diff --git a/src/build-dir.ts b/src/build-dir.ts
index 79b41eb626..29c337a43a 100644
--- a/src/build-dir.ts
+++ b/src/build-dir.ts
@@ -8,10 +8,10 @@
 
 import { map as bluebirdMap } from "bluebird"
 import {
-  dirname,
+  isAbsolute,
   join,
+  parse,
   resolve,
-  sep,
 } from "path"
 import {
   emptyDir,
@@ -20,6 +20,8 @@ import {
 } from "fs-extra"
 import * as Rsync from "rsync"
 import { GARDEN_DIR_NAME } from "./constants"
+import { ConfigurationError } from "./exceptions"
+import { PluginContext } from "./plugin-context"
 import { execRsyncCmd } from "./util"
 import {
   BuildCopySpec,
@@ -44,24 +46,40 @@ export class BuildDir {
 
   async syncFromSrc<T extends Module>(module: T) {
     await this.sync(
-      resolve(this.projectRoot, module.path),
-      this.buildDirPath)
+      resolve(this.projectRoot, module.path, "*"),
+      await this.buildPath(module),
+    )
   }
 
-  async syncDependencyProducts<T extends Module>(module: T) {
+  async syncDependencyProducts<T extends Module>(ctx: PluginContext, module: T) {
     await this.syncFromSrc(module)
     const buildPath = await this.buildPath(module)
     const config = await module.getConfig()
 
-    await bluebirdMap(config.build.dependencies || [], (depConfig) => {
+    await bluebirdMap(config.build.dependencies || [], async (depConfig) => {
       if (!depConfig.copy) {
         return []
       }
 
+      const sourceModule = await ctx.getModule(depConfig.name)
+      const sourceBuildPath = await this.buildPath(sourceModule)
+
       // Sync to the module's top-level dir by default.
       return bluebirdMap(depConfig.copy, (copy: BuildCopySpec) => {
-        const sourcePath = resolve(this.buildDirPath, depConfig.name, copy.source)
-        const destinationPath = dirname(resolve(buildPath, copy.target, copy.source)) + sep
+        if (isAbsolute(copy.source)) {
+          throw new ConfigurationError(`Source path in build dependency copy spec must be a relative path`, {
+            copySpec: copy,
+          })
+        }
+
+        if (isAbsolute(copy.target)) {
+          throw new ConfigurationError(`Target path in build dependency copy spec must be a relative path`, {
+            copySpec: copy,
+          })
+        }
+
+        const sourcePath = join(sourceBuildPath, copy.source)
+        const destinationPath = join(buildPath, copy.target)
         return this.sync(sourcePath, destinationPath)
       })
     })
@@ -78,7 +96,8 @@ export class BuildDir {
   }
 
   private async sync(sourcePath: string, destinationPath: string): Promise<void> {
-    await ensureDir(destinationPath)
+    const destinationDir = parse(destinationPath).dir
+    await ensureDir(destinationDir)
 
     const syncCmd = new Rsync()
       .flags(["r", "p", "t", "g", "o"])
@@ -87,5 +106,4 @@ export class BuildDir {
 
     await execRsyncCmd(syncCmd)
   }
-
 }
diff --git a/src/types/module.ts b/src/types/module.ts
index 29ec1dff85..252e53044a 100644
--- a/src/types/module.ts
+++ b/src/types/module.ts
@@ -25,8 +25,8 @@ export interface BuildCopySpec {
 // TODO: allow : delimited string (e.g. some.file:some-dir/)
 const copySchema = Joi.object().keys({
   // TODO: allow array of strings here
-  source: Joi.string().required(),
-  target: Joi.string().default(""),
+  source: Joi.string().uri(<any>{ relativeOnly: true }).required(),
+  target: Joi.string().uri(<any>{ relativeOnly: true }).default(""),
 })
 
 export interface BuildDependencyConfig {
diff --git a/test/data/test-project-build-products/module-d/garden.yml b/test/data/test-project-build-products/module-d/garden.yml
index 30614eb966..d94df4bfd2 100644
--- a/test/data/test-project-build-products/module-d/garden.yml
+++ b/test/data/test-project-build-products/module-d/garden.yml
@@ -7,10 +7,10 @@ module:
       - name: module-a
         copy:
           - source: a.txt
-            target: a
+            target: a/
       - name: module-b
         copy:
           - source: build/b1.txt
-            target: b
-          - source: build/build_subdir
-            target: b
+            target: b/build/
+          - source: build/build_subdir/
+            target: b/build_subdir
diff --git a/test/data/test-project-build-products/module-e/garden.yml b/test/data/test-project-build-products/module-e/garden.yml
index e40027804f..17b6c05f0c 100644
--- a/test/data/test-project-build-products/module-e/garden.yml
+++ b/test/data/test-project-build-products/module-e/garden.yml
@@ -7,4 +7,4 @@ module:
       - name: module-d
         copy:
           - source: build/d.txt
-            target: d
+            target: d/build/
diff --git a/test/src/build-dir.ts b/test/src/build-dir.ts
index 1879cb33a4..eb629fbdd0 100644
--- a/test/src/build-dir.ts
+++ b/test/src/build-dir.ts
@@ -86,7 +86,7 @@ describe("BuildDir", () => {
       const buildProductDestinations = [
         join(buildDirD, "a", "a.txt"),
         join(buildDirD, "b", "build", "b1.txt"),
-        join(buildDirD, "b", "build", "build_subdir", "b2.txt"),
+        join(buildDirD, "b", "build_subdir", "b2.txt"),
         join(buildDirE, "d", "build", "d.txt"),
       ]