diff --git a/TestAssets/TestProjects/TestLibraryWithConfiguration/Helper.cs b/TestAssets/TestProjects/TestLibraryWithConfiguration/Helper.cs
new file mode 100644
index 000000000..8c643796b
--- /dev/null
+++ b/TestAssets/TestProjects/TestLibraryWithConfiguration/Helper.cs
@@ -0,0 +1,24 @@
+// Copyright (c) .NET Foundation and contributors. All rights reserved.
+// Licensed under the MIT license. See LICENSE file in the project root for full license information.
+
+using System;
+
+namespace TestLibrary
+{
+    public static class Helper
+    {
+        /// <summary>
+        /// Gets the message from the helper. This comment is here to help test XML documentation file generation, please do not remove it.
+        /// </summary>
+        /// <returns>A message</returns>
+        public static string GetMessage()
+        {
+            return "This string came from the test library!";
+        }
+
+        public static void SayHi()
+        {
+            Console.WriteLine("Hello there!");
+        }
+    }
+}
diff --git a/TestAssets/TestProjects/TestLibraryWithConfiguration/project.json b/TestAssets/TestProjects/TestLibraryWithConfiguration/project.json
new file mode 100644
index 000000000..b15199995
--- /dev/null
+++ b/TestAssets/TestProjects/TestLibraryWithConfiguration/project.json
@@ -0,0 +1,19 @@
+{
+    "version": "1.0.0-*",
+    "compilationOptions": {
+        "nowarn": [ "CS1591" ],
+        "xmlDoc": true,
+        "additionalArguments": [ "-highentropyva+" ]
+    },
+    "dependencies": {
+        "NETStandard.Library": "1.0.0-rc2-23811"
+    },
+    "configurations": {
+        "Test": {
+
+        }
+    },
+    "frameworks": {
+        "dnxcore50": { }
+    }
+}
diff --git a/scripts/dotnet-cli-build/TestTargets.cs b/scripts/dotnet-cli-build/TestTargets.cs
index 6e28d2c0b..cb40c935b 100644
--- a/scripts/dotnet-cli-build/TestTargets.cs
+++ b/scripts/dotnet-cli-build/TestTargets.cs
@@ -26,6 +26,7 @@ namespace Microsoft.DotNet.Cli.Build
             "dotnet-compile.Tests",
             "dotnet-compile.UnitTests",
             "dotnet-build.Tests",
+            "dotnet-pack.Tests",
             "Microsoft.DotNet.Cli.Utils.Tests",
             "Microsoft.DotNet.Compiler.Common.Tests",
             "ArgumentForwardingTests"
diff --git a/src/dotnet/commands/dotnet-pack/ArtifactPathsCalculator.cs b/src/dotnet/commands/dotnet-pack/ArtifactPathsCalculator.cs
index 7ad828377..1cd19120e 100644
--- a/src/dotnet/commands/dotnet-pack/ArtifactPathsCalculator.cs
+++ b/src/dotnet/commands/dotnet-pack/ArtifactPathsCalculator.cs
@@ -36,7 +36,8 @@ namespace Microsoft.DotNet.Tools.Pack
 
                 var outputPath = Path.Combine(
                     _project.ProjectDirectory,
-                    Constants.BinDirectoryName);
+                    Constants.BinDirectoryName,
+                    _configuration);
 
                 return outputPath;
             }
diff --git a/test/dotnet-pack.Tests/PackTests.cs b/test/dotnet-pack.Tests/PackTests.cs
new file mode 100644
index 000000000..a0735d1fe
--- /dev/null
+++ b/test/dotnet-pack.Tests/PackTests.cs
@@ -0,0 +1,74 @@
+// Copyright (c) .NET Foundation and contributors. All rights reserved.
+// Licensed under the MIT license. See LICENSE file in the project root for full license information.
