diff --git a/Makefile.am b/Makefile.am
index 99cabb1..fc8f1bb 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -9,7 +9,7 @@
 endif
 
 systemdsystemunit_DATA = \
-  phosphor-systemd-target-monitor.service
+  ./service_files/phosphor-systemd-target-monitor.service
 
 AM_LIBS = $(CODE_COVERAGE_LIBS)
 AM_CPPFLAGS = $(CODE_COVERAGE_CPPFLAGS) -UNDEBUG $(GTEST_CPPFLAGS)
diff --git a/configure.ac b/configure.ac
index e47c4f8..540f321 100644
--- a/configure.ac
+++ b/configure.ac
@@ -190,5 +190,5 @@
 [AC_SUBST([systemdsystemunitdir], [$with_systemdsystemunitdir])])
 
 AC_CONFIG_FILES([Makefile])
-AC_CONFIG_FILES([phosphor-systemd-target-monitor.service])
+AC_CONFIG_FILES([service_files/phosphor-systemd-target-monitor.service])
 AC_OUTPUT
diff --git a/phosphor-systemd-target-monitor.service.in b/service_files/phosphor-systemd-target-monitor.service.in
similarity index 100%
rename from phosphor-systemd-target-monitor.service.in
rename to service_files/phosphor-systemd-target-monitor.service.in