diff --git a/Source/cmExportFileGenerator.cxx b/Source/cmExportFileGenerator.cxx
index 5b351bc3d..ef336ea47 100644
--- a/Source/cmExportFileGenerator.cxx
+++ b/Source/cmExportFileGenerator.cxx
@@ -287,11 +287,33 @@ void cmExportFileGenerator::PopulateIncludeDirectoriesInterface(
 
   const char *propName = "INTERFACE_INCLUDE_DIRECTORIES";
   const char *input = target->GetProperty(propName);
-  if (!input && tei->InterfaceIncludeDirectories.empty())
+
+  cmListFileBacktrace lfbt;
+  cmGeneratorExpression ge(lfbt);
+
+  std::string dirs = tei->InterfaceIncludeDirectories;
+  this->ReplaceInstallPrefix(dirs);
+  cmsys::auto_ptr<cmCompiledGeneratorExpression> cge = ge.Parse(dirs);
+  std::string exportDirs = cge->Evaluate(target->GetMakefile(), 0,
+                                         false, target);
+
+  if (cge->GetHadContextSensitiveCondition())
+    {
+    cmMakefile* mf = target->GetMakefile();
+    cmOStringStream e;
+    e << "Target \"" << target->GetName() << "\" is installed with "
+    "INCLUDES DESTINATION set to a context sensitive path.  Paths which "
+    "depend on the configuration, policy values or the link interface are "
+    "not supported.  Consider using target_include_directories instead.";
+    mf->IssueMessage(cmake::FATAL_ERROR, e.str());
+    return;
+    }
+
+  if (!input && exportDirs.empty())
     {
     return;
     }
-  if ((input && !*input) && tei->InterfaceIncludeDirectories.empty())
+  if ((input && !*input) && exportDirs.empty())
     {
     // Set to empty
     properties[propName] = "";
@@ -300,7 +322,7 @@ void cmExportFileGenerator::PopulateIncludeDirectoriesInterface(
 
   std::string includes = (input?input:"");
   const char* sep = input ? ";" : "";
-  includes += sep + tei->InterfaceIncludeDirectories;
+  includes += sep + exportDirs;
   std::string prepro = cmGeneratorExpression::Preprocess(includes,
                                                          preprocessRule,
                                                          true);
diff --git a/Tests/ExportImport/Export/CMakeLists.txt b/Tests/ExportImport/Export/CMakeLists.txt
index 1910f8c69..b5b202781 100644
--- a/Tests/ExportImport/Export/CMakeLists.txt
+++ b/Tests/ExportImport/Export/CMakeLists.txt
@@ -99,7 +99,6 @@ macro(add_include_lib _libName)
   set_property(TARGET ${_libName} APPEND PROPERTY
       INTERFACE_INCLUDE_DIRECTORIES
         "$<BUILD_INTERFACE:${CMAKE_CURRENT_BINARY_DIR}/${_libName}>"
-        "$<INSTALL_INTERFACE:$<INSTALL_PREFIX>/include/${_libName}>"
       )
   if (NOT "${ARGV1}" STREQUAL "NO_HEADER")
       file(WRITE "${CMAKE_CURRENT_BINARY_DIR}/${_libName}/${_libName}.h" "// no content\n")
@@ -188,8 +187,7 @@ install(FILES
     DESTINATION include/testSharedLibRequired
 )
 set_property(TARGET testSharedLibRequired APPEND PROPERTY
-  INTERFACE_INCLUDE_DIRECTORIES "$<INSTALL_INTERFACE:$<INSTALL_PREFIX>/include/testSharedLibRequired>"
-                                "$<BUILD_INTERFACE:${CMAKE_CURRENT_BINARY_DIR};${CMAKE_CURRENT_SOURCE_DIR}>"
+  INTERFACE_INCLUDE_DIRECTORIES "$<BUILD_INTERFACE:${CMAKE_CURRENT_BINARY_DIR};${CMAKE_CURRENT_SOURCE_DIR}>"
 )
 set_property(TARGET testSharedLibRequired APPEND PROPERTY
   INTERFACE_COMPILE_DEFINITIONS USING_TESTSHAREDLIBREQUIRED
@@ -273,18 +271,24 @@ set_property(TARGET cmp0022OLD APPEND PROPERTY LINK_INTERFACE_LIBRARIES testLib3
 add_library(noIncludesInterface empty.cpp)
 
