diff --git a/bin/bitbake-setup b/bin/bitbake-setup
index 7e9491fac..7ee182bf3 100755
--- a/bin/bitbake-setup
+++ b/bin/bitbake-setup
@@ -17,6 +17,7 @@ import glob
 import subprocess
 import copy
 import textwrap
+import string
 
 default_registry = os.path.normpath(os.path.dirname(__file__) + "/../default-registry")
 
@@ -467,7 +468,15 @@ def init_config(top_dir, settings, args, d):
     if args.setup_dir_name:
         setup_dir_name = args.setup_dir_name
     else:
-        setup_dir_name = "{}-{}".format(upstream_config['name']," ".join(upstream_config['non-interactive-cmdline-options'][1:]).replace(" ","-").replace("/","_"))
+        if 'setup-dir-name' in upstream_config['bitbake-config']:
+            mapping = {
+                    k: v.replace(" ", "-").replace("/", "_")
+                    for k, v in upstream_config['bitbake-config']['oe-fragment-choices'].items()
+            }
+            setup_dir_name = string.Template(upstream_config['bitbake-config']['setup-dir-name']).substitute(mapping)
+        else:
+            setup_dir_name = "{}-{}".format(upstream_config['name']," ".join(upstream_config['non-interactive-cmdline-options'][1:]).replace(" ","-").replace("/","_"))
+
         if not args.non_interactive:
             n = input(f"Enter setup directory name: [{setup_dir_name}] ")
             if n: