diff --git a/configure.ac b/configure.ac
index 8f6340c4..beef9df3 100644
--- a/configure.ac
+++ b/configure.ac
@@ -709,8 +709,8 @@ AC_CONFIG_FILES([
 	src/liblzma/subblock/Makefile
 	src/liblzma/delta/Makefile
 	src/liblzma/simple/Makefile
-	src/lzma/Makefile
-	src/lzmadec/Makefile
+	src/xz/Makefile
+	src/xzdec/Makefile
 	src/scripts/Makefile
 	tests/Makefile
 	debug/Makefile
diff --git a/po/POTFILES.in b/po/POTFILES.in
index 72f744a9..4d1299a3 100644
--- a/po/POTFILES.in
+++ b/po/POTFILES.in
@@ -1,13 +1,10 @@
 # List of source files which contain translatable strings.
-src/lzma/help.c
-src/lzma/alloc.c
-src/lzma/args.c
-src/lzma/error.c
-src/lzma/io.c
-src/lzma/list.c
-src/lzma/main.c
-src/lzma/options.c
-src/lzma/process.c
-src/lzma/suffix.c
-src/lzma/util.c
-lib/getopt.c
+src/xz/args.c
+src/xz/hardware.c
+src/xz/io.c
+src/xz/main.c
+src/xz/message.c
+src/xz/options.c
+src/xz/process.c
+src/xz/suffix.c
+src/xz/util.c
diff --git a/src/Makefile.am b/src/Makefile.am
index 531496c2..26e0588d 100644
--- a/src/Makefile.am
+++ b/src/Makefile.am
@@ -12,5 +12,5 @@
 ##  Lesser General Public License for more details.
 ##
 
-SUBDIRS = liblzma lzma lzmadec scripts
+SUBDIRS = liblzma xz xzdec scripts
 EXTRA_DIST = common
diff --git a/src/lzma/Makefile.am b/src/xz/Makefile.am
similarity index 69%
rename from src/lzma/Makefile.am
rename to src/xz/Makefile.am
index e5c5c29a..16e55461 100644
--- a/src/lzma/Makefile.am
+++ b/src/xz/Makefile.am
@@ -12,9 +12,9 @@
 ##  Lesser General Public License for more details.
 ##
 
-bin_PROGRAMS = lzma
+bin_PROGRAMS = xz
 
-lzma_SOURCES = \
+xz_SOURCES = \
 	args.c \
 	args.h \
 	hardware.c \
@@ -35,38 +35,40 @@ lzma_SOURCES = \
 	util.c \
 	util.h
 
-## It must be able to find sysdefs.h, lzma_adv.h, and possible
-## replacement headers.
-lzma_CPPFLAGS = \
+xz_CPPFLAGS = \
 	-DLOCALEDIR=\"$(localedir)\" \
 	-I@top_srcdir@/src/common \
 	-I@top_srcdir@/src/liblzma/api \
 	-I@top_builddir@/lib \
 	-I@top_srcdir@/lib
 
-lzma_CFLAGS = @PTHREAD_CFLAGS@
+xz_CFLAGS = @PTHREAD_CFLAGS@
 
 ## Always link the command line tool statically against liblzma. It is
 ## faster on x86, because no need for PIC. We also have one dependency less,
-## which allows users to more freely copy the lzma binary to other boxes.
-lzma_LDFLAGS = -static
-lzma_LDADD = \
+## which allows users to more freely copy the xz binary to other boxes.
+xz_LDFLAGS = -static
+xz_LDADD = \
 	@top_builddir@/src/liblzma/liblzma.la \
 	@LTLIBINTL@ \
 	@PTHREAD_LIBS@
 
 if COND_GNULIB
-lzma_LDADD += @top_builddir@/lib/libgnu.a
+xz_LDADD += @top_builddir@/lib/libgnu.a
 endif
 
 
-## Create symlinks for unlzma and lzcat:
+## Create symlinks for unxz and xzcat for convenicen. Create symlinks also
+## for lzma, unlzma, and lzcat for compatibility with LZMA Utils 4.32.x.
 install-exec-hook:
 	cd $(DESTDIR)$(bindir) && \
-	rm -f unlzma lzcat && \
-	$(LN_S) lzma unlzma && \
-	$(LN_S) lzma lzcat
+	rm -f unxz xzcat lzma unlzma lzcat && \
+	$(LN_S) xz unxz && \
+	$(LN_S) xz xzcat && \
+	$(LN_S) xz lzma && \
+	$(LN_S) xz unlzma && \
+	$(LN_S) xz lzcat
 
