diff --git a/CMakeLists.txt b/CMakeLists.txt
index 08a3d40252..abbfe69490 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -245,11 +245,6 @@ endif()
 if(CMAKE_COMPILER_IS_GNUCXX)
     set(ENABLE_PROFILING OFF CACHE BOOL "Enable profiling in the GCC compiler (Add flags: -g -pg)")
     set(USE_OMIT_FRAME_POINTER ON CACHE BOOL "Enable -fomit-frame-pointer for GCC")
-    if(${CMAKE_SYSTEM_PROCESSOR} MATCHES arm*)
-        # We can use only -O2 because the -O3 causes gcc crash
-        set(USE_O2 ON CACHE BOOL "Enable -O2 for GCC")
-        set(USE_FAST_MATH ON CACHE BOOL "Enable -ffast-math for GCC")
-    endif()
 
     if(${CMAKE_SYSTEM_PROCESSOR} MATCHES amd64*|x86_64*)
         set(X86_64 1)
@@ -257,7 +252,7 @@ if(CMAKE_COMPILER_IS_GNUCXX)
     
     if(${CMAKE_SYSTEM_PROCESSOR} MATCHES i686*|i386*|x86*)
         set(X86 1)
-    endif()   
+    endif()
 
     if(${CMAKE_SYSTEM_PROCESSOR} MATCHES powerpc*)
         set(USE_O3 ON CACHE BOOL "Enable -O3 for GCC")
@@ -1148,14 +1143,8 @@ set(CMAKE_BASE_INCLUDE_DIRS_CONFIGCMAKE "\"${CMAKE_CURRENT_SOURCE_DIR}\"")
 
 set(CMAKE_LIB_DIRS_CONFIGCMAKE "${LIBRARY_OUTPUT_PATH}")
 
-if (ANDROID)
-    if (NOT BUILD_SHARED_LIBS)
-      set(CMAKE_LIB_DIRS_CONFIGCMAKE ${CMAKE_LIB_DIRS_CONFIGCMAKE} "${CMAKE_BINARY_DIR}/lib")
-    endif()
-
-    if( HAVE_ANDROID_NATIVE_CAMERA )
-      set(CMAKE_LIB_DIRS_CONFIGCMAKE ${CMAKE_LIB_DIRS_CONFIGCMAKE} ${NativeCamera_LIB_DIR})
-    endif()
+if( HAVE_ANDROID_NATIVE_CAMERA )
+    set(CMAKE_LIB_DIRS_CONFIGCMAKE ${CMAKE_LIB_DIRS_CONFIGCMAKE} ${NativeCamera_LIB_DIR})
 endif()
 
 configure_file("${CMAKE_CURRENT_SOURCE_DIR}/OpenCVConfig.cmake.in" "${CMAKE_BINARY_DIR}/OpenCVConfig.cmake" IMMEDIATE @ONLY)
diff --git a/OpenCVModule.cmake b/OpenCVModule.cmake
index ab12991aff..8cf4f21c8b 100644
--- a/OpenCVModule.cmake
+++ b/OpenCVModule.cmake
@@ -32,21 +32,27 @@ macro(define_opencv_module name)
     add_library(${the_target} ${lib_srcs} ${lib_hdrs} ${lib_int_hdrs})
 
     # For dynamic link numbering convenions
-    set_target_properties(${the_target} PROPERTIES
-        VERSION ${OPENCV_VERSION}
-        SOVERSION ${OPENCV_SOVERSION}
-        OUTPUT_NAME "${the_target}${OPENCV_DLLVERSION}"		
-        )	
-	if(ENABLE_SOLUTION_FOLDERS)
-		set_target_properties(${the_target} PROPERTIES FOLDER "modules")
-	endif()	
+    if(NOT ANDROID)
+        # Android SDK build scripts can include only .so files into final .apk
+        # As result we should not set version properties for Android
+        set_target_properties(${the_target} PROPERTIES
+            VERSION ${OPENCV_VERSION}
+            SOVERSION ${OPENCV_SOVERSION}
+            )
+    endif()
+
+    set_target_properties(${the_target} PROPERTIES OUTPUT_NAME "${the_target}${OPENCV_DLLVERSION}" )	
+
+    if(ENABLE_SOLUTION_FOLDERS)
+        set_target_properties(${the_target} PROPERTIES FOLDER "modules")
+    endif()	
 		
-        if (BUILD_SHARED_LIBS)
-		if(MSVC)
-			set_target_properties(${the_target} PROPERTIES DEFINE_SYMBOL CVAPI_EXPORTS)
-		else()
-			add_definitions(-DCVAPI_EXPORTS) 		
-		endif()
+    if (BUILD_SHARED_LIBS)
+        if(MSVC)
+            set_target_properties(${the_target} PROPERTIES DEFINE_SYMBOL CVAPI_EXPORTS)
+        else()
+            add_definitions(-DCVAPI_EXPORTS) 		
+        endif()
     endif()
 
     # Additional target properties
diff --git a/android/CMakeCache.android.initial.cmake b/android/CMakeCache.android.initial.cmake
index 060fe5a9b5..e6b86d3484 100644
--- a/android/CMakeCache.android.initial.cmake
+++ b/android/CMakeCache.android.initial.cmake
@@ -105,3 +105,6 @@ SET( ENABLE_SSE42 OFF CACHE INTERNAL "" FORCE )
 
