diff --git a/package/Makefile.in b/package/Makefile.in
index e1ffe158b5..f98b3e7922 100644
--- a/package/Makefile.in
+++ b/package/Makefile.in
@@ -115,7 +115,11 @@ TOOLCHAIN_EXTERNAL_LOCATION=$(TOOLCHAIN_EXTERNAL_DIR)
 else
 TOOLCHAIN_EXTERNAL_LOCATION=$(call qstrip,$(BR2_TOOLCHAIN_EXTERNAL_PATH))
 endif
+ifneq ($(TOOLCHAIN_EXTERNAL_LOCATION),)
 TARGET_CROSS=$(TOOLCHAIN_EXTERNAL_LOCATION)/bin/$(TOOLCHAIN_EXTERNAL_PREFIX)-
+else
+TARGET_CROSS=$(TOOLCHAIN_EXTERNAL_PREFIX)-
+endif
 endif
 
 # Quotes are needed for spaces et al in path components.