diff --git a/make/ldgen.mk b/make/ldgen.mk
index 25cd23790..3c2dea127 100644
--- a/make/ldgen.mk
+++ b/make/ldgen.mk
@@ -17,8 +17,7 @@ $(2): $(1) $(LDGEN_FRAGMENT_FILES) $(SDKCONFIG) $(LDGEN_SECTIONS_INFO_FILES)
 		--kconfig       $(IDF_PATH)/Kconfig \
 		--env           "COMPONENT_KCONFIGS=$(COMPONENT_KCONFIGS)" \
 		--env           "COMPONENT_KCONFIGS_PROJBUILD=$(COMPONENT_KCONFIGS_PROJBUILD)" \
-		--env           "IDF_CMAKE=n" \
-		--env           "IDF_TARGET=$(IDF_TARGET)"
+		--env           "IDF_CMAKE=n"
 endef
 
 define ldgen_create_commands
diff --git a/tools/cmake/kconfig.cmake b/tools/cmake/kconfig.cmake
index cb2a5c3ca..2b3dbcb8b 100644
--- a/tools/cmake/kconfig.cmake
+++ b/tools/cmake/kconfig.cmake
@@ -61,13 +61,14 @@ function(kconfig_process_config)
     add_custom_target(menuconfig
         ${menuconfig_depends}
         # create any missing config file, with defaults if necessary
-        COMMAND ${confgen_basecommand} --output config ${SDKCONFIG}
+        COMMAND ${confgen_basecommand} --env "IDF_TARGET=${IDF_TARGET}" --output config ${SDKCONFIG}
         COMMAND ${CMAKE_COMMAND} -E env
         "COMPONENT_KCONFIGS=${kconfigs}"
         "COMPONENT_KCONFIGS_PROJBUILD=${kconfigs_projbuild}"
         "IDF_CMAKE=y"
         "KCONFIG_CONFIG=${SDKCONFIG}"
-        ${MCONF} ${ROOT_KCONFIG}
+        "IDF_TARGET=${IDF_TARGET}"
+        ${CMAKE_BINARY_DIR}/${MCONF} ${ROOT_KCONFIG}
         VERBATIM
         USES_TERMINAL)
 
@@ -157,6 +158,7 @@ if(NOT MCONF)
         BUILD_BYPRODUCTS ${MCONF}
         INSTALL_COMMAND ""
         EXCLUDE_FROM_ALL 1
+        WORKING_DIRECTORY ${CMAKE_BINARY_DIR} # Put built files on top level build directory
         )
 
     file(GLOB mconf_srcfiles ${IDF_PATH}/tools/kconfig/*.c)