diff --git a/packages/e2b/e2b/tests/composition.e2e.ts b/packages/e2b/e2b/tests/composition.e2e.ts
index 98fcdeae7f..e87627af8e 100644
--- a/packages/e2b/e2b/tests/composition.e2e.ts
+++ b/packages/e2b/e2b/tests/composition.e2e.ts
@@ -1,5 +1,5 @@
 import { access } from 'node:fs/promises'
-import { join } from 'node:path'
+import { join, posix } from 'node:path'
 import { fileURLToPath } from 'node:url'
 import { Context } from 'cordis'
 import { describe, expect, it } from 'vitest'
@@ -40,6 +40,9 @@ describe.skipIf(!process.env.E2B_API_KEY)('E2B live Loader composition', () => {
       } as never)
       const ptyFiber = await ctx.plugin(PtyService)
       const subprocessFiber = await ctx.plugin(E2BSubprocessService)
+      const node = await ctx.subprocess.resolveExecutable('node')
+      const relativeNodePath = posix.relative(ctx.subprocess.cwd, posix.dirname(node)) || '.'
+      await expect(ctx.subprocess.resolveExecutable('node', { PATH: relativeNodePath })).resolves.toBe(node)
       const ownerId = SessionId('e2b-pty-env-owner')
       const owner: Agent = {
         id: ownerId,
diff --git a/packages/e2b/subprocess-e2b/src/index.ts b/packages/e2b/subprocess-e2b/src/index.ts
index 1547e1b46e..86ca5ceada 100644
--- a/packages/e2b/subprocess-e2b/src/index.ts
+++ b/packages/e2b/subprocess-e2b/src/index.ts
@@ -79,14 +79,14 @@ export class E2BSubprocessService extends SubprocessService {
     const prefix = path === undefined ? '' : `PATH=${quoteE2BShellArg(path)} `
     const result = await sandbox.commands.run(
       `${prefix}command -v -- ${quoteE2BShellArg(command)}`,
-      signalOpts(signal),
+      { cwd: this.cwd, ...signalOpts(signal) },
     )
     signal?.throwIfAborted()
     const executable = result.stdout.trim()
-    if (!posix.isAbsolute(executable) || executable.includes('\n')) {
+    if (executable.includes('\n') || (!posix.isAbsolute(executable) && !executable.includes('/'))) {
       throw new Error(`subprocess-e2b: executable ${JSON.stringify(command)} did not resolve to one absolute path`)
     }
-    return executable
+    return posix.resolve(this.cwd, executable)
   }
 
   /** @inheritdoc */
diff --git a/packages/e2b/subprocess-e2b/tests/terminal.spec.ts b/packages/e2b/subprocess-e2b/tests/terminal.spec.ts
index 43cb88ea87..81716c3d52 100644
--- a/packages/e2b/subprocess-e2b/tests/terminal.spec.ts
+++ b/packages/e2b/subprocess-e2b/tests/terminal.spec.ts
@@ -19,6 +19,11 @@ function commandError(exitCode: number): CommandExitError {
   return new CommandExitError({ exitCode, stdout: '', stderr: '', error: `exit ${exitCode}` })
 }
 
+interface CommandOptions {
+  signal?: AbortSignal
+  cwd?: string
+}
+
 class FakeTerminalCommandHandle {
   pid = 123
   disconnects = 0
@@ -74,6 +79,7 @@ class FakeTerminalCommandHandle {
 class FakeTerminalSandbox {
   readonly handle = new FakeTerminalCommandHandle()
   readonly commands: string[] = []
+  readonly commandOptions: CommandOptions[] = []
   readonly inputs: Array<{ pid: number; data: Buffer }> = []
   readonly removed: string[] = []
   readonly directories: string[] = []
@@ -121,8 +127,9 @@ class FakeTerminalSandbox {
       },
     },
     commands: {
-      run: async (command: string, options?: { signal?: AbortSignal }): Promise<CommandResult> => {
+      run: async (command: string, options?: CommandOptions): Promise<CommandResult> => {
         this.commands.push(command)
+        if (options !== undefined) this.commandOptions.push(options)
         options?.signal?.throwIfAborted()
         if (this.commandFailure !== undefined) {
           const error = this.commandFailure
@@ -525,12 +532,16 @@ describe('E2B subprocess terminal service', () => {
   }
 
   it('publishes execution-world coordinates and resolves remote executables', async () => {
-    const { ctx } = await service()
+    const { ctx, fake } = await service()
     expect(ctx.subprocess.cwd).toBe('/workspace')
     expect(ctx.subprocess.runtimeRoot).toBe('/workspace/.dsh-e2b')
     await expect(ctx.subprocess.resolveExecutable('/bin/bash')).resolves.toBe('/bin/bash')
     await expect(ctx.subprocess.resolveExecutable('node', { PATH: '/custom/bin' }, new AbortController().signal))
       .resolves.toBe('/usr/bin/node')
+    fake.resolvedExecutable = 'tools/bin/node\n'
+    await expect(ctx.subprocess.resolveExecutable('node', { PATH: 'tools/bin' }))
+      .resolves.toBe('/workspace/tools/bin/node')
+    expect(fake.commandOptions.at(-1)).toMatchObject({ cwd: '/workspace' })
     expect((ctx.e2b)).toBeDefined()
   })
 
@@ -539,7 +550,7 @@ describe('E2B subprocess terminal service', () => {
     await expect(ctx.subprocess.resolveExecutable('')).rejects.toThrow('non-empty')
     await expect(ctx.subprocess.resolveExecutable('node', undefined, AbortSignal.abort(new Error('stop'))))
       .rejects.toThrow('stop')
-    fake.resolvedExecutable = 'relative/node\n'
+    fake.resolvedExecutable = 'node\n'
     await expect(ctx.subprocess.resolveExecutable('node')).rejects.toThrow('did not resolve')
     fake.resolvedExecutable = '/one\n/two\n'
     await expect(ctx.subprocess.resolveExecutable('node')).rejects.toThrow('did not resolve')