diff --git a/system/core/Loader.php b/system/core/Loader.php
index a9eec39..1e6eafe 100644
--- a/system/core/Loader.php
+++ b/system/core/Loader.php
@@ -532,27 +532,34 @@
 				continue;
 			}
 
-			$ext_helper = APPPATH.'helpers/'.config_item('subclass_prefix').$helper.'.php';
-
 			// Is this a helper extension request?
-			if (file_exists($ext_helper))
+			$ext_helper = config_item('subclass_prefix').$helper;
+			$ext_loaded = FALSE;
+			foreach ($this->_ci_helper_paths as $path)
+			{
+				if (file_exists($path.'helpers/'.$ext_helper.'.php'))
+				{
+					include_once($path.'helpers/'.$ext_helper.'.php');
+					$ext_loaded = TRUE;
+				}
+			}
+
+			// If we have loaded extensions - check if the base one is here
+			if ($ext_loaded === TRUE)
 			{
 				$base_helper = BASEPATH.'helpers/'.$helper.'.php';
-
 				if ( ! file_exists($base_helper))
 				{
 					show_error('Unable to load the requested file: helpers/'.$helper.'.php');
 				}
 
-				include_once($ext_helper);
 				include_once($base_helper);
-
 				$this->_ci_helpers[$helper] = TRUE;
 				log_message('debug', 'Helper loaded: '.$helper);
 				continue;
 			}
 
-			// Try to load the helper
+			// No extensions found ... try loading regular helpers and/or overrides
 			foreach ($this->_ci_helper_paths as $path)
 			{
 				if (file_exists($path.'helpers/'.$helper.'.php'))
diff --git a/user_guide_src/source/changelog.rst b/user_guide_src/source/changelog.rst
index 792969c..1a80f76 100644
--- a/user_guide_src/source/changelog.rst
+++ b/user_guide_src/source/changelog.rst
@@ -439,7 +439,8 @@
 -  Fixed a bug - :doc:`Routing Library <general/routing>` didn't properly handle *default_controller* in a subdirectory when a method is also specified.
 -  Fixed a bug (#953) - :doc:`post_controller_constructor hook <general/hooks>` wasn't called with a *404_override*.
 -  Fixed a bug (#1220) - :doc:`Profiler Library <general/profiling>` didn't display information for database objects that are instantiated inside models.
--  Fixed a bug (#1978) - :doc:`Directory Helper <helpers/directory_helper>` function ``directory_map()``'s return array didn't make a distinction between directories and file indexes when a directory with a numeric name is present.
+-  Fixed a bug (#1978) - :doc:`Directory Helper <helpers/directory_helper>` function :php:func:`directory_map()`'s return array didn't make a distinction between directories and file indexes when a directory with a numeric name is present.
+-  Fixed a bug (#777) - :doc:`Loader Library <libraries/loader>` didn't look for helper extensions in added package paths.
 
 Version 2.1.3
 =============