diff --git a/CleanSpec.mk b/CleanSpec.mk
index f09b892fa..f05410d6c 100644
--- a/CleanSpec.mk
+++ b/CleanSpec.mk
@@ -540,6 +540,10 @@ $(call add-clean-step, rm -f $(PRODUCT_OUT)/system/lib*/libjavacore.so)
 $(call add-clean-step, rm -f $(PRODUCT_OUT)/system/lib*/libopenjdk.so)
 $(call add-clean-step, rm -f $(PRODUCT_OUT)/system/lib*/libexpat.so)
 
+# Merge product_services into product
+$(call add-clean-step, rm -rf $(PRODUCT_OUT)/product_services)
+$(call add-clean-step, rm -rf $(PRODUCT_OUT)/system/product_services)
+
 
 # ************************************************
 # NEWER CLEAN STEPS MUST BE AT THE END OF THE LIST
diff --git a/core/envsetup.mk b/core/envsetup.mk
index 14269353c..e62636e54 100644
--- a/core/envsetup.mk
+++ b/core/envsetup.mk
@@ -443,7 +443,8 @@ endif
 # Now we can substitute with the real value of TARGET_COPY_OUT_PRODUCT_SERVICES
 MERGE_PRODUCT_SERVICES_INTO_PRODUCT :=
 ifeq ($(TARGET_COPY_OUT_PRODUCT_SERVICES),$(_product_services_path_placeholder))
-  TARGET_COPY_OUT_PRODUCT_SERVICES := system/product_services
+  TARGET_COPY_OUT_PRODUCT_SERVICES := $(TARGET_COPY_OUT_PRODUCT)
+  MERGE_PRODUCT_SERVICES_INTO_PRODUCT := true
 else ifeq ($(TARGET_COPY_OUT_PRODUCT),$(TARGET_COPY_OUT_PRODUCT_SERVICES))
   MERGE_PRODUCT_SERVICES_INTO_PRODUCT := true
 else ifeq ($(filter product_services system/product_services,$(TARGET_COPY_OUT_PRODUCT_SERVICES)),)