diff --git a/src/coreclr/nativeaot/BuildIntegration/Microsoft.DotNet.ILCompiler.props b/src/coreclr/nativeaot/BuildIntegration/Microsoft.DotNet.ILCompiler.props
new file mode 100644
index 00000000000000..e883245ee0f7cf
--- /dev/null
+++ b/src/coreclr/nativeaot/BuildIntegration/Microsoft.DotNet.ILCompiler.props
@@ -0,0 +1,19 @@
+<!--
+***********************************************************************************************
+Microsoft.DotNet.ILCompiler.props
+
+WARNING:  DO NOT MODIFY this file unless you are knowledgeable about MSBuild and have
+          created a backup copy.  Incorrect changes to this file will make it
+          impossible to load or build your projects from the command-line or the IDE.
+
+Copyright (c) .NET Foundation. All rights reserved.
+***********************************************************************************************
+-->
+<Project>
+
+  <PropertyGroup>
+    <!-- N.B. The ILCompilerTargetsPath is used as a sentinel to indicate a version of this file has already been imported. It will also be the path
+         used to import the targets later in the SDK. -->
+    <ILCompilerTargetsPath>$(MSBuildThisFileDirectory)Microsoft.DotNet.ILCompiler.targets</ILCompilerTargetsPath>
+  </PropertyGroup>
+</Project>
diff --git a/src/coreclr/nativeaot/BuildIntegration/Microsoft.DotNet.ILCompiler.targets b/src/coreclr/nativeaot/BuildIntegration/Microsoft.DotNet.ILCompiler.targets
index f8390e280c0253..d08cc8241da6ab 100644
--- a/src/coreclr/nativeaot/BuildIntegration/Microsoft.DotNet.ILCompiler.targets
+++ b/src/coreclr/nativeaot/BuildIntegration/Microsoft.DotNet.ILCompiler.targets
@@ -41,21 +41,21 @@
 
   <!-- Locate the runtime package according to the current target runtime -->
   <Target Name="ImportRuntimeIlcPackageTarget" Condition="'$(BuildingFrameworkLibrary)' != 'true' AND $(IlcCalledViaPackage) == 'true'" DependsOnTargets="$(ImportRuntimeIlcPackageTargetDependsOn)" BeforeTargets="Publish">
-    <!-- This targets file is imported by the SDK when the PublishAot property is set. SDK resolves runtime package paths differently-->
-    <Error Condition="'@(ResolvedILCompilerPack)' == '' AND '$(PublishAot)' == 'true'" Text="The ResolvedILCompilerPack ItemGroup is required for target ImportRuntimeIlcPackageTarget" />
+    <!-- This targets file is imported by the SDK when the AotRuntimePackageLoadedViaSDK property is set. SDK resolves runtime package paths differently-->
+    <Error Condition="'@(ResolvedILCompilerPack)' == '' AND '$(AotRuntimePackageLoadedViaSDK)' == 'true'" Text="The ResolvedILCompilerPack ItemGroup is required for target ImportRuntimeIlcPackageTarget" />
     <!-- NativeAOT runtime pack assemblies need to be defined to avoid the default CoreCLR implementations being set as compiler inputs -->
-    <Error Condition="'@(PackageDefinitions)' == '' AND '$(PublishAot)' != 'true'" Text="The PackageDefinitions ItemGroup is required for target ImportRuntimeIlcPackageTarget" />
+    <Error Condition="'@(PackageDefinitions)' == '' AND '$(AotRuntimePackageLoadedViaSDK)' != 'true'" Text="The PackageDefinitions ItemGroup is required for target ImportRuntimeIlcPackageTarget" />
 
 
-    <!-- This targets file is imported by the SDK when the PublishAot property is set. Use the SDK runtime package resolve property to set  down stream properties -->
-    <PropertyGroup Condition="'$(PublishAot)' == 'true'">
+    <!-- This targets file is imported by the SDK when the AotRuntimePackageLoadedViaSDK property is set. Use the SDK runtime package resolve property to set  down stream properties -->
+    <PropertyGroup Condition="'$(AotRuntimePackageLoadedViaSDK)' == 'true'">
       <RuntimePackagePath>@(ResolvedILCompilerPack->'%(PackageDirectory)')</RuntimePackagePath>
       <IlcHostPackagePath>@(ResolvedILCompilerPack->'%(PackageDirectory)')</IlcHostPackagePath>
       <IlcPath>>@(ResolvedILCompilerPack->'%(PackageDirectory)')</IlcPath>
     </PropertyGroup>
 
