diff --git a/Lib/distutils/command/build_ext.py b/Lib/distutils/command/build_ext.py
index 85935d37bf3..e6e33ab95c0 100644
--- a/Lib/distutils/command/build_ext.py
+++ b/Lib/distutils/command/build_ext.py
@@ -628,19 +628,21 @@ class build_ext (Command):
         The file is located in `build_lib` or directly in the package
         (inplace option).
         """
-        if self.inplace:
-            fullname = self.get_ext_fullname(ext_name)
-            modpath = fullname.split('.')
-            package = '.'.join(modpath[0:-1])
-            base = modpath[-1]
-            build_py = self.get_finalized_command('build_py')
-            package_dir = os.path.abspath(build_py.get_package_dir(package))
-            filename = self.get_ext_filename(ext_name)
-            return os.path.join(package_dir, filename)
-        else:
-            filename = self.get_ext_filename(ext_name)
+        fullname = self.get_ext_fullname(ext_name)
+        filename = self.get_ext_filename(fullname)
+        if not self.inplace:
+            # no further work needed
             return os.path.join(self.build_lib, filename)
 
+        # the inplace option requires to find the package directory
+        # using the build_py command
+        modpath = fullname.split('.')
+        package = '.'.join(modpath[0:-1])
+        base = modpath[-1]
+        build_py = self.get_finalized_command('build_py')
+        package_dir = os.path.abspath(build_py.get_package_dir(package))
+        return os.path.join(package_dir, filename)
+
     def get_ext_fullname(self, ext_name):
         """Returns the fullname of a given extension name.
 
diff --git a/Lib/distutils/tests/test_build_ext.py b/Lib/distutils/tests/test_build_ext.py
index fcca2f0d960..dc8df98fd74 100644
--- a/Lib/distutils/tests/test_build_ext.py
+++ b/Lib/distutils/tests/test_build_ext.py
@@ -273,6 +273,28 @@ class BuildExtTestCase(support.TempdirManager,
         so_dir = os.path.dirname(so_file)
         self.assertEquals(so_dir, cmd.build_lib)
 
+        # inplace = 0, cmd.package = 'bar'
+        cmd.package = 'bar'
+        path = cmd.get_ext_fullpath('foo')
+        # checking that the last directory is bar
+        path = os.path.split(path)[0]
+        lastdir = os.path.split(path)[-1]
+        self.assertEquals(lastdir, cmd.package)
+
+        # inplace = 1, cmd.package = 'bar'
+        cmd.inplace = 1
+        other_tmp_dir = os.path.realpath(self.mkdtemp())
+        old_wd = os.getcwd()
+        os.chdir(other_tmp_dir)
+        try:
+            path = cmd.get_ext_fullpath('foo')
+        finally:
+            os.chdir(old_wd)
+        # checking that the last directory is bar
+        path = os.path.split(path)[0]
+        lastdir = os.path.split(path)[-1]
+        self.assertEquals(lastdir, cmd.package)
+
 def test_suite():
     if not sysconfig.python_build:
         if test_support.verbose:
diff --git a/Misc/NEWS b/Misc/NEWS
index 7981837613e..1403e9f63a2 100644
--- a/Misc/NEWS
+++ b/Misc/NEWS
@@ -198,6 +198,9 @@ Core and Builtins
 Library
 -------
 
+- Issue #6062: In distutils, fixed the package option of build_ext. Feedback 
+  and tests on pywin32 by Tim Golden.
+
 - Issue #6046: Fixed the library extension when distutils build_ext is used
   inplace. Initial patch by Roumen Petrov.