diff --git a/src/Composer/Installer/LibraryInstaller.php b/src/Composer/Installer/LibraryInstaller.php
index 6b224fba7..f8b1313e9 100644
--- a/src/Composer/Installer/LibraryInstaller.php
+++ b/src/Composer/Installer/LibraryInstaller.php
@@ -108,7 +108,7 @@ class LibraryInstaller implements InstallerInterface
      */
     public function install(PackageInterface $package)
     {
-        $type = $this->dm->download($package, $this->dir);
+        $type = $this->dm->download($package, $this->dir.'/'.$package->getName());
         $this->registry->registerPackage($package, $type);
     }
 
@@ -127,7 +127,7 @@ class LibraryInstaller implements InstallerInterface
         }
 
         $type = $this->registry->getRegisteredPackageInstallerType($initial);
-        $this->dm->update($initial, $target, $this->dir, $type);
+        $this->dm->update($initial, $target, $this->dir.'/'.$initial->getName(), $type);
         $this->registry->unregisterPackage($initial);
         $this->registry->registerPackage($target, $type);
     }
@@ -146,7 +146,7 @@ class LibraryInstaller implements InstallerInterface
         }
 
         $type = $this->registry->getRegisteredPackageInstallerType($package);
-        $this->dm->remove($package, $this->dir, $type);
+        $this->dm->remove($package, $this->dir.'/'.$package->getName(), $type);
         $this->registry->unregisterPackage($package);
     }
 }
diff --git a/tests/Composer/Test/Installer/LibraryInstallerTest.php b/tests/Composer/Test/Installer/LibraryInstallerTest.php
index 61ffc8d41..93f3414f8 100644
--- a/tests/Composer/Test/Installer/LibraryInstallerTest.php
+++ b/tests/Composer/Test/Installer/LibraryInstallerTest.php
@@ -110,10 +110,15 @@ class LibraryInstallerTest extends \PHPUnit_Framework_TestCase
         $library = new LibraryInstaller($this->dir, $this->dm, $this->registry);
         $package = $this->createPackageMock();
 
+        $package
+            ->expects($this->once())
+            ->method('getName')
+            ->will($this->returnValue('some/package'));
+
         $this->dm
             ->expects($this->once())
             ->method('download')
-            ->with($package, $this->dir)
+            ->with($package, $this->dir.'/some/package')
             ->will($this->returnValue('source'));
 
         $this->registry
@@ -130,6 +135,11 @@ class LibraryInstallerTest extends \PHPUnit_Framework_TestCase
         $initial = $this->createPackageMock();
         $target  = $this->createPackageMock();
 
+        $initial
+            ->expects($this->once())
+            ->method('getName')
+            ->will($this->returnValue('package1'));
+
         $this->registry
             ->expects($this->exactly(2))
             ->method('isPackageRegistered')
@@ -145,7 +155,7 @@ class LibraryInstallerTest extends \PHPUnit_Framework_TestCase
         $this->dm
             ->expects($this->once())
             ->method('update')
-            ->with($initial, $target, $this->dir, 'dist');
+            ->with($initial, $target, $this->dir.'/package1', 'dist');
 
         $this->registry
             ->expects($this->once())
@@ -169,6 +179,11 @@ class LibraryInstallerTest extends \PHPUnit_Framework_TestCase
         $library = new LibraryInstaller($this->dir, $this->dm, $this->registry);
         $package = $this->createPackageMock();
 
+        $package
+            ->expects($this->once())
+            ->method('getName')
+            ->will($this->returnValue('pkg'));
+
         $this->registry
             ->expects($this->exactly(2))
             ->method('isPackageRegistered')
@@ -184,7 +199,7 @@ class LibraryInstallerTest extends \PHPUnit_Framework_TestCase
         $this->dm
             ->expects($this->once())
             ->method('remove')
-            ->with($package, $this->dir, 'source');
+            ->with($package, $this->dir.'/pkg', 'source');
 
         $this->registry
             ->expects($this->once())