 #Enable SSSE3 instructions
 SET( ENABLE_SSSE3 OFF CACHE INTERNAL "" FORCE )
+
+#Set output folder to "libs" instead of "lib" for better compatibility with java projects
+SET( LIBRARY_OUTPUT_PATH ${CMAKE_BINARY_DIR}/libs CACHE PATH "path for android libs" )
diff --git a/android/android.toolchain.cmake b/android/android.toolchain.cmake
index c4210307e3..ba540e1d4f 100644
--- a/android/android.toolchain.cmake
+++ b/android/android.toolchain.cmake
@@ -227,6 +227,7 @@ if( ARM_TARGET STREQUAL "armeabi" )
  set( ARMEABI true )
  set( ARMEABI_NDK_NAME "armeabi" )
  set( NEON false )
+ set( CMAKE_SYSTEM_PROCESSOR "armv5te" )
 else()
  if( ARM_TARGET STREQUAL "armeabi-v7a with NEON" )
   set( NEON true )
@@ -240,6 +241,7 @@ Supported values are: \"armeabi\", \"armeabi-v7a\", \"armeabi-v7a with NEON\", \
  endif()
  set( ARMEABI_V7A true )
  set( ARMEABI_NDK_NAME "armeabi-v7a" )
+ set( CMAKE_SYSTEM_PROCESSOR "armv7-a" )
 endif()
 
 #setup output directories
@@ -248,8 +250,12 @@ set( LIBRARY_OUTPUT_PATH_ROOT ${CMAKE_SOURCE_DIR} CACHE PATH "root for library o
 SET( DO_NOT_CHANGE_OUTPUT_PATHS_ON_FIRST_PASS OFF CACHE BOOL "")
 if( DO_NOT_CHANGE_OUTPUT_PATHS_ON_FIRST_PASS )
  #some cmake standard modules work incorrectly if output paths are changed
- set( LIBRARY_OUTPUT_PATH ${LIBRARY_OUTPUT_PATH_ROOT}/libs/${ARMEABI_NDK_NAME} CACHE PATH "path for android libs" FORCE )
- set( EXECUTABLE_OUTPUT_PATH ${LIBRARY_OUTPUT_PATH_ROOT}/bin/${ARMEABI_NDK_NAME} CACHE PATH "Output directory for applications" FORCE)
+ if( EXISTS ${CMAKE_SOURCE_DIR}/jni/CMakeLists.txt )
+  # these paths are required for jni part of Android projects
+  # but they may conflict with traditional unix makefile's folder structure
+  set( LIBRARY_OUTPUT_PATH ${LIBRARY_OUTPUT_PATH_ROOT}/libs/${ARMEABI_NDK_NAME} CACHE PATH "path for android libs" FORCE )
+  set( EXECUTABLE_OUTPUT_PATH ${LIBRARY_OUTPUT_PATH_ROOT}/bin/${ARMEABI_NDK_NAME} CACHE PATH "Output directory for applications" FORCE)
+ endif()
  set( CMAKE_INSTALL_PREFIX ${ANDROID_NDK_TOOLCHAIN_ROOT}/user/${ARMEABI_NDK_NAME} CACHE STRING "path for installing" FORCE )
 endif()
 SET( DO_NOT_CHANGE_OUTPUT_PATHS_ON_FIRST_PASS ON CACHE INTERNAL "" FORCE)
diff --git a/android/scripts/wincfg.cmd.tmpl b/android/scripts/wincfg.cmd.tmpl
index f60c07a124..f0a5b54280 100644
--- a/android/scripts/wincfg.cmd.tmpl
+++ b/android/scripts/wincfg.cmd.tmpl
@@ -1,4 +1,5 @@
 :: variables required for OpenCV build ::
+:: Note: all pathes should be specified without tailing slashes!
 SET ANDROID_NDK=C:\full\path\to\your\copy\of\android\NDK\android-ndk-r5b
 SET CMAKE_EXE=C:\full\path\to\cmake\utility\cmake.exe
 SET MAKE_EXE=C:\full\path\to\native\port\of\make\utility\make.exe
@@ -23,4 +24,4 @@ SET BUILD_DIR=build
 ::SET BUILD_DIR=build_neon
 
 :::: other options
-::SET ANDROID_API_LEVEL=8   &:: android-3 is enough for OpenCV but android-8 is recommended
\ No newline at end of file
+::SET ANDROID_API_LEVEL=8   &:: android-3 is enough for OpenCV but android-8 is recommended
diff --git a/modules/highgui/CMakeLists.txt b/modules/highgui/CMakeLists.txt
index 27ed6af19f..d216b60727 100644
--- a/modules/highgui/CMakeLists.txt
+++ b/modules/highgui/CMakeLists.txt
@@ -273,11 +273,15 @@ if(PCHSupport_FOUND AND USE_PRECOMPILED_HEADERS)
 endif()
 
 # For dynamic link numbering convenions
-set_target_properties(${the_target} PROPERTIES
-    VERSION ${OPENCV_VERSION}
-    SOVERSION ${OPENCV_SOVERSION}
-    OUTPUT_NAME "${the_target}${OPENCV_DLLVERSION}"
-    )
+if(NOT ANDROID)
+    # Android SDK build scripts can include only .so files into final .apk
+    set_target_properties(${the_target} PROPERTIES
+        VERSION ${OPENCV_VERSION}
+        SOVERSION ${OPENCV_SOVERSION}
+        )
+endif()
+
+set_target_properties(${the_target} PROPERTIES OUTPUT_NAME "${the_target}${OPENCV_DLLVERSION}" )	
 
 # Additional target properties
 set_target_properties(${the_target} PROPERTIES