diff --git a/lib/builder/generator.js b/lib/builder/generator.js
index e7c022531a..b3ee98e1b7 100644
--- a/lib/builder/generator.js
+++ b/lib/builder/generator.js
@@ -15,7 +15,7 @@ export default class Generator {
     // Set variables
     this.staticRoutes = path.resolve(this.options.srcDir, this.options.dir.static)
     this.srcBuiltPath = path.resolve(this.options.buildDir, 'dist', 'client')
-    this.distPath = path.resolve(this.options.rootDir, this.options.generate.dir)
+    this.distPath = this.options.generate.dir
     this.distNuxtPath = path.join(
       this.distPath,
       isUrl(this.options.build.publicPath) ? '' : this.options.build.publicPath
diff --git a/lib/common/options.js b/lib/common/options.js
index a7c5a039b1..86749abad5 100644
--- a/lib/common/options.js
+++ b/lib/common/options.js
@@ -3,11 +3,14 @@ import fs from 'fs'
 
 import _ from 'lodash'
 import consola from 'consola'
-import { isPureObject, isUrl } from '../common/utils'
+import { isPureObject, isUrl, guardDir } from '../common/utils'
 
 import modes from './modes'
 import defaults from './nuxt.config'
 
+// hasValue utility
+const hasValue = v => typeof v === 'string' && v
+
 const Options = {}
 
 export default Options
@@ -40,8 +43,8 @@ Options.from = function (_options) {
     options.extensions = [options.extensions]
   }
 
-  const hasValue = v => typeof v === 'string' && v
-  options.rootDir = hasValue(options.rootDir) ? options.rootDir : process.cwd()
+  // Resolve rootDir
+  options.rootDir = hasValue(options.rootDir) ? path.resolve(options.rootDir) : process.cwd()
 
   // Apply defaults by ${buildDir}/dist/build.config.js
   // TODO: Unsafe operation.
@@ -54,12 +57,39 @@ Options.from = function (_options) {
   // Apply defaults
   _.defaultsDeep(options, defaults)
 
-  // Resolve dirs
-  options.srcDir = hasValue(options.srcDir)
+  // Check srcDir and generate.dir excistence
+  const hasSrcDir = hasValue(options.srcDir)
+  const hasGenerateDir = hasValue(options.generate.dir)
+
+  // Resolve srcDir
+  options.srcDir = hasSrcDir
     ? path.resolve(options.rootDir, options.srcDir)
     : options.rootDir
+
+  // Resolve buildDir
   options.buildDir = path.resolve(options.rootDir, options.buildDir)
 
+  // Protect rootDir against buildDir
+  guardDir(options, 'rootDir', 'buildDir')
+
+  if (hasGenerateDir) {
+    // Resolve generate.dir
+    options.generate.dir = path.resolve(options.rootDir, options.generate.dir)
+
+    // Protect rootDir against buildDir
+    guardDir(options, 'rootDir', 'generate.dir')
+  }
+
+  if (hasSrcDir) {
+    // Protect srcDir against buildDir
+    guardDir(options, 'srcDir', 'buildDir')
+
+    if (hasGenerateDir) {
+      // Protect srcDir against generate.dir
+      guardDir(options, 'srcDir', 'generate.dir')
+    }
+  }
+
   // Populate modulesDir
   options.modulesDir = []
     .concat(options.modulesDir)
diff --git a/lib/common/utils.js b/lib/common/utils.js
index 2b553501b7..023677c5ee 100644
--- a/lib/common/utils.js
+++ b/lib/common/utils.js
@@ -1,5 +1,6 @@
 import path from 'path'
 import _ from 'lodash'
+import consola from 'consola'
 
 export const encodeHtml = function encodeHtml(str) {
   return str.replace(/</g, '&lt;').replace(/>/g, '&gt;')
@@ -326,3 +327,25 @@ export const createRoutes = function createRoutes(files, srcDir, pagesDir) {
   })
   return cleanChildrenRoutes(routes)
 }
+
+// Guard dir1 from dir2 which can be indiscriminately removed
+export const guardDir = function guardDir(options, key1, key2) {
+  const dir1 = _.get(options, key1, false)
+  const dir2 = _.get(options, key2, false)
+
+  if (
+    dir1 &&
+    dir2 &&
+    (
+      dir1 === dir2 ||
+      (
+        dir1.startsWith(dir2) &&
+        !path.basename(dir1).startsWith(path.basename(dir2))
+      )
+    )
+  ) {
+    const errorMessage = `options.${key2} cannot be a parent of or same as ${key1}`
+    consola.fatal(errorMessage)
+    throw new Error(errorMessage)
+  }
+}
diff --git a/test/unit/basic.fail.generate.test.js b/test/unit/basic.fail.generate.test.js
index e109bf5d98..fa3b12b200 100644
--- a/test/unit/basic.fail.generate.test.js
+++ b/test/unit/basic.fail.generate.test.js
@@ -17,4 +17,14 @@ describe('basic fail generate', () => {
       expect(e.message).toBe('Not today!')
     })
   })
+
+  test('Fail when generate.dir equals rootDir', async () => {
+    const options = await loadFixture('basic', {
+      generate: { dir: '../basic' }
+    })
+
+    expect(() => {
+      new Nuxt(options) /* eslint-disable-line no-new */
+    }).toThrow(/options.generate.dir cannot be/)
+  })
 })
diff --git a/test/unit/utils.test.js b/test/unit/utils.test.js
index a3b2c63375..197c4ac9fe 100644
--- a/test/unit/utils.test.js
+++ b/test/unit/utils.test.js
@@ -236,6 +236,53 @@ describe('utils', () => {
         .toBe(Utils.wp(`loader1!loader2!..${path.sep}baz`))
     })
   })
+
+  describe('guardDir', () => {
+    test('Parent dir is guarded', () => {
+      expect(() => {
+        Utils.guardDir({
+          dir1: '/root/parent',
+          dir2: '/root'
+        }, 'dir1', 'dir2')
+      }).toThrow()
+    })
+
+    test('Same dir is guarded', () => {
+      expect(() => {
+        Utils.guardDir({
+          dir1: '/root/parent',
+          dir2: '/root/parent'
+        }, 'dir1', 'dir2')
+      }).toThrow()
+    })
+
+    test('Same level dir is not guarded', () => {
+      expect(() => {
+        Utils.guardDir({
+          dir1: '/root/parent-next',
+          dir2: '/root/parent'
+        }, 'dir1', 'dir2')
+      }).not.toThrow()
+    })
+
+    test('Same level dir is not guarded 2', () => {
+      expect(() => {
+        Utils.guardDir({
+          dir1: '/root/parent',
+          dir2: '/root/parent-next'
+        }, 'dir1', 'dir2')
+      }).not.toThrow()
+    })
+
+    test('Child dir is not guarded', () => {
+      expect(() => {
+        Utils.guardDir({
+          dir1: '/root/parent',
+          dir2: '/root/parent/child'
+        }, 'dir1', 'dir2')
+      }).not.toThrow()
+    })
+  })
 })
 
 test('createRoutes should allow snake case routes', () => {