diff --git a/android/module.go b/android/module.go
index 4c781f6..5fecd83 100644
--- a/android/module.go
+++ b/android/module.go
@@ -1021,6 +1021,11 @@
 	Applicable_licenses bazel.LabelListAttribute
 
 	Testonly *bool
+
+	// Dir is neither a Soong nor Bazel target attribute
+	// If set, the bazel target will be created in this directory
+	// If unset, the bazel target will default to be created in the directory of the visited soong module
+	Dir *string
 }
 
 // constraintAttributes represents Bazel attributes pertaining to build constraints,
diff --git a/android/mutator.go b/android/mutator.go
index 2ec051e..6bcac93 100644
--- a/android/mutator.go
+++ b/android/mutator.go
@@ -17,6 +17,7 @@
 import (
 	"android/soong/bazel"
 	"android/soong/ui/metrics/bp2build_metrics_proto"
+	"path/filepath"
 
 	"github.com/google/blueprint"
 )
@@ -757,6 +758,27 @@
 	mod.base().addBp2buildInfo(info)
 }
 
+// Returns the directory in which the bazel target will be generated
+// If ca.Dir is not nil, use that
+// Otherwise default to the directory of the soong module
+func dirForBazelTargetGeneration(t *topDownMutatorContext, ca *CommonAttributes) string {
+	dir := t.OtherModuleDir(t.Module())
+	if ca.Dir != nil {
+		dir = *ca.Dir
+		// Restrict its use to dirs that contain an Android.bp file.
+		// There are several places in bp2build where we use the existence of Android.bp/BUILD on the filesystem
+		// to curate a compatible label for src files (e.g. headers for cc).
+		// If we arbritrarily create BUILD files, then it might render those curated labels incompatible.
+		if exists, _, _ := t.Config().fs.Exists(filepath.Join(dir, "Android.bp")); !exists {
+			t.ModuleErrorf("Cannot use ca.Dir to create a BazelTarget in dir: %v since it does not contain an Android.bp file", dir)
+		}
+
+		// Set ca.Dir to nil so that it does not get emitted to the BUILD files
+		ca.Dir = nil
+	}
+	return dir
+}
+
 func (t *topDownMutatorContext) CreateBazelConfigSetting(
 	csa bazel.ConfigSettingAttributes,
 	ca CommonAttributes,
@@ -851,7 +873,7 @@
 	constraintAttributes := commonAttrs.fillCommonBp2BuildModuleAttrs(t, enabledProperty)
 	mod := t.Module()
 	info := bp2buildInfo{
-		Dir:             t.OtherModuleDir(mod),
+		Dir:             dirForBazelTargetGeneration(t, &commonAttrs),
 		BazelProps:      bazelProps,
 		CommonAttrs:     commonAttrs,
 		ConstraintAttrs: constraintAttributes,
diff --git a/bp2build/build_conversion_test.go b/bp2build/build_conversion_test.go
index e127fd5..c646336 100644
--- a/bp2build/build_conversion_test.go
+++ b/bp2build/build_conversion_test.go
@@ -1946,3 +1946,46 @@
 	actual, _ := prettyPrintAttribute(lla, 0)
 	android.AssertStringEquals(t, "Print the common value if all keys in an axis have the same value", `[":libfoo.impl"]`, actual)
 }
+
+// If CommonAttributes.Dir is set, the bazel target should be created in that dir
+func TestCreateBazelTargetInDifferentDir(t *testing.T) {
+	t.Parallel()
+	bp := `
+	custom {
+		name: "foo",
+		dir: "subdir",
+	}
+	`
+	registerCustomModule := func(ctx android.RegistrationContext) {
+		ctx.RegisterModuleType("custom", customModuleFactoryHostAndDevice)
+	}
+	// Check that foo is not created in root dir
+	RunBp2BuildTestCase(t, registerCustomModule, Bp2buildTestCase{
+		Description: "foo is not created in root dir because it sets dir explicitly",
+		Blueprint:   bp,
+		Filesystem: map[string]string{
+			"subdir/Android.bp": "",
+		},
+		ExpectedBazelTargets: []string{},
+	})
+	// Check that foo is created in `subdir`
+	RunBp2BuildTestCase(t, registerCustomModule, Bp2buildTestCase{
+		Description: "foo is created in `subdir` because it sets dir explicitly",
+		Blueprint:   bp,
+		Filesystem: map[string]string{
+			"subdir/Android.bp": "",
+		},
+		Dir: "subdir",
+		ExpectedBazelTargets: []string{
+			MakeBazelTarget("custom", "foo", AttrNameToString{}),
+		},
+	})
+	// Check that we cannot create target in different dir if it is does not an Android.bp
+	RunBp2BuildTestCase(t, registerCustomModule, Bp2buildTestCase{
+		Description: "foo cannot be created in `subdir` because it does not contain an Android.bp file",
+		Blueprint:   bp,
+		Dir:         "subdir",
+		ExpectedErr: fmt.Errorf("Cannot use ca.Dir to create a BazelTarget in dir: subdir since it does not contain an Android.bp file"),
+	})
+
+}
diff --git a/bp2build/bzl_conversion_test.go b/bp2build/bzl_conversion_test.go
index fa1bf8a..2f51ca7 100644
--- a/bp2build/bzl_conversion_test.go
+++ b/bp2build/bzl_conversion_test.go
@@ -94,6 +94,7 @@
         # bazel_module end
         "bool_prop": attr.bool(),
         "bool_ptr_prop": attr.bool(),
+        "dir": attr.string(),
         "embedded_prop": attr.string(),
         "int64_ptr_prop": attr.int(),
         # nested_props start
@@ -126,6 +127,7 @@
         "arch_paths_exclude": attr.string_list(),
         "bool_prop": attr.bool(),
         "bool_ptr_prop": attr.bool(),
+        "dir": attr.string(),
         "embedded_prop": attr.string(),
         "int64_ptr_prop": attr.int(),
         # nested_props start
@@ -158,6 +160,7 @@
         "arch_paths_exclude": attr.string_list(),
         "bool_prop": attr.bool(),
         "bool_ptr_prop": attr.bool(),
+        "dir": attr.string(),
         "embedded_prop": attr.string(),
         "int64_ptr_prop": attr.int(),
         # nested_props start
diff --git a/bp2build/testing.go b/bp2build/testing.go
index 140b214..18ae82d 100644
--- a/bp2build/testing.go
+++ b/bp2build/testing.go
@@ -336,6 +336,8 @@
 	Api *string // File describing the APIs of this module
 
 	Test_config_setting *bool // Used to test generation of config_setting targets
+
+	Dir *string // Dir in which the Bazel Target will be created
 }
 
 type customModule struct {
@@ -461,6 +463,10 @@
 	Api                 bazel.LabelAttribute
 }
 
+func (m *customModule) dir() *string {
+	return m.props.Dir
+}
+
 func (m *customModule) ConvertWithBp2build(ctx android.TopDownMutatorContext) {
 	if p := m.props.One_to_many_prop; p != nil && *p {
 		customBp2buildOneToMany(ctx, m)
@@ -508,7 +514,7 @@
 		Rule_class: "custom",
 	}
 
-	ctx.CreateBazelTargetModule(props, android.CommonAttributes{Name: m.Name()}, attrs)
+	ctx.CreateBazelTargetModule(props, android.CommonAttributes{Name: m.Name(), Dir: m.dir()}, attrs)
 
 	if proptools.Bool(m.props.Test_config_setting) {
 		m.createConfigSetting(ctx)