 uninstall-hook:
 	cd $(DESTDIR)$(bindir) && \
-	rm -f unlzma lzcat
+	rm -f unxz xzcat lzma unlzma lzcat
diff --git a/src/lzma/args.c b/src/xz/args.c
similarity index 100%
rename from src/lzma/args.c
rename to src/xz/args.c
diff --git a/src/lzma/args.h b/src/xz/args.h
similarity index 100%
rename from src/lzma/args.h
rename to src/xz/args.h
diff --git a/src/lzma/hardware.c b/src/xz/hardware.c
similarity index 100%
rename from src/lzma/hardware.c
rename to src/xz/hardware.c
diff --git a/src/lzma/hardware.h b/src/xz/hardware.h
similarity index 100%
rename from src/lzma/hardware.h
rename to src/xz/hardware.h
diff --git a/src/lzma/io.c b/src/xz/io.c
similarity index 100%
rename from src/lzma/io.c
rename to src/xz/io.c
diff --git a/src/lzma/io.h b/src/xz/io.h
similarity index 100%
rename from src/lzma/io.h
rename to src/xz/io.h
diff --git a/src/lzma/list.c b/src/xz/list.c
similarity index 100%
rename from src/lzma/list.c
rename to src/xz/list.c
diff --git a/src/lzma/main.c b/src/xz/main.c
similarity index 100%
rename from src/lzma/main.c
rename to src/xz/main.c
diff --git a/src/lzma/main.h b/src/xz/main.h
similarity index 100%
rename from src/lzma/main.h
rename to src/xz/main.h
diff --git a/src/lzma/message.c b/src/xz/message.c
similarity index 100%
rename from src/lzma/message.c
rename to src/xz/message.c
diff --git a/src/lzma/message.h b/src/xz/message.h
similarity index 100%
rename from src/lzma/message.h
rename to src/xz/message.h
diff --git a/src/lzma/options.c b/src/xz/options.c
similarity index 100%
rename from src/lzma/options.c
rename to src/xz/options.c
diff --git a/src/lzma/options.h b/src/xz/options.h
similarity index 100%
rename from src/lzma/options.h
rename to src/xz/options.h
diff --git a/src/lzma/private.h b/src/xz/private.h
similarity index 100%
rename from src/lzma/private.h
rename to src/xz/private.h
diff --git a/src/lzma/process.c b/src/xz/process.c
similarity index 100%
rename from src/lzma/process.c
rename to src/xz/process.c
diff --git a/src/lzma/process.h b/src/xz/process.h
similarity index 100%
rename from src/lzma/process.h
rename to src/xz/process.h
diff --git a/src/lzma/suffix.c b/src/xz/suffix.c
similarity index 100%
rename from src/lzma/suffix.c
rename to src/xz/suffix.c
diff --git a/src/lzma/suffix.h b/src/xz/suffix.h
similarity index 100%
rename from src/lzma/suffix.h
rename to src/xz/suffix.h
diff --git a/src/lzma/util.c b/src/xz/util.c
similarity index 100%
rename from src/lzma/util.c
rename to src/xz/util.c
diff --git a/src/lzma/util.h b/src/xz/util.h
similarity index 100%
rename from src/lzma/util.h
rename to src/xz/util.h
diff --git a/src/lzmadec/Makefile.am b/src/xzdec/Makefile.am
similarity index 81%
rename from src/lzmadec/Makefile.am
rename to src/xzdec/Makefile.am
index 650eb1c4..8c8cae80 100644
--- a/src/lzmadec/Makefile.am
+++ b/src/xzdec/Makefile.am
@@ -12,18 +12,18 @@
 ##  Lesser General Public License for more details.
 ##
 
-bin_PROGRAMS = lzmadec
+bin_PROGRAMS = xzdec
 
-lzmadec_SOURCES = lzmadec.c
-lzmadec_CPPFLAGS = \
+xzdec_SOURCES = xzdec.c
+xzdec_CPPFLAGS = \
 	-I@top_srcdir@/src/common \
 	-I@top_srcdir@/src/liblzma/api \
 	-I@top_builddir@/lib
-lzmadec_LDFLAGS = -static
-lzmadec_LDADD = \
+xzdec_LDFLAGS = -static
+xzdec_LDADD = \
 	@top_builddir@/src/liblzma/liblzma.la \
 	@LTLIBINTL@
 
 if COND_GNULIB
-lzmadec_LDADD += @top_builddir@/lib/libgnu.a
+xzdec_LDADD += @top_builddir@/lib/libgnu.a
 endif
diff --git a/src/lzmadec/lzmadec.c b/src/xzdec/xzdec.c
similarity index 99%
rename from src/lzmadec/lzmadec.c
rename to src/xzdec/xzdec.c
index 0b2adb97..e100d049 100644
--- a/src/lzmadec/lzmadec.c
+++ b/src/xzdec/xzdec.c
@@ -1,6 +1,6 @@
 ///////////////////////////////////////////////////////////////////////////////
 //
-/// \file       lzmadec.c
+/// \file       xzdec.c
 /// \brief      Simple single-threaded tool to uncompress .lzma files
 //
 //  Copyright (C) 2007 Lasse Collin
@@ -151,7 +151,7 @@ set_default_memlimit(void)
 
