diff --git a/tools/binman/control.py b/tools/binman/control.py
index 4b3ce23fb4..f4c1fd0156 100644
--- a/tools/binman/control.py
+++ b/tools/binman/control.py
@@ -577,9 +577,11 @@ def ProcessImage(image, update_fdt, write_map, get_contents=True,
     faked_list = []
     image.CheckFakedBlobs(faked_list)
     if faked_list:
-        tout.Warning("Image '%s:%s' has faked external blobs and is non-functional: %s" %
-                     (image.name, image.image_name,
-                      ' '.join([e.GetDefaultFilename() for e in faked_list])))
+        tout.Warning(
+            "Image '%s:%s' has faked external blobs and is non-functional: %s" %
+            (image.name, image.image_name,
+             ' '.join([os.path.basename(e.GetDefaultFilename())
+                       for e in faked_list])))
     return bool(missing_list) or bool(faked_list)
 
 
diff --git a/tools/binman/entry.py b/tools/binman/entry.py
index 54cc3726b9..bac90bbbcd 100644
--- a/tools/binman/entry.py
+++ b/tools/binman/entry.py
@@ -7,6 +7,7 @@
 from collections import namedtuple
 import importlib
 import os
+import pathlib
 import sys
 
 from dtoc import fdt_util
@@ -972,6 +973,25 @@ features to produce new behaviours.
         if self.missing:
             missing_list.append(self)
 
+    def check_fake_fname(self, fname):
+        """If the file is missing and the entry allows fake blobs, fake it
+
+        Sets self.faked to True if faked
+
+        Args:
+            fname (str): Filename to check
+
+        Returns:
+            fname (str): Filename of faked file
+        """
+        if self.allow_fake and not pathlib.Path(fname).is_file():
+            outfname = tools.GetOutputFilename(os.path.basename(fname))
+            with open(outfname, "wb") as out:
+                out.truncate(1024)
+            self.faked = True
+            return outfname
+        return fname
+
     def CheckFakedBlobs(self, faked_blobs_list):
         """Check if any entries in this section have faked external blobs
 
diff --git a/tools/binman/etype/blob.py b/tools/binman/etype/blob.py
index 65ebb2ecf4..59728f368e 100644
--- a/tools/binman/etype/blob.py
+++ b/tools/binman/etype/blob.py
@@ -5,8 +5,6 @@
 # Entry-type module for blobs, which are binary objects read from files
 #
 
-import pathlib
-
 from binman.entry import Entry
 from binman import state
 from dtoc import fdt_util
@@ -38,16 +36,12 @@ class Entry_blob(Entry):
         self._filename = fdt_util.GetString(self._node, 'filename', self.etype)
 
     def ObtainContents(self):
-        if self.allow_fake and not pathlib.Path(self._filename).is_file():
-            with open(self._filename, "wb") as out:
-                out.truncate(1024)
-            self.faked = True
-
         self._filename = self.GetDefaultFilename()
         self._pathname = tools.GetInputFilename(self._filename,
             self.external and self.section.GetAllowMissing())
         # Allow the file to be missing
         if not self._pathname:
+            self._pathname = self.check_fake_fname(self._filename)
             self.SetContents(b'')
             self.missing = True
             return True
diff --git a/tools/binman/ftest.py b/tools/binman/ftest.py
index a9d9160967..f4ff7b6583 100644
--- a/tools/binman/ftest.py
+++ b/tools/binman/ftest.py
@@ -4964,7 +4964,6 @@ fdt         fdtmap                Extract the devicetree blob from the fdtmap
         self.assertRegex(
             err,
             "Image '.*' has faked external blobs and is non-functional: .*")
-        os.remove('binman_faking_test_blob')
 
 
 if __name__ == "__main__":