diff --git a/meta/classes-recipe/populate_sdk_ext.bbclass b/meta/classes-recipe/populate_sdk_ext.bbclass
index 56e24c4eed..925cb313fc 100644
--- a/meta/classes-recipe/populate_sdk_ext.bbclass
+++ b/meta/classes-recipe/populate_sdk_ext.bbclass
@@ -438,7 +438,8 @@ python copy_buildsystem () {
     else:
         # Write a templateconf.cfg
         with open(baseoutpath + '/conf/templateconf.cfg', 'w') as f:
-            f.write('meta/conf\n')
+            f.write('meta/conf/templates/default\n')
+        os.makedirs(os.path.join(baseoutpath, core_meta_subdir, 'conf/templates/default'), exist_ok=True)
 
     # Ensure any variables set from the external environment (by way of
     # BB_ENV_PASSTHROUGH_ADDITIONS) are set in the SDK's configuration
diff --git a/scripts/oe-setup-builddir b/scripts/oe-setup-builddir
index 5d644168cb..bf832ee0ca 100755
--- a/scripts/oe-setup-builddir
+++ b/scripts/oe-setup-builddir
@@ -61,6 +61,11 @@ if [ -n "$TEMPLATECONF" ]; then
             echo >&2 "Error: TEMPLATECONF value points to nonexistent directory '$TEMPLATECONF'"
             exit 1
         fi
+        templatesdir=$(python3 -c "import sys; print(sys.argv[1].strip('/').split('/')[-2])" $TEMPLATECONF)
+        if [ ! -f "$TEMPLATECONF/../../layer.conf" -o $templatesdir != "templates" ]; then
+            echo >&2 "Error: TEMPLATECONF value (which is $TEMPLATECONF) must point to meta-some-layer/conf/templates/template-name"
+            exit 1
+        fi
     fi
     OECORELAYERCONF="$TEMPLATECONF/bblayers.conf.sample"
     OECORELOCALCONF="$TEMPLATECONF/local.conf.sample"