diff --git a/compiler/rustc_codegen_ssa/src/back/link.rs b/compiler/rustc_codegen_ssa/src/back/link.rs
index 70db6794742d0..ba07345dd43f5 100644
--- a/compiler/rustc_codegen_ssa/src/back/link.rs
+++ b/compiler/rustc_codegen_ssa/src/back/link.rs
@@ -103,17 +103,18 @@ pub fn link_binary(
         });
 
         if outputs.outputs.should_link() {
-            let tmpdir = TempDirBuilder::new()
-                .prefix("rustc")
-                .tempdir()
-                .unwrap_or_else(|error| sess.dcx().emit_fatal(errors::CreateTempDir { error }));
-            let path = MaybeTempDir::new(tmpdir, sess.opts.cg.save_temps);
             let output = out_filename(
                 sess,
                 crate_type,
                 outputs,
                 codegen_results.crate_info.local_crate_name,
             );
+            let tmpdir = TempDirBuilder::new()
+                .prefix("rustc")
+                .tempdir_in(output.parent().unwrap_or_else(|| Path::new(".")))
+                .unwrap_or_else(|error| sess.dcx().emit_fatal(errors::CreateTempDir { error }));
+            let path = MaybeTempDir::new(tmpdir, sess.opts.cg.save_temps);
+
             let crate_name = format!("{}", codegen_results.crate_info.local_crate_name);
             let out_filename = output.file_for_writing(
                 outputs,
diff --git a/compiler/rustc_fs_util/src/lib.rs b/compiler/rustc_fs_util/src/lib.rs
index 7a883a13b72da..e21da4cdddf7d 100644
--- a/compiler/rustc_fs_util/src/lib.rs
+++ b/compiler/rustc_fs_util/src/lib.rs
@@ -1,6 +1,6 @@
 use std::ffi::{CString, OsStr};
 use std::path::{Path, PathBuf, absolute};
-use std::{env, fs, io};
+use std::{fs, io};
 
 use tempfile::TempDir;
 
@@ -139,8 +139,4 @@ impl<'a, 'b> TempDirBuilder<'a, 'b> {
         }
         self.builder.tempdir_in(dir)
     }
-
-    pub fn tempdir(&self) -> io::Result<TempDir> {
-        self.tempdir_in(env::temp_dir())
-    }
 }
diff --git a/tests/run-make/invalid-tmpdir-env-var/foo.rs b/tests/run-make/invalid-tmpdir-no-ice/foo.rs
similarity index 100%
rename from tests/run-make/invalid-tmpdir-env-var/foo.rs
rename to tests/run-make/invalid-tmpdir-no-ice/foo.rs
diff --git a/tests/run-make/invalid-tmpdir-env-var/rmake.rs b/tests/run-make/invalid-tmpdir-no-ice/rmake.rs
similarity index 71%
rename from tests/run-make/invalid-tmpdir-env-var/rmake.rs
rename to tests/run-make/invalid-tmpdir-no-ice/rmake.rs
index c5b9dca33a940..bbfec6cca83a9 100644
--- a/tests/run-make/invalid-tmpdir-env-var/rmake.rs
+++ b/tests/run-make/invalid-tmpdir-no-ice/rmake.rs
@@ -1,9 +1,7 @@
 //@ needs-target-std
 //
 // When the TMP (on Windows) or TMPDIR (on Unix) variable is set to an invalid
-// or non-existing directory, this used to cause an internal compiler error (ICE). After the
-// addition of proper error handling in #28430, this test checks that the expected message is
-// printed.
+// or non-existing directory, this used to cause an internal compiler error (ICE).
 // See https://github.com/rust-lang/rust/issues/14698
 
 use run_make_support::{is_windows, rustc};
@@ -18,5 +16,9 @@ fn main() {
     } else {
         rustc.env("TMPDIR", "fake");
     }
-    rustc.input("foo.rs").run_fail().assert_stderr_contains("couldn't create a temp dir");
+    let result = rustc.input("foo.rs").run_unchecked();
+    // Ensure that rustc doesn't ICE.
+    if !result.status().success() {
+        result.assert_stderr_not_contains("internal compiler error");
+    }
 }