diff --git a/packages/build-config/config/webpack.config.js b/packages/build-config/config/webpack.config.js
index e7d462d96683c8..324aed68a0dffe 100644
--- a/packages/build-config/config/webpack.config.js
+++ b/packages/build-config/config/webpack.config.js
@@ -80,7 +80,7 @@ const config = {
 	mode,
 	output: {
 		filename: './build/[basename]/index.js',
-		path: __dirname,
+		path: process.cwd(),
 		library: [ 'wp', '[name]' ],
 		libraryTarget: 'this',
 	},