diff --git a/easybuild/framework/extensioneasyblock.py b/easybuild/framework/extensioneasyblock.py
index 69c824fe7e..efd7c349f7 100644
--- a/easybuild/framework/extensioneasyblock.py
+++ b/easybuild/framework/extensioneasyblock.py
@@ -126,10 +126,12 @@ def _set_start_dir(self):
         elif ext_start_dir is None:
             # This may be on purpose, e.g. for Python WHL files which do not get extracted
             self.log.debug("Start dir is not set.")
-        else:
+        elif self.start_dir:
             # non-existing start dir means wrong input from user
-            warn_msg = "Provided start dir (%s) for extension %s does not exist: %s" % (self.start_dir, self.name,
-                                                                                        ext_start_dir)
+            raise EasyBuildError("Provided start dir (%s) for extension %s does not exist: %s",
+                                 self.start_dir, self.name, ext_start_dir)
+        else:
+            warn_msg = 'Failed to determine start dir for extension %s: %s' % (self.name, ext_start_dir)
             self.log.warning(warn_msg)
             print_warning(warn_msg, silent=build_option('silent'))
 
@@ -137,7 +139,10 @@ def run(self, unpack_src=False):
         """Common operations for extensions: unpacking sources, patching, ..."""
 
         # unpack file if desired
-        if unpack_src:
+        if self.options.get('nosource', False):
+            # If no source wanted use the start_dir from the main EC
+            self.ext_dir = self.master.start_dir
+        elif unpack_src:
             targetdir = os.path.join(self.master.builddir, remove_unwanted_chars(self.name))
             self.ext_dir = extract_file(self.src, targetdir, extra_options=self.unpack_options,
                                         change_into_dir=False, cmd=self.src_extract_cmd)
@@ -146,10 +151,9 @@ def run(self, unpack_src=False):
             # because start_dir value is usually a relative path (if it is set)
             change_dir(self.ext_dir)
 
-            self._set_start_dir()
+        self._set_start_dir()
+        if self.start_dir:
             change_dir(self.start_dir)
-        else:
-            self._set_start_dir()
 
         # patch if needed
         EasyBlock.patch_step(self, beginpath=self.ext_dir)
diff --git a/test/framework/easyblock.py b/test/framework/easyblock.py
index e6b54e0bc8..7ab5674b97 100644
--- a/test/framework/easyblock.py
+++ b/test/framework/easyblock.py
@@ -2200,11 +2200,16 @@ def test_extension_set_start_dir(self):
         cwd = os.getcwd()
         self.assertExists(cwd)
 
-        def check_ext_start_dir(expected_start_dir, unpack_src=True):
+        def check_ext_start_dir(expected_start_dir, unpack_src=True, parent_startdir=None):
             """Check start dir."""
             # make sure we're in an existing directory at the start
             change_dir(cwd)
+
             eb = EasyBlock(ec['ec'])
+            if not os.path.exists(eb.builddir):
+                eb.make_builddir()  # Required to exist for samefile
+            eb.cfg['start_dir'] = parent_startdir
+
             eb.extensions_step(fetch=True, install=False)
             # extract sources of the extension
             ext = eb.ext_instances[-1]
@@ -2212,6 +2217,8 @@ def check_ext_start_dir(expected_start_dir, unpack_src=True):
 
             if expected_start_dir is None:
                 self.assertIsNone(ext.start_dir)
+                # Without a start dir we don't change the CWD
+                self.assertEqual(os.getcwd(), cwd)
             else:
                 self.assertTrue(os.path.isabs(ext.start_dir))
                 if ext.start_dir != os.sep:
@@ -2221,14 +2228,8 @@ def check_ext_start_dir(expected_start_dir, unpack_src=True):
                 else:
                     abs_expected_start_dir = os.path.join(eb.builddir, expected_start_dir)
                 self.assertEqual(ext.start_dir, abs_expected_start_dir)
-                if not os.path.exists(eb.builddir):
-                    eb.make_builddir()  # Required to exist for samefile
                 self.assertTrue(os.path.samefile(ext.start_dir, abs_expected_start_dir))
-            if unpack_src:
                 self.assertTrue(os.path.samefile(os.getcwd(), abs_expected_start_dir))
-            else:
-                # When not unpacking we don't change the CWD
-                self.assertEqual(os.getcwd(), cwd)
             remove_dir(eb.builddir)
 
         ec['ec']['exts_defaultclass'] = 'DummyExtension'
@@ -2257,11 +2258,8 @@ def check_ext_start_dir(expected_start_dir, unpack_src=True):
                 'start_dir': 'nonexistingdir'}),
         ]
         with self.mocked_stdout_stderr():
-            err_pattern = "Failed to change from .*barbar/barbar-0.0 to nonexistingdir.*"
+            err_pattern = r"Provided start dir \(nonexistingdir\) for extension barbar does not exist:.*"
             self.assertErrorRegex(EasyBuildError, err_pattern, check_ext_start_dir, 'whatever')
-            stderr = self.get_stderr()
-        warning_pattern = "WARNING: Provided start dir (nonexistingdir) for extension barbar does not exist"
-        self.assertIn(warning_pattern, stderr)
 
         # No error when using relative path in non-extracted source for some reason
         ec['ec']['exts_list'] = [
@@ -2291,6 +2289,15 @@ def check_ext_start_dir(expected_start_dir, unpack_src=True):
             check_ext_start_dir(os.sep, unpack_src=False)
             self.assertFalse(self.get_stderr())
 
+        # Go to ECs start dir if nosource is used
+        ec['ec']['exts_list'] = [
+            ('barbar', '0.0', {
+                'nosource': True}),
+        ]
+        with self.mocked_stdout_stderr():
+            check_ext_start_dir(self.test_prefix, parent_startdir=self.test_prefix)
+            self.assertFalse(self.get_stderr())
+
     def test_prepare_step(self):
         """Test prepare step (setting up build environment)."""
         test_easyconfigs = os.path.join(os.path.abspath(os.path.dirname(__file__)), 'easyconfigs', 'test_ecs')