diff --git a/oe-init-build-env b/oe-init-build-env
index 6fee5f72a6..b7e29188b0 100755
--- a/oe-init-build-env
+++ b/oe-init-build-env
@@ -45,7 +45,7 @@ fi
 OEROOT=`readlink -f "$OEROOT"`
 export OEROOT
 . $OEROOT/scripts/oe-buildenv-internal && \
-     $OEROOT/scripts/oe-setup-builddir && \
+     TEMPLATECONF="$TEMPLATECONF" $OEROOT/scripts/oe-setup-builddir && \
      [ -n "$BUILDDIR" ] && cd "$BUILDDIR"
 unset OEROOT
 unset BBPATH