diff --git a/Makefile b/Makefile
index 36f345914..bae8d3373 100644
--- a/Makefile
+++ b/Makefile
@@ -3,14 +3,17 @@
 # global helper variables
 T := $(CURDIR)
 
+# $(TARGET_DIR) must be relative path under $(T)
+TARGET_DIR ?=
+
 # BOARD/SCENARIO/BOARD_FILE/SCENARIO_FILE/KCONFIG_FILE parameters sanity check:
 #
 # Only below usages are VALID: (target = all | hypervisor)
 # 1. make <target>
-# 2. make <target> KCONFIG_FILE=xxx
-# 3. make <target> BOARD=xxx SCENARIO=xxx
-# 4. make <target> BOARD_FILE=xxx SCENARIO_FILE=xxx
-# 5. make <target> KCONFIG_FILE=xxx BOARD_FILE=xxx SCENARIO_FILE=xxx
+# 2. make <target> KCONFIG_FILE=xxx [TARGET_DIR=xxx]
+# 3. make <target> BOARD=xxx SCENARIO=xxx [TARGET_DIR=xxx]
+# 4. make <target> BOARD_FILE=xxx SCENARIO_FILE=xxx [TARGET_DIR=xxx]
+# 5. make <target> KCONFIG_FILE=xxx BOARD_FILE=xxx SCENARIO_FILE=xxx [TARGET_DIR=xxx]
 #
 # Especially for case 1 that no any parameters are specified:
 #    a. If hypervisor/build/.config file which generated by "make menuconfig" exist,
@@ -21,6 +24,9 @@ T := $(CURDIR)
 #       the default BOARD/SCENARIO will be loaded:
 #       i.e. equal: make <target> BOARD=$(BOARD) SCENARIO=$(SCENARIO)
 #
+# For case 2/3, configurations are imported from TARGET_DIR when TARGET_DIR is specified;
+# For case 4/5, configurations are from XML files and saved to TARGET_DIR if it is specified;
+#
 # The grep process did not handle corner case when '#' is manually put right after config value as comments,
 # i.e. it will be failed in the case of "CONFIG_XXX=y # some comments here "
 
@@ -39,6 +45,14 @@ ifneq ($(BOARD)$(SCENARIO),)
   endif
 endif
 
+ifeq ($(BOARD_FILE)$(SCENARIO_FILE),)
+  ifneq ($(TARGET_DIR),)
+    ifneq ($(TARGET_DIR), $(wildcard $(TARGET_DIR)))
+      $(error TARGET_DIR $(TARGET_DIR) does not exist)
+    endif
+  endif
+endif
+
 ifneq ($(BOARD_FILE)$(SCENARIO_FILE),)
   ifneq ($(BOARD_FILE), $(wildcard $(BOARD_FILE)))
     $(error BOARD_FILE: $(BOARD_FILE) does not exist)
@@ -99,6 +113,7 @@ BUILD_VERSION ?=
 BUILD_TAG ?=
 GENED_ACPI_INFO_HEADER = $(T)/hypervisor/arch/x86/configs/$(BOARD)/$(BOARD)_acpi_info.h
 HV_CFG_LOG = $(HV_OUT)/cfg.log
+DEFAULT_DEFCONFIG_DIR = $(T)/hypervisor/arch/x86/configs
 
