diff --git a/package/x11r7/xserver_xorg-server/xserver_xorg-server.mk b/package/x11r7/xserver_xorg-server/xserver_xorg-server.mk
index 593bbd4276..e520cefee7 100644
--- a/package/x11r7/xserver_xorg-server/xserver_xorg-server.mk
+++ b/package/x11r7/xserver_xorg-server/xserver_xorg-server.mk
@@ -181,8 +181,9 @@ define XSERVER_XORG_SERVER_INSTALL_INIT_SYSTEMD
 		$(TARGET_DIR)/usr/lib/systemd/system/xorg.service
 endef
 
-# init script conflicts with S90nodm
-ifneq ($(BR2_PACKAGE_NODM),y)
+# Install the init script only when neither nodm nor xdm are enabled, as
+# they would be responsible for starting the server.
+ifeq ($(BR2_PACKAGE_NODM)$(BR2_PACKAGE_XAPP_XDM),)
 define XSERVER_XORG_SERVER_INSTALL_INIT_SYSV
 	$(INSTALL) -D -m 755 package/x11r7/xserver_xorg-server/S40xorg \
 		$(TARGET_DIR)/etc/init.d/S40xorg