--- a/config/rules.mk
+++ b/config/rules.mk
@@ -931,17 +931,17 @@ rustflags = -C opt-level=0
 # to explicitly disable them when MOZ_DEBUG is not set.
 ifndef MOZ_DEBUG
 rustflags += -C debug-assertions=no
 endif
 rustflags_override = RUSTFLAGS='$(rustflags)'
 endif
 
 CARGO_BUILD = env $(rustflags_override) \
-	CARGO_TARGET_DIR=. \
+	CARGO_TARGET_DIR=$(CARGO_TARGET_DIR) \
 	RUSTC=$(RUSTC) \
 	MOZ_DIST=$(ABS_DIST) \
 	LIBCLANG_PATH=$(MOZ_LIBCLANG_PATH) \
 	CLANG_PATH=$(MOZ_CLANG_PATH) \
 	PKG_CONFIG_ALLOW_CROSS=1 \
 	$(CARGO) build $(cargo_build_flags)
 
 ifdef RUST_LIBRARY_FILE

--- a/python/mozbuild/mozbuild/backend/recursivemake.py
+++ b/python/mozbuild/mozbuild/backend/recursivemake.py
@@ -1072,16 +1072,17 @@ class RecursiveMakeBackend(CommonBackend
 
     def _process_host_program(self, program, backend_file):
         backend_file.write('HOST_PROGRAM = %s\n' % program)
 
     def _process_rust_program_base(self, obj, backend_file,
                                    target_variable,
                                    target_cargo_variable):
         backend_file.write_once('CARGO_FILE := %s\n' % obj.cargo_file)
+        backend_file.write_once('CARGO_TARGET_DIR := .\n')
         backend_file.write('%s += %s\n' % (target_variable, obj.location))
         backend_file.write('%s += %s\n' % (target_cargo_variable, obj.name))
 
     def _process_rust_program(self, obj, backend_file):
         self._process_rust_program_base(obj, backend_file,
                                         'RUST_PROGRAMS',
                                         'RUST_CARGO_PROGRAMS')
 
@@ -1245,16 +1246,17 @@ class RecursiveMakeBackend(CommonBackend
     def _process_rust_library(self, libdef, backend_file):
         lib_var = 'RUST_LIBRARY_FILE'
         feature_var = 'RUST_LIBRARY_FEATURES'
         if isinstance(libdef, HostRustLibrary):
             lib_var = 'HOST_RUST_LIBRARY_FILE'
             feature_var = 'HOST_RUST_LIBRARY_FEATURES'
         backend_file.write_once('%s := %s\n' % (libdef.LIB_FILE_VAR, libdef.import_name))
         backend_file.write('CARGO_FILE := $(srcdir)/Cargo.toml\n')
+        backend_file.write('CARGO_TARGET_DIR := .\n')
         if libdef.features:
             backend_file.write('%s := %s\n' % (libdef.FEATURES_VAR, ' '.join(libdef.features)))
 
     def _process_host_library(self, libdef, backend_file):
         backend_file.write('HOST_LIBRARY_NAME = %s\n' % libdef.basename)
 
     def _build_target_for_obj(self, obj):
         return '%s/%s' % (mozpath.relpath(obj.objdir,

--- a/python/mozbuild/mozbuild/test/backend/test_recursivemake.py
+++ b/python/mozbuild/mozbuild/test/backend/test_recursivemake.py
@@ -759,73 +759,78 @@ class TestRecursiveMakeBackend(BackendTe
         env = self._consume('rust-library', RecursiveMakeBackend)
 
         backend_path = mozpath.join(env.topobjdir, 'backend.mk')
         lines = [l.strip() for l in open(backend_path, 'rt').readlines()[2:]]
 
         expected = [
             'RUST_LIBRARY_FILE := x86_64-unknown-linux-gnu/release/libgkrust.a',
             'CARGO_FILE := $(srcdir)/Cargo.toml',
+            'CARGO_TARGET_DIR := .',
         ]
 
         self.assertEqual(lines, expected)
 
     def test_host_rust_library(self):
         """Test that a Rust library is written to backend.mk correctly."""
         env = self._consume('host-rust-library', RecursiveMakeBackend)
 
         backend_path = mozpath.join(env.topobjdir, 'backend.mk')
         lines = [l.strip() for l in open(backend_path, 'rt').readlines()[2:]]
 
         expected = [
             'HOST_RUST_LIBRARY_FILE := x86_64-unknown-linux-gnu/release/libhostrusttool.a',
             'CARGO_FILE := $(srcdir)/Cargo.toml',
+            'CARGO_TARGET_DIR := .',
         ]
 
         self.assertEqual(lines, expected)
 
     def test_host_rust_library_with_features(self):
         """Test that a host Rust library with features is written to backend.mk correctly."""
         env = self._consume('host-rust-library-features', RecursiveMakeBackend)
 
         backend_path = mozpath.join(env.topobjdir, 'backend.mk')
         lines = [l.strip() for l in open(backend_path, 'rt').readlines()[2:]]
 
         expected = [
             'HOST_RUST_LIBRARY_FILE := x86_64-unknown-linux-gnu/release/libhostrusttool.a',
             'CARGO_FILE := $(srcdir)/Cargo.toml',
+            'CARGO_TARGET_DIR := .',
             'HOST_RUST_LIBRARY_FEATURES := musthave cantlivewithout',
         ]
 
         self.assertEqual(lines, expected)
 
     def test_rust_library_with_features(self):
         """Test that a Rust library with features is written to backend.mk correctly."""
         env = self._consume('rust-library-features', RecursiveMakeBackend)
 
         backend_path = mozpath.join(env.topobjdir, 'backend.mk')
         lines = [l.strip() for l in open(backend_path, 'rt').readlines()[2:]]
 
         expected = [
             'RUST_LIBRARY_FILE := x86_64-unknown-linux-gnu/release/libgkrust.a',
             'CARGO_FILE := $(srcdir)/Cargo.toml',
+            'CARGO_TARGET_DIR := .',
             'RUST_LIBRARY_FEATURES := musthave cantlivewithout',
         ]
 
         self.assertEqual(lines, expected)
 
     def test_rust_programs(self):
         """Test that {HOST_,}RUST_PROGRAMS are written to backend.mk correctly."""
         env = self._consume('rust-programs', RecursiveMakeBackend)
 
         backend_path = mozpath.join(env.topobjdir, 'code/backend.mk')
         lines = [l.strip() for l in open(backend_path, 'rt').readlines()[2:]]
 
         expected = [
             'CARGO_FILE := %s/code/Cargo.toml' % env.topsrcdir,
+            'CARGO_TARGET_DIR := .',
             'RUST_PROGRAMS += i686-pc-windows-msvc/release/target.exe',
             'RUST_CARGO_PROGRAMS += target',
             'HOST_RUST_PROGRAMS += i686-pc-windows-msvc/release/host.exe',
             'HOST_RUST_CARGO_PROGRAMS += host',
         ]
 
         self.assertEqual(lines, expected)