diff --git a/bin/templates/cordova/lib/pluginHandlers.js b/bin/templates/cordova/lib/pluginHandlers.js
index 25890ba2..6d1a7336 100644
--- a/bin/templates/cordova/lib/pluginHandlers.js
+++ b/bin/templates/cordova/lib/pluginHandlers.js
@@ -294,27 +294,41 @@ function generateAttributeError (attribute, element, id) {
 
 function getInstallDestination (obj) {
     var APP_MAIN_PREFIX = 'app/src/main';
+    var PATH_SEPARATOR = '/';
 
-    if (obj.targetDir.startsWith('app')) {
+    var PATH_SEP_MATCH = '\\' + PATH_SEPARATOR;
+    var PATH_SEP_OR_EOL_MATCH = '(\\' + PATH_SEPARATOR + '|$)';
+
+    var appReg = new RegExp('^app' + PATH_SEP_OR_EOL_MATCH);
+    var libsReg = new RegExp('^libs' + PATH_SEP_OR_EOL_MATCH);
+    var srcReg = new RegExp('^src' + PATH_SEP_OR_EOL_MATCH);
+    var srcMainReg = new RegExp('^src' + PATH_SEP_MATCH + 'main' + PATH_SEP_OR_EOL_MATCH);
+
+    if (appReg.test(obj.targetDir)) {
         // If any source file is using the new app directory structure,
         // don't penalize it
         return path.join(obj.targetDir, path.basename(obj.src));
-    } else if (obj.src.endsWith('.java')) {
-        return path.join(APP_MAIN_PREFIX, 'java', obj.targetDir.substring(4), path.basename(obj.src));
-    } else if (obj.src.endsWith('.aidl')) {
-        return path.join(APP_MAIN_PREFIX, 'aidl', obj.targetDir.substring(4), path.basename(obj.src));
-    } else if (obj.targetDir.includes('libs')) {
-        if (obj.src.endsWith('.so')) {
-            return path.join(APP_MAIN_PREFIX, 'jniLibs', obj.targetDir.substring(5), path.basename(obj.src));
-        } else {
+    } else {
+        // Plugin using deprecated target directory structure (GH-580)
+        if (obj.src.endsWith('.java')) {
+            return path.join(APP_MAIN_PREFIX, 'java', obj.targetDir.replace(srcReg, ''),
+                path.basename(obj.src));
+        } else if (obj.src.endsWith('.aidl')) {
+            return path.join(APP_MAIN_PREFIX, 'aidl', obj.targetDir.replace(srcReg, ''),
+                path.basename(obj.src));
+        } else if (libsReg.test(obj.targetDir)) {
+            if (obj.src.endsWith('.so')) {
+                return path.join(APP_MAIN_PREFIX, 'jniLibs', obj.targetDir.replace(libsReg, ''),
+                    path.basename(obj.src));
+            } else {
+                return path.join('app', obj.targetDir, path.basename(obj.src));
+            }
+        } else if (srcMainReg.test(obj.targetDir)) {
             return path.join('app', obj.targetDir, path.basename(obj.src));
         }
-    } else if (obj.targetDir.includes('src/main')) {
-        return path.join('app', obj.targetDir, path.basename(obj.src));
-    } else {
+
         // For all other source files not using the new app directory structure,
         // add 'app/src/main' to the targetDir
         return path.join(APP_MAIN_PREFIX, obj.targetDir, path.basename(obj.src));
     }
-
 }
diff --git a/spec/fixtures/org.test.plugins.dummyplugin/plugin.xml b/spec/fixtures/org.test.plugins.dummyplugin/plugin.xml
index 9bc99d21..f7a82ba5 100644
--- a/spec/fixtures/org.test.plugins.dummyplugin/plugin.xml
+++ b/spec/fixtures/org.test.plugins.dummyplugin/plugin.xml
@@ -84,6 +84,8 @@
 	<source-file src="src/android/jniLibs/x86/libnative.so" target-dir="libs/x86" />
         <source-file src="src/android/DummyPlugin2.java"
                 target-dir="src/com/appco" />
+        <source-file src="src/android/DummyPlugin2.java"
+                target-dir="appco/src" />
         <lib-file src="src/android/TestLib.jar" />
     </platform>
 </plugin>
diff --git a/spec/unit/pluginHandlers/handlers.spec.js b/spec/unit/pluginHandlers/handlers.spec.js
index 31e7b453..a44b8cf0 100644
--- a/spec/unit/pluginHandlers/handlers.spec.js
+++ b/spec/unit/pluginHandlers/handlers.spec.js
@@ -169,6 +169,12 @@ describe('android project handler', function () {
                 expect(copyFileSpy)
                     .toHaveBeenCalledWith(dummyplugin, 'src/android/DummyPlugin2.java', temp, path.join('app/src/main/java/com/appco/DummyPlugin2.java'), false);
             });
+
+            it('Test#006k : should allow installing sources with target-dir that includes "app" in its first directory', function () {
+                android['source-file'].install(valid_source[11], dummyPluginInfo, dummyProject, {android_studio: true});
+                expect(copyFileSpy)
+                    .toHaveBeenCalledWith(dummyplugin, 'src/android/DummyPlugin2.java', temp, path.join('app/src/main/java/appco/src/DummyPlugin2.java'), false);
+            });
         });
 
         describe('of <framework> elements', function () {