diff --git a/crates/ra_lsp_server/src/main_loop/handlers.rs b/crates/ra_lsp_server/src/main_loop/handlers.rs
index 8ea9edc84f..3f58e3c93e 100644
--- a/crates/ra_lsp_server/src/main_loop/handlers.rs
+++ b/crates/ra_lsp_server/src/main_loop/handlers.rs
@@ -520,10 +520,17 @@ pub fn handle_formatting(
     let end_position = TextUnit::of_str(&file).conv_with(&file_line_index);
 
     use std::process;
-    let mut rustfmt = process::Command::new("rustfmt")
+    let mut rustfmt = process::Command::new("rustfmt");
+    rustfmt
         .stdin(process::Stdio::piped())
-        .stdout(process::Stdio::piped())
-        .spawn()?;
+        .stdout(process::Stdio::piped());
+
+    if let Ok(path) = params.text_document.uri.to_file_path() {
+        if let Some(parent) = path.parent() {
+            rustfmt.current_dir(parent);
+        }
+    }
+    let mut rustfmt = rustfmt.spawn()?;
 
     rustfmt.stdin.as_mut().unwrap().write_all(file.as_bytes())?;
 
@@ -531,7 +538,9 @@ pub fn handle_formatting(
     let captured_stdout = String::from_utf8(output.stdout)?;
     if !output.status.success() {
         failure::bail!(
-            "rustfmt exited with error code {}: {}.",
+            r#"rustfmt exited with:
+            Status: {}
+            stdout: {}"#,
             output.status,
             captured_stdout,
         );
diff --git a/crates/ra_lsp_server/src/project_model/cargo_workspace.rs b/crates/ra_lsp_server/src/project_model/cargo_workspace.rs
index 75ae78bca7..8cf99d5865 100644
--- a/crates/ra_lsp_server/src/project_model/cargo_workspace.rs
+++ b/crates/ra_lsp_server/src/project_model/cargo_workspace.rs
@@ -117,9 +117,13 @@ impl Target {
 
 impl CargoWorkspace {
     pub fn from_cargo_metadata(cargo_toml: &Path) -> Result<CargoWorkspace> {
-        let meta = MetadataCommand::new()
-            .manifest_path(cargo_toml)
-            .features(CargoOpt::AllFeatures)
+        let mut meta = MetadataCommand::new();
+        meta.manifest_path(cargo_toml)
+            .features(CargoOpt::AllFeatures);
+        if let Some(parent) = cargo_toml.parent() {
+            meta.current_dir(parent);
+        }
+        let meta = meta
             .exec()
             .map_err(|e| format_err!("cargo metadata failed: {}", e))?;
         let mut pkg_by_id = FxHashMap::default();