diff --git a/src/modules/EnvironmentVariables/EnvironmentVariablesUILib/EnvironmentVariablesUILib.csproj b/src/modules/EnvironmentVariables/EnvironmentVariablesUILib/EnvironmentVariablesUILib.csproj
index 187f3835293e..24820b7d8305 100644
--- a/src/modules/EnvironmentVariables/EnvironmentVariablesUILib/EnvironmentVariablesUILib.csproj
+++ b/src/modules/EnvironmentVariables/EnvironmentVariablesUILib/EnvironmentVariablesUILib.csproj
@@ -15,6 +15,8 @@
     <ProjectPriFileName>PowerToys.EnvironmentVariablesUILib.pri</ProjectPriFileName>
     <GenerateLibraryLayout>true</GenerateLibraryLayout>
     <IsPackable>true</IsPackable>
+    <!-- The default generated file path exceeds the length limit 260 on the build agent. Using a shorter path as a workaround. -->
+    <CompilerGeneratedFilesOutputPath>$(ProjectDir)obj\g</CompilerGeneratedFilesOutputPath>
   </PropertyGroup>
 
   <PropertyGroup>
@@ -53,4 +55,8 @@
     <PackageReference Include="System.Text.Json" />
     <Manifest Include="$(ApplicationManifest)" />
   </ItemGroup>
+
+  <Target Name="EnsureCompilerGeneratedFilesOutputPathExists" BeforeTargets="XamlPreCompile">
+    <MakeDir Directories="$(CompilerGeneratedFilesOutputPath)" />
+  </Target>
 </Project>