diff --git a/crates/project_model/src/cargo_workspace.rs b/crates/project_model/src/cargo_workspace.rs
index 739f29b014..13ff20c8c6 100644
--- a/crates/project_model/src/cargo_workspace.rs
+++ b/crates/project_model/src/cargo_workspace.rs
@@ -251,6 +251,7 @@ struct PackageMetadata {
 impl CargoWorkspace {
     pub fn fetch_metadata(
         cargo_toml: &ManifestPath,
+        current_dir: &AbsPath,
         config: &CargoConfig,
         progress: &dyn Fn(String),
     ) -> Result<cargo_metadata::Metadata> {
@@ -275,7 +276,7 @@ impl CargoWorkspace {
                 meta.features(CargoOpt::SomeFeatures(config.features.clone()));
             }
         }
-        meta.current_dir(cargo_toml.parent().as_os_str());
+        meta.current_dir(current_dir.as_os_str());
 
         if let Some(target) = target {
             meta.other_options(vec![String::from("--filter-platform"), target]);
diff --git a/crates/project_model/src/workspace.rs b/crates/project_model/src/workspace.rs
index cb79ce08ba..339fdfcc9b 100644
--- a/crates/project_model/src/workspace.rs
+++ b/crates/project_model/src/workspace.rs
@@ -160,14 +160,19 @@ impl ProjectWorkspace {
                     cmd
                 })?;
 
-                let meta = CargoWorkspace::fetch_metadata(&cargo_toml, config, progress)
-                    .with_context(|| {
-                        format!(
-                            "Failed to read Cargo metadata from Cargo.toml file {}, {}",
-                            cargo_toml.display(),
-                            cargo_version
-                        )
-                    })?;
+                let meta = CargoWorkspace::fetch_metadata(
+                    &cargo_toml,
+                    cargo_toml.parent(),
+                    config,
+                    progress,
+                )
+                .with_context(|| {
+                    format!(
+                        "Failed to read Cargo metadata from Cargo.toml file {}, {}",
+                        cargo_toml.display(),
+                        cargo_version
+                    )
+                })?;
                 let cargo = CargoWorkspace::new(meta);
 
                 let sysroot = if config.no_sysroot {
@@ -189,10 +194,15 @@ impl ProjectWorkspace {
 
                 let rustc = match rustc_dir {
                     Some(rustc_dir) => Some({
-                        let meta = CargoWorkspace::fetch_metadata(&rustc_dir, config, progress)
-                            .with_context(|| {
-                                "Failed to read Cargo metadata for Rust sources".to_string()
-                            })?;
+                        let meta = CargoWorkspace::fetch_metadata(
+                            &rustc_dir,
+                            cargo_toml.parent(),
+                            config,
+                            progress,
+                        )
+                        .with_context(|| {
+                            "Failed to read Cargo metadata for Rust sources".to_string()
+                        })?;
                         CargoWorkspace::new(meta)
                     }),
                     None => None,