diff --git a/[refs] b/[refs]
index f03255359001..9078c653f4a0 100644
--- a/[refs]
+++ b/[refs]
@@ -1,2 +1,2 @@
 ---
-refs/heads/master: 0f40d9d3c5fb40da75af343f27775ca8a15e3806
+refs/heads/master: a45c7dfb942b6c198d5cd283f8dcee145241a017
diff --git a/trunk/scripts/kconfig/merge_config.sh b/trunk/scripts/kconfig/merge_config.sh
index 05274fccb88e..81b0c61bb9e2 100755
--- a/trunk/scripts/kconfig/merge_config.sh
+++ b/trunk/scripts/kconfig/merge_config.sh
@@ -120,10 +120,18 @@ if [ "$MAKE" = "false" ]; then
 	exit
 fi
 
+# If we have an output dir, setup the O= argument, otherwise leave
+# it blank, since O=. will create an unnecessary ./source softlink
+OUTPUT_ARG=""
+if [ "$OUTPUT" != "." ] ; then
+	OUTPUT_ARG="O=$OUTPUT"
+fi
+
+
 # Use the merged file as the starting point for:
 # alldefconfig: Fills in any missing symbols with Kconfig default
 # allnoconfig: Fills in any missing symbols with # CONFIG_* is not set
-make KCONFIG_ALLCONFIG=$TMP_FILE O=$OUTPUT $ALLTARGET
+make KCONFIG_ALLCONFIG=$TMP_FILE $OUTPUT_ARG $ALLTARGET
 
 
 # Check all specified config values took (might have missed-dependency issues)