diff --git a/android/paths.go b/android/paths.go
index dda48dd..0661b76 100644
--- a/android/paths.go
+++ b/android/paths.go
@@ -245,13 +245,13 @@
 	// A standard build has the following structure:
 	//   ../top/
 	//          out/ - make install files go here.
-	//          out/soong - this is the soongOutDir passed to NewTestConfig()
+	//          out/soong - this is the outDir passed to NewTestConfig()
 	//          ... - the source files
 	//
 	// This function converts a path so that it appears relative to the ../top/ directory, i.e.
-	// * Make install paths, which have the pattern "soongOutDir/../<path>" are converted into the top
+	// * Make install paths, which have the pattern "outDir/../<path>" are converted into the top
 	//   relative path "out/<path>"
-	// * Soong install paths and other writable paths, which have the pattern "soongOutDir/<path>" are
+	// * Soong install paths and other writable paths, which have the pattern "outDir/soong/<path>" are
 	//   converted into the top relative path "out/soong/<path>".
 	// * Source paths are already relative to the top.
 	// * Phony paths are not relative to anything.
@@ -261,8 +261,9 @@
 }
 
 const (
-	OutDir      = "out"
-	OutSoongDir = OutDir + "/soong"
+	testOutDir         = "out"
+	testOutSoongSubDir = "/soong"
+	TestOutSoongDir    = testOutDir + testOutSoongSubDir
 )
 
 // WritablePath is a type of path that can be used as an output for build rules.
@@ -1218,11 +1219,13 @@
 // PathForArbitraryOutput creates a path for the given components. Unlike PathForOutput,
 // the path is relative to the root of the output folder, not the out/soong folder.
 func PathForArbitraryOutput(ctx PathContext, pathComponents ...string) Path {
-	p, err := validatePath(pathComponents...)
+	path, err := validatePath(pathComponents...)
 	if err != nil {
 		reportPathError(ctx, err)
 	}
-	return basePath{path: filepath.Join(ctx.Config().OutDir(), p)}
+	fullPath := filepath.Join(ctx.Config().OutDir(), path)
+	path = fullPath[len(fullPath)-len(path):]
+	return OutputPath{basePath{path, ""}, ctx.Config().OutDir(), fullPath}
 }
 
 // MaybeExistentPathForSource joins the provided path components and validates that the result
@@ -1325,8 +1328,8 @@
 type OutputPath struct {
 	basePath
 
-	// The soong build directory, i.e. Config.SoongOutDir()
-	soongOutDir string
+	// The base out directory for this path, either Config.SoongOutDir() or Config.OutDir()
+	outDir string
 
 	fullPath string
 }
@@ -1334,7 +1337,7 @@
 func (p OutputPath) GobEncode() ([]byte, error) {
 	w := new(bytes.Buffer)
 	encoder := gob.NewEncoder(w)
-	err := errors.Join(encoder.Encode(p.basePath), encoder.Encode(p.soongOutDir), encoder.Encode(p.fullPath))
+	err := errors.Join(encoder.Encode(p.basePath), encoder.Encode(p.outDir), encoder.Encode(p.fullPath))
 	if err != nil {
 		return nil, err
 	}
@@ -1345,7 +1348,7 @@
 func (p *OutputPath) GobDecode(data []byte) error {
 	r := bytes.NewBuffer(data)
 	decoder := gob.NewDecoder(r)
-	err := errors.Join(decoder.Decode(&p.basePath), decoder.Decode(&p.soongOutDir), decoder.Decode(&p.fullPath))
+	err := errors.Join(decoder.Decode(&p.basePath), decoder.Decode(&p.outDir), decoder.Decode(&p.fullPath))
 	if err != nil {
 		return err
 	}
@@ -1365,7 +1368,7 @@
 }
 
 func (p OutputPath) getSoongOutDir() string {
-	return p.soongOutDir
+	return p.outDir
 }
 
 func (p OutputPath) RelativeToTop() Path {
@@ -1373,8 +1376,13 @@
 }
 
 func (p OutputPath) outputPathRelativeToTop() OutputPath {
-	p.fullPath = StringPathRelativeToTop(p.soongOutDir, p.fullPath)
-	p.soongOutDir = OutSoongDir
+	p.fullPath = StringPathRelativeToTop(p.outDir, p.fullPath)
+	if strings.HasSuffix(p.outDir, testOutSoongSubDir) {
+		p.outDir = TestOutSoongDir
+	} else {
+		// Handle the PathForArbitraryOutput case
+		p.outDir = testOutDir
+	}
 	return p
 }
 
@@ -1420,7 +1428,7 @@
 	return OutputPath{basePath{path, ""}, ctx.Config().soongOutDir, fullPath}
 }
 
-// PathsForOutput returns Paths rooted from soongOutDir
+// PathsForOutput returns Paths rooted from outDir
 func PathsForOutput(ctx PathContext, paths []string) WritablePaths {
 	ret := make(WritablePaths, len(paths))
 	for i, path := range paths {
@@ -1751,9 +1759,9 @@
 func (p InstallPath) RelativeToTop() Path {
 	ensureTestOnly()
 	if p.makePath {
-		p.soongOutDir = OutDir
+		p.soongOutDir = testOutDir
 	} else {
-		p.soongOutDir = OutSoongDir
+		p.soongOutDir = TestOutSoongDir
 	}
 	p.fullPath = filepath.Join(p.soongOutDir, p.path)
 	return p
diff --git a/android/testing.go b/android/testing.go
index e39a1a7..dae787b 100644
--- a/android/testing.go
+++ b/android/testing.go
@@ -822,15 +822,15 @@
 // containing at most one instance of the temporary build directory at the start of the path while
 // this assumes that there can be any number at any position.
 func normalizeStringRelativeToTop(config Config, s string) string {
-	// The soongOutDir usually looks something like: /tmp/testFoo2345/001
+	// The outDir usually looks something like: /tmp/testFoo2345/001
 	//
-	// Replace any usage of the soongOutDir with out/soong, e.g. replace "/tmp/testFoo2345/001" with
+	// Replace any usage of the outDir with out/soong, e.g. replace "/tmp/testFoo2345/001" with
 	// "out/soong".
 	outSoongDir := filepath.Clean(config.soongOutDir)
 	re := regexp.MustCompile(`\Q` + outSoongDir + `\E\b`)
 	s = re.ReplaceAllString(s, "out/soong")
 
-	// Replace any usage of the soongOutDir/.. with out, e.g. replace "/tmp/testFoo2345" with
+	// Replace any usage of the outDir/.. with out, e.g. replace "/tmp/testFoo2345" with
 	// "out". This must come after the previous replacement otherwise this would replace
 	// "/tmp/testFoo2345/001" with "out/001" instead of "out/soong".
 	outDir := filepath.Dir(outSoongDir)
@@ -1234,8 +1234,14 @@
 	}
 
 	if isRel {
-		// The path is in the soong out dir so indicate that in the relative path.
-		return filepath.Join("out/soong", rel)
+		if strings.HasSuffix(soongOutDir, testOutSoongSubDir) {
+			// The path is in the soong out dir so indicate that in the relative path.
+			return filepath.Join(TestOutSoongDir, rel)
+		} else {
+			// Handle the PathForArbitraryOutput case
+			return filepath.Join(testOutDir, rel)
+
+		}
 	}
 
 	// Check to see if the path is relative to the top level out dir.