diff --git a/common/step_download.go b/common/step_download.go
index 3b0b84932..62d68a186 100644
--- a/common/step_download.go
+++ b/common/step_download.go
@@ -141,18 +141,20 @@ func (s *StepDownload) download(ctx context.Context, ui packer.Ui, source string
 		u.RawQuery = q.Encode()
 	}
 
+	// store file under sha1(hash) if set
+	// hash can sometimes be a checksum url
+	// otherwise, use sha1(source_url)
+	var shaSum [20]byte
+	if s.Checksum != "" {
+		shaSum = sha1.Sum([]byte(s.Checksum))
+	} else {
+		shaSum = sha1.Sum([]byte(u.String()))
+	}
+	shaSumString := hex.EncodeToString(shaSum[:])
+
 	targetPath := s.TargetPath
 	if targetPath == "" {
-		// store file under sha1(hash) if set
-		// hash can sometimes be a checksum url
-		// otherwise, use sha1(source_url)
-		var shaSum [20]byte
-		if s.Checksum != "" {
-			shaSum = sha1.Sum([]byte(s.Checksum))
-		} else {
-			shaSum = sha1.Sum([]byte(u.String()))
-		}
-		targetPath = hex.EncodeToString(shaSum[:])
+		targetPath = shaSumString
 		if s.Extension != "" {
 			targetPath += "." + s.Extension
 		}
@@ -160,6 +162,18 @@ func (s *StepDownload) download(ctx context.Context, ui packer.Ui, source string
 		if err != nil {
 			return "", fmt.Errorf("CachePath: %s", err)
 		}
+	} else if filepath.Ext(targetPath) == "" {
+		// When an absolute path is provided
+		// this adds the file to the targetPath
+		if !strings.HasSuffix(targetPath, "/") {
+			targetPath += "/"
+		}
+		targetPath += shaSumString
+		if s.Extension != "" {
+			targetPath += "." + s.Extension
+		} else {
+			targetPath += ".iso"
+		}
 	}
 
 	lockFile := targetPath + ".lock"
diff --git a/common/step_download_test.go b/common/step_download_test.go
index cffed33d8..a1cf1bb3a 100644
--- a/common/step_download_test.go
+++ b/common/step_download_test.go
@@ -1,9 +1,11 @@
 package common
 
 import (
+	"bytes"
 	"context"
 	"crypto/sha1"
 	"encoding/hex"
+	"github.com/hashicorp/packer/packer"
 	"io/ioutil"
 	"log"
 	"net/http"
@@ -244,6 +246,61 @@ func TestStepDownload_Run(t *testing.T) {
 	}
 }
 
+func TestStepDownload_download(t *testing.T) {
+	step := &StepDownload{
+		Checksum:     "f572d396fae9206628714fb2ce00f72e94f2258f",
+		ChecksumType: "sha1",
+		Description:  "ISO",
+		ResultKey:    "iso_path",
+		Url:          nil,
+	}
+	ui := &packer.BasicUi{
+		Reader: new(bytes.Buffer),
+		Writer: new(bytes.Buffer),
+	}
+
+	dir := createTempDir(t)
+	defer os.RemoveAll(dir)
+
+	defer os.Setenv("PACKER_CACHE_DIR", os.Getenv("PACKER_CACHE_DIR"))
+	os.Setenv("PACKER_CACHE_DIR", dir)
+
+	// Abs path with extension provided
+	step.TargetPath = "./packer"
+	step.Extension = "ova"
+	path, err := step.download(context.TODO(), ui, "./test-fixtures/root/basic.txt")
+	if err != nil {
+		t.Fatalf("Bad: non expected error %s", err.Error())
+	}
+	if filepath.Ext(path) != "." + step.Extension {
+		t.Fatalf("bad: path should contain extension %s but it was %s", step.Extension, filepath.Ext(path))
+	}
+	os.RemoveAll(step.TargetPath)
+
+	// Abs path with no extension provided
+	step.TargetPath = "./packer"
+	step.Extension = ""
+	path, err = step.download(context.TODO(), ui, "./test-fixtures/root/basic.txt")
+	if err != nil {
+		t.Fatalf("Bad: non expected error %s", err.Error())
+	}
+	if filepath.Ext(path) != ".iso" {
+		t.Fatalf("bad: path should contain extension %s but it was .iso", step.Extension)
+	}
+	os.RemoveAll(step.TargetPath)
+
+	// Path with file
+	step.TargetPath = "./packer/file.iso"
+	path, err = step.download(context.TODO(), ui, "./test-fixtures/root/basic.txt")
+	if err != nil {
+		t.Fatalf("Bad: non expected error %s", err.Error())
+	}
+	if path != "./packer/file.iso" {
+		t.Fatalf("bad: path should be ./packer/file.iso but it was %s", path)
+	}
+	os.RemoveAll(step.TargetPath)
+}
+
 func createTempDir(t *testing.T) string {
 	dir, err := tmp.Dir("pkr")
 	if err != nil {