diff --git a/bin/bitbake-setup b/bin/bitbake-setup
index 6f7dba16c..f382f6eb0 100755
--- a/bin/bitbake-setup
+++ b/bin/bitbake-setup
@@ -777,6 +777,12 @@ def create_siteconf(top_dir, non_interactive, settings):
 
         os.makedirs(top_dir, exist_ok=True)
         with open(siteconfpath, 'w') as siteconffile:
+            sstate_settings = textwrap.dedent(
+                """
+                SSTATE_DIR = "{sstate_dir}"
+                BB_HASHSERVE_DB_DIR = "{sstate_dir}"
+                """.format(sstate_dir=os.path.join(top_dir, ".sstate-cache"))
+            )
             siteconffile.write(
                 textwrap.dedent(
                     """\
@@ -794,7 +800,7 @@ def create_siteconf(top_dir, non_interactive, settings):
                     """.format(
                         dl_dir=settings["default"]["dl-dir"],
                     )
-                )
+                ) + (sstate_settings if settings["default"]["common-sstate"] == 'yes' else "")
             )
 
 
@@ -1001,6 +1007,7 @@ def main():
                          'top-dir-name':'bitbake-builds',
                          'registry':default_registry,
                          'use-full-setup-dir-name':'no',
+                         'common-sstate':'yes',
                          }
 
         global_settings = load_settings(global_settings_path(args))