diff --git a/CMakeLists.txt b/CMakeLists.txt
index ce21a41686..d263f18240 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -134,10 +134,11 @@ endif()
 # Make configuration file options into PATHs
 set(MBEDTLS_CONFIG_FILE "" CACHE FILEPATH "Mbed TLS config file (overrides default).")
 set(MBEDTLS_USER_CONFIG_FILE "" CACHE FILEPATH "Mbed TLS user config file (appended to default).")
-set(MBEDTLS_CONFIG_BASE_FILE "" CACHE STRING "Mbed TLS config to copy and optionally transform.")
+set(MBEDTLS_CONFIG_BASE_FILE "" CACHE FILEPATH "Mbed TLS config to copy and optionally transform.")
 set(MBEDTLS_CONFIG_NAME "" CACHE STRING "Named Mbed TLS configuration (see config.py).")
 set(MBEDTLS_CONFIG_SET "" CACHE STRING "Options to set, separated by semicolons (OPTION or OPTION=VALUE).")
 set(MBEDTLS_CONFIG_UNSET "" CACHE STRING "Options to unset, separated by semicolons.")
+set(TF_PSA_CRYPTO_CONFIG_BASE_FILE "" CACHE FILEPATH "TF-PSA-Crypto config to copy and optionally transform.")
 
 set(MBEDTLS_CONFIG_TRANSFORMED FALSE)
 if(NOT "${MBEDTLS_CONFIG_NAME}" STREQUAL "" OR
@@ -182,9 +183,13 @@ if(NOT "${MBEDTLS_CONFIG_BASE_FILE}" STREQUAL "" OR
     endif()
 
     if(NOT "${MBEDTLS_CONFIG_BASE_FILE}" STREQUAL "")
-        get_filename_component(MBEDTLS_BASE_CONFIG_FILE
-            "${MBEDTLS_CONFIG_BASE_FILE}" ABSOLUTE
-            BASE_DIR "${CMAKE_CURRENT_SOURCE_DIR}")
+        set(MBEDTLS_BASE_CONFIG_FILE "${MBEDTLS_CONFIG_BASE_FILE}")
+        if(NOT EXISTS "${MBEDTLS_BASE_CONFIG_FILE}")
+            file(RELATIVE_PATH MBEDTLS_CONFIG_BASE_FILE_RELATIVE
+                 "${CMAKE_CURRENT_BINARY_DIR}" "${MBEDTLS_CONFIG_BASE_FILE}")
+            set(MBEDTLS_BASE_CONFIG_FILE
+                "${CMAKE_CURRENT_SOURCE_DIR}/${MBEDTLS_CONFIG_BASE_FILE_RELATIVE}")
+        endif()
     else()
         set(MBEDTLS_BASE_CONFIG_FILE
             "${CMAKE_CURRENT_SOURCE_DIR}/include/mbedtls/mbedtls_config.h")
@@ -201,9 +206,15 @@ if(NOT "${MBEDTLS_CONFIG_BASE_FILE}" STREQUAL "" OR
 
     if(MBEDTLS_CONFIG_TRANSFORMED)
         if(NOT "${TF_PSA_CRYPTO_CONFIG_BASE_FILE}" STREQUAL "")
-            get_filename_component(MBEDTLS_BASE_CRYPTO_CONFIG_FILE
-                "${TF_PSA_CRYPTO_CONFIG_BASE_FILE}" ABSOLUTE
-                BASE_DIR "${CMAKE_CURRENT_SOURCE_DIR}")
+            set(MBEDTLS_BASE_CRYPTO_CONFIG_FILE
+                "${TF_PSA_CRYPTO_CONFIG_BASE_FILE}")
+            if(NOT EXISTS "${MBEDTLS_BASE_CRYPTO_CONFIG_FILE}")
+                file(RELATIVE_PATH TF_PSA_CRYPTO_CONFIG_BASE_FILE_RELATIVE
+                     "${CMAKE_CURRENT_BINARY_DIR}"
+                     "${TF_PSA_CRYPTO_CONFIG_BASE_FILE}")
+                set(MBEDTLS_BASE_CRYPTO_CONFIG_FILE
+                    "${CMAKE_CURRENT_SOURCE_DIR}/${TF_PSA_CRYPTO_CONFIG_BASE_FILE_RELATIVE}")
+            endif()
         else()
             set(MBEDTLS_BASE_CRYPTO_CONFIG_FILE
                 "${CMAKE_CURRENT_SOURCE_DIR}/tf-psa-crypto/include/psa/crypto_config.h")
diff --git a/tests/scripts/components-build-system.sh b/tests/scripts/components-build-system.sh
index 64289c24f0..7a7ddddb46 100644
--- a/tests/scripts/components-build-system.sh
+++ b/tests/scripts/components-build-system.sh
@@ -320,13 +320,13 @@ component_build_cmake_config_options () {
 
