diff --git a/lib/wasix/src/syscalls/wasi/path_create_directory.rs b/lib/wasix/src/syscalls/wasi/path_create_directory.rs
index 60343269fc2..c81adfd5c91 100644
--- a/lib/wasix/src/syscalls/wasi/path_create_directory.rs
+++ b/lib/wasix/src/syscalls/wasi/path_create_directory.rs
@@ -29,12 +29,11 @@ pub fn path_create_directory<M: MemorySize>(
     let mut path_string = unsafe { get_input_str_ok!(&memory, path, path_len) };
     Span::current().record("path", path_string.as_str());
 
-    // Convert relative paths into absolute paths
-    if path_string.starts_with("./") {
-        path_string = ctx.data().state.fs.relative_path_to_absolute(path_string);
-        trace!(
-            %path_string
-        );
+    let path = PathBuf::from(&path_string);
+
+    if path.is_relative() {
+        let cur_dir = PathBuf::from(ctx.data().state.fs.current_dir.lock().unwrap().deref());
+        path_string = cur_dir.join(path).to_str().unwrap().to_owned();
     }
 
     wasi_try_ok!(path_create_directory_internal(&mut ctx, fd, &path_string));
diff --git a/tests/wasix/create-dir-at-cwd/main.c b/tests/wasix/create-dir-at-cwd/main.c
new file mode 100644
index 00000000000..5e36441ef2e
--- /dev/null
+++ b/tests/wasix/create-dir-at-cwd/main.c
@@ -0,0 +1,24 @@
+#include <stdio.h>
+#include <stdlib.h>
+#include <sys/stat.h>
+#include <sys/types.h>
+
+int main() {
+    int status = EXIT_FAILURE;
+
+    const char *dirName1 = "test1";
+    if (mkdir(dirName1, 0755) != 0) {
+        goto end;
+    }
+
+    const char *dirName2 = "./test2";
+    if (mkdir(dirName2, 0755) != 0) {
+        goto end;
+    }
+
+    status = EXIT_SUCCESS;
+
+end:
+    printf("%d", status);
+    return 0;
+}
diff --git a/tests/wasix/create-dir-at-cwd/run.sh b/tests/wasix/create-dir-at-cwd/run.sh
new file mode 100755
index 00000000000..66be3793d6b
--- /dev/null
+++ b/tests/wasix/create-dir-at-cwd/run.sh
@@ -0,0 +1,5 @@
+#!/bin/bash
+
+$WASMER -q run main.wasm --dir . > output
+
+rmdir test1 test2 2>/dev/null && printf "0" | diff -u output - 1>/dev/null