diff --git a/news/4390.bugfix.rst b/news/4390.bugfix.rst
new file mode 100644
index 00000000000..0d84de5cf48
--- /dev/null
+++ b/news/4390.bugfix.rst
@@ -0,0 +1 @@
+Fixed ``--target`` to work with ``--editable`` installs.
diff --git a/src/pip/_internal/utils/setuptools_build.py b/src/pip/_internal/utils/setuptools_build.py
index 1f1980dd30a..e16deecd580 100644
--- a/src/pip/_internal/utils/setuptools_build.py
+++ b/src/pip/_internal/utils/setuptools_build.py
@@ -99,7 +99,7 @@ def make_setuptools_develop_args(
     if prefix:
         args += ["--prefix", prefix]
     if home is not None:
-        args += ["--home", home]
+        args += ["--install-dir", home]
 
     if use_user_site:
         args += ["--user", "--prefix="]
diff --git a/tests/functional/test_install.py b/tests/functional/test_install.py
index e474ff04635..95d9b73aa44 100644
--- a/tests/functional/test_install.py
+++ b/tests/functional/test_install.py
@@ -1065,6 +1065,28 @@ def test_install_editable_with_prefix(script):
     result.did_create(install_path)
 
 
+@pytest.mark.network
+def test_install_editable_with_target(script):
+    pkg_path = script.scratch_path / 'pkg'
+    pkg_path.mkdir()
+    pkg_path.joinpath("setup.py").write_text(textwrap.dedent("""
+        from setuptools import setup
+        setup(
+            name='pkg',
+            install_requires=['watching_testrunner']
+        )
+    """))
+
+    target = script.scratch_path / 'target'
+    target.mkdir()
+    result = script.pip(
+        'install', '--editable', pkg_path, '--target', target
+    )
+
+    result.did_create(script.scratch / 'target' / 'pkg.egg-link')
+    result.did_create(script.scratch / 'target' / 'watching_testrunner.py')
+
+
 def test_install_package_conflict_prefix_and_user(script, data):
     """
     Test installing a package using pip install --prefix --user errors out