diff --git a/edgedb/codegen/generator.py b/edgedb/codegen/generator.py
index e824bbbb..359dd034 100644
--- a/edgedb/codegen/generator.py
+++ b/edgedb/codegen/generator.py
@@ -126,9 +126,7 @@ def __init__(self, args: argparse.Namespace):
         self._skip_pydantic_validation = args.skip_pydantic_validation
         self._async = False
         try:
-            self._project_dir = pathlib.Path(
-                find_edgedb_project_dir()
-            ).resolve()
+            self._project_dir = pathlib.Path(find_edgedb_project_dir())
         except edgedb.ClientConnectionError:
             print(
                 "Cannot find edgedb.toml: "
@@ -175,7 +173,6 @@ def run(self):
 
     def _process_dir(self, dir_: pathlib.Path):
         for file_or_dir in dir_.iterdir():
-            file_or_dir = file_or_dir.resolve()
             if not file_or_dir.exists():
                 continue
             if file_or_dir.is_dir():
diff --git a/tests/codegen/linked/test_linked.edgeql b/tests/codegen/linked/test_linked.edgeql
new file mode 100644
index 00000000..78a9b08b
--- /dev/null
+++ b/tests/codegen/linked/test_linked.edgeql
@@ -0,0 +1 @@
+select 42
diff --git a/tests/codegen/linked/test_linked_async_edgeql.py.assert b/tests/codegen/linked/test_linked_async_edgeql.py.assert
new file mode 100644
index 00000000..29c6291b
--- /dev/null
+++ b/tests/codegen/linked/test_linked_async_edgeql.py.assert
@@ -0,0 +1,16 @@
+# AUTOGENERATED FROM 'linked/test_linked.edgeql' WITH:
+#     $ edgedb-py
+
+
+from __future__ import annotations
+import edgedb
+
+
+async def test_linked(
+    client: edgedb.AsyncIOClient,
+) -> int:
+    return await client.query_single(
+        """\
+        select 42\
+        """,
+    )
diff --git a/tests/codegen/linked/test_linked_edgeql.py.assert b/tests/codegen/linked/test_linked_edgeql.py.assert
new file mode 100644
index 00000000..2c3c0410
--- /dev/null
+++ b/tests/codegen/linked/test_linked_edgeql.py.assert
@@ -0,0 +1,16 @@
+# AUTOGENERATED FROM 'linked/test_linked.edgeql' WITH:
+#     $ edgedb-py --target blocking --no-skip-pydantic-validation
+
+
+from __future__ import annotations
+import edgedb
+
+
+def test_linked(
+    client: edgedb.Client,
+) -> int:
+    return client.query_single(
+        """\
+        select 42\
+        """,
+    )
diff --git a/tests/codegen/test-project1/generated_async_edgeql.py.assert b/tests/codegen/test-project1/generated_async_edgeql.py.assert
index 876c5f0c..d35b5528 100644
--- a/tests/codegen/test-project1/generated_async_edgeql.py.assert
+++ b/tests/codegen/test-project1/generated_async_edgeql.py.assert
@@ -1,6 +1,7 @@
 # AUTOGENERATED FROM:
 #     'select_optional_json.edgeql'
 #     'select_scalar.edgeql'
+#     'linked/test_linked.edgeql'
 # WITH:
 #     $ edgedb-py --target async --file --no-skip-pydantic-validation
 
@@ -46,3 +47,13 @@ async def select_scalar(
         select 1;\
         """,
     )
+
+
+async def test_linked(
+    client: edgedb.AsyncIOClient,
+) -> int:
+    return await client.query_single(
+        """\
+        select 42\
+        """,
+    )
diff --git a/tests/codegen/test-project1/linked b/tests/codegen/test-project1/linked
new file mode 120000
index 00000000..4433438d
--- /dev/null
+++ b/tests/codegen/test-project1/linked
@@ -0,0 +1 @@
+../linked/
\ No newline at end of file