diff --git a/shake-ats.cabal b/shake-ats.cabal
--- a/shake-ats.cabal
+++ b/shake-ats.cabal
@@ -1,5 +1,5 @@
 name:                shake-ats
-version:             1.0.0.0
+version:             1.0.0.1
 synopsis:            Utilities for building ATS projects with shake
 description:         Various helper functions for building [ATS](http://www.ats-lang.org/) with the [shake](http://shakebuild.com/) library
 homepage:            https://github.com/vmchale/shake-ats#readme
@@ -24,7 +24,7 @@
   exposed-modules:     Development.Shake.ATS
   build-depends:       base >= 4.7 && < 5
                      , language-ats
-                     , shake-ext >= 2.0.0.0
+                     , shake-ext >= 2.1.0.0
                      , hs2ats >= 0.2.0.1
                      , directory
                      , text
diff --git a/src/Development/Shake/ATS.hs b/src/Development/Shake/ATS.hs
--- a/src/Development/Shake/ATS.hs
+++ b/src/Development/Shake/ATS.hs
@@ -39,8 +39,8 @@
 import           System.Directory           (copyFile, createDirectoryIfMissing, doesDirectoryExist, listDirectory)
 import           System.Exit                (ExitCode (ExitSuccess))
 
-data ForeignCabal = ForeignCabal { cabalFile  :: TL.Text
-                                 , objectFile :: TL.Text
+data ForeignCabal = ForeignCabal { cabalFile  :: TL.Text -- ^ @.cabal@ file associated with the library
+                                 , objectFile :: TL.Text -- ^ Object file to be generated
                                  }
 
 getSubdirs :: FilePath -> IO [FilePath]
@@ -48,7 +48,10 @@
     ds <- listDirectory p
     case ds of
         [] -> pure []
-        xs -> filterM doesDirectoryExist (((p <> "/") <>) <$> xs)
+        xs -> do
+            ds' <- filterM doesDirectoryExist (((p <> "/") <>) <$> xs)
+            ss <- mapM getSubdirs ds'
+            pure $ ds' <> join ss
 
 newtype Version = Version [Integer]
     deriving (Eq, Generic, Binary)
@@ -72,16 +75,18 @@
 
     let cf = TL.unpack cf'
         obf = TL.unpack obf'
+        obfDir = takeDirectory (obf -<.> "hs")
 
     trDeps <- liftIO $ getCabalDeps cf
     obf %> \out -> do
 
-        need (cf : trDeps)
-        cmd_ ["cabal", "new-build"]
+        need (cf : fmap ((obfDir <> "/") <>) trDeps)
+        command_ [Cwd obfDir] "cabal" ["new-build"]
 
-        let subdir = takeDirectory cf
-        dir <- filter (== "build") <$> liftIO (getSubdirs $ subdir ++ "dist-newstyle/build")
-        let obj = head dir ++ "/" ++ obf
+        let subdir = takeDirectory cf ++ "/"
+            endsBuild = (== "build") . last . splitPath
+        dir <- filter endsBuild <$> liftIO (getSubdirs $ subdir ++ "dist-newstyle/build")
+        let obj = head dir ++ "/" ++ (takeFileName obf)
         liftIO $ copyFile obj out
 
         let hdr = dropExtension obj ++ "_stub.h"
@@ -138,7 +143,7 @@
        -> Bool -- ^ Whether to use the garbage collector
        -> [String] -- ^ A list of libraries against which to link
        -> String -- ^ Source file
-       -> [ForeignCabal] -- ^ Cabal-generated Haskell libraries
+       -> [ForeignCabal] -- ^ Cabal-based Haskell libraries
        -> [(String, String)] -- ^ Files to be run through @hs2ats@.
        -> String -- ^ Binary target
        -> Rules ()