diff --git a/.github/workflows/__check-action.yml b/.github/workflows/__check-action.yml
index 1126983..a0872ad 100644
--- a/.github/workflows/__check-action.yml
+++ b/.github/workflows/__check-action.yml
@@ -104,3 +104,27 @@ jobs:
           docker-compose -f ./docker/docker-compose.yml -f ./docker/docker-compose.ci.yml ps | grep docker-helloworld4-1
           docker-compose -f ./docker/docker-compose.yml -f ./docker/docker-compose.ci.yml ps | (grep docker-helloworld-1 && echo "Unexpected service is running" && exit 1) || true
           docker-compose -f ./docker/docker-compose.yml -f ./docker/docker-compose.ci.yml ps | (grep docker-helloworld3-1 && echo "Unexpected service is running" && exit 1) || true
+
+  test-action-with-cwd:
+    runs-on: ubuntu-latest
+    name: Test with cwd
+    steps:
+      - uses: actions/checkout@v4
+      - uses: hoverkraft-tech/ci-github-nodejs/actions/setup-node@0.4.2
+
+      - name: Act
+        uses: ./
+        with:
+          compose-file: "docker-compose.yml"
+          cwd: "./docker"
+          services: |
+            helloworld2
+            helloworld3
+
+      - name: "Assert: only expected services are running"
+        run: |
+          docker-compose -f ./docker/docker-compose.yml ps
+
+          docker-compose -f ./docker/docker-compose.yml ps | grep docker-helloworld2-1
+          docker-compose -f ./docker/docker-compose.yml ps | grep docker-helloworld3-1
+          docker-compose -f ./docker/docker-compose.yml ps | (grep docker-helloworld-1 && echo "Unexpected service helloworld is running" && exit 1) || true
diff --git a/.prettierignore b/.prettierignore
new file mode 100644
index 0000000..53c37a1
--- /dev/null
+++ b/.prettierignore
@@ -0,0 +1 @@
+dist
\ No newline at end of file
diff --git a/action.yml b/action.yml
index c79bb94..d596a83 100644
--- a/action.yml
+++ b/action.yml
@@ -1,31 +1,34 @@
-name: 'Docker Compose Action'
-description:
-  'This action runs your docker-compose file and clean up before action finished'
-author: 'Hoverkraft'
+name: "Docker Compose Action"
+description: "This action runs your docker-compose file and clean up before action finished"
+author: "Hoverkraft"
 branding:
   icon: anchor
   color: gray-dark
 
 inputs:
   compose-file:
-    description: 'Relative path to compose file(s). It can be a list of files.'
+    description: "Relative path to compose file(s). It can be a list of files."
     required: false
-    default: './docker-compose.yml'
+    default: "./docker-compose.yml"
   services:
-    description: 'Services to perform docker-compose up.'
+    description: "Services to perform docker-compose up."
     required: false
   up-flags:
-    description: 'Additional options to pass to `docker-compose up` command.'
+    description: "Additional options to pass to `docker-compose up` command."
     required: false
-    default: ''
+    default: ""
   down-flags:
-    description: 'Additional options to pass to `docker-compose down` command.'
+    description: "Additional options to pass to `docker-compose down` command."
     required: false
-    default: ''
+    default: ""
   compose-flags:
-    description: 'Additional options to pass to `docker-compose` command.'
+    description: "Additional options to pass to `docker-compose` command."
     required: false
-    default: ''
+    default: ""
+  cwd:
+    description: "Current working directory"
+    required: false
+    default: ${{ github.workspace }}
 runs:
   using: node20
   main: dist/index.js
diff --git a/dist/index.js b/dist/index.js
index b5ea5b6..80eddec 100644
--- a/dist/index.js
+++ b/dist/index.js
@@ -26002,6 +26002,7 @@ class DockerComposeService {
             config: inputs.composeFiles,
             log: true,
             composeOptions: inputs.composeFlags,
+            cwd: inputs.cwd,
         };
     }
 }
@@ -26019,6 +26020,7 @@ Object.defineProperty(exports, "__esModule", ({ value: true }));
 exports.InputService = exports.InputNames = void 0;
 const core_1 = __nccwpck_require__(2186);
 const fs_1 = __nccwpck_require__(7147);
+const path_1 = __nccwpck_require__(1017);
 var InputNames;
 (function (InputNames) {
     InputNames["ComposeFile"] = "compose-file";
@@ -26026,6 +26028,7 @@ var InputNames;
     InputNames["ComposeFlags"] = "compose-flags";
     InputNames["UpFlags"] = "up-flags";
     InputNames["DownFlags"] = "down-flags";
+    InputNames["Cwd"] = "cwd";
 })(InputNames || (exports.InputNames = InputNames = {}));
 class InputService {
     logger;
@@ -26039,15 +26042,17 @@ class InputService {
             composeFlags: this.getComposeFlags(),
             upFlags: this.getUpFlags(),
             downFlags: this.getDownFlags(),
+            cwd: this.getCwd(),
         };
     }
     getComposeFiles() {
+        const cwd = this.getCwd();
         return (0, core_1.getMultilineInput)(InputNames.ComposeFile).filter((composeFile) => {
             if (!composeFile.length) {
                 return false;
             }
-            if (!(0, fs_1.existsSync)(composeFile)) {
-                this.logger.warn(`${composeFile} not exists`);
+            if (!(0, fs_1.existsSync)((0, path_1.join)(cwd, composeFile))) {
+                this.logger.warn(`${composeFile} does not exist in ${cwd}`);
                 return false;
             }
             return true;
@@ -26071,6 +26076,9 @@ class InputService {
         }
         return flags.trim().split(" ");
     }
+    getCwd() {
+        return (0, core_1.getInput)(InputNames.Cwd);
+    }
 }
 exports.InputService = InputService;
 
