diff --git a/src/lake/Lake/Load/Config.lean b/src/lake/Lake/Load/Config.lean
index 52bdaee071..afdb0a19d9 100644
--- a/src/lake/Lake/Load/Config.lean
+++ b/src/lake/Lake/Load/Config.lean
@@ -78,3 +78,7 @@ namespace LoadConfig
 /-- The package's Lake directory (for Lake temporary files). -/
 @[inline] public def lakeDir (cfg : LoadConfig) : FilePath :=
   cfg.pkgDir / defaultLakeDir
+
+/-- The absolute path where compiled configurations are stored. -/
+@[inline] public def configDir (cfg : LoadConfig) : FilePath :=
+  cfg.wsDir / defaultLakeDir / "config" / toString cfg.pkgIdx
diff --git a/src/lake/Lake/Load/Lean/Elab.lean b/src/lake/Lake/Load/Lean/Elab.lean
index c72b295cb0..b3908d0ceb 100644
--- a/src/lake/Lake/Load/Lean/Elab.lean
+++ b/src/lake/Lake/Load/Lean/Elab.lean
@@ -180,8 +180,7 @@ toolchain). Otherwise, elaborate the configuration and save it to the `.olean`.
 public def importConfigFile (cfg : LoadConfig) : LogIO Environment := do
   let some configName := FilePath.mk <$> cfg.configFile.fileName
     | error "invalid configuration file name"
-  let pkgName := cfg.pkgName.toString (escape := false)
-  let configDir := cfg.lakeDir / "config" / pkgName
+  let configDir := cfg.configDir
   IO.FS.createDirAll configDir
   let olean := configDir / configName.withExtension "olean"
   let traceFile := configDir / configName.withExtension "olean.trace"
diff --git a/tests/lake/examples/deps/test.sh b/tests/lake/examples/deps/test.sh
index d597b3a197..d526c2852d 100755
--- a/tests/lake/examples/deps/test.sh
+++ b/tests/lake/examples/deps/test.sh
@@ -16,6 +16,19 @@ $LAKE -d foo build --update
 ./foo/.lake/build/bin/foo
 ./bar/.lake/build/bin/bar
 
+# Test compiled configurations are hoisted
+test -d foo/.lake/config/0
+test -d foo/.lake/config/1
+test -d foo/.lake/config/2
+test -d foo/.lake/config/3
+test ! -d foo/.lake/config/4
+test -d bar/.lake/config/0
+test -d bar/.lake/config/1
+test -d bar/.lake/config/2
+test -d bar/.lake/config/3
+test -d bar/.lake/config/4
+test ! -d bar/.lake/config/5
+
 # Test setup-file works (i.e., does not error)
 $LAKE -d foo setup-file ./foo/Foo.lean
 
@@ -39,3 +52,17 @@ $LAKE -d foo -f lakefile.toml build --update
 
 ./foo/.lake/build/bin/foo
 ./bar/.lake/build/bin/bar
+
+# Test compiled configurations are hoisted
+# and that the TOML configuration produces none
+test ! -d foo/.lake/config/0
+test -d foo/.lake/config/1
+test -d foo/.lake/config/2
+test -d foo/.lake/config/3
+test ! -d foo/.lake/config/4
+test ! -d bar/.lake/config/0
+test -d bar/.lake/config/1
+test -d bar/.lake/config/2
+test -d bar/.lake/config/3
+test -d bar/.lake/config/4
+test ! -d bar/.lake/config/5