 /// \brief      Converts a string to size_t
 ///
-/// This is rudely copied from src/lzma/util.c and modified a little. :-(
+/// This is rudely copied from src/xz/util.c and modified a little. :-(
 ///
 static size_t
 str_to_uint64(const char *value)
diff --git a/tests/test_compress.sh b/tests/test_compress.sh
index 667d8fda..c02504f2 100755
--- a/tests/test_compress.sh
+++ b/tests/test_compress.sh
@@ -24,8 +24,8 @@ if test $? != 42 ; then
 	exit 77
 fi
 
-test_lzma() {
-	if $LZMA -c "$@" "$FILE" > tmp_compressed; then
+test_xz() {
+	if $XZ -c "$@" "$FILE" > tmp_compressed; then
 		:
 	else
 		echo "Compressing failed: $* $FILE"
@@ -33,7 +33,7 @@ test_lzma() {
 		exit 1
 	fi
 
-	if $LZMA -cd tmp_compressed > tmp_uncompressed ; then
+	if $XZ -cd tmp_compressed > tmp_uncompressed ; then
 		:
 	else
 		echo "Decoding failed: $* $FILE"
@@ -49,7 +49,7 @@ test_lzma() {
 		exit 1
 	fi
 
-	if $LZMADEC tmp_compressed > tmp_uncompressed ; then
+	if $XZDEC tmp_compressed > tmp_uncompressed ; then
 		:
 	else
 		echo "Decoding failed: $* $FILE"
@@ -69,10 +69,9 @@ test_lzma() {
 	echo . | tr -d '\n\r'
 }
 
-# TODO: Remove --format=xz once the command name has been changed.
-LZMA="../src/lzma/lzma --memory=15Mi --threads=1 --format=xz"
-LZMADEC="../src/lzmadec/lzmadec --memory=4Mi"
-unset LZMA_OPT
+XZ="../src/xz/xz --memory=15MiB --threads=1"
+XZDEC="../src/xzdec/xzdec --memory=4MiB"
+unset XZ_OPT
 
 # Create the required input files.
 if ./create_compress_files ; then
@@ -97,11 +96,11 @@ do
 	echo "  $MSG" | tr -d '\n\r'
 
 	# Don't test with empty arguments; it breaks some ancient
-	# proprietary /bin/sh versions due to $@ used in test_lzma().
-	test_lzma -1
-	test_lzma -2
-	test_lzma -3
-	test_lzma -4
+	# proprietary /bin/sh versions due to $@ used in test_xz().
+	test_xz -1
+	test_xz -2
+	test_xz -3
+	test_xz -4
 
 	for ARGS in \
 		--subblock \
@@ -122,8 +121,8 @@ do
 		--armthumb \
 		--sparc
 	do
-		test_lzma $ARGS --lzma2=dict=64KiB,nice=32,mode=fast
-		test_lzma --subblock $ARGS --lzma2=dict=64KiB,nice=32,mode=fast
+		test_xz $ARGS --lzma2=dict=64KiB,nice=32,mode=fast
+		test_xz --subblock $ARGS --lzma2=dict=64KiB,nice=32,mode=fast
 	done
 
 	echo
diff --git a/tests/test_files.sh b/tests/test_files.sh
index c670d728..b40a57a5 100755
--- a/tests/test_files.sh
+++ b/tests/test_files.sh
@@ -18,7 +18,7 @@
 
 for I in "$srcdir"/files/good-*.xz
 do
-	if ../src/lzmadec/lzmadec "$I" > /dev/null 2> /dev/null ; then
+	if ../src/xzdec/xzdec "$I" > /dev/null 2> /dev/null ; then
 		:
 	else
 		echo "Good file failed: $I"
@@ -29,7 +29,7 @@ done
 
 for I in "$srcdir"/files/bad-*.xz
 do
-	if ../src/lzmadec/lzmadec "$I" > /dev/null 2> /dev/null ; then
+	if ../src/xzdec/xzdec "$I" > /dev/null 2> /dev/null ; then
 		echo "Bad file succeeded: $I"
 		(exit 1)
 		exit 1