diff --git a/var/spack/repos/builtin/packages/amdlibm/libm-ose-SconsSpack.patch b/var/spack/repos/builtin/packages/amdlibm/libm-ose-SconsSpack.patch
new file mode 100644
index 00000000000..e90653d491a
--- /dev/null
+++ b/var/spack/repos/builtin/packages/amdlibm/libm-ose-SconsSpack.patch
@@ -0,0 +1,10 @@
+--- a/scripts/site_scons/alm/env.py	2024-04-30 14:30:40.936684295 -0500
++++ b/scripts/site_scons/alm/env.py	2024-04-30 14:31:10.901423863 -0500
+@@ -72,6 +72,7 @@
+                     'SPACK_LINKER_ARG',
+                     'SPACK_SHORT_SPEC',
+                     'SPACK_SYSTEM_DIRS',
++                    'SPACK_MANAGED_DIRS',
+                 ]
+ 
+     # add these keys to mydict if they exist in environ
diff --git a/var/spack/repos/builtin/packages/amdlibm/package.py b/var/spack/repos/builtin/packages/amdlibm/package.py
index e0e0a36aaab..05cb937abc1 100644
--- a/var/spack/repos/builtin/packages/amdlibm/package.py
+++ b/var/spack/repos/builtin/packages/amdlibm/package.py
@@ -58,6 +58,10 @@ class Amdlibm(SConsPackage):
 
     patch("0001-libm-ose-Scripts-cleanup-pyc-files.patch", when="@2.2")
     patch("0002-libm-ose-prevent-log-v3.c-from-building.patch", when="@2.2")
+    # Patch to update the SCons environment with
+    # the newly introduced 'SPACK_MANAGED_DIRS'
+    # build environment variable.
+    patch("libm-ose-SconsSpack.patch", when="@3.1:4.2")
 
     conflicts("%gcc@:9.1.0", msg="Minimum supported GCC version is 9.2.0")
     conflicts("%gcc@13.2.0:", msg="Maximum supported GCC version is 13.1.0")