diff --git a/packages/cadl-typescript/src/lib.ts b/packages/cadl-typescript/src/lib.ts
index 86bfd088cc..4a9051b83a 100644
--- a/packages/cadl-typescript/src/lib.ts
+++ b/packages/cadl-typescript/src/lib.ts
@@ -61,7 +61,8 @@ export const RLCOptionsSchema: JSONSchemaType<RLCOptions> = {
       },
       nullable: true
     },
-    azureArm: { type: "boolean", nullable: true }
+    azureArm: { type: "boolean", nullable: true },
+    "sdk-folder": { type: "string", nullable: true }
   },
   required: []
 };
diff --git a/packages/cadl-typescript/src/transform/transform.ts b/packages/cadl-typescript/src/transform/transform.ts
index c50b0a00e7..2e98b09547 100644
--- a/packages/cadl-typescript/src/transform/transform.ts
+++ b/packages/cadl-typescript/src/transform/transform.ts
@@ -32,8 +32,8 @@ import { transformSchemas } from "./transformSchemas.js";
 import { transformRLCOptions } from "./transfromRLCOptions.js";
 
 export async function transformRLCModel(program: Program, emitterOptions: RLCOptions): Promise<RLCModel> {
-  const srcPath = join(program.compilerOptions.outputPath ?? "", "src");
   const options: RLCOptions = transformRLCOptions(program, emitterOptions);
+  const srcPath = join(program.compilerOptions.outputPath ?? "", "src");
   const libraryName = normalizeName(
     options?.title ?? getServiceTitle(program),
     NameType.Class
diff --git a/packages/cadl-typescript/src/transform/transfromRLCOptions.ts b/packages/cadl-typescript/src/transform/transfromRLCOptions.ts
index e1076c2ac3..6d88e25796 100644
--- a/packages/cadl-typescript/src/transform/transfromRLCOptions.ts
+++ b/packages/cadl-typescript/src/transform/transfromRLCOptions.ts
@@ -5,6 +5,7 @@ import {
   Program
 } from "@cadl-lang/compiler";
 import { getAuthentication } from "@cadl-lang/rest/http";
+import { isAbsolute } from "path";
 
 export function transformRLCOptions(program: Program, options: RLCOptions): RLCOptions {
   const config = options;
@@ -18,6 +19,9 @@ export function transformRLCOptions(program: Program, options: RLCOptions): RLCO
       config.packageDetails.scopeName = nameParts[0]?.replace("@", "");
     }
   }
+  if (options["sdk-folder"] && isAbsolute(options["sdk-folder"])) {
+    program.compilerOptions.outputPath = options["sdk-folder"];
+  }
   const securityInfo = processAuth(program);
   config.addCredentials =
     !securityInfo && config.addCredentials === false
diff --git a/packages/rlc-common/src/interfaces.ts b/packages/rlc-common/src/interfaces.ts
index c59ebfe045..b1fdd901ff 100644
--- a/packages/rlc-common/src/interfaces.ts
+++ b/packages/rlc-common/src/interfaces.ts
@@ -89,6 +89,7 @@ export interface RLCOptions {
   productDocLink?: string;
   serviceInfo?: ServiceInfo;
   azureArm?: boolean;
+  "sdk-folder"?: string;
 }
 
 export interface ServiceInfo {