diff --git a/dist/post.js b/dist/post.js
index 547d5b0..bd3d320 100644
--- a/dist/post.js
+++ b/dist/post.js
@@ -26002,6 +26002,7 @@ class DockerComposeService {
             config: inputs.composeFiles,
             log: true,
             composeOptions: inputs.composeFlags,
+            cwd: inputs.cwd,
         };
     }
 }
@@ -26019,6 +26020,7 @@ Object.defineProperty(exports, "__esModule", ({ value: true }));
 exports.InputService = exports.InputNames = void 0;
 const core_1 = __nccwpck_require__(2186);
 const fs_1 = __nccwpck_require__(7147);
+const path_1 = __nccwpck_require__(1017);
 var InputNames;
 (function (InputNames) {
     InputNames["ComposeFile"] = "compose-file";
@@ -26026,6 +26028,7 @@ var InputNames;
     InputNames["ComposeFlags"] = "compose-flags";
     InputNames["UpFlags"] = "up-flags";
     InputNames["DownFlags"] = "down-flags";
+    InputNames["Cwd"] = "cwd";
 })(InputNames || (exports.InputNames = InputNames = {}));
 class InputService {
     logger;
@@ -26039,15 +26042,17 @@ class InputService {
             composeFlags: this.getComposeFlags(),
             upFlags: this.getUpFlags(),
             downFlags: this.getDownFlags(),
+            cwd: this.getCwd(),
         };
     }
     getComposeFiles() {
+        const cwd = this.getCwd();
         return (0, core_1.getMultilineInput)(InputNames.ComposeFile).filter((composeFile) => {
             if (!composeFile.length) {
                 return false;
             }
-            if (!(0, fs_1.existsSync)(composeFile)) {
-                this.logger.warn(`${composeFile} not exists`);
+            if (!(0, fs_1.existsSync)((0, path_1.join)(cwd, composeFile))) {
+                this.logger.warn(`${composeFile} does not exist in ${cwd}`);
                 return false;
             }
             return true;
@@ -26071,6 +26076,9 @@ class InputService {
         }
         return flags.trim().split(" ");
     }
+    getCwd() {
+        return (0, core_1.getInput)(InputNames.Cwd);
+    }
 }
 exports.InputService = InputService;
 
diff --git a/src/main.test.ts b/src/main.test.ts
index d5299f5..1951c6d 100644
--- a/src/main.test.ts
+++ b/src/main.test.ts
@@ -44,6 +44,7 @@ describe("run", () => {
       composeFlags: [],
       upFlags: [],
       downFlags: [],
+      cwd: "/current/working/dir",
     }));
 
