diff --git a/meta/classes-global/base.bbclass b/meta/classes-global/base.bbclass
index 066f3848f7..13e91b24a3 100644
--- a/meta/classes-global/base.bbclass
+++ b/meta/classes-global/base.bbclass
@@ -153,20 +153,38 @@ python base_do_fetch() {
 }
 
 addtask unpack after do_fetch
-do_unpack[dirs] = "${UNPACKDIR}"
-
-do_unpack[cleandirs] = "${@d.getVar('S') if os.path.normpath(d.getVar('S')) != os.path.normpath(d.getVar('WORKDIR')) else os.path.join('${S}', 'patches')}"
+do_unpack[cleandirs] = "${UNPACKDIR}"
 
 python base_do_unpack() {
+    import shutil
+
+    sourcedir = d.getVar('S')
+    # Intentionally keep SOURCE_BASEDIR internal to the task just for SDE
+    d.setVar("SOURCE_BASEDIR", sourcedir)
+
     src_uri = (d.getVar('SRC_URI') or "").split()
     if not src_uri:
         return
 
+    basedir = None
+    unpackdir = d.getVar('UNPACKDIR')
+    workdir = d.getVar('WORKDIR')
+    if sourcedir.startswith(workdir) and not sourcedir.startswith(unpackdir):
+        basedir = sourcedir.replace(workdir, '').strip("/").split('/')[0]
+        if basedir:
+            bb.utils.remove(workdir + '/' + basedir, True)
+            d.setVar("SOURCE_BASEDIR", workdir + '/' + basedir)
+
     try:
         fetcher = bb.fetch2.Fetch(src_uri, d)
         fetcher.unpack(d.getVar('UNPACKDIR'))
     except bb.fetch2.BBFetchException as e:
         bb.fatal("Bitbake Fetcher Error: " + repr(e))
+
+    if basedir and os.path.exists(unpackdir + '/' + basedir):
+        # Compatibility magic to ensure ${WORKDIR}/git and ${WORKDIR}/${BP}
+        # as often used in S work as expected.
+        shutil.move(unpackdir + '/' + basedir, workdir + '/' + basedir)
 }
 
 SSTATETASKS += "do_deploy_source_date_epoch"
@@ -199,8 +217,8 @@ addtask do_deploy_source_date_epoch_setscene
 addtask do_deploy_source_date_epoch before do_configure after do_patch
 
 python create_source_date_epoch_stamp() {
-    # Version: 1
-    source_date_epoch = oe.reproducible.get_source_date_epoch(d, d.getVar('S'))
+    # Version: 2
+    source_date_epoch = oe.reproducible.get_source_date_epoch(d, d.getVar('SOURCE_BASEDIR') or d.getVar('S'))
     oe.reproducible.epochfile_write(source_date_epoch, d.getVar('SDE_FILE'), d)
 }
 do_unpack[postfuncs] += "create_source_date_epoch_stamp"
diff --git a/meta/conf/bitbake.conf b/meta/conf/bitbake.conf
index b2c500d873..75c850760f 100644
--- a/meta/conf/bitbake.conf
+++ b/meta/conf/bitbake.conf
@@ -405,7 +405,7 @@ STAMP = "${STAMPS_DIR}/${MULTIMACH_TARGET_SYS}/${PN}/${PV}"
 STAMPCLEAN = "${STAMPS_DIR}/${MULTIMACH_TARGET_SYS}/${PN}/*-*"
 BASE_WORKDIR ?= "${TMPDIR}/work"
 WORKDIR = "${BASE_WORKDIR}/${MULTIMACH_TARGET_SYS}/${PN}/${PV}"
-UNPACKDIR ??= "${WORKDIR}"
+UNPACKDIR ??= "${WORKDIR}/sources-unpack"
 T = "${WORKDIR}/temp"
 D = "${WORKDIR}/image"
 S = "${WORKDIR}/${BP}"
diff --git a/meta/lib/oe/reproducible.py b/meta/lib/oe/reproducible.py
index a9f717159e..1957c97434 100644
--- a/meta/lib/oe/reproducible.py
+++ b/meta/lib/oe/reproducible.py
@@ -75,10 +75,10 @@ def get_source_date_epoch_from_known_files(d, sourcedir):
     return source_date_epoch
 
 def find_git_folder(d, sourcedir):
-    # First guess: WORKDIR/git
+    # First guess: UNPACKDIR/git
     # This is the default git fetcher unpack path
-    workdir = d.getVar('WORKDIR')
-    gitpath = os.path.join(workdir, "git/.git")
+    unpackdir = d.getVar('UNPACKDIR')
+    gitpath = os.path.join(unpackdir, "git/.git")
     if os.path.isdir(gitpath):
         return gitpath
 
@@ -88,15 +88,16 @@ def find_git_folder(d, sourcedir):
         return gitpath
 
     # Perhaps there was a subpath or destsuffix specified.
-    # Go looking in the WORKDIR
-    exclude = set(["build", "image", "license-destdir", "patches", "pseudo",
-                   "recipe-sysroot", "recipe-sysroot-native", "sysroot-destdir", "temp"])
-    for root, dirs, files in os.walk(workdir, topdown=True):
-        dirs[:] = [d for d in dirs if d not in exclude]
+    # Go looking in the UNPACKDIR
+    for root, dirs, files in os.walk(unpackdir, topdown=True):
         if '.git' in dirs:
             return os.path.join(root, ".git")
 
-    bb.warn("Failed to find a git repository in WORKDIR: %s" % workdir)
+    for root, dirs, files in os.walk(sourcedir, topdown=True):
+        if '.git' in dirs:
+            return os.path.join(root, ".git")
+
+    bb.warn("Failed to find a git repository in UNPACKDIR: %s" % unpackdir)
     return None
 
 def get_source_date_epoch_from_git(d, sourcedir):