diff --git a/Sources/PackageModel/SwiftSDKs/SwiftSDK.swift b/Sources/PackageModel/SwiftSDKs/SwiftSDK.swift
index e0e75b96075..bef655063af 100644
--- a/Sources/PackageModel/SwiftSDKs/SwiftSDK.swift
+++ b/Sources/PackageModel/SwiftSDKs/SwiftSDK.swift
@@ -896,7 +896,7 @@ extension SwiftSDK {
     ) throws -> [SwiftSDK] {
         let wasmKitProperties = Toolset.ToolProperties(
             path: hostToolchainBinDir.appending("wasmkit"),
-            extraCLIOptions: ["run"]
+            extraCLIOptions: ["run", "--dir", "."]
         )
 
         switch semanticVersion.schemaVersion {
diff --git a/Tests/PackageModelTests/SwiftSDKTests.swift b/Tests/PackageModelTests/SwiftSDKTests.swift
index d3c6b2f0643..999622ee993 100644
--- a/Tests/PackageModelTests/SwiftSDKTests.swift
+++ b/Tests/PackageModelTests/SwiftSDKTests.swift
@@ -578,7 +578,7 @@ final class SwiftSDKTests: XCTestCase {
 
         let wasmKitProperties = Toolset.ToolProperties(
             path: toolchainBinAbsolutePath.appending("wasmkit"),
-            extraCLIOptions: ["run"]
+            extraCLIOptions: ["run", "--dir", "."]
         )
         XCTAssertEqual(wasiWithoutToolsetsDecoded[0].toolset.knownTools[.debugger], wasmKitProperties)