diff --git a/bitbake/lib/toaster/bldcontrol/localhostbecontroller.py b/bitbake/lib/toaster/bldcontrol/localhostbecontroller.py
index 9364900b34..283e154530 100644
--- a/bitbake/lib/toaster/bldcontrol/localhostbecontroller.py
+++ b/bitbake/lib/toaster/bldcontrol/localhostbecontroller.py
@@ -89,6 +89,10 @@ class LocalhostBEController(BuildEnvironmentController):
         """ a word of attention: by convention, the first layer for any build will be poky! """
 
         assert self.be.sourcedir is not None
+
+        layerlist = []
+        nongitlayerlist = []
+
         # set layers in the layersource
 
         # 1. get a list of repos with branches, and map dirpaths for each layer
@@ -102,6 +106,13 @@ class LocalhostBEController(BuildEnvironmentController):
             # as it's generated by us layer on if needed
             if CustomImageRecipe.LAYER_NAME in layer.name:
                 continue
+
+            # If we have local layers then we don't need clone them
+            # For local layers giturl will be empty
+            if not layer.giturl:
+                nongitlayerlist.append(layer.layer_version.layer.local_source_dir)
+                continue
+
             if not (layer.giturl, layer.commit) in gitrepos:
                 gitrepos[(layer.giturl, layer.commit)] = []
             gitrepos[(layer.giturl, layer.commit)].append( (layer.name, layer.dirpath) )
@@ -131,7 +142,6 @@ class LocalhostBEController(BuildEnvironmentController):
 
         logger.info("Using pre-checked out source for layer %s", cached_layers)
 
-        layerlist = []
 
 
         # 3. checkout the repositories
@@ -245,6 +255,7 @@ class LocalhostBEController(BuildEnvironmentController):
             layerlist.append(layerpath)
 
         self.islayerset = True
+        layerlist.extend(nongitlayerlist)
         return layerlist
 
     def readServerLogFile(self):