diff --git a/setup.py b/setup.py
index 0022e7fe0bf3..5818641a6277 100644
--- a/setup.py
+++ b/setup.py
@@ -310,6 +310,11 @@ def run(self):
 class precompiled_build_ext(build_ext):
     """Disables extension building when using precompiled binaries."""
 
+    def finalize_options(self) -> None:
+        # use the project root as build_lib
+        super().finalize_options()
+        self.build_lib = str(ROOT_DIR)
+
     def run(self) -> None:
         assert _is_cuda(), "VLLM_USE_PRECOMPILED is only supported for CUDA builds"
 
@@ -640,6 +645,9 @@ def _read_requirements(filename: str) -> list[str]:
 if _build_custom_ops():
     ext_modules.append(CMakeExtension(name="vllm._C"))
 
+if envs.VLLM_USE_PRECOMPILED:
+    ext_modules = [ext for ext in ext_modules if ext.name != "vllm.triton_kernels"]
+
 package_data = {
     "vllm": [
         "py.typed",