     await main.run(main.RunAction.UP);
@@ -52,7 +53,7 @@ describe("run", () => {
     // Verify that all of the functions were called correctly
     expect(debugMock).toHaveBeenNthCalledWith(
       1,
-      'inputs: {"composeFiles":[],"services":[],"composeFlags":[],"upFlags":[],"downFlags":[]}'
+      'inputs: {"composeFiles":[],"services":[],"composeFlags":[],"upFlags":[],"downFlags":[],"cwd":"/current/working/dir"}'
     );
     expect(warnMock).toHaveBeenNthCalledWith(1, "no compose files found");
     expect(upMock).not.toHaveBeenCalled();
@@ -66,6 +67,7 @@ describe("run", () => {
       composeFlags: [],
       upFlags: [],
       downFlags: [],
+      cwd: "/current/working/dir",
     }));
 
     upMock.mockResolvedValueOnce();
@@ -76,7 +78,7 @@ describe("run", () => {
     // Verify that all of the functions were called correctly
     expect(debugMock).toHaveBeenNthCalledWith(
       1,
-      'inputs: {"composeFiles":["docker-compose.yml"],"services":[],"composeFlags":[],"upFlags":[],"downFlags":[]}'
+      'inputs: {"composeFiles":["docker-compose.yml"],"services":[],"composeFlags":[],"upFlags":[],"downFlags":[],"cwd":"/current/working/dir"}'
     );
 
     expect(upMock).toHaveBeenCalledWith({
@@ -85,6 +87,7 @@ describe("run", () => {
       composeFlags: [],
       upFlags: [],
       downFlags: [],
+      cwd: "/current/working/dir",
     });
 
     expect(setFailedMock).not.toHaveBeenCalled();
@@ -98,6 +101,7 @@ describe("run", () => {
       composeFlags: [],
       upFlags: [],
       downFlags: [],
+      cwd: "/current/working/dir",
     }));
 
     upMock.mockRejectedValueOnce(new Error("unkown error"));
@@ -116,6 +120,7 @@ describe("run", () => {
       composeFlags: [],
       upFlags: [],
       downFlags: [],
+      cwd: "/current/working/dir",
     }));
 
     downMock.mockResolvedValueOnce();
@@ -126,7 +131,7 @@ describe("run", () => {
     // Verify that all of the functions were called correctly
     expect(debugMock).toHaveBeenNthCalledWith(
       1,
-      'inputs: {"composeFiles":["docker-compose.yml"],"services":[],"composeFlags":[],"upFlags":[],"downFlags":[]}'
+      'inputs: {"composeFiles":["docker-compose.yml"],"services":[],"composeFlags":[],"upFlags":[],"downFlags":[],"cwd":"/current/working/dir"}'
     );
 
     expect(downMock).toHaveBeenCalledWith({
@@ -135,6 +140,7 @@ describe("run", () => {
       composeFlags: [],
       upFlags: [],
       downFlags: [],
+      cwd: "/current/working/dir",
     });
 
     expect(setFailedMock).not.toHaveBeenCalled();
diff --git a/src/services/docker-compose.service.test.ts b/src/services/docker-compose.service.test.ts
index 69fe287..7519637 100644
--- a/src/services/docker-compose.service.test.ts
+++ b/src/services/docker-compose.service.test.ts
@@ -29,6 +29,7 @@ describe("DockerComposeService", () => {
         composeFlags: [],
         upFlags: [],
         downFlags: [],
+        cwd: "/current/working/dir",
       };
 
       await service.up(inputs);
@@ -38,6 +39,7 @@ describe("DockerComposeService", () => {
         commandOptions: [],
         config: ["docker-compose.yml"],
         log: true,
+        cwd: "/current/working/dir",
       });
     });
 
@@ -48,6 +50,7 @@ describe("DockerComposeService", () => {
         composeFlags: [],
         upFlags: ["--build"],
         downFlags: [],
+        cwd: "/current/working/dir",
       };
 
       await service.up(inputs);
@@ -57,6 +60,7 @@ describe("DockerComposeService", () => {
         commandOptions: ["--build"],
         config: ["docker-compose.yml"],
         log: true,
+        cwd: "/current/working/dir",
       });
     });
   });
@@ -69,6 +73,7 @@ describe("DockerComposeService", () => {
         composeFlags: [],
         upFlags: [],
         downFlags: ["--volumes", "--remove-orphans"],
+        cwd: "/current/working/dir",
       };
 
