diff --git a/packages/typescript/src/index.ts b/packages/typescript/src/index.ts
index 4aef44624..97e51be50 100644
--- a/packages/typescript/src/index.ts
+++ b/packages/typescript/src/index.ts
@@ -157,6 +157,15 @@ export default function typescript(options: RollupTypescriptOptions = {}): Plugi
             (parsedOptions.options.declaration
               ? parsedOptions.options.declarationDir || parsedOptions.options.outDir
               : null);
+          const cwd = normalizePath(process.cwd());
+          if (
+            parsedOptions.options.declaration &&
+            parsedOptions.options.declarationDir &&
+            baseDir?.startsWith(cwd)
+          ) {
+            const declarationDir = baseDir.slice(cwd.length + 1);
+            baseDir = baseDir.slice(0, -1 * declarationDir.length);
+          }
           if (!baseDir && tsconfig) {
             baseDir = tsconfig.substring(0, tsconfig.lastIndexOf('/'));
           }
diff --git a/packages/typescript/test/test.js b/packages/typescript/test/test.js
index 8a66a5a2e..3e71cc83f 100644
--- a/packages/typescript/test/test.js
+++ b/packages/typescript/test/test.js
@@ -153,7 +153,7 @@ test.serial('supports emitting types also for single file output', async (t) =>
 
   t.deepEqual(
     output.map((out) => out.fileName),
-    ['main.js', 'main.d.ts']
+    ['main.js', 'dist/main.d.ts']
   );
   t.is(warnings.length, 0);
 });