diff --git a/documentation/ref-manual/ref-variables.xml b/documentation/ref-manual/ref-variables.xml
index 8133b9d14b..da04d03608 100644
--- a/documentation/ref-manual/ref-variables.xml
+++ b/documentation/ref-manual/ref-variables.xml
@@ -724,8 +724,26 @@ Core layer for images cannot be removed
 
         <glossentry id='var-BBPATH'><glossterm>BBPATH</glossterm>
             <glossdef>
-                <para>Used by BitBake to locate <filename>.bbclass</filename> and configuration files.
-                    This variable is analogous to the <filename>PATH</filename> variable.</para>
+                <para>
+                    Used by BitBake to locate
+                    <filename>.bbclass</filename> and configuration files.
+                    This variable is analogous to the
+                    <filename>PATH</filename> variable.
+                    <note>
+                        If you run BitBake from a directory outside of the
+                        <ulink url='&YOCTO_DOCS_DEV_URL;build-directory'>Build Directory</ulink>,
+                        you must be sure to set
+                        <filename>BBPATH</filename> to point to the
+                        Build Directory.
+                        Set the variable as you would any environment variable
+                        and then run BitBake:
+                        <literallayout class='monospaced'>
+     $ BBPATH = "&lt;build_directory&gt;"
+     $ export BBPATH
+     $ bitbake &lt;target&gt;
+                        </literallayout>
+                    </note>
+                </para>
             </glossdef>
         </glossentry>