+
+using System;
+using System.IO;
+using Microsoft.DotNet.Tools.Test.Utilities;
+using Xunit;
+
+namespace Microsoft.DotNet.Tools.Compiler.Tests
+{
+    public class PackTests : TestBase
+    {
+        private readonly string _testProjectsRoot;
+
+        public PackTests()
+        {
+            _testProjectsRoot = Path.Combine(AppContext.BaseDirectory, "TestAssets", "TestProjects");
+        }
+
+        [Fact]
+        public void OutputsPackagesToConfigurationSubdirWhenOutputParameterIsNotPassed()
+        {
+            var root = Temp.CreateDirectory();
+
+            var testLibDir = root.CreateDirectory("TestLibrary");
+            var sourceTestLibDir = Path.Combine(_testProjectsRoot, "TestLibraryWithConfiguration");
+
+            CopyProjectToTempDir(sourceTestLibDir, testLibDir);
+
+            var testProject = GetProjectPath(testLibDir);
+            var buildCommand = new PackCommand(testProject, configuration: "Test");
+            var result = buildCommand.Execute();
+            result.Should().Pass();
+
+            var outputDir = new DirectoryInfo(Path.Combine(testLibDir.Path, "bin", "Test"));
+            outputDir.Should().Exist();
+            outputDir.Should().HaveFiles(new [] { "TestLibrary.1.0.0.nupkg" , "TestLibrary.1.0.0.symbols.nupkg" });
+        }
+
+        [Fact]
+        public void OutputsPackagesFlatIntoOutputDirWhenOutputParameterIsPassed()
+        {
+            var root = Temp.CreateDirectory();
+
+            var testLibDir = root.CreateDirectory("TestLibrary");
+            var sourceTestLibDir = Path.Combine(_testProjectsRoot, "TestLibraryWithConfiguration");
+
+            CopyProjectToTempDir(sourceTestLibDir, testLibDir);
+
+            var outputDir = new DirectoryInfo(Path.Combine(testLibDir.Path, "bin2"));
+            var testProject = GetProjectPath(testLibDir);
+            var buildCommand = new PackCommand(testProject, output: outputDir.FullName);
+            var result = buildCommand.Execute();
+            result.Should().Pass();
+
+            outputDir.Should().Exist();
+            outputDir.Should().HaveFiles(new[] { "TestLibrary.1.0.0.nupkg", "TestLibrary.1.0.0.symbols.nupkg" });
+        }
+
+        private void CopyProjectToTempDir(string projectDir, TempDirectory tempDir)
+        {
+            // copy all the files to temp dir
+            foreach (var file in Directory.EnumerateFiles(projectDir))
+            {
+                tempDir.CopyFile(file);
+            }
+        }
+
+        private string GetProjectPath(TempDirectory projectDir)
+        {
+            return Path.Combine(projectDir.Path, "project.json");
+        }
+    }
+}
diff --git a/test/dotnet-pack.Tests/dotnet-pack.Tests.xproj b/test/dotnet-pack.Tests/dotnet-pack.Tests.xproj
new file mode 100644
index 000000000..961c2bf36
--- /dev/null
+++ b/test/dotnet-pack.Tests/dotnet-pack.Tests.xproj
@@ -0,0 +1,19 @@
+<?xml version="1.0" encoding="utf-8"?>
+<Project ToolsVersion="14.0.24720" DefaultTargets="Build" xmlns="http://schemas.microsoft.com/developer/msbuild/2003">
+  <PropertyGroup>
+    <VisualStudioVersion Condition="'$(VisualStudioVersion)' == ''">14.0.24720</VisualStudioVersion>
+    <VSToolsPath Condition="'$(VSToolsPath)' == ''">$(MSBuildExtensionsPath32)\Microsoft\VisualStudio\v$(VisualStudioVersion)</VSToolsPath>
+  </PropertyGroup>
+  <Import Project="$(VSToolsPath)\DNX\Microsoft.DNX.Props" Condition="'$(VSToolsPath)' != ''" />
+  <PropertyGroup Label="Globals">
+    <ProjectGuid>5fda6d37-3a3e-4333-ba5c-f0b28be316f4</ProjectGuid>
+    <RootNamespace>dotnet-pack.Tests</RootNamespace>
+    <BaseIntermediateOutputPath Condition="'$(BaseIntermediateOutputPath)'=='' ">..\..\artifacts\obj\$(MSBuildProjectName)</BaseIntermediateOutputPath>
+    <OutputPath Condition="'$(OutputPath)'=='' ">..\..\artifacts\bin\$(MSBuildProjectName)\</OutputPath>
+  </PropertyGroup>
+
+  <PropertyGroup>
+    <SchemaVersion>2.0</SchemaVersion>
+  </PropertyGroup>
+  <Import Project="$(VSToolsPath)\DNX\Microsoft.DNX.targets" Condition="'$(VSToolsPath)' != ''" />
+</Project>
\ No newline at end of file
diff --git a/test/dotnet-pack.Tests/project.json b/test/dotnet-pack.Tests/project.json
new file mode 100644
index 000000000..7ea509721
--- /dev/null
+++ b/test/dotnet-pack.Tests/project.json
@@ -0,0 +1,27 @@
+{
+  "version": "1.0.0-*",
+
+  "dependencies": {
+    "NETStandard.Library": "1.0.0-rc2-23811",
+    
+    "Microsoft.DotNet.Tools.Tests.Utilities": { "target": "project" },
+    "Microsoft.DotNet.Cli.Utils": {
+      "target": "project"
+    },
+
+    "xunit": "2.1.0",
+    "dotnet-test-xunit": "1.0.0-dev-48273-16"
+  },
+
+  "frameworks": {
+    "dnxcore50": {
+      "imports": "portable-net451+win8"
+    }
+  },
+
+  "content": [
+    "../../TestAssets/TestProjects/TestLibraryWithConfiguration/*"
+  ],
+
+  "testRunner": "xunit"
+}