diff --git a/boards/sim/sim/sim/src/Makefile b/boards/sim/sim/sim/src/Makefile
index c70af73a83..57590cae65 100644
--- a/boards/sim/sim/sim/src/Makefile
+++ b/boards/sim/sim/sim/src/Makefile
@@ -75,8 +75,10 @@ endif
 endif
 
 ifeq ($(CONFIG_NSH_ROMFSETC),y)
+ifneq ($(CONFIG_NSH_CUSTOMROMFS),y)
   RCSRCS = etc/init.d/rcS
   RCRAWS = etc/group etc/passwd
 endif
+endif
 
 include $(TOPDIR)/boards/Board.mk