diff --git a/include/kernel.mk b/include/kernel.mk
index b2a7476aa0..788e3f2378 100644
--- a/include/kernel.mk
+++ b/include/kernel.mk
@@ -43,7 +43,9 @@ else
   TESTING:=$(if $(findstring -rc,$(LINUX_VERSION)),/testing,)
   LINUX_SITE:=@KERNEL/linux/kernel/v$(KERNEL)$(TESTING) \
 
-  PKG_BUILD_DIR ?= $(KERNEL_BUILD_DIR)/$(PKG_NAME)$(if $(PKG_VERSION),-$(PKG_VERSION))
+  ifneq ($(TARGET_BUILD),1)
+    PKG_BUILD_DIR ?= $(KERNEL_BUILD_DIR)/$(PKG_NAME)$(if $(PKG_VERSION),-$(PKG_VERSION))
+  endif
 endif
 
 ifneq (,$(findstring uml,$(BOARD)))
diff --git a/include/quilt.mk b/include/quilt.mk
index 3a6f0dc754..c0a868fbf9 100644
--- a/include/quilt.mk
+++ b/include/quilt.mk
@@ -5,7 +5,7 @@
 # See /LICENSE for more information.
 #
 
-ifeq ($(KERNEL_BUILD),1)
+ifeq ($(TARGET_BUILD),1)
   PKG_BUILD_DIR:=$(LINUX_DIR)
 endif
 PATCH_DIR?=./patches