diff --git a/tools/export/__init__.py b/tools/export/__init__.py
index c1e9f0ad59..09a6898e0f 100755
--- a/tools/export/__init__.py
+++ b/tools/export/__init__.py
@@ -55,7 +55,7 @@ def online_build_url_resolver(url):
 
 
 def export(project_path, project_name, ide, target, destination='/tmp/',
-           tempdir=None, clean=True, extra_symbols=None, zip=True, build_url_resolver=online_build_url_resolver):
+           tempdir=None, clean=True, extra_symbols=None, zip=True, build_url_resolver=online_build_url_resolver, relative=False):
     # Convention: we are using capitals for toolchain and target names
     if target is not None:
         target = target.upper()
@@ -99,7 +99,7 @@ def export(project_path, project_name, ide, target, destination='/tmp/',
                 # target checked, export
                 try:
                     exporter = Exporter(target, tempdir, project_name, build_url_resolver, extra_symbols=extra_symbols)
-                    exporter.scan_and_copy_resources(project_path, tempdir)
+                    exporter.scan_and_copy_resources(project_path, tempdir, relative)
                     exporter.generate()
                     report['success'] = True
                 except OldLibrariesException, e:
diff --git a/tools/export/exporters.py b/tools/export/exporters.py
index dd63e08a92..d201052efd 100644
--- a/tools/export/exporters.py
+++ b/tools/export/exporters.py
@@ -111,7 +111,7 @@ class Exporter(object):
 
         return resources
 
-    def scan_and_copy_resources(self, prj_path, trg_path):
+    def scan_and_copy_resources(self, prj_path, trg_path, relative=False):
         # Copy only the file for the required target and toolchain
         lib_builds = []
         for src in ['lib', 'src']:
@@ -136,9 +136,13 @@ class Exporter(object):
             fhandle = file(join(hgdir, 'keep.me'), 'a')
             fhandle.close()
 
-        # Final scan of the actual exported resources
-        self.resources = self.toolchain.scan_resources(trg_path)
-        self.resources.relative_to(trg_path, self.DOT_IN_RELATIVE_PATH)
+        if not relative:
+            # Final scan of the actual exported resources
+            self.resources = self.toolchain.scan_resources(trg_path)
+            self.resources.relative_to(trg_path, self.DOT_IN_RELATIVE_PATH)
+        else:
+            # use the prj_dir (source, not destination)
+            self.resources = self.toolchain.scan_resources(prj_path)
         # Check the existence of a binary build of the mbed library for the desired target
         # This prevents exporting the mbed libraries from source
         # if not self.toolchain.mbed_libs:
diff --git a/tools/project.py b/tools/project.py
index c7d44f0447..1f7f4bf2e2 100644
--- a/tools/project.py
+++ b/tools/project.py
@@ -5,11 +5,12 @@ sys.path.insert(0, ROOT)
 
 from shutil import move, rmtree
 from optparse import OptionParser
+from os import path
 
 from tools.paths import EXPORT_DIR, EXPORT_WORKSPACE, EXPORT_TMP
 from tools.paths import MBED_BASE, MBED_LIBRARIES
 from tools.export import export, setup_user_prj, EXPORTERS, mcu_ide_matrix
-from tools.utils import args_error
+from tools.utils import args_error, mkdir
 from tools.tests import TESTS, Test, TEST_MAP
 from tools.targets import TARGET_NAMES
 from tools.libraries import LIBRARIES
@@ -136,15 +137,19 @@ if __name__ == '__main__':
     zip = True
     clean = True
 
+    # source_dir = use relative paths, otherwise sources are copied
+    sources_relative = True if options.source_dir else False
+
     for mcu in mcus.split(','):
         # Program Number or name
-        p, n, src = options.program, options.program_name, options.source_dir
+        p, n, src, ide = options.program, options.program_name, options.source_dir, options.ide
 
         if src is not None:
             # --source is used to generate IDE files to toolchain directly in the source tree and doesn't generate zip file
             project_dir = options.source_dir
             project_name = basename(project_dir)
-            project_temp = project_dir
+            project_temp = options.source_dir
+            mkdir(project_temp)
             lib_symbols = []
             if options.macros:
                 lib_symbols += options.macros
@@ -204,7 +209,7 @@ if __name__ == '__main__':
             setup_user_prj(project_dir, test.source_dir, test.dependencies)
 
         # Export to selected toolchain
-        tmp_path, report = export(project_dir, project_name, ide, mcu, project_dir, project_temp, clean=clean, zip=zip, extra_symbols=lib_symbols)
+        tmp_path, report = export(project_dir, project_name, ide, mcu, project_dir, project_temp, clean=clean, zip=zip, extra_symbols=lib_symbols, relative=sources_relative)
         print tmp_path
         if report['success']:
             zip_path = join(EXPORT_DIR, "%s_%s_%s.zip" % (project_name, ide, mcu))