diff --git a/build.js b/build.js
index 3d51f8c72..62377b6ba 100755
--- a/build.js
+++ b/build.js
@@ -2,12 +2,15 @@
 ;(function() {
   'use strict';
 
-  /** Load modules */
+  /** Load Node.js modules */
   var fs = require('fs'),
       path = require('path'),
-      vm = require('vm'),
+      vm = require('vm');
+
+  /** Load other modules */
+  var _ = require(path.join(__dirname, 'lodash.js')),
       minify = require(path.join(__dirname, 'build', 'minify.js')),
-      _ = require(path.join(__dirname, 'lodash.js'));
+      mkdirpSync = require(path.join(__dirname, 'build', 'mkdirp-sync.js'));
 
   /** The current working directory */
   var cwd = process.cwd();
@@ -1513,15 +1516,9 @@
     var outputPath = options.reduce(function(result, value, index) {
       if (/-o|--output/.test(value)) {
         result = options[index + 1];
-        var cwd = process.cwd();
-        path.dirname(result).split(path.sep).forEach(function(pathSegment){
-          try {
-            fs.mkdirSync(pathSegment);
-          } catch(err){}
-          process.chdir(pathSegment);
-        });
-        process.chdir(cwd);
-        result = path.join(fs.realpathSync(path.dirname(result)), path.basename(result));
+        var dirname = path.dirname(result);
+        mkdirpSync(dirname);
+        result = path.join(fs.realpathSync(dirname), path.basename(result));
       }
       return result;
     }, '');
diff --git a/build/minify.js b/build/minify.js
index 798e3a4d6..adb1c1ea1 100755
--- a/build/minify.js
+++ b/build/minify.js
@@ -2,18 +2,19 @@
 ;(function() {
   'use strict';
 
-  /** Load modules */
+  /** Load Node.js modules */
   var fs = require('fs'),
       https = require('https'),
       path = require('path'),
       spawn = require('child_process').spawn,
-      zlib = require('zlib'),
-      tar = require('../vendor/tar/tar.js'),
-      _ = require('../lodash.js');
+      zlib = require('zlib');
 
   /** Load other modules */
-  var preprocess = require('./pre-compile.js'),
-      postprocess = require('./post-compile.js');
+  var _ = require('../lodash.js'),
+      mkdirpSync = require('./mkdirp-sync.js'),
+      preprocess = require('./pre-compile.js'),
+      postprocess = require('./post-compile.js'),
+      tar = require('../vendor/tar/tar.js');
 
   /** The Git object ID of `closure-compiler.tar.gz` */
   var closureId = '23cf67d0f0b979d97631fc108a2a43bb82225994';
@@ -141,7 +142,9 @@
       outputPath = options.reduce(function(result, value, index) {
         if (/-o|--output/.test(value)) {
           result = options[index + 1];
-          result = path.join(fs.realpathSync(path.dirname(result)), path.basename(result));
+          var dirname = path.dirname(result);
+          mkdirpSync(dirname);
+          result = path.join(fs.realpathSync(dirname), path.basename(result));
         }
         return result;
       }, outputPath);
diff --git a/build/mkdirp-sync.js b/build/mkdirp-sync.js
new file mode 100755
index 000000000..a40b0ea35
--- /dev/null
+++ b/build/mkdirp-sync.js
@@ -0,0 +1,41 @@
+#!/usr/bin/env node
+;(function() {
+  'use strict';
+
+  /** Load Node.js modules */
+  var fs = require('fs'),
+      path = require('path');
+
+  /**
+   * Makes the given `path` directory, without throwing errors for existing
+   * directories and making parent directories as needed.
+   *
+   * @param {String} dirname The path of the directory.
+   * @param {Number|String} mode The permission mode.
+   */
+  function mkdirpSync(dirname, mode) {
+    var separator = path.sep,
+        segments = dirname.split(separator),
+        type = typeof mode;
+
+    if (!(type == 'number' || type == 'string')) {
+      mode = '0777';
+    }
+    segments.reduce(function(currPath, segment, index) {
+      // skip leading separator of absolute paths
+      if (index === 0 && currPath === '') {
+        return separator;
+      }
+      segment = currPath + (currPath === separator ? segment : separator + segment);
+      try {
+        segment = fs.realpathSync(segment);
+      } catch(e) {
+        fs.mkdirSync(segment, mode);
+      }
+      return segment;
+    });
+  }
+
+  // expose
+  module.exports = mkdirpSync;
+}());
diff --git a/test/test-build.js b/test/test-build.js
index e68166126..17158e25e 100644
--- a/test/test-build.js
+++ b/test/test-build.js
@@ -1114,22 +1114,34 @@
   QUnit.module('output options');
 
   (function() {
-    var nestedDir = 'test/mkdir/';
+    var nestedPath = path.join(__dirname, 'a', 'b');
+
     var commands = [
       '-o a.js',
-      '--output a.js',
-      '-o ' + nestedDir + 'a.js'
+      '--output b.js',
+      '-o ./a/b/c.js'
     ];
 
-    commands.forEach(function(command, index) {
+    commands.forEach(function(command) {
       asyncTest('`lodash ' + command +'`', function() {
-        var counter = -1,
-            start = _.after(2, _.once(QUnit.start));
+        var counter = 0,
+            expected = /(\w+)(?=\.js$)/.exec(command)[0],
+            isDirs = _.contains(command, 'c.js');
 
+        var start = _.after(2, _.once(function() {
+          if (isDirs) {
+            fs.rmdirSync(nestedPath);
+          }
+          QUnit.start();
+        }));
+
+        if (isDirs) {
+          command = command.replace('./a/b/c.js', path.join(nestedPath, 'c.js'));
+        }
         build(['-s'].concat(command.split(' ')), function(data) {
-          equal(path.basename(data.outputPath, '.js'), (++counter ? 'a.min' : 'a'), command);
+          var basename = path.basename(data.outputPath, '.js');
+          equal(basename, expected + (counter++ ? '.min' : ''), command);
           start();
-          fs.existsSync(nestedDir) && fs.rmdirSync(nestedDir);
         });
       });
     });