diff --git a/Makefile b/Makefile
index c4bdeb8dfbbe..d14de0381864 100644
--- a/Makefile
+++ b/Makefile
@@ -115,6 +115,8 @@ export quiet Q KBUILD_VERBOSE
 # it is set on invocation of make with KBUILD_OUTPUT or O= specified.
 ifeq ($(KBUILD_SRC),)
 
+KBUILD_OUTPUT := out
+
 # OK, Make called in directory where kernel src resides
 # Do we want to locate output files in a separate directory?
 ifeq ("$(origin O)", "command line")