diff --git a/README.md b/README.md
index ca74056..8148971 100644
--- a/README.md
+++ b/README.md
@@ -246,6 +246,16 @@ and environment variables.
 can also set `PLAYCANVAS_USE_CWD_AS_TARGET` to `1` in `.pcconfig` to use
 your current working directory as your target.
 
+For some workflows, it may be necessary to
+keep the `pcconfig.json` file at the top level
+in the target directory, but treat one of its subdirectories as
+the root of the local file hierarchy. In such cases 
+`PLAYCANVAS_TARGET_SUBDIR` needs to be provided, e.g.
+
+```
+"PLAYCANVAS_TARGET_SUBDIR": "src"
+```
+
 Backslash characters should be written as `\\` (escaped).
 
 # Files and Folders to Exclude
diff --git a/src/utils/common-utils.js b/src/utils/common-utils.js
index a21872b..72e2f8f 100644
--- a/src/utils/common-utils.js
+++ b/src/utils/common-utils.js
@@ -271,6 +271,19 @@ const CUtils = {
 
     waitMs: function (ms) {
         return new Promise(resolve => setTimeout(resolve, ms));
+    },
+
+    checkTargetExists: async function(fullPath) {
+        const stat = await PathUtils.fsWrap('stat', fullPath);
+
+        const good = stat && stat.isDirectory;
+
+        if (!good) {
+            const s = `Error: could not find target directory: ${fullPath}. ` +
+                'Check capitalization.';
+
+            CUtils.throwFtError(s);
+        }
     }
 };
 
diff --git a/src/utils/config-vars.js b/src/utils/config-vars.js
index bd72d42..f246073 100644
--- a/src/utils/config-vars.js
+++ b/src/utils/config-vars.js
@@ -18,6 +18,7 @@ const requiredFields = [
 
 const optionalFields = [
     'PLAYCANVAS_USE_CWD_AS_TARGET',
+    'PLAYCANVAS_TARGET_SUBDIR',
     'PLAYCANVAS_INCLUDE_REG',
     'PLAYCANVAS_FORCE_REG',
     'PLAYCANVAS_DRY_RUN',
@@ -67,6 +68,8 @@ class ConfigVars {
 
         this.fromConfigFile(this.result.PLAYCANVAS_TARGET_DIR, TARGET_CONFIG_FILE);
 
+        await this.addSubdirToTarget();
+
         this.fromDefaults();
 
         requiredFields.forEach(this.checkRequired, this);
@@ -93,14 +96,9 @@ class ConfigVars {
             CUtils.throwFtError('Error: do not use the playcanvas-sync directory as target');
         }
 
-        const stat = await PathUtils.fsWrap('stat', s);
-
-        if (stat && stat.isDirectory) {
-            this.result.PLAYCANVAS_TARGET_DIR = s;
+        await CUtils.checkTargetExists(s);
 
-        } else {
-            CUtils.throwFtError(`Error: could not find target directory: ${s}. Check capitalization.`);
-        }
+        this.result.PLAYCANVAS_TARGET_DIR = s;
     }
 
     fromEnvOrMap(h) {
@@ -121,6 +119,21 @@ class ConfigVars {
         }
     }
 
+    async addSubdirToTarget() {
+        let s = this.result.PLAYCANVAS_TARGET_SUBDIR;
+
+        if (s) {
+            s = PathUtils.rmLastSlash(s);
+
+            this.result.PLAYCANVAS_TARGET_DIR = path.join(
+                this.result.PLAYCANVAS_TARGET_DIR,
+                s
+            );
+
+            await CUtils.checkTargetExists(this.result.PLAYCANVAS_TARGET_DIR);
+        }
+    }
+
     makeReg(field) {
         const v = this.result[field];