     cd "$MBEDTLS_ROOT_DIR"
     rm -rf "$OUT_OF_SOURCE_DIR"
-    launch_dir="$OUT_OF_SOURCE_DIR.launch"
+    launch_dir="$MBEDTLS_ROOT_DIR/cmake-config-launch"
     mkdir "$launch_dir"
     cd "$launch_dir"
 
-    msg "configure: resolve a relative base config from the source tree"
+    msg "configure: resolve a base config relative to the launch directory"
     cmake -H"$MBEDTLS_ROOT_DIR" -B"$OUT_OF_SOURCE_DIR" \
-        -DMBEDTLS_CONFIG_BASE_FILE=configs/config-ccm-psk-tls1_2.h \
+        -DMBEDTLS_CONFIG_BASE_FILE=../configs/config-ccm-psk-tls1_2.h \
         -DMBEDTLS_CONFIG_SET=MBEDTLS_DEBUG_C
     grep '^#define MBEDTLS_DEBUG_C' \
         "$OUT_OF_SOURCE_DIR/generated/include/mbedtls/mbedtls_config.h"
@@ -358,17 +358,15 @@ component_build_cmake_config_options () {
     msg "build: combine Mbed TLS and TF-PSA-Crypto transformations"
     cmake \
         -DMBEDTLS_CONFIG_BASE_FILE=configs/config-ccm-psk-tls1_2.h \
-        '-DMBEDTLS_CONFIG_SET=MBEDTLS_DEBUG_C;PSA_WANT_ALG_RIPEMD160' \
-        -DTF_PSA_CRYPTO_CONFIG_BASE_FILE="$MBEDTLS_ROOT_DIR/tf-psa-crypto/configs/crypto-config-symmetric-only.h" \
-        -DTF_PSA_CRYPTO_CONFIG_UNSET=PSA_WANT_ALG_RIPEMD160 \
+        -DMBEDTLS_CONFIG_SET=MBEDTLS_DEBUG_C \
+        -DTF_PSA_CRYPTO_CONFIG_BASE_FILE="$MBEDTLS_ROOT_DIR/configs/crypto-config-ccm-psk-tls1_2.h" \
+        -DTF_PSA_CRYPTO_CONFIG_UNSET=MBEDTLS_HAVE_TIME \
         "$MBEDTLS_ROOT_DIR"
     make query_compile_time_config
     programs/test/query_compile_time_config MBEDTLS_DEBUG_C
-    grep '^#define PSA_WANT_ALG_RIPEMD160' \
+    grep '^#define MBEDTLS_HAVE_TIME' \
         generated/include/psa/crypto_config.h
-    not programs/test/query_compile_time_config PSA_WANT_ALG_RIPEMD160
-    not programs/test/query_compile_time_config \
-        PSA_WANT_KEY_TYPE_DH_KEY_PAIR_BASIC
+    not programs/test/query_compile_time_config MBEDTLS_HAVE_TIME
 
     cd "$MBEDTLS_ROOT_DIR"
     rm -rf "$OUT_OF_SOURCE_DIR"