 export TOOLS_OUT BOARD SCENARIO FIRMWARE RELEASE
 
@@ -146,18 +161,19 @@ hypervisor:
 			&& [ "$(SCENARIO)" != "logical_partition" ] && [ "$(SCENARIO)" != "hybrid" ]; then \
 		echo "SCENARIO <$(SCENARIO)> is not supported. "; exit 1; \
 	fi
+	@if [ "$(BOARD_FILE)" != "" ] && [ -f $(BOARD_FILE) ] && [ "$(SCENARIO_FILE)" != "" ] && [ -f $(SCENARIO_FILE) ] && [ "$(TARGET_DIR)" = "" ]; then \
+		echo "No TARGET_DIR parameter is specified, the original configuration source is overwritten!";\
+	fi
 	$(MAKE) -C $(T)/hypervisor HV_OBJDIR=$(HV_OUT) BOARD_FILE=$(BOARD_FILE) SCENARIO_FILE=$(SCENARIO_FILE) clean;
-	$(MAKE) -C $(T)/hypervisor HV_OBJDIR=$(HV_OUT) BOARD_FILE=$(BOARD_FILE) SCENARIO_FILE=$(SCENARIO_FILE) defconfig;
-	@if [ -f $(KCONFIG_FILE) ]; then \
-		cp $(KCONFIG_FILE) $(HV_OUT)/.config; \
-	elif [ "$(CONFIG_XML_ENABLED)" != "true" ]; then \
+	$(MAKE) -C $(T)/hypervisor HV_OBJDIR=$(HV_OUT) BOARD_FILE=$(BOARD_FILE) SCENARIO_FILE=$(SCENARIO_FILE) TARGET_DIR=$(abspath $(TARGET_DIR)) defconfig;
+	@if [ "$(CONFIG_XML_ENABLED)" != "true" ] && [ ! -f $(KCONFIG_FILE) ]; then \
 		echo "CONFIG_$(shell echo $(SCENARIO) | tr a-z A-Z)=y" >> $(HV_OUT)/.config; \
 		if [ "$(SCENARIO)" != "sdc" ]; then \
 			echo "CONFIG_MAX_KATA_VM_NUM=0" >> $(HV_OUT)/.config; \
 		fi; \
 	fi; \
-	$(MAKE) -C $(T)/hypervisor HV_OBJDIR=$(HV_OUT) BOARD_FILE=$(BOARD_FILE) SCENARIO_FILE=$(SCENARIO_FILE) oldconfig;
-	$(MAKE) -C $(T)/hypervisor HV_OBJDIR=$(HV_OUT) BOARD_FILE=$(BOARD_FILE) SCENARIO_FILE=$(SCENARIO_FILE)
+	$(MAKE) -C $(T)/hypervisor HV_OBJDIR=$(HV_OUT) BOARD_FILE=$(BOARD_FILE) SCENARIO_FILE=$(SCENARIO_FILE) TARGET_DIR=$(abspath $(TARGET_DIR)) oldconfig;
+	$(MAKE) -C $(T)/hypervisor HV_OBJDIR=$(HV_OUT) BOARD_FILE=$(BOARD_FILE) SCENARIO_FILE=$(SCENARIO_FILE) TARGET_DIR=$(abspath $(TARGET_DIR))
 #ifeq ($(FIRMWARE),uefi)
 	@if [ "$(SCENARIO)" != "logical_partition" ] && [ "$(SCENARIO)" != "hybrid" ]; then \
 		echo "building hypervisor as EFI executable..."; \
@@ -167,17 +183,24 @@ hypervisor:
 	@echo -e "\n\033[47;30mACRN Configuration Summary:\033[0m \nBOARD = $(BOARD)\t SCENARIO = $(SCENARIO)" > $(HV_CFG_LOG); \
 	if [ -f $(KCONFIG_FILE) ]; then \
 		echo -e "Hypervisor configuration is based on:\n\tKconfig file:\t$(KCONFIG_FILE);" >> $(HV_CFG_LOG); \
-	else \
-		echo -e "Hypervisor configuration is based on:\n\t$(BOARD) defconfig file:\t$(T)/hypervisor/arch/x86/configs/$(BOARD).config;" \
-			"\n\tOthers are set by default in:\t$(T)/hypervisor/arch/x86/Kconfig;" >> $(HV_CFG_LOG); \
 	fi; \
+	if [ "$(TARGET_DIR)" = "" ]; then \
+		if [ ! -f $(KCONFIG_FILE) ]; then \
+			echo -e "Hypervisor configuration is based on:\n\t$(BOARD) " \
+				"defconfig file:\t$(DEFAULT_DEFCONFIG_DIR)/$(BOARD).config;" >> $(HV_CFG_LOG); \
+		fi; \
+	elif [ ! -f $(KCONFIG_FILE) ]; then \
+		echo -e "Hypervisor configuration is based on:\n\t$(BOARD) " \
+			"defconfig file:\t$(abspath $(TARGET_DIR))/$(BOARD).config;" >> $(HV_CFG_LOG); \
+	fi; \
+	echo -e "\tOthers are set by default in:\t$(T)/hypervisor/arch/x86/Kconfig;" >> $(HV_CFG_LOG); \
 	if [ "$(CONFIG_XML_ENABLED)" = "true" ]; then \
 		echo -e "VM configuration is based on:\n\tBOARD File:\t$(BOARD_FILE);" \
 			"\n\tSCENARIO File:\t$(SCENARIO_FILE);" >> $(HV_CFG_LOG); \
 	else \
 		echo "VM configuration is based on current code base;" >> $(HV_CFG_LOG); \
 	fi; \
-	if [ -f $(GENED_ACPI_INFO_HEADER) ] && [ "$(CONFIG_XML_ENABLED)" != "true" ]; then \
+	if [ -f $(GENED_ACPI_INFO_HEADER) ] && [ "$(CONFIG_XML_ENABLED)" != "true" ] && [ "TARGET_DIR" = "" ]; then \
 		echo -e "\033[33mWarning: The platform ACPI info is based on acrn-config generated $(GENED_ACPI_INFO_HEADER), please make sure its validity.\033[0m" >> $(HV_CFG_LOG); \
 	fi
 	@cat $(HV_CFG_LOG)
@@ -198,6 +221,7 @@ clean:
 	$(MAKE) -C $(T)/misc OUT_DIR=$(TOOLS_OUT) clean
 	$(MAKE) -C $(T)/doc BUILDDIR=$(DOC_OUT) clean
 	rm -rf $(ROOT_OUT)
+	rm -rf $(TARGET_DIR)
 
 .PHONY: install
 install: hypervisor-install devicemodel-install tools-install
diff --git a/hypervisor/Makefile b/hypervisor/Makefile
index d3f5471bc..b876f54aa 100644
--- a/hypervisor/Makefile
+++ b/hypervisor/Makefile
@@ -76,6 +76,14 @@ ifeq ($(SCENARIO),)
   endif
 endif
 
+ifeq ($(TARGET_DIR),)
+  BOARD_CFG_DIR := arch/x86/configs/$(BOARD)
+  SCENARIO_CFG_DIR := scenarios/$(SCENARIO)
+else
+  BOARD_CFG_DIR := $(TARGET_DIR)/$(BOARD)
+  SCENARIO_CFG_DIR := $(TARGET_DIR)/$(SCENARIO)
+endif
+
 LD_IN_TOOL = scripts/genld.sh
 BASH = $(shell which bash)
 
@@ -170,8 +178,8 @@ INCLUDE_PATH += include/hw
 INCLUDE_PATH += boot/include
 INCLUDE_PATH += boot/include/guest
 INCLUDE_PATH += $(HV_OBJDIR)/include
-INCLUDE_PATH += arch/x86/configs/$(BOARD)
-INCLUDE_PATH += scenarios/$(SCENARIO)
+INCLUDE_PATH += $(BOARD_CFG_DIR)
+INCLUDE_PATH += $(SCENARIO_CFG_DIR)
 
 CC ?= gcc
 AS ?= as
@@ -257,10 +265,10 @@ HW_C_SRCS += common/sched_bvt.c
 endif
 HW_C_SRCS += hw/pci.c
 HW_C_SRCS += arch/x86/configs/vm_config.c
-HW_C_SRCS += arch/x86/configs/$(BOARD)/board.c
-HW_C_SRCS += scenarios/$(SCENARIO)/vm_configurations.c
-ifneq (,$(wildcard scenarios/$(SCENARIO)/pci_dev.c))
-HW_C_SRCS += scenarios/$(SCENARIO)/pci_dev.c
+HW_C_SRCS += $(BOARD_CFG_DIR)/board.c
+HW_C_SRCS += $(SCENARIO_CFG_DIR)/vm_configurations.c
+ifneq (,$(wildcard $(SCENARIO_CFG_DIR)/pci_dev.c))
+HW_C_SRCS += $(SCENARIO_CFG_DIR)/pci_dev.c
 endif
 HW_C_SRCS += boot/acpi_base.c
 HW_C_SRCS += boot/cmdline.c
@@ -378,7 +386,7 @@ VERSION := $(HV_OBJDIR)/include/version.h
 # Create platform_acpi_info.h
 TEMPLATE_ACPI_INFO_HEADER := arch/x86/configs/platform_acpi_info.h
 BOARDTEMPLATE_ACPI_INFO_HEADER := arch/x86/configs/$(BOARD)/platform_acpi_info.h
-SOURCE_ACPI_INFO_HEADER := arch/x86/configs/$(BOARD)/$(BOARD)_acpi_info.h
+SOURCE_ACPI_INFO_HEADER := $(BOARD_CFG_DIR)/$(BOARD)_acpi_info.h
 TARGET_ACPI_INFO_HEADER := $(HV_OBJDIR)/include/platform_acpi_info.h
 
 $(TARGET_ACPI_INFO_HEADER): $(HV_OBJDIR)/$(HV_CONFIG)
@@ -388,7 +396,7 @@ ifeq ($(CONFIG_ENFORCE_VALIDATED_ACPI_INFO),y)
 	 echo "Expected ACPI info header at $(SOURCE_ACPI_INFO_HEADER)" && \
 	 echo "" && \
 	 echo "The ACPI info header for this board is not available. Please use" && \
-	 echo "acrn-config tool for the target board to generate a validated one." \
+	 echo "acrn-config tool for the target board to generate a validated one." && \
 	 echo "If you want to build the hypervisor with the template ACPI info," && \
 	 echo "unset ENFORCE_VALIDATED_ACPI_INFO using 'make menuconfig'." && \
 	 false;	\
@@ -506,6 +514,16 @@ distclean:
 PHONY: (VERSION)
 $(VERSION):
 	@echo "SCENARIO <$(SCENARIO)> for BOARD <$(BOARD)> is specified."
+	@if [ ! -d $(BOARD_CFG_DIR) ]; then \
+		echo "Configurations for BOARD $(BOARD) is not found."; exit 1; \
+	else \
+		echo "Found BOARD configurations under $(BOARD_CFG_DIR)"; \
+	fi;
+	@if [ ! -d $(SCENARIO_CFG_DIR) ]; then \
+		echo "Configurations for SCENARIO $(SCENARIO) is not found."; exit 1; \
+	else \
+		echo "Found SCENARIO configurations under $(SCENARIO_CFG_DIR)"; \
+	fi;
 	touch $(VERSION)
 	@COMMIT=`git rev-parse --verify --short HEAD 2>/dev/null`;\
 	DIRTY=`git diff-index --name-only HEAD`;\
diff --git a/hypervisor/scripts/makefile/cfg_update.mk b/hypervisor/scripts/makefile/cfg_update.mk
index 6f03501b3..5b8c60b30 100644
--- a/hypervisor/scripts/makefile/cfg_update.mk
+++ b/hypervisor/scripts/makefile/cfg_update.mk
@@ -37,10 +37,18 @@ update_config:
 ifeq ($(CONFIG_XML_ENABLED),true)
 	@if [ ! -f $(UPDATE_RESULT) ]; then \
 		mkdir -p $(dir $(UPDATE_RESULT));\
-		python3 ../misc/acrn-config/board_config/board_cfg_gen.py --board $(BOARD_FILE) --scenario $(SCENARIO_FILE) > $(UPDATE_RESULT);\
+		if [ "$(TARGET_DIR)" = "" ]; then \
+			python3 ../misc/acrn-config/board_config/board_cfg_gen.py --board $(BOARD_FILE) --scenario $(SCENARIO_FILE) > $(UPDATE_RESULT);\
+		else \
+			python3 ../misc/acrn-config/board_config/board_cfg_gen.py --board $(BOARD_FILE) --scenario $(SCENARIO_FILE) --out $(TARGET_DIR) > $(UPDATE_RESULT);\
+		fi;\
 		cat $(UPDATE_RESULT);\
 		if [ "`sed -n /successfully/p $(UPDATE_RESULT)`" = "" ]; then rm -f $(UPDATE_RESULT); exit 1;	fi;\
-		python3 ../misc/acrn-config/scenario_config/scenario_cfg_gen.py --board $(BOARD_FILE) --scenario $(SCENARIO_FILE) > $(UPDATE_RESULT);\
