diff --git a/Source/CTest/cmCTestBuildCommand.cxx b/Source/CTest/cmCTestBuildCommand.cxx
index 5cb2a3738..1f63185c1 100644
--- a/Source/CTest/cmCTestBuildCommand.cxx
+++ b/Source/CTest/cmCTestBuildCommand.cxx
@@ -130,10 +130,11 @@ cmCTestGenericHandler* cmCTestBuildCommand::InitializeHandler()
         cmakeBuildConfiguration = config;
         }
 
+      std::string dir = this->CTest->GetCTestConfiguration("BuildDirectory");
       std::string buildCommand
         = this->GlobalGenerator->
         GenerateBuildCommand(cmakeMakeProgram,
-                             cmakeProjectName, 0,
+                             cmakeProjectName, dir.c_str(),
                              cmakeBuildAdditionalFlags, cmakeBuildTarget,
                              cmakeBuildConfiguration, true, false);
       cmCTestLog(this->CTest, HANDLER_VERBOSE_OUTPUT,
diff --git a/Tests/CMakeLists.txt b/Tests/CMakeLists.txt
index 4eb2f9067..ad81fd678 100644
--- a/Tests/CMakeLists.txt
+++ b/Tests/CMakeLists.txt
@@ -1660,6 +1660,20 @@ ${CMake_BINARY_DIR}/bin/cmake -DVERSION=master -P ${CMake_SOURCE_DIR}/Utilities/
 #        -S "${CMake_BINARY_DIR}/Tests/CTestScriptMode/CTestTestScriptMode.cmake"
 #        )
 
+  # A test for ctest_build() with targets in subdirectories
+  if(CMAKE_TEST_GENERATOR_TOOLSET)
+    set(CMAKE_TEST_GENERATOR_TOOLSET_SELECTION "-T;${CMAKE_TEST_GENERATOR_TOOLSET};")
+  else()
+    set(CMAKE_TEST_GENERATOR_TOOLSET_SELECTION)
+  endif()
+  configure_file("${CMake_SOURCE_DIR}/Tests/CTestBuildCommandProjectInSubdir/CTestBuildCommandProjectInSubdir.cmake.in"
+                 "${CMake_BINARY_DIR}/Tests/CTestBuildCommandProjectInSubdir/CTestBuildCommandProjectInSubdir.cmake" @ONLY)
+  unset(CMAKE_TEST_GENERATOR_TOOLSET_SELECTION)
+  add_test(CTest.BuildCommand.ProjectInSubdir
+    ${CMAKE_CTEST_COMMAND} -S "${CMake_BINARY_DIR}/Tests/CTestBuildCommandProjectInSubdir/CTestBuildCommandProjectInSubdir.cmake"
+                           -DCMAKE_MAKE_PROGRAM:FILEPATH=${CMAKE_TEST_MAKEPROGRAM})
+  list(APPEND TEST_BUILD_DIRS "${CMake_BINARY_DIR}/Tests/CTestBuildCommandProjectInSubdir/Nested")
+
   set(CTEST_TEST_UPDATE 1)
   if(CTEST_TEST_UPDATE)
     # Test CTest Update with Subversion
diff --git a/Tests/CTestBuildCommandProjectInSubdir/CTestBuildCommandProjectInSubdir.cmake.in b/Tests/CTestBuildCommandProjectInSubdir/CTestBuildCommandProjectInSubdir.cmake.in
new file mode 100644
index 000000000..ea48c780f
--- /dev/null
+++ b/Tests/CTestBuildCommandProjectInSubdir/CTestBuildCommandProjectInSubdir.cmake.in
@@ -0,0 +1,12 @@
+cmake_minimum_required(VERSION 2.8.10)
+
+set(CTEST_SOURCE_DIRECTORY "@CMake_SOURCE_DIR@/Tests/VSProjectInSubdir")
+set(CTEST_BINARY_DIRECTORY "@CMake_BINARY_DIR@/Tests/CTestBuildCommandProjectInSubdir/Nested")
+set(CTEST_CMAKE_GENERATOR "@CMAKE_TEST_GENERATOR@")
+set(CTEST_PROJECT_NAME "VSProjectInSubdir")
+set(CTEST_BUILD_CONFIGURATION "@CTestTest_CONFIG@")
+
+ctest_empty_binary_directory(${CTEST_BINARY_DIRECTORY})
+ctest_start(Experimental)
+ctest_configure(OPTIONS "@CMAKE_TEST_GENERATOR_TOOLSET_SELECTION@-DCMAKE_MAKE_PROGRAM:FILEPATH=@CMAKE_TEST_MAKEPROGRAM@")
+ctest_build(TARGET test)