 install(TARGETS testLibRequired
-                testLibIncludeRequired1
-                testLibIncludeRequired2
-                testLibIncludeRequired3
-                testLibIncludeRequired4
-                testLibIncludeRequired5
-                testLibIncludeRequired6
-                testSharedLibRequired
-                noIncludesInterface
         EXPORT RequiredExp DESTINATION lib
         INCLUDES DESTINATION
           installIncludesTest
-          $<INSTALL_PREFIX>/installIncludesTest2)
+          $<INSTALL_PREFIX>/installIncludesTest2
+          )
+install(TARGETS
+          testLibIncludeRequired1
+          testLibIncludeRequired2
+          testLibIncludeRequired3
+          testLibIncludeRequired4
+          testLibIncludeRequired5
+          testLibIncludeRequired6
+          testSharedLibRequired
+          noIncludesInterface
+        EXPORT RequiredExp DESTINATION lib
+        INCLUDES DESTINATION
+          $<INSTALL_PREFIX>/include/$<TARGET_PROPERTY:NAME>
+)
 install(EXPORT RequiredExp NAMESPACE Req:: FILE testLibRequiredTargets.cmake DESTINATION lib/cmake/testLibRequired)
 
 file(MAKE_DIRECTORY "${CMAKE_CURRENT_BINARY_DIR}/installIncludesTest")
diff --git a/Tests/RunCMake/include_directories/RunCMakeTest.cmake b/Tests/RunCMake/include_directories/RunCMakeTest.cmake
index 520dd448d..f0704f462 100644
--- a/Tests/RunCMake/include_directories/RunCMakeTest.cmake
+++ b/Tests/RunCMake/include_directories/RunCMakeTest.cmake
@@ -9,3 +9,4 @@ run_cmake(RelativePathInInterface)
 run_cmake(ImportedTarget)
 run_cmake(RelativePathInGenex)
 run_cmake(CMP0021)
+run_cmake(install_config)
diff --git a/Tests/RunCMake/include_directories/install_config-result.txt b/Tests/RunCMake/include_directories/install_config-result.txt
new file mode 100644
index 000000000..d00491fd7
--- /dev/null
+++ b/Tests/RunCMake/include_directories/install_config-result.txt
@@ -0,0 +1 @@
+1
diff --git a/Tests/RunCMake/include_directories/install_config-stderr.txt b/Tests/RunCMake/include_directories/install_config-stderr.txt
new file mode 100644
index 000000000..ac7b7b0ec
--- /dev/null
+++ b/Tests/RunCMake/include_directories/install_config-stderr.txt
@@ -0,0 +1,5 @@
+CMake Error in CMakeLists.txt:
+  Target "foo" is installed with INCLUDES DESTINATION set to a context
+  sensitive path.  Paths which depend on the configuration, policy values or
+  the link interface are not supported.  Consider using
+  target_include_directories instead.
diff --git a/Tests/RunCMake/include_directories/install_config.cmake b/Tests/RunCMake/include_directories/install_config.cmake
new file mode 100644
index 000000000..46c626c70
--- /dev/null
+++ b/Tests/RunCMake/include_directories/install_config.cmake
@@ -0,0 +1,6 @@
+
+enable_language(CXX)
+
+add_executable(foo empty.cpp)
+install(TARGETS foo EXPORT fooTargets DESTINATION . INCLUDES DESTINATION include/$<CONFIGURATION>)
+install(EXPORT fooTargets DESTINATION lib/cmake)