diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
index 8eb62c8..31cfaa0 100644
--- a/.github/workflows/test.yml
+++ b/.github/workflows/test.yml
@@ -10,4 +10,5 @@ jobs:
       - uses: actions/checkout@v3
       - uses: ./
         with:
+          cwd: "test"
           install-ignore-scripts: true
diff --git a/.gitignore b/.gitignore
index 3c3629e..adceed6 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1 +1,2 @@
 node_modules
+test/node_modules
diff --git a/README.md b/README.md
index c530e3a..005bc3a 100644
--- a/README.md
+++ b/README.md
@@ -13,10 +13,21 @@ jobs:
 
       - name: setup node and pnpm
         uses: dafnik/setup-node-pnpm@v1
-        # with:
-          # pnpm: 8
-          # node: 18
-          # install: false
+        with:
+          # PNPM version to install
+          pnpm: 8
+          
+          # Node version to install
+          node: 18
+          
+          # Changes pnpm-lock.yaml lookup location and the work directory of "pnpm install" if enabled
+          cwd: "."
+          
+          # Runs "pnpm install" in working directory
+          install: false
+          
+          # Runs "pnpm install --ingore-scripts" in working directory
+          # Enable "install" or "install-ignore-scripts" only once
           # install-ignore-scripts: false
 ```
 
diff --git a/action.yml b/action.yml
index 6202cb6..da43d39 100644
--- a/action.yml
+++ b/action.yml
@@ -7,21 +7,29 @@ branding:
 
 inputs:
   pnpm:
-    description: 'PNPM version'
+    description: "PNPM version"
     required: false
     default: 8
   node:
     description: "Node version"
     required: false
     default: 18
+  cwd:
+    description: "Work directory"
+    required: false
+    default: "."
+  cache-dependency-path:
+    description: "Path to pnpm-lock.yaml"
+    required: false
+    default: "pnpm-lock.yaml"
   install:
     description: "Runs pnpm install"
     required: false
-    default: 'false'
+    default: "false"
   install-ignore-scripts:
     description: "Runs pnpm install --ignore-scripts"
     required: false
-    default: 'false'
+    default: "false"
 
 runs:
   using: "composite"
@@ -35,28 +43,19 @@ runs:
       uses: actions/setup-node@v3
       with:
         node-version: ${{ inputs.node }}
-        cache: 'pnpm'
-        
-    - name: get pnpm store directory
-      id: pnpm-dir
-      shell: bash
-      run: echo "STORE_PATH=$(pnpm store path)" >> $GITHUB_OUTPUT
-
-    - uses: actions/cache@v3
-      id: pnpm-cache
-      name: setup pnpm cache
-      with:
-        path: ${{ steps.pnpm-dir.outputs.STORE_PATH }}
-        key: ${{ runner.os }}-pnpm-store-${{ hashFiles('**/pnpm-lock.yaml') }}
-        restore-keys: |
-          ${{ runner.os }}-pnpm-store-
+        cache: "pnpm"
+        cache-dependency-path: "${{ inputs.cwd }}/pnpm-lock.yaml"
 
     - name: Run pnpm install
       if: "${{ inputs.install == 'true' }}"
       shell: bash
-      run: pnpm install --frozen-lockfile
+      run: |
+        cd ${{ inputs.cwd }}
+        pnpm install --frozen-lockfile
 
     - name: Run pnpm install --ignore-scripts
       if: "${{ inputs.install-ignore-scripts == 'true' }}"
       shell: bash
-      run: pnpm install --frozen-lockfile --ignore-scripts
+      run: |
+        cd ${{ inputs.cwd }}
+        pnpm install --frozen-lockfile --ignore-scripts
diff --git a/package.json b/test/package.json
similarity index 100%
rename from package.json
rename to test/package.json
diff --git a/pnpm-lock.yaml b/test/pnpm-lock.yaml
similarity index 100%
rename from pnpm-lock.yaml
rename to test/pnpm-lock.yaml