diff --git a/androidmk/androidmk/android.go b/androidmk/androidmk/android.go
index 963e905..f3ad152 100644
--- a/androidmk/androidmk/android.go
+++ b/androidmk/androidmk/android.go
@@ -639,6 +639,12 @@
 	if len(val.Variables) == 1 && varLiteralName(val.Variables[0]) != "" && len(val.Strings) == 2 && val.Strings[0] == "" {
 		fixed = val.Strings[1]
 		varname = val.Variables[0].Name.Strings[0]
+		// TARGET_OUT_OPTIONAL_EXECUTABLES puts the artifact in xbin, which is
+		// deprecated. TARGET_OUT_DATA_APPS install location will be handled
+		// automatically by Soong
+		if varname == "TARGET_OUT_OPTIONAL_EXECUTABLES" || varname == "TARGET_OUT_DATA_APPS" {
+			return nil
+		}
 	} else if len(val.Variables) == 2 && varLiteralName(val.Variables[0]) == "PRODUCT_OUT" && varLiteralName(val.Variables[1]) == "TARGET_COPY_OUT_VENDOR" &&
 		len(val.Strings) == 3 && val.Strings[0] == "" && val.Strings[1] == "/" {
 		fixed = val.Strings[2]
diff --git a/androidmk/androidmk/androidmk_test.go b/androidmk/androidmk/androidmk_test.go
index 9fd4ff9..775a9a8 100644
--- a/androidmk/androidmk/androidmk_test.go
+++ b/androidmk/androidmk/androidmk_test.go
@@ -1516,7 +1516,23 @@
     ],
 }
 `,
-	},
+	}, {
+		desc: "Obsolete LOCAL_MODULE_PATH",
+		in: `
+include $(CLEAR_VARS)
+LOCAL_MODULE := foo
+LOCAL_MODULE_PATH := $(TARGET_OUT_DATA_APPS)
+LOCAL_MODULE_PATH := $(TARGET_OUT_OPTIONAL_EXECUTABLES)
+LOCAL_CTS_TEST_PACKAGE := bar
+LOCAL_USE_AAPT2 := blah
+include $(BUILD_PACKAGE)
+`,
+		expected: `
+android_app {
+  name: "foo",
+
+}
+`},
 }
 
 func TestEndToEnd(t *testing.T) {