diff --git a/documentation/ref-manual/ref-classes.xml b/documentation/ref-manual/ref-classes.xml
index 9cc7ad134a..529f89c3d8 100644
--- a/documentation/ref-manual/ref-classes.xml
+++ b/documentation/ref-manual/ref-classes.xml
@@ -15,7 +15,8 @@
     in a <filename>classes/</filename> directory beneath the
     <filename>meta*/</filename> directory found in the
     <ulink url='&YOCTO_DOCS_DEV_URL;#source-directory'>Source Directory</ulink>.
-    Class files can also be pointed to by <filename>BUILDDIR</filename>
+    Class files can also be pointed to by
+    <link linkend='var-BUILDDIR'><filename>BUILDDIR</filename></link>
     (e.g. <filename>build/</filename>)in the same way as
     <filename>.conf</filename> files in the <filename>conf</filename> directory.
     Class files are searched for in <link linkend='var-BBPATH'><filename>BBPATH</filename></link>
diff --git a/documentation/ref-manual/ref-variables.xml b/documentation/ref-manual/ref-variables.xml
index 204046fc14..c433110f2b 100644
--- a/documentation/ref-manual/ref-variables.xml
+++ b/documentation/ref-manual/ref-variables.xml
@@ -556,6 +556,20 @@ Core layer for images cannot be removed
             </glossdef>
         </glossentry>
 
+        <glossentry id='var-BUILDDIR'><glossterm>BUILDDIR</glossterm>
+            <glossdef>
+                <para>Points to the location of the
+                    <ulink url='&YOCTO_DOCS_DEV_URL;#build-directory'>Build Directory</ulink>.
+                    You can define this directory indirectly through the
+                    <link linkend='structure-core-script'><filename>&OE_INIT_FILE;</filename></link>
+                    script by passing in a Build Directory path when you run the
+                    script.
+                    If you run the script and do not pass a Build Directory
+                    path, the <filename>BUILDDIR</filename> defaults to
+                    <filename>build</filename> in the current directory.
+                </para>
+            </glossdef>
+        </glossentry>
     </glossdiv>
 
     <glossdiv id='var-glossary-c'><title>C</title>