diff --git a/scripts/gha/build_testapps.py b/scripts/gha/build_testapps.py
index a79d03d496..8303a82df2 100644
--- a/scripts/gha/build_testapps.py
+++ b/scripts/gha/build_testapps.py
@@ -224,7 +224,7 @@ def main(argv):
   failures = []
   for testapp in testapps:
     api_config = config.get_api(testapp)
-    if FLAGS.repo_dir and api_config.internal_testapp_path:
+    if FLAGS.repo_dir and not FLAGS.packaged_sdk and api_config.internal_testapp_path:
       testapp_dirs = [api_config.internal_testapp_path]
     else:
       testapp_dirs = [api_config.testapp_path]