diff --git a/test/daplink_firmware.py b/test/daplink_firmware.py
index 95ed1e863..afe42bfc5 100644
--- a/test/daplink_firmware.py
+++ b/test/daplink_firmware.py
@@ -80,7 +80,19 @@ class ProjectFirmwareBundle(firmware.FirmwareBundle):
     def __init__(self, directory, tool):
         tool_dir = os.path.abspath(directory + os.sep + 'projectfiles' +
                                    os.sep + tool)
+        errmsg = "Error: DAPLink projects are missing. Did " \
+                   "you forget to generate them by running " \
+                   "'progen generate -t %s'?\nExpecting them at %s" % (tool, tool_dir)
+
+        if not os.path.exists(tool_dir): 
+            print (errmsg)
+            exit(-1) 
+
         project_dir_list = os.listdir(tool_dir)
+        if not project_dir_list:
+            print (errmsg)
+            exit(-1) 
+        
         firmware_list = []
         for name in project_dir_list:
             build_dir = tool_dir + os.sep + name + os.sep + 'build'
diff --git a/test/run_test.py b/test/run_test.py
index 001404fb0..f4cd94055 100644
--- a/test/run_test.py
+++ b/test/run_test.py
@@ -15,7 +15,7 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 #
- 
+
 """
 DAPLink validation and testing tool
 
@@ -431,7 +431,7 @@ def build_test_configurations(self, parent_test):
 
             # Get target
             target = None
-            target_required = not self._test_ep and not self._test_daplink
+            target_required = self._test_ep
             if board_id in board_id_to_target:
                 target = board_id_to_target[board_id]
             elif target_required:
@@ -573,11 +573,17 @@ def main():
     use_prebuilt = args.targetdir is not None
     use_compile_api = args.user is not None and args.password is not None
 
+    test_info = TestInfo('DAPLink')
+
     # Validate args
+
+    # See if user wants to test endpoints. If yes and he didn't provide
+    # target test binaries, use the Compile API to build them
+    all_targets = None
     if not args.notestendpt:
         if not use_prebuilt and not use_compile_api:
             print("Endpoint test requires target test images.")
-            print("  Directory with pre-build target test images")
+            print("  Directory with pre-built target test images")
             print("  must be specified with '--targetdir'")
             print("OR")
             print("  Mbed login credentials '--user' and '--password' must")
@@ -585,13 +591,14 @@ def main():
             print("  the compile API.")
             exit(-1)
 
-    firmware_explicitly_specified = len(args.firmware) != 0
-    test_info = TestInfo('DAPLink')
-    if args.targetdir is not None:
-        target_dir = args.targetdir
-    else:
-        target_dir = daplink_dir + os.sep + 'tmp'
-        build_target_bundle(target_dir, args.user, args.password, test_info)
+        if args.targetdir is not None:
+            target_dir = args.targetdir
+        else:
+            target_dir = daplink_dir + os.sep + 'tmp'
+            build_target_bundle(target_dir, args.user, args.password, test_info)
+
+        target_bundle = load_target_bundle(target_dir)
+        all_targets = target_bundle.get_target_list()
 
     if os.path.exists(args.logdir):
         if args.force:
@@ -606,10 +613,9 @@ def main():
         firmware_bundle = load_bundle_from_project()
     else:
         firmware_bundle = load_bundle_from_release(args.firmwaredir)
-    target_bundle = load_target_bundle(target_dir)
+
     all_firmware = firmware_bundle.get_firmware_list()
     all_boards = get_all_attached_daplink_boards()
-    all_targets = target_bundle.get_target_list()
 
     for board in all_boards:
         if board.get_mode() == board.MODE_BL:
@@ -620,6 +626,7 @@ def main():
                 print('Unable to switch mode on board: %s' % board.unique_id)
 
     # Make sure firmware is present
+    firmware_explicitly_specified = len(args.firmware) != 0
     if firmware_explicitly_specified:
         all_firmware_names = set(fw.name for fw in all_firmware)
         firmware_missing = False
@@ -635,7 +642,8 @@ def main():
     tester = TestManager()
     tester.add_firmware(all_firmware)
     tester.add_boards(all_boards)
-    tester.add_targets(all_targets)
+    if all_targets is not None:
+        tester.add_targets(all_targets)
     if firmware_explicitly_specified:
         tester.set_firmware_filter(args.firmware)