       await service.down(inputs);
@@ -78,6 +83,7 @@ describe("DockerComposeService", () => {
         commandOptions: ["--volumes", "--remove-orphans"],
         config: [],
         log: true,
+        cwd: "/current/working/dir",
       });
     });
   });
diff --git a/src/services/docker-compose.service.ts b/src/services/docker-compose.service.ts
index 31fe770..4e6739d 100644
--- a/src/services/docker-compose.service.ts
+++ b/src/services/docker-compose.service.ts
@@ -30,6 +30,7 @@ export class DockerComposeService {
       config: inputs.composeFiles,
       log: true,
       composeOptions: inputs.composeFlags,
+      cwd: inputs.cwd,
     };
   }
 }
diff --git a/src/services/input.service.test.ts b/src/services/input.service.test.ts
index 4c6ffe6..c40842b 100644
--- a/src/services/input.service.test.ts
+++ b/src/services/input.service.test.ts
@@ -71,6 +71,7 @@ describe("InputService", () => {
         expect(inputs.composeFiles).toEqual(["file1"]);
       });
     });
+
     describe("services", () => {
       it("should return given services input", () => {
         getMultilineInputMock.mockImplementation((inputName) => {
@@ -89,6 +90,7 @@ describe("InputService", () => {
         expect(inputs.services).toEqual(["service1", "service2"]);
       });
     });
+
     describe("compose-flags", () => {
       it("should return given compose-flags input", () => {
         getMultilineInputMock.mockReturnValue([]);
@@ -116,6 +118,7 @@ describe("InputService", () => {
         expect(inputs.composeFlags).toEqual([]);
       });
     });
+
     describe("up-flags", () => {
       it("should return given up-flags input", () => {
         getMultilineInputMock.mockReturnValue([]);
@@ -143,6 +146,7 @@ describe("InputService", () => {
         expect(inputs.upFlags).toEqual([]);
       });
     });
+
     describe("down-flags", () => {
       it("should return given down-flags input", () => {
         getMultilineInputMock.mockReturnValue([]);
@@ -170,5 +174,23 @@ describe("InputService", () => {
         expect(inputs.downFlags).toEqual([]);
       });
     });
+
+    describe("cwd", () => {
+      it("should return given cwd input", () => {
+        getMultilineInputMock.mockReturnValue([]);
+        getInputMock.mockImplementation((inputName) => {
+          switch (inputName) {
+            case InputNames.Cwd:
+              return "cwd";
+            default:
+              return "";
+          }
+        });
+
+        const inputs = service.getInputs();
+
+        expect(inputs.cwd).toEqual("cwd");
+      });
+    });
   });
 });
diff --git a/src/services/input.service.ts b/src/services/input.service.ts
index 1326838..50518a5 100644
--- a/src/services/input.service.ts
+++ b/src/services/input.service.ts
@@ -1,6 +1,7 @@
 import { getInput, getMultilineInput } from "@actions/core";
 import { LoggerService } from "./logger.service";
 import { existsSync } from "fs";
+import { join } from "path";
 
 export type Inputs = {
   composeFiles: string[];
@@ -8,6 +9,7 @@ export type Inputs = {
   composeFlags: string[];
   upFlags: string[];
   downFlags: string[];
+  cwd: string;
 };
 
 export enum InputNames {
@@ -16,6 +18,7 @@ export enum InputNames {
   ComposeFlags = "compose-flags",
   UpFlags = "up-flags",
   DownFlags = "down-flags",
+  Cwd = "cwd",
 }
 
 export class InputService {
@@ -28,17 +31,19 @@ export class InputService {
       composeFlags: this.getComposeFlags(),
       upFlags: this.getUpFlags(),
       downFlags: this.getDownFlags(),
+      cwd: this.getCwd(),
     };
   }
 
   private getComposeFiles(): string[] {
+    const cwd = this.getCwd();
     return getMultilineInput(InputNames.ComposeFile).filter((composeFile) => {
       if (!composeFile.length) {
         return false;
       }
 
-      if (!existsSync(composeFile)) {
-        this.logger.warn(`${composeFile} not exists`);
+      if (!existsSync(join(cwd, composeFile))) {
+        this.logger.warn(`${composeFile} does not exist in ${cwd}`);
         return false;
       }
 
@@ -69,4 +74,8 @@ export class InputService {
 
     return flags.trim().split(" ");
   }
+
+  private getCwd(): string {
+    return getInput(InputNames.Cwd);
+  }
 }