diff --git a/src/watch/index.ts b/src/watch/index.ts
index 3eb2504e..73add2e0 100644
--- a/src/watch/index.ts
+++ b/src/watch/index.ts
@@ -118,6 +118,7 @@ export const watchCommand = command({
 	const watcher = watch(
 		argv._,
 		{
+			cwd: process.cwd(),
 			ignoreInitial: true,
 			ignored: [
 				// Hidden directories like .git
diff --git a/tests/specs/watch.ts b/tests/specs/watch.ts
index fe202250..69105889 100644
--- a/tests/specs/watch.ts
+++ b/tests/specs/watch.ts
@@ -161,12 +161,13 @@ export default testSuite(async ({ describe }, fixturePath: string) => {
 				});
 
 				const tsxProcess = tsx({
+					cwd: fixture.path,
 					args: [
 						'watch',
 						'--clear-screen=false',
-						`--ignore=${path.join(fixture.path, fileA)}`,
+						`--ignore=${fileA}`,
 						`--ignore=${path.join(fixture.path, 'directory/*')}`,
-						path.join(fixture.path, entryFile),
+						entryFile,
 					],
 				});