diff --git a/Cargo.lock b/Cargo.lock
index 6789ea504..bf7893a4b 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -4601,6 +4601,7 @@ dependencies = [
  "ed25519-dalek",
  "fs_extra",
  "hex",
+ "home",
  "predicates",
  "sep5",
  "serde_json",
diff --git a/cmd/crates/soroban-test/Cargo.toml b/cmd/crates/soroban-test/Cargo.toml
index d035652d1..61fcc0bd8 100644
--- a/cmd/crates/soroban-test/Cargo.toml
+++ b/cmd/crates/soroban-test/Cargo.toml
@@ -32,6 +32,7 @@ assert_fs = "1.0.7"
 predicates = { workspace = true }
 fs_extra = "1.3.0"
 toml = { workspace = true }
+home = "0.5.9"
 
 
 [dev-dependencies]
diff --git a/cmd/crates/soroban-test/tests/it/build.rs b/cmd/crates/soroban-test/tests/it/build.rs
index cb63ae907..a2b771cce 100644
--- a/cmd/crates/soroban-test/tests/it/build.rs
+++ b/cmd/crates/soroban-test/tests/it/build.rs
@@ -2,6 +2,7 @@ use predicates::prelude::predicate;
 use soroban_cli::xdr::{Limited, Limits, ReadXdr, ScMetaEntry, ScMetaV0};
 use soroban_spec_tools::contract::Spec;
 use soroban_test::TestEnv;
+use std::env;
 use std::io::Cursor;
 
 #[test]
@@ -16,11 +17,9 @@ fn build_all() {
         .arg("--print-commands-only")
         .assert()
         .success()
-        .stdout(predicate::eq("\
-cargo rustc --manifest-path=contracts/add/Cargo.toml --crate-type=cdylib --target=wasm32-unknown-unknown --release
+        .stdout(predicate::eq(with_flags("cargo rustc --manifest-path=contracts/add/Cargo.toml --crate-type=cdylib --target=wasm32-unknown-unknown --release
 cargo rustc --manifest-path=contracts/call/Cargo.toml --crate-type=cdylib --target=wasm32-unknown-unknown --release
-cargo rustc --manifest-path=contracts/add/add2/Cargo.toml --crate-type=cdylib --target=wasm32-unknown-unknown --release
-"));
+cargo rustc --manifest-path=contracts/add/add2/Cargo.toml --crate-type=cdylib --target=wasm32-unknown-unknown --release")));
 }
 
 #[test]
@@ -36,9 +35,7 @@ fn build_package_by_name() {
         .arg("--package=add")
         .assert()
         .success()
-        .stdout(predicate::eq("\
-cargo rustc --manifest-path=contracts/add/Cargo.toml --crate-type=cdylib --target=wasm32-unknown-unknown --release
-"));
+        .stdout(predicate::eq(with_flags("cargo rustc --manifest-path=contracts/add/Cargo.toml --crate-type=cdylib --target=wasm32-unknown-unknown --release")));
 }
 
 #[test]
@@ -54,9 +51,7 @@ fn build_package_by_current_dir() {
         .assert()
         .success()
         .stdout(predicate::eq(
-            "\
-cargo rustc --manifest-path=Cargo.toml --crate-type=cdylib --target=wasm32-unknown-unknown --release
-",
+            with_flags("cargo rustc --manifest-path=Cargo.toml --crate-type=cdylib --target=wasm32-unknown-unknown --release"),
         ));
 }
 
@@ -85,6 +80,7 @@ fn build_all_when_in_non_package_directory() {
     let sandbox = TestEnv::default();
     let cargo_dir = std::path::PathBuf::from(env!("CARGO_MANIFEST_DIR"));
     let fixture_path = cargo_dir.join("tests/fixtures/workspace/contracts/add/src/");
+
     sandbox
         .new_assert_cmd("contract")
         .current_dir(fixture_path)
@@ -92,13 +88,9 @@ fn build_all_when_in_non_package_directory() {
         .arg("--print-commands-only")
         .assert()
         .success()
-        .stdout(predicate::eq(
-            "\
-cargo rustc --manifest-path=../Cargo.toml --crate-type=cdylib --target=wasm32-unknown-unknown --release
-cargo rustc --manifest-path=../../call/Cargo.toml --crate-type=cdylib --target=wasm32-unknown-unknown --release
-cargo rustc --manifest-path=../add2/Cargo.toml --crate-type=cdylib --target=wasm32-unknown-unknown --release
-",
-        ));
+        .stdout(predicate::eq(with_flags(
+            "cargo rustc --manifest-path=../Cargo.toml --crate-type=cdylib --target=wasm32-unknown-unknown --release"
+        )));
 }
 
 #[test]
@@ -113,11 +105,7 @@ fn build_default_members() {
         .arg("--print-commands-only")
         .assert()
         .success()
-        .stdout(predicate::eq(
-            "\
-cargo rustc --manifest-path=contracts/add/Cargo.toml --crate-type=cdylib --target=wasm32-unknown-unknown --release
-",
-        ));
+        .stdout(predicate::eq(with_flags("cargo rustc --manifest-path=contracts/add/Cargo.toml --crate-type=cdylib --target=wasm32-unknown-unknown --release")));
 }
 
 #[test]
@@ -185,3 +173,30 @@ fn build_with_metadata() {
 
     assert_eq!(entries, expected_entries);
 }
+
+fn with_flags(expected: &str) -> String {
+    let cargo_home = home::cargo_home().unwrap();
+    let cargo_home = format!("{}", cargo_home.display());
+    let registry_prefix = format!("{cargo_home}/registry/src/");
+
+    let vec: Vec<_> = if env::var("RUSTFLAGS").is_ok() {
+        expected.split("\n").map(|x| x.to_string()).collect()
+    } else {
+        expected
+            .split("\n")
+            .map(|x| {
+                format!(
+                    "CARGO_BUILD_RUSTFLAGS=--remap-path-prefix={}= {}",
+                    registry_prefix, x
+                )
+            })
+            .collect()
+    };
+
+    return format!(
+        "\
+{}
+",
+        vec.join("\n")
+    );
+}