diff --git a/src/build_interpret.ml b/src/build_interpret.ml
index 918fb82f..9bfff82e 100644
--- a/src/build_interpret.ml
+++ b/src/build_interpret.ml
@@ -206,7 +206,10 @@ module Rule = struct
     let dir =
       match targets with
       | [] ->
-        invalid_arg "Build_interpret.Rule.make: rule has no targets"
+        begin match loc with
+        | Some loc -> Loc.fail loc "Rule has no targets specified"
+        | None -> Exn.code_error "Build_interpret.Rule.make: no targets" []
+        end
       | x :: l ->
         let dir = Path.parent_exn (Target.path x) in
         List.iter l ~f:(fun target ->
diff --git a/test/blackbox-tests/dune.inc b/test/blackbox-tests/dune.inc
index 6863fa98..b69dbdb1 100644
--- a/test/blackbox-tests/dune.inc
+++ b/test/blackbox-tests/dune.inc
@@ -227,6 +227,14 @@
      (run ${exe:cram.exe} -skip-platforms win -test run.t)
      (diff? run.t run.t.corrected))))))
 
+(alias
+ ((name github784)
+  (deps ((package dune) (files_recursively_in test-cases/github784)))
+  (action
+   (chdir
+    test-cases/github784
+    (progn (run ${exe:cram.exe} -test run.t) (diff? run.t run.t.corrected))))))
+
 (alias
  ((name ignored_subdirs)
   (deps ((package dune) (files_recursively_in test-cases/ignored_subdirs)))
@@ -522,6 +530,7 @@
     (alias github759)
     (alias github761)
     (alias github764)
+    (alias github784)
     (alias ignored_subdirs)
     (alias include-loop)
     (alias inline_tests)
@@ -579,6 +588,7 @@
     (alias github759)
     (alias github761)
     (alias github764)
+    (alias github784)
     (alias ignored_subdirs)
     (alias include-loop)
     (alias inline_tests)
diff --git a/test/blackbox-tests/test-cases/github784/dune b/test/blackbox-tests/test-cases/github784/dune
new file mode 100644
index 00000000..f5bc3213
--- /dev/null
+++ b/test/blackbox-tests/test-cases/github784/dune
@@ -0,0 +1 @@
+(rule (run ${bin:echo} foo))
\ No newline at end of file
diff --git a/test/blackbox-tests/test-cases/github784/run.t b/test/blackbox-tests/test-cases/github784/run.t
new file mode 100644
index 00000000..f9e12171
--- /dev/null
+++ b/test/blackbox-tests/test-cases/github784/run.t
@@ -0,0 +1,4 @@
+  $ dune build
+  File "dune", line 1, characters 0-28:
+  Error: Rule has no targets specified
+  [1]