diff --git a/bin/vagrant-package b/bin/vagrant-package
index b55781d6c..782229d43 100755
--- a/bin/vagrant-package
+++ b/bin/vagrant-package
@@ -18,7 +18,7 @@ GitStyleBinary.command do
   banner <<-EOS
 Usage: #{command.full_name} #{all_options_string}
 
-Package the current vagrant environment
+Package the current vagrant environment into a box.
 
 EOS
   run do |command|
diff --git a/lib/vagrant/actions/vm/export.rb b/lib/vagrant/actions/vm/export.rb
index 1a1efaeb2..6dafbecd1 100644
--- a/lib/vagrant/actions/vm/export.rb
+++ b/lib/vagrant/actions/vm/export.rb
@@ -2,13 +2,28 @@ module Vagrant
   module Actions
     module VM
       class Export < Base
-        def execute!(name=Vagrant.config.package.name, to=FileUtils.pwd)
-          folder = FileUtils.mkpath(File.join(to, name))
+        attr_reader :temp_dir
 
-          logger.info "Creating export directory: #{folder} ..."
-          ovf_path = File.join(folder, "#{name}.ovf")
+        def execute!
+          setup_temp_dir
+          export
+        end
 
-          logger.info "Exporting required VM files to directory: #{folder} ..."
+        def setup_temp_dir
+          @temp_dir = File.join(Env.tmp_path, Time.now.to_i.to_s)
+
+          logger.info "Creating temporary directory for export..."
+          FileUtils.mkpath(temp_dir)
+
+          @runner.invoke_callback(:set_export_temp_path, @temp_dir)
+        end
+
+        def ovf_path
+          File.join(temp_dir, Vagrant.config.vm.box_ovf)
+        end
+
+        def export
+          logger.info "Exporting VM to #{ovf_path} ..."
           @runner.export(ovf_path)
         end
       end
diff --git a/lib/vagrant/actions/vm/package.rb b/lib/vagrant/actions/vm/package.rb
index 5d34f3d5f..d9dc3e0e7 100644
--- a/lib/vagrant/actions/vm/package.rb
+++ b/lib/vagrant/actions/vm/package.rb
@@ -2,48 +2,47 @@ module Vagrant
   module Actions
     module VM
       class Package < Base
-        attr_accessor :name, :to
+        attr_accessor :out_path
+        attr_accessor :temp_path
 
-        def initialize(vm, *args)
-          super vm
-          @name = args[0]
-          @to = args[1]
+        def initialize(vm, out_path = nil, *args)
+          super
+          @out_path = out_path || "package"
+          @temp_path = nil
         end
 
         def execute!
-          logger.info "Packaging VM into #{tar_path} ..."
           compress
-
-          logger.info "Removing working directory ..."
           clean
-
-          tar_path
         end
 
         def clean
-          FileUtils.rm_r(working_dir)
-        end
-
-        def working_dir
-          FileUtils.mkpath(File.join(@to, @name))
+          logger.info "Removing temporary directory ..."
+          FileUtils.rm_r(temp_path)
         end
 
         def tar_path
-          "#{working_dir}#{Vagrant.config.package.extension}"
+          File.join(FileUtils.pwd, "#{out_path}#{Vagrant.config.package.extension}")
         end
 
         def compress
+          logger.info "Packaging VM into #{tar_path} ..."
           Tar.open(tar_path, File::CREAT | File::WRONLY, 0644, Tar::GNU) do |tar|
             begin
               # Append tree will append the entire directory tree unless a relative folder reference is used
               current_dir = FileUtils.pwd
-              FileUtils.cd(@to)
-              tar.append_tree(@name)
+              FileUtils.cd(temp_path)
+              tar.append_tree(".")
             ensure
               FileUtils.cd(current_dir)
             end
           end
         end
+
+        # This is a callback by Actions::VM::Export
+        def set_export_temp_path(temp_path)
+          @temp_path = temp_path
+        end
       end
     end
   end
diff --git a/lib/vagrant/commands.rb b/lib/vagrant/commands.rb
index 0ed0ab215..59c41051d 100644
--- a/lib/vagrant/commands.rb
+++ b/lib/vagrant/commands.rb
@@ -113,17 +113,14 @@ error
       # Export and package the current vm
       #
       # This command requires that an instance be powered off
-      def package(name=nil)
+      def package(out_path=nil)
         Env.load!
         Env.require_persisted_vm
         error_and_exit(<<-error) unless Env.persisted_vm.powered_off?
 The vagrant virtual environment you are trying to package must be powered off
 error
-        # TODO allow directory specification
-        act_on_vm do |vm|
-          vm.add_action(Actions::VM::Export)
-          vm.add_action(Actions::VM::Package, name || Vagrant.config[:package][:name], FileUtils.pwd)
-        end
+
+        Env.persisted_vm.package(out_path)
       end
 