+		if [ "$(TARGET_DIR)" = "" ]; then \
+			python3 ../misc/acrn-config/scenario_config/scenario_cfg_gen.py --board $(BOARD_FILE) --scenario $(SCENARIO_FILE) > $(UPDATE_RESULT);\
+		else \
+			python3 ../misc/acrn-config/scenario_config/scenario_cfg_gen.py --board $(BOARD_FILE) --scenario $(SCENARIO_FILE) --out $(TARGET_DIR) > $(UPDATE_RESULT);\
+		fi;\
 		cat $(UPDATE_RESULT);\
 		if [ "`sed -n /successfully/p $(UPDATE_RESULT)`" = "" ]; then rm -f $(UPDATE_RESULT); exit 1;	fi;\
 		echo "Import hypervisor Board/VM configuration from XMLs, configurations in source code has been overwritten!";\
diff --git a/hypervisor/scripts/makefile/kconfig.mk b/hypervisor/scripts/makefile/kconfig.mk
index 05ee4d8a3..b1047111a 100644
--- a/hypervisor/scripts/makefile/kconfig.mk
+++ b/hypervisor/scripts/makefile/kconfig.mk
@@ -72,9 +72,18 @@ $(HV_OBJDIR)/$(HV_CONFIG_H): $(HV_OBJDIR)/$(HV_CONFIG)
 .PHONY: defconfig
 defconfig: $(KCONFIG_DEPS)
 	@mkdir -p $(HV_OBJDIR)
-	@BOARD=$(TARGET_BOARD) \
-	 python3 $(KCONFIG_DIR)/defconfig.py Kconfig \
-		$(HV_OBJDIR)/$(HV_CONFIG)
+	@if [ ! -f $(KCONFIG_FILE) ] && [ "$(CONFIG_XML_ENABLED)" != "true" ]; then \
+		BOARD=$(TARGET_BOARD) python3 $(KCONFIG_DIR)/defconfig.py Kconfig $(HV_OBJDIR)/$(HV_CONFIG); \
+	else \
+		if [ "$(KCONFIG_FILE)" != "" ] && [ -f $(KCONFIG_FILE) ]; then \
+			echo "Writing $(HV_OBJDIR)/$(HV_CONFIG) with $(KCONFIG_FILE)"; \
+			cp $(KCONFIG_FILE) $(HV_OBJDIR)/$(HV_CONFIG); \
+		elif [ "$(CONFIG_XML_ENABLED)" = "true" ] && [ "$(TARGET_DIR)" != "" ] && [ -d $(TARGET_DIR) ]; then \
+			echo "Writing $(HV_OBJDIR)/$(HV_CONFIG) with $(TARGET_DIR)/$(BOARD).config"; \
+			cp $(TARGET_DIR)/$(BOARD).config $(HV_OBJDIR)/$(HV_CONFIG); \
+		fi; \
+		python3 $(KCONFIG_DIR)/silentoldconfig.py Kconfig $(HV_OBJDIR)/$(HV_CONFIG) RELEASE=$(RELEASE); \
+	fi
 
 # Use silentoldconfig to forcefully update the current .config, or generate a
 # new one if no previous .config exists. This target can be used as a
@@ -98,7 +107,7 @@ savedefconfig: $(HV_OBJDIR)/$(HV_CONFIG)
 
 $(eval $(call check_dep_exec,menuconfig,MENUCONFIG_DEPS))
 export KCONFIG_CONFIG := $(HV_OBJDIR)/$(HV_CONFIG)
-menuconfig: $(MENUCONFIG_DEPS) $(HV_OBJDIR)/$(HV_CONFIG)
+menuconfig: $(MENUCONFIG_DEPS) defconfig
 	@python3 $(shell which menuconfig) Kconfig
 
 CFLAGS += -include $(HV_OBJDIR)/$(HV_CONFIG_H)