diff --git a/client/src/main/java/org/jboss/fuse/mvnd/client/DaemonConnector.java b/client/src/main/java/org/jboss/fuse/mvnd/client/DaemonConnector.java
index dadeecf26..dea3514f8 100644
--- a/client/src/main/java/org/jboss/fuse/mvnd/client/DaemonConnector.java
+++ b/client/src/main/java/org/jboss/fuse/mvnd/client/DaemonConnector.java
@@ -255,7 +255,6 @@ private String startDaemon() {
             if (timeout != null) {
                 args.add(Environment.DAEMON_IDLE_TIMEOUT.asCommandLineProperty(timeout));
             }
-            args.add("\"-Dmaven.multiModuleProjectDirectory=" + layout.multiModuleProjectDirectory().toString() + "\"");
 
             args.add(ServerMain.class.getName());
             command = String.join(" ", args);
diff --git a/client/src/main/java/org/jboss/fuse/mvnd/client/Environment.java b/client/src/main/java/org/jboss/fuse/mvnd/client/Environment.java
index df4eacbc8..bcdf36647 100644
--- a/client/src/main/java/org/jboss/fuse/mvnd/client/Environment.java
+++ b/client/src/main/java/org/jboss/fuse/mvnd/client/Environment.java
@@ -116,22 +116,25 @@ public static EnvValue findBasicMavenHome() {
     public static Path findMultiModuleProjectDirectory(Path pwd) {
         return MAVEN_MULTIMODULE_PROJECT_DIRECTORY
                 .systemProperty()
-                .orDefault(() -> {
-                    Path dir = pwd;
-                    do {
-                        if (Files.isDirectory(dir.resolve(".mvn"))) {
-                            return dir.toString();
-                        }
-                        dir = dir.getParent();
-                    } while (dir != null);
-                    throw new IllegalStateException("Could not detect maven.multiModuleProjectDirectory by climbing up from ["
-                            + pwd
-                            + "] seeking a .mvn directory. You may want to create a .mvn directory in the root directory of your source tree.");
-                })
+                .orDefault(() -> findDefaultMultimoduleProjectDirectory(pwd))
                 .asPath()
                 .toAbsolutePath().normalize();
     }
 
+    public static String findDefaultMultimoduleProjectDirectory(Path pwd) {
+        Path dir = pwd;
+        do {
+            if (Files.isDirectory(dir.resolve(".mvn"))) {
+                return dir.toString();
+            }
+            dir = dir.getParent();
+        } while (dir != null);
+        /* Return pwd if .mvn directory was not found in the hierarchy.
+         * Maven does the same thing in mvn shell script's find_maven_basedir()
+         * and find_file_argument_basedir() routines */
+        return pwd.toString();
+    }
+
     public static Path findLogbackConfigurationPath(Supplier<Properties> mvndProperties, Path mvndPropertiesPath,
             Path mvndHome) {
         return LOGBACK_CONFIGURATION_FILE
diff --git a/daemon/src/main/java/org/jboss/fuse/mvnd/plugin/CliPluginRealmCache.java b/daemon/src/main/java/org/jboss/fuse/mvnd/plugin/CliPluginRealmCache.java
index 386f8c3f3..191504a5f 100644
--- a/daemon/src/main/java/org/jboss/fuse/mvnd/plugin/CliPluginRealmCache.java
+++ b/daemon/src/main/java/org/jboss/fuse/mvnd/plugin/CliPluginRealmCache.java
@@ -20,7 +20,6 @@
 
 import java.io.File;
 import java.io.IOException;
-import java.net.URISyntaxException;
 import java.net.URL;
 import java.nio.file.FileSystems;
 import java.nio.file.Files;
diff --git a/integration-tests/src/test/java/org/jboss/fuse/mvnd/it/VersionNativeIT.java b/integration-tests/src/test/java/org/jboss/fuse/mvnd/it/VersionNativeIT.java
index 4d0de95c9..c057bc5ee 100644
--- a/integration-tests/src/test/java/org/jboss/fuse/mvnd/it/VersionNativeIT.java
+++ b/integration-tests/src/test/java/org/jboss/fuse/mvnd/it/VersionNativeIT.java
@@ -28,7 +28,7 @@
 import org.mockito.ArgumentCaptor;
 import org.mockito.Mockito;
 
-@MvndNativeTest(projectDir = "src/test/projects/single-module")
+@MvndNativeTest(projectDir = MvndTestExtension.TEMP_EXTERNAL)
 public class VersionNativeIT {
 
     @Inject
diff --git a/integration-tests/src/test/java/org/jboss/fuse/mvnd/it/VersionTest.java b/integration-tests/src/test/java/org/jboss/fuse/mvnd/it/VersionTest.java
index cf392a2a5..40b48acf4 100644
--- a/integration-tests/src/test/java/org/jboss/fuse/mvnd/it/VersionTest.java
+++ b/integration-tests/src/test/java/org/jboss/fuse/mvnd/it/VersionTest.java
@@ -18,7 +18,7 @@
 import org.jboss.fuse.mvnd.junit.MvndTest;
 import org.jboss.fuse.mvnd.junit.MvndTestExtension;
 
-@MvndTest(projectDir = "src/test/projects/single-module")
+@MvndTest(projectDir = MvndTestExtension.TEMP_EXTERNAL)
 public class VersionTest extends VersionNativeIT {
 
 }
diff --git a/integration-tests/src/test/java/org/jboss/fuse/mvnd/junit/MvndTestExtension.java b/integration-tests/src/test/java/org/jboss/fuse/mvnd/junit/MvndTestExtension.java
index 92010ffa2..c29f7663d 100644
--- a/integration-tests/src/test/java/org/jboss/fuse/mvnd/junit/MvndTestExtension.java
+++ b/integration-tests/src/test/java/org/jboss/fuse/mvnd/junit/MvndTestExtension.java
@@ -30,6 +30,7 @@
 import org.jboss.fuse.mvnd.client.DaemonInfo;
 import org.jboss.fuse.mvnd.client.DaemonRegistry;
 import org.jboss.fuse.mvnd.client.DefaultClient;
+import org.jboss.fuse.mvnd.client.Environment;
 import org.jboss.fuse.mvnd.client.Layout;
 import org.jboss.fuse.mvnd.jpm.ProcessImpl;
 import org.junit.jupiter.api.extension.AfterAllCallback;
@@ -167,6 +168,8 @@ public static MvndResource create(String className, String rawProjectDir, boolea
                     });
                 }
             }
+            final Path multiModuleProjectDirectory = Paths
+                    .get(Environment.findDefaultMultimoduleProjectDirectory(testExecutionDir));
 
             final Path mvndHome = Paths
                     .get(Objects.requireNonNull(System.getProperty("mvnd.home"), "System property mvnd.home must be set"))
@@ -183,7 +186,7 @@ public static MvndResource create(String className, String rawProjectDir, boolea
                     mvndPropertiesPath,
                     mvndHome,
                     testExecutionDir,
-                    testExecutionDir,
+                    multiModuleProjectDirectory,
                     Paths.get(System.getProperty("java.home")).toAbsolutePath().normalize(),
                     localMavenRepository, settingsPath,
                     mvndHome.resolve("conf/logging/logback.xml"));