diff --git a/src/buildstream/buildelement.py b/src/buildstream/buildelement.py
index 40355f5cf..5f069919c 100644
--- a/src/buildstream/buildelement.py
+++ b/src/buildstream/buildelement.py
@@ -219,6 +219,7 @@ def configure(self, node):
     def configure_dependencies(self, dependencies):
 
         self.__layout = {}  # pylint: disable=attribute-defined-outside-init
+        self.__digest_environment = {}  # pylint: disable=attribute-defined-outside-init
 
         # FIXME: Currently this forcefully validates configurations
         #        for all BuildElement subclasses so they are unable to
@@ -227,9 +228,18 @@ def configure_dependencies(self, dependencies):
         for dep in dependencies:
             # Determine the location to stage each element, default is "/"
             location = "/"
+
             if dep.config:
-                dep.config.validate_keys(["location"])
-                location = dep.config.get_str("location")
+                dep.config.validate_keys(["digest-environment", "location"])
+
+                location = dep.config.get_str("location", "/")
+
+                digest_var_name = dep.config.get_str("digest-environment", None)
+
+                if digest_var_name is not None:
+                    element_list = self.__digest_environment.setdefault(digest_var_name, [])
+                    element_list.append(dep.element)
+
             try:
                 element_list = self.__layout[location]
             except KeyError:
@@ -285,10 +295,17 @@ def configure_sandbox(self, sandbox):
             command_dir = build_root
         sandbox.set_work_directory(command_dir)
 
+    def stage(self, sandbox):
         # Setup environment
-        sandbox.set_environment(self.get_environment())
+        env = self.get_environment()
 
-    def stage(self, sandbox):
+        for digest_variable, element_list in self.__digest_environment.items():
+            dummy_sandbox = sandbox.create_sub_sandbox()
+            self.stage_dependency_artifacts(dummy_sandbox, element_list)
+            digest = dummy_sandbox.get_virtual_directory()._get_digest()
+            env[digest_variable] = "{}/{}".format(digest.hash, digest.size_bytes)
+
+        sandbox.set_environment(env)
 
         # First stage it all
         #
diff --git a/src/buildstream/sandbox/_sandboxremote.py b/src/buildstream/sandbox/_sandboxremote.py
index 8abaa2b53..9deb87943 100644
--- a/src/buildstream/sandbox/_sandboxremote.py
+++ b/src/buildstream/sandbox/_sandboxremote.py
@@ -24,7 +24,7 @@
 from .._protos.build.bazel.remote.execution.v2 import remote_execution_pb2, remote_execution_pb2_grpc
 from .._protos.build.buildgrid import local_cas_pb2
 from .._protos.google.rpc import code_pb2
-from .._exceptions import BstError, SandboxError
+from .._exceptions import SandboxError
 from .._protos.google.longrunning import operations_pb2, operations_pb2_grpc
 from .._cas import CASRemote
 
@@ -247,9 +247,7 @@ def _execute_action(self, action, flags):
         stdout, stderr = self._get_output()
 
         context = self._get_context()
-        project = self._get_project()
         cascache = context.get_cascache()
-        artifactcache = context.artifactcache
 
         action_digest = cascache.add_object(buffer=action.SerializeToString())
 
@@ -263,21 +261,20 @@ def _execute_action(self, action, flags):
                 "Uploading input root", element_name=self._get_element_name()
             ):
                 # Determine blobs missing on remote
+                root_digests = [action.input_root_digest]
+
+                # Add virtual directories for subsandboxes
+                for subsandbox in self._get_subsandboxes():
+                    vdir = subsandbox.get_virtual_directory()
+                    root_digests.append(vdir._get_digest())
+
+                missing_blobs = []
                 try:
-                    input_root_digest = action.input_root_digest
-                    missing_blobs = list(cascache.missing_blobs_for_directory(input_root_digest, remote=casremote))
+                    for root_digest in root_digests:
+                        missing_blobs.extend(cascache.missing_blobs_for_directory(root_digest, remote=casremote))
                 except grpc.RpcError as e:
                     raise SandboxError("Failed to determine missing blobs: {}".format(e)) from e
 
-                # Check if any blobs are also missing locally (partial artifact)
-                # and pull them from the artifact cache.
-                try:
-                    local_missing_blobs = cascache.missing_blobs(missing_blobs)
-                    if local_missing_blobs:
-                        artifactcache.fetch_missing_blobs(project, local_missing_blobs)
-                except (grpc.RpcError, BstError) as e:
-                    raise SandboxError("Failed to pull missing blobs from artifact cache: {}".format(e)) from e
-
                 # Add command and action messages to blob list to push
                 missing_blobs.append(action.command_digest)
                 missing_blobs.append(action_digest)
diff --git a/src/buildstream/sandbox/sandbox.py b/src/buildstream/sandbox/sandbox.py
index 505cc5c1a..f87075b73 100644
--- a/src/buildstream/sandbox/sandbox.py
+++ b/src/buildstream/sandbox/sandbox.py
@@ -85,13 +85,18 @@ def __init__(self, context: "Context", project: "Project", **kwargs):
         self.__env = None  # type: Optional[Dict[str, str]]
         self.__mount_sources = {}  # type: Dict[str, str]
         self.__allow_run = True
+        self.__subsandboxes = []
 
         # Plugin element full name for logging
         plugin = kwargs.get("plugin", None)
         if plugin:
             self.__element_name = plugin._get_full_name()
         else:
-            self.__element_name = None
+            parent = kwargs.get("parent", None)
+            if parent:
+                self.__element_name = parent._get_element_name()
+            else:
+                self.__element_name = None
 
         # Configuration from kwargs common to all subclasses
         self.__config = kwargs["config"]
@@ -264,6 +269,24 @@ def batch(
 
             batch.execute()
 
+    def create_subsandbox(self, **kwargs):
+        """Create an empty sandbox
+
+        This allows an element to use a secondary sandbox for manipulating artifacts
+        that does not affect the build sandbox
+        """
+
+        sub = Sandbox(
+            self.__context,
+            self.__project,
+            parent=self,
+            stdout=self.__stdout,
+            stderr=self.__stderr,
+            config=self.__config,
+        )
+        self.__subsandboxes.append(sub)
+        return sub
+
     #####################################################
     #    Abstract Methods for Sandbox implementations   #
     #####################################################
@@ -565,6 +588,9 @@ def _get_element_name(self):
     def _disable_run(self):
         self.__allow_run = False
 
+    def _get_subsandboxes(self):
+        return self.__subsandboxes
+
 
 # SandboxFlags()
 #