diff --git a/Makefile b/Makefile
index cea64d277457..faf55c96ba59 100644
--- a/Makefile
+++ b/Makefile
@@ -120,9 +120,10 @@ ifneq ($(KBUILD_OUTPUT),)
 # Invoke a second make in the output directory, passing relevant variables
 # check that the output directory actually exists
 saved-output := $(KBUILD_OUTPUT)
-KBUILD_OUTPUT := $(shell cd $(KBUILD_OUTPUT) && /bin/pwd)
+KBUILD_OUTPUT := $(shell mkdir -p $(KBUILD_OUTPUT) && cd $(KBUILD_OUTPUT) \
+								&& /bin/pwd)
 $(if $(KBUILD_OUTPUT),, \
-     $(error output directory "$(saved-output)" does not exist))
+     $(error failed to create output directory "$(saved-output)"))
 
 PHONY += $(MAKECMDGOALS) sub-make