       # Manages the `vagrant box` command, allowing the user to add
diff --git a/lib/vagrant/vm.rb b/lib/vagrant/vm.rb
index 00037fa4c..709cd4f0c 100644
--- a/lib/vagrant/vm.rb
+++ b/lib/vagrant/vm.rb
@@ -19,6 +19,12 @@ module Vagrant
       @vm = vm
     end
 
+    def package(out_path)
+      add_action(Actions::VM::Export)
+      add_action(Actions::VM::Package, out_path)
+      execute!
+    end
+
     def destroy
       execute!(Actions::VM::Stop) if @vm.running?
 
diff --git a/test/vagrant/actions/vm/export_test.rb b/test/vagrant/actions/vm/export_test.rb
index b1c6692c2..2bbc12b83 100644
--- a/test/vagrant/actions/vm/export_test.rb
+++ b/test/vagrant/actions/vm/export_test.rb
@@ -2,20 +2,66 @@ require File.join(File.dirname(__FILE__), '..', '..', '..', 'test_helper')
 
 class ExportActionTest < Test::Unit::TestCase
   setup do
-    @wrapper_vm, @vm, @action = mock_action(Vagrant::Actions::VM::Export)
+    @runner, @vm, @action = mock_action(Vagrant::Actions::VM::Export)
     mock_config
   end
 
-  should "setup and correct working directory and export to it" do
-    new_dir = File.join(FileUtils.pwd, Vagrant.config.package.name)
-    FileUtils.expects(:mkpath).with(new_dir).returns(new_dir)
-    @wrapper_vm.expects(:export).with(File.join(new_dir, "#{Vagrant.config.package.name}.ovf"))
-    @action.execute!
+  context "executing" do
+    should "setup the temp dir then export" do
+      exec_seq = sequence('execute')
+      @action.expects(:setup_temp_dir).once.in_sequence(exec_seq)
+      @action.expects(:export).once.in_sequence(exec_seq)
+      @action.execute!
+    end
+  end
 
+  context "setting up the temporary directory" do
+    setup do
+      @time_now = Time.now.to_i.to_s
+      Time.stubs(:now).returns(@time_now)
 
-#FileUtils.expects(:rm_r).with(new_dir)
+      @tmp_path = "foo"
+      Vagrant::Env.stubs(:tmp_path).returns(@tmp_path)
 
+      @temp_dir = File.join(Vagrant::Env.tmp_path, @time_now)
+    end
 
- #   assert_equal Vagrant::VM.new(@mock_vm).package(name, location), "#{new_dir}.box"
+    should "create the temporary directory using the current time" do
+      FileUtils.expects(:mkpath).with(@temp_dir).once
+      @action.setup_temp_dir
+    end
+
+    should "set the temporary directory to the temp_dir variable" do
+      @action.setup_temp_dir
+      assert_equal @temp_dir, @action.temp_dir
+    end
+
+    should "call the set_export_temp_path callback" do
+      @runner.expects(:invoke_callback).with(:set_export_temp_path, @temp_dir).once
+      @action.setup_temp_dir
+    end
+  end
+
+  context "path to OVF file" do
+    setup do
+      @temp_dir = "foo"
+      @action.stubs(:temp_dir).returns(@temp_dir)
+    end
+
+    should "be the temporary directory joined with the OVF filename" do
+      assert_equal File.join(@temp_dir, Vagrant.config.vm.box_ovf), @action.ovf_path
+    end
+  end
+
+  context "exporting" do
+    setup do
+      @ovf_path = mock("ovf_path")
+      @action.stubs(:ovf_path).returns(@ovf_path)
+    end
+
+    should "call export on the runner with the ovf path" do
+      @runner.expects(:export).with(@ovf_path).once
+      @action.export
+    end
   end
 end
diff --git a/test/vagrant/actions/vm/package_test.rb b/test/vagrant/actions/vm/package_test.rb
index a2342a034..36cbc63d9 100644
--- a/test/vagrant/actions/vm/package_test.rb
+++ b/test/vagrant/actions/vm/package_test.rb
@@ -2,19 +2,17 @@ require File.join(File.dirname(__FILE__), '..', '..', '..', 'test_helper')
 
 class PackageActionTest < Test::Unit::TestCase
   setup do
-    @wrapper_vm, @vm, @action = mock_action(Vagrant::Actions::VM::Package)
-    @action.to = '/foo/bar/baz'
-    @action.name = 'bing'
+    @wrapper_vm, @vm, @action = mock_action(Vagrant::Actions::VM::Package, "bing")
     mock_config
+
+    @temp_path = "temp_path"
+    @action.temp_path = @temp_path
   end
 
   context "executing" do
     setup do
-      @tar_path = "foo"
-
       @action.stubs(:compress)
       @action.stubs(:clean)
-      @action.stubs(:tar_path).returns(@tar_path)
     end
 
     should "compress and remove the working directory" do
@@ -23,10 +21,6 @@ class PackageActionTest < Test::Unit::TestCase
       @action.expects(:clean).in_sequence(package_seq)
       @action.execute!
     end
-
-    should "return the tar path" do
-      assert_equal @tar_path, @action.execute!
-    end
   end
 
   context "cleaning up" do
@@ -36,22 +30,16 @@ class PackageActionTest < Test::Unit::TestCase
     end
 
     should "remove the working directory" do
-      FileUtils.expects(:rm_r).with(@working_dir).once
+      FileUtils.expects(:rm_r).with(@temp_path).once
       @action.clean
     end
   end
 
