diff --git a/modules/build/src/main/scala/scala/build/Build.scala b/modules/build/src/main/scala/scala/build/Build.scala
index 921d1ab2ce..5784ed9dfe 100644
--- a/modules/build/src/main/scala/scala/build/Build.scala
+++ b/modules/build/src/main/scala/scala/build/Build.scala
@@ -560,7 +560,8 @@ object Build {
     value(validate(logger, options))
 
     val project = Project(
-      workspace = inputs.workspace / ".scala",
+      directory = inputs.workspace / ".scala",
+      workspace = inputs.workspace,
       classesDir = classesDir0,
       scalaCompiler = scalaCompiler,
       scalaJsOptions =
diff --git a/modules/build/src/main/scala/scala/build/Project.scala b/modules/build/src/main/scala/scala/build/Project.scala
index e8e2e45fae..9c0c56d20e 100644
--- a/modules/build/src/main/scala/scala/build/Project.scala
+++ b/modules/build/src/main/scala/scala/build/Project.scala
@@ -12,6 +12,7 @@ import scala.build.options.Scope
 
 final case class Project(
   workspace: os.Path,
+  directory: os.Path,
   classesDir: os.Path,
   scalaCompiler: ScalaCompiler,
   scalaJsOptions: Option[BloopConfig.JsConfig],
@@ -47,8 +48,8 @@ final case class Project(
       )
     baseBloopProject(
       projectName,
-      workspace.toNIO,
-      (workspace / ".bloop" / projectName).toNIO,
+      directory.toNIO,
+      (directory / ".bloop" / projectName).toNIO,
       classesDir.toNIO,
       scope
     )
@@ -69,7 +70,7 @@ final case class Project(
 
   def writeBloopFile(logger: Logger): Boolean = {
     val bloopFileContent = writeAsJsonToArray(bloopFile)(BloopCodecs.codecFile)
-    val dest             = workspace / ".bloop" / s"$projectName.json"
+    val dest             = directory / ".bloop" / s"$projectName.json"
     val doWrite = !os.isFile(dest) || {
       val currentContent = os.read.bytes(dest)
       !Arrays.equals(currentContent, bloopFileContent)
diff --git a/modules/integration/src/test/scala/scala/cli/integration/RunTestDefinitions.scala b/modules/integration/src/test/scala/scala/cli/integration/RunTestDefinitions.scala
index 4a06a38487..6fd11d6456 100644
--- a/modules/integration/src/test/scala/scala/cli/integration/RunTestDefinitions.scala
+++ b/modules/integration/src/test/scala/scala/cli/integration/RunTestDefinitions.scala
@@ -1253,4 +1253,21 @@ abstract class RunTestDefinitions(val scalaVersionOpt: Option[String])
       expect(p.out.text().trim == "hello")
     }
   }
+
+  test("workspace dir") {
+    val inputs = TestInputs(
+      Seq(
+        os.rel / "Hello.scala" ->
+          """|// using lib com.lihaoyi::os-lib:0.7.8
+             |
+             |object Hello extends App {
+             |  println(os.pwd) 
+             |}""".stripMargin
+      )
+    )
+    inputs.fromRoot { root =>
+      val p = os.proc(TestUtil.cli, "Hello.scala").call(cwd = root)
+      expect(p.out.text().trim == root.toString)
+    }
+  }
 }