diff --git a/mesonbuild/interpreter.py b/mesonbuild/interpreter.py
index 454ee66cb..39d596ff3 100644
--- a/mesonbuild/interpreter.py
+++ b/mesonbuild/interpreter.py
@@ -2344,6 +2344,10 @@ class Interpreter(InterpreterBase):
         output = kwargs['output']
         if not isinstance(output, str):
             raise InterpreterException('Output file name must be a string')
+        if ifile_abs:
+            values = mesonlib.get_filenames_templates_dict([ifile_abs], None)
+            outputs = mesonlib.substitute_values([output], values)
+            output = outputs[0]
         if os.path.split(output)[0] != '':
             raise InterpreterException('Output file name must not contain a subdirectory.')
         (ofile_path, ofile_fname) = os.path.split(os.path.join(self.subdir, output))
diff --git a/test cases/common/16 configure file/config4a.h.in b/test cases/common/16 configure file/config4a.h.in
new file mode 100644
index 000000000..aafd195c2
--- /dev/null
+++ b/test cases/common/16 configure file/config4a.h.in	
@@ -0,0 +1,2 @@
+/* Dummy file */
+#define RESULTA @ZERO@
diff --git a/test cases/common/16 configure file/config4b.h.in b/test cases/common/16 configure file/config4b.h.in
new file mode 100644
index 000000000..3408bab6f
--- /dev/null
+++ b/test cases/common/16 configure file/config4b.h.in	
@@ -0,0 +1,2 @@
+/* Dummy file */
+#define RESULTB @ZERO@
diff --git a/test cases/common/16 configure file/meson.build b/test cases/common/16 configure file/meson.build
index 8ffc28cc3..0d0e46107 100644
--- a/test cases/common/16 configure file/meson.build	
+++ b/test cases/common/16 configure file/meson.build	
@@ -74,3 +74,15 @@ configure_file(output : 'config3.h',
   configuration : dump)
 
 test('Configless.', executable('dumpprog', 'dumpprog.c'))
+
+
+# Config file generation in a loop with @BASENAME@ substitution
+dump = configuration_data()
+dump.set('ZERO', 0)
+config_templates = files(['config4a.h.in', 'config4b.h.in'])
+foreach config_template : config_templates
+  configure_file(input : config_template, output : '@BASENAME@',
+                 configuration : dump)
+endforeach
+
+test('Substituted', executable('prog4', 'prog4.c'))
diff --git a/test cases/common/16 configure file/prog4.c b/test cases/common/16 configure file/prog4.c
new file mode 100644
index 000000000..92dc7cbb6
--- /dev/null
+++ b/test cases/common/16 configure file/prog4.c	
@@ -0,0 +1,6 @@
+#include <config4a.h>
+#include <config4b.h>
+
+int main(int argc, char **argv) {
+    return RESULTA + RESULTB;
+}