-  context "working directory" do
-    should "create the directory" do
-      FileUtils.expects(:mkpath).with(File.join(@action.to, @action.name))
-      @action.working_dir
-    end
-  end
-
   context "tar path" do
-    should "be the working directory with the extension attached" do
-      @action.expects(:working_dir).returns("foo")
-      assert_equal "foo#{Vagrant.config.package.extension}", @action.tar_path
+    should "be the temporary directory with the name and extension attached" do
+      pwd = "foo"
+      FileUtils.stubs(:pwd).returns(pwd)
+      assert_equal File.join(pwd, "#{@action.out_path}#{Vagrant.config.package.extension}"), @action.tar_path
     end
   end
 
@@ -79,15 +67,15 @@ class PackageActionTest < Test::Unit::TestCase
     should "cd to the directory and append the directory" do
       compress_seq = sequence("compress_seq")
       FileUtils.expects(:pwd).once.returns(@pwd).in_sequence(compress_seq)
-      FileUtils.expects(:cd).with(@action.to).in_sequence(compress_seq)
-      @tar.expects(:append_tree).with(@action.name).in_sequence(compress_seq)
+      FileUtils.expects(:cd).with(@temp_path).in_sequence(compress_seq)
+      @tar.expects(:append_tree).with(".").in_sequence(compress_seq)
       FileUtils.expects(:cd).with(@pwd).in_sequence(compress_seq)
       @action.compress
     end
 
     should "pop back to the current directory even if an exception is raised" do
       cd_seq = sequence("cd_seq")
-      FileUtils.expects(:cd).with(@action.to).raises(Exception).in_sequence(cd_seq)
+      FileUtils.expects(:cd).with(@temp_path).raises(Exception).in_sequence(cd_seq)
       FileUtils.expects(:cd).with(@pwd).in_sequence(cd_seq)
 
       assert_raises(Exception) {
@@ -95,4 +83,12 @@ class PackageActionTest < Test::Unit::TestCase
       }
     end
   end
+
+  context "export callback to set temp path" do
+    should "save to the temp_path directory" do
+      foo = mock("foo")
+      @action.set_export_temp_path(foo)
+      assert foo.equal?(@action.temp_path)
+    end
+  end
 end
diff --git a/test/vagrant/commands_test.rb b/test/vagrant/commands_test.rb
index 9c6b981e2..1a066b39f 100644
--- a/test/vagrant/commands_test.rb
+++ b/test/vagrant/commands_test.rb
@@ -155,8 +155,6 @@ class CommandsTest < Test::Unit::TestCase
     setup do
       @persisted_vm.stubs(:package)
       @persisted_vm.stubs(:powered_off?).returns(true)
-      @persisted_vm.expects(:add_action).twice
-      @persisted_vm.expects(:execute!)
     end
 
     should "require a persisted vm" do
@@ -170,6 +168,17 @@ class CommandsTest < Test::Unit::TestCase
       @persisted_vm.expects(:package).never
       Vagrant::Commands.package
     end
+
+    should "call package on the persisted VM" do
+      @persisted_vm.expects(:package).once
+      Vagrant::Commands.package
+    end
+
+    should "pass in the out path to the package method" do
+      out_path = mock("out_path")
+      @persisted_vm.expects(:package).with(out_path).once
+      Vagrant::Commands.package(out_path)
+    end
   end
 
   context "box" do
diff --git a/test/vagrant/vm_test.rb b/test/vagrant/vm_test.rb
index 477414f23..10204c448 100644
--- a/test/vagrant/vm_test.rb
+++ b/test/vagrant/vm_test.rb
@@ -37,6 +37,17 @@ class VMTest < Test::Unit::TestCase
       @vm = Vagrant::VM.new(@mock_vm)
     end
 
+    context "packaging" do
+      should "queue up the actions and execute" do
+        out_path = mock("out_path")
+        action_seq = sequence("actions")
+        @vm.expects(:add_action).with(Vagrant::Actions::VM::Export).once.in_sequence(action_seq)
+        @vm.expects(:add_action).with(Vagrant::Actions::VM::Package, out_path).once.in_sequence(action_seq)
+        @vm.expects(:execute!).in_sequence(action_seq)
+        @vm.package(out_path)
+      end
+    end
+
     context "destroying" do
       setup do
         @mock_vm.stubs(:running?).returns(false)