} ${_libPathFilename} WORKING_DIRECTORY ${CMAKE_INSTALL_PREFIX}/ros2_standalone ERROR_QUIET)")
+                    install(CODE "execute_process(COMMAND ln -s ${_resolvedFilename} ${_libPathFilename} WORKING_DIRECTORY ${CMAKE_INSTALL_PREFIX}/${INSTALL_DESTINATION_DIR} ERROR_QUIET)")
                     set(_remainingPath "${_tempPos}")
                 endwhile()
             endif()
diff --git a/setup.py b/setup.py
index 76dbb172..1551e25e 100755
--- a/setup.py
+++ b/setup.py
@@ -49,7 +49,7 @@ def main():
     parser.add_argument("--with-ros2", action='store_true',
                         help="Build RGL with ROS2 extension")
     parser.add_argument("--with-ros2-standalone", action='store_true',
-                        help="Build RGL with ROS2 extension in standalone mode")
+                        help="Build RGL with ROS2 extension and install all dependent ROS2 libraries additionally")
     parser.add_argument("--cmake", type=str, default="",
                         help="Pass arguments to cmake. Usage: --cmake=\"args...\"")
     if on_linux():
@@ -121,12 +121,13 @@ def is_cuda_version_ok():
         os.environ["Path"] = os.environ["Path"] + ";" + os.path.join(os.getcwd(), args.build_dir)
 
     # Build
+    if args.with_ros2_standalone:
+        args.with_ros2 = True
     cmake_args = [
         f"-DCMAKE_TOOLCHAIN_FILE={os.path.join(cfg.VCPKG_INSTALL_DIR, 'scripts', 'buildsystems', 'vcpkg.cmake') if args.with_pcl else ''}",
-        f"-DVCPKG_TARGET_TRIPLET={cfg.VCPKG_TRIPLET}",
+        f"-DVCPKG_TARGET_TRIPLET={cfg.VCPKG_TRIPLET if args.with_pcl else ''}",
         f"-DRGL_BUILD_PCL_EXTENSION={'ON' if args.with_pcl else 'OFF'}",
         f"-DRGL_BUILD_ROS2_EXTENSION={'ON' if args.with_ros2 else 'OFF'}",
-        f"-DRGL_BUILD_ROS2_EXTENSION_STANDALONE={'ON' if args.with_ros2_standalone else 'OFF'}"
     ]
 
     if on_linux():
@@ -138,8 +139,6 @@ def is_cuda_version_ok():
                 linker_rpath_flags.append(f"-Wl,-rpath={rpath}")
         cmake_args.append(f"-DCMAKE_SHARED_LINKER_FLAGS=\"{' '.join(linker_rpath_flags)}\"")
 
-    cmake_args.append(f"-DCMAKE_INSTALL_PREFIX={os.path.join(os.getcwd(), args.build_dir)}")
-
     # Append user args, possibly overwriting
     cmake_args.append(args.cmake)
 
@@ -148,7 +147,12 @@ def is_cuda_version_ok():
     run_subprocess_command(f"cmake --build {args.build_dir} -- {args.build_args}")
 
     if args.with_ros2_standalone:
-        run_subprocess_command(f"cmake --install {args.build_dir}")
+        # Build RobotecGPULidar_ros2_standalone project to find and install all dependent ROS2 libraries and their dependencies
+        # It cannot be added as a subdirectory of RobotecGPULidar project because there is a conflict in the same libraries required by RGL and ROS2
+        # RGL takes them from vcpkg as statically linked objects while ROS2 standalone required them as a shared objects
+        ros2_standalone_cmake_args = f"-DCMAKE_INSTALL_PREFIX={os.path.join(os.getcwd(), args.build_dir)}"
+        run_subprocess_command(f"cmake ros2_standalone -B {args.build_dir}/ros2_standalone -G {cfg.CMAKE_GENERATOR} {ros2_standalone_cmake_args}")
+        run_subprocess_command(f"cmake --install {args.build_dir}/ros2_standalone")
 
 
 def on_linux():