diff --git a/CHANGELOG.md b/CHANGELOG.md
index 932316761..3f2d5571e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -13,6 +13,7 @@
 - Fixed framework search paths when using `.xcframework`s. [#1015](https://github.com/yonaskolb/XcodeGen/pull/1015) @FranzBusch
 - Fixed bug where schemes without a build target would crash instead of displaying an error [#1040](https://github.com/yonaskolb/XcodeGen/pull/1040) @dalemyers
 - Fixed files with names ending in **Info.plist** (such as **GoogleServices-Info.plist**) from being omitted from the Copy Resources build phase. Now, only the resolved info plist file for each specific target is omitted. [#1027](https://github.com/yonaskolb/XcodeGen/pull/1027) @liamnichols
+- Prevent setting presets from overwriting settings in target xcconfig files. [#924](https://github.com/yonaskolb/XcodeGen/pull/924) @k-thorat
 
 #### Internal
 - Build universal binaries for release. XcodeGen now runs natively on Apple Silicon. [#1024](https://github.com/yonaskolb/XcodeGen/pull/1024) @thii
diff --git a/Sources/XcodeGenKit/SettingsBuilder.swift b/Sources/XcodeGenKit/SettingsBuilder.swift
index 4ac1853c3..79bfb3e59 100644
--- a/Sources/XcodeGenKit/SettingsBuilder.swift
+++ b/Sources/XcodeGenKit/SettingsBuilder.swift
@@ -55,6 +55,8 @@ extension Project {
             buildSettings[target.platform.deploymentTargetSetting] = version.deploymentTarget
         }
 
+        buildSettings += getBuildSettings(settings: target.settings, config: config)
+        
         // Prevent setting presets from overrwriting settings in target xcconfig files
         if let configPath = target.configFiles[config.name] {
             buildSettings = removeConfigFileSettings(from: buildSettings, configPath: configPath)
@@ -64,8 +66,6 @@ extension Project {
             buildSettings = removeConfigFileSettings(from: buildSettings, configPath: configPath)
         }
 
-        buildSettings += getBuildSettings(settings: target.settings, config: config)
-
         return buildSettings
     }
 
diff --git a/Tests/Fixtures/settings_test.yml b/Tests/Fixtures/settings_test.yml
index ae7cf20db..3d3b45ce9 100644
--- a/Tests/Fixtures/settings_test.yml
+++ b/Tests/Fixtures/settings_test.yml
@@ -71,10 +71,15 @@ targets:
   Target:
     type: application
     platform: iOS
+    configFiles:
+      # To verify build setting merge we need to duplicate setting in configFiles and settings
+      # BASE_SETTING: baseSetting is defined in base.xcconfig and for this target under settings:base:
+      config1: TestProject/Configs/base.xcconfig
     settings:
       groups:
         - preset7
       base:
+        BASE_SETTING: baseSetting
         SETTING 2: value 2
       configs:
         config1: