diff --git a/scripts/oe-setup-builddir b/scripts/oe-setup-builddir
index d3c7f943e7..70f2245b16 100755
--- a/scripts/oe-setup-builddir
+++ b/scripts/oe-setup-builddir
@@ -63,11 +63,11 @@ if [ -n "$TEMPLATECONF" ]; then
             echo >&2 "Error: TEMPLATECONF value points to nonexistent directory '$TEMPLATECONF'"
             exit 1
         fi
-        templatesdir=$(python3 -c "import sys; print(sys.argv[1].strip('/').split('/')[-2])" $TEMPLATECONF)
-        if [ ! -f "$TEMPLATECONF/../../layer.conf" -o $templatesdir != "templates" ]; then
-            echo >&2 "Error: TEMPLATECONF value (which is $TEMPLATECONF) must point to meta-some-layer/conf/templates/template-name"
-            exit 1
-        fi
+    fi
+    templatesdir=$(python3 -c "import sys; print(sys.argv[1].strip('/').split('/')[-2])" $TEMPLATECONF)
+    if [ ! -f "$TEMPLATECONF/../../layer.conf" -o $templatesdir != "templates" ]; then
+        echo >&2 "Error: TEMPLATECONF value (which is $TEMPLATECONF) must point to meta-some-layer/conf/templates/template-name"
+        exit 1
     fi
     OECORELAYERCONF="$TEMPLATECONF/bblayers.conf.sample"
     OECORELOCALCONF="$TEMPLATECONF/local.conf.sample"