-    <!-- Use the non-SDK runtime package resolve property to set down stream properties if SDK is not involved -->
-    <PropertyGroup Condition="'$(PublishAot)' != 'true'">
+    <!-- Use the non-SDK runtime package resolve property to set down stream properties if there is an explicit reference in the project -->
+    <PropertyGroup Condition="'$(AotRuntimePackageLoadedViaSDK)' != 'true'">
       <RuntimePackagePath Condition="'%(PackageDefinitions.Name)' == '$(RuntimeIlcPackageName)'">%(PackageDefinitions.ResolvedPath)</RuntimePackagePath>
       <IlcHostPackagePath Condition="'%(PackageDefinitions.Name)' == '$(IlcHostPackageName)'">%(PackageDefinitions.ResolvedPath)</IlcHostPackagePath>
     </PropertyGroup>
diff --git a/src/installer/pkg/projects/Microsoft.DotNet.ILCompiler/Microsoft.DotNet.ILCompiler.pkgproj b/src/installer/pkg/projects/Microsoft.DotNet.ILCompiler/Microsoft.DotNet.ILCompiler.pkgproj
index 49198a0f68067f..2dc56dde6c1729 100644
--- a/src/installer/pkg/projects/Microsoft.DotNet.ILCompiler/Microsoft.DotNet.ILCompiler.pkgproj
+++ b/src/installer/pkg/projects/Microsoft.DotNet.ILCompiler/Microsoft.DotNet.ILCompiler.pkgproj
@@ -20,7 +20,7 @@
     <ItemGroup>
       <File Include="$(CoreCLRBuildIntegrationDir)*" TargetPath="build" />
       <File Include="$(CoreCLRILCompilerDir)netstandard\*" TargetPath="tools/netstandard" />
-      <File Include="sdk\Sdk.targets" TargetPath="Sdk" />
+      <File Include="sdk\Sdk.props" TargetPath="Sdk" />
     </ItemGroup>
   </Target>
 
diff --git a/src/installer/pkg/projects/Microsoft.DotNet.ILCompiler/sdk/Sdk.targets b/src/installer/pkg/projects/Microsoft.DotNet.ILCompiler/sdk/Sdk.props
similarity index 66%
rename from src/installer/pkg/projects/Microsoft.DotNet.ILCompiler/sdk/Sdk.targets
rename to src/installer/pkg/projects/Microsoft.DotNet.ILCompiler/sdk/Sdk.props
index 0afed97e72fadb..da35d4749050e0 100644
--- a/src/installer/pkg/projects/Microsoft.DotNet.ILCompiler/sdk/Sdk.targets
+++ b/src/installer/pkg/projects/Microsoft.DotNet.ILCompiler/sdk/Sdk.props
@@ -1,6 +1,6 @@
 <!--
 ***********************************************************************************************
-Sdk.targets
+Sdk.props
 
 WARNING:  DO NOT MODIFY this file unless you are knowledgeable about MSBuild and have
           created a backup copy.  Incorrect changes to this file will make it
@@ -11,7 +11,12 @@ Copyright (c) .NET Foundation. All rights reserved.
 -->
 <Project>
 
+  <!-- Set a flag to indicate that aot packages are loaded via SDK  -->
+  <PropertyGroup>
+    <AotRuntimePackageLoadedViaSDK Condition="'$(ILCompilerTargetsPath)'== ''">true</AotRuntimePackageLoadedViaSDK>
+  </PropertyGroup>
+
   <!-- Only import the build props if the NativeAot package isn't referenced via NuGet. -->
-  <Import Project="$(MSBuildThisFileDirectory)..\build\Microsoft.DotNet.ILCompiler.targets" Condition="'$(PublishAot)' == 'true'"/>
+  <Import Project="$(MSBuildThisFileDirectory)..\build\Microsoft.DotNet.ILCompiler.props" Condition="'$(PublishAot)' == 'true' and '$(ILCompilerTargetsPath)' == ''" />
 
 </Project>