diff --git a/build/org.eclipse.cdt.make.core/src/org/eclipse/cdt/make/core/MakefileProjectGenerator.java b/build/org.eclipse.cdt.make.core/src/org/eclipse/cdt/make/core/MakefileProjectGenerator.java
index 383ee98824f..7f2c9f9ab46 100644
--- a/build/org.eclipse.cdt.make.core/src/org/eclipse/cdt/make/core/MakefileProjectGenerator.java
+++ b/build/org.eclipse.cdt.make.core/src/org/eclipse/cdt/make/core/MakefileProjectGenerator.java
@@ -84,7 +84,7 @@ public void generate(Map<String, Object> model, IProgressMonitor monitor) throws
 			}
 		}
 
-		entries.add(CoreModel.newOutputEntry(buildFolder.getFullPath()));
+		entries.add(CoreModel.newOutputEntry(project.getFullPath()));
 		CoreModel.getDefault().create(project).setRawPathEntries(entries.toArray(new IPathEntry[entries.size()]),
 				monitor);
 	}