diff --git a/Lib/site.py b/Lib/site.py
index e391670..b36df1f 100644
--- a/Lib/site.py
+++ b/Lib/site.py
@@ -118,7 +118,7 @@
     s = "build/lib.%s-%.3s" % (get_platform(), sys.version)
     if hasattr(sys, 'gettotalrefcount'):
         s += '-pydebug'
-    s = os.path.join(os.path.dirname(sys.path[-1]), s)
+    s = os.path.join(os.path.dirname(sys.path.pop()), s)
     sys.path.append(s)
 
 
diff --git a/Misc/NEWS b/Misc/NEWS
index f05e90e..7395196 100644
--- a/Misc/NEWS
+++ b/Misc/NEWS
@@ -29,6 +29,9 @@
 Library
 -------
 
+- Issue #8205: Remove the "Modules" directory from sys.path when Python is
+  running from the build directory (POSIX only).
+
 - Issue #7667: Fix doctest failures with non-ASCII paths.
 
 - Issue #7512: shutil.copystat() could raise an OSError when the filesystem