diff --git a/include/subdir.mk b/include/subdir.mk
index d59e937f174..81895f5ca22 100644
--- a/include/subdir.mk
+++ b/include/subdir.mk
@@ -37,13 +37,13 @@ define subdir
     $(foreach target,$(SUBTARGETS),
       $(foreach btype,$(buildtypes-$(bd)),
         $(call warn_eval,$(1)/$(bd),t,T,$(1)/$(bd)/$(btype)/$(target): $(if $(QUILT),,$($(1)/$(bd)/$(btype)/$(target)) $(call $(1)//$(btype)/$(target),$(1)/$(bd)/$(btype))))
-		  $(if $(call debug,$(1)/$(bd),v),,@)+$$(SUBMAKE) -r -C $(1)/$(bd) $(btype)-$(target) SUBDIR="$(1)/$(bd)" $(if $(findstring $(bd),$($(1)/builddirs-ignore-$(btype)-$(target))), || $(call ERROR,$(1),   ERROR: $(1)/$(bd) [$(btype)] failed to build.))
+		  $(if $(call debug,$(1)/$(bd),v),,@)+$$(SUBMAKE) -r -C $(1)/$(bd) $(btype)-$(target) BUILD_SUBDIR="$(1)/$(bd)" $(if $(findstring $(bd),$($(1)/builddirs-ignore-$(btype)-$(target))), || $(call ERROR,$(1),   ERROR: $(1)/$(bd) [$(btype)] failed to build.))
         $(if $(call diralias,$(bd)),$(call warn_eval,$(1)/$(bd),l,T,$(1)/$(call diralias,$(bd))/$(btype)/$(target): $(1)/$(bd)/$(btype)/$(target)))
       )
       $(call warn_eval,$(1)/$(bd),t,T,$(1)/$(bd)/$(target): $(if $(QUILT),,$($(1)/$(bd)/$(target)) $(call $(1)//$(target),$(1)/$(bd))))
 	  	$(if $(BUILD_LOG),@mkdir -p $(BUILD_LOG_DIR)/$(1)/$(bd))
         $(foreach variant,$(if $(BUILD_VARIANT),$(BUILD_VARIANT),$(if $(strip $($(1)/$(bd)/variants)),$($(1)/$(bd)/variants),$(if $($(1)/$(bd)/default-variant),$($(1)/$(bd)/default-variant),__default))),
-			$(if $(call debug,$(1)/$(bd),v),,@)+$(if $(BUILD_LOG),set -o pipefail;) $$(SUBMAKE) -r -C $(1)/$(bd) $(target) SUBDIR="$(1)/$(bd)" BUILD_VARIANT="$(filter-out __default,$(variant))" $(if $(BUILD_LOG),SILENT= 2>&1 | tee $(BUILD_LOG_DIR)/$(1)/$(bd)/$(target).txt) $(if $(findstring $(bd),$($(1)/builddirs-ignore-$(target))), || $(call ERROR,$(1),   ERROR: $(1)/$(bd) failed to build$(if $(filter-out __default,$(variant)), (build variant: $(variant))).))
+			$(if $(call debug,$(1)/$(bd),v),,@)+$(if $(BUILD_LOG),set -o pipefail;) $$(SUBMAKE) -r -C $(1)/$(bd) $(target) BUILD_SUBDIR="$(1)/$(bd)" BUILD_VARIANT="$(filter-out __default,$(variant))" $(if $(BUILD_LOG),SILENT= 2>&1 | tee $(BUILD_LOG_DIR)/$(1)/$(bd)/$(target).txt) $(if $(findstring $(bd),$($(1)/builddirs-ignore-$(target))), || $(call ERROR,$(1),   ERROR: $(1)/$(bd) failed to build$(if $(filter-out __default,$(variant)), (build variant: $(variant))).))
         )
       $(if $(PREREQ_ONLY)$(DUMP_TARGET_DB),,
         # aliases
diff --git a/rules.mk b/rules.mk
index f95568a313c..f0c813620a9 100644
--- a/rules.mk
+++ b/rules.mk
@@ -59,9 +59,10 @@ export EXTRA_OPTIMIZATION:=$(call qstrip,$(CONFIG_EXTRA_OPTIMIZATION))
 TARGET_SUFFIX=$(call qstrip,$(CONFIG_TARGET_SUFFIX))
 BUILD_SUFFIX:=$(call qstrip,$(CONFIG_BUILD_SUFFIX))
 SUBDIR:=$(patsubst $(TOPDIR)/%,%,${CURDIR})
+BUILD_SUBDIR:=$(patsubst $(TOPDIR)/%,%,${CURDIR})
 export SHELL:=/usr/bin/env bash
 
-IS_PACKAGE_BUILD := $(if $(filter package/%,$(SUBDIR)),1)
+IS_PACKAGE_BUILD := $(if $(filter package/%,$(BUILD_SUBDIR)),1)
 
 OPTIMIZE_FOR_CPU=$(subst i386,i486,$(ARCH))