diff --git a/Arduino.mk b/Arduino.mk
index ba16697..43e1bb8 100644
--- a/Arduino.mk
+++ b/Arduino.mk
@@ -266,7 +266,9 @@ endif
 # Default TARGET to pwd (ex Daniele Vergini)
 
 ifndef TARGET
-    TARGET  = $(notdir $(CURDIR))
+    space :=
+    space +=
+    TARGET = $(notdir $(subst $(space),_,$(CURDIR)))
 endif
 
 ########################################################################
diff --git a/HISTORY.md b/HISTORY.md
index c97add8..2c98b35 100644
--- a/HISTORY.md
+++ b/HISTORY.md
@@ -17,6 +17,7 @@ I tried to give credit whenever possible. If I have missed anyone, kindly add it
 - Tweak: Added some more Continuous Integration tests (https://github.com/sej7278)
 - Tweak: Updated Fedora instructions (https://github.com/sej7278)
 - Fix: Preserve original extension for object files, support asm sources in core, fixes pulseInASM (Issue #255, #364) (https://github.com/sej7278)
+- Fix: Make sure TARGET is set correctly when CURDIR contains spaces.
 
 ### 1.5 (2015-04-07)
 - New: Add support for new 1.5.x library layout (Issue #275) (https://github.com/lukasz-e)