diff --git a/crates/sui-proc-macros/src/lib.rs b/crates/sui-proc-macros/src/lib.rs
index e460debeae362..4cc49ce52e229 100644
--- a/crates/sui-proc-macros/src/lib.rs
+++ b/crates/sui-proc-macros/src/lib.rs
@@ -57,8 +57,7 @@ pub fn init_static_initializers(_args: TokenStream, item: TokenStream) -> TokenS
                     use sui_simulator::move_package::package_hooks::register_package_hooks;
 
                     register_package_hooks(Box::new(SuiPackageHooks {}));
-                    let mut path = PathBuf::from(env!("CARGO_MANIFEST_DIR"));
-                    path.push(env!("SIMTEST_STATIC_INIT_MOVE"));
+                    let mut path = PathBuf::from(env!("SIMTEST_STATIC_INIT_MOVE"));
                     let mut build_config = BuildConfig::default();
 
                     build_config.config.install_dir = Some(TempDir::new().unwrap().into_path());
diff --git a/scripts/simtest/cargo-simtest b/scripts/simtest/cargo-simtest
index f9ce2ae27da80..57614f76405fe 100755
--- a/scripts/simtest/cargo-simtest
+++ b/scripts/simtest/cargo-simtest
@@ -98,7 +98,8 @@ export TMPDIR=$(mktemp -d)
 
 # Set the example move package for the simtest static initializer
 # https://github.com/MystenLabs/sui/blob/7bc276d534c6c758ac2cfefe96431c2b1318ca01/crates/sui-proc-macros/src/lib.rs#L52
-export SIMTEST_STATIC_INIT_MOVE="../../examples/move/basics"
+root_dir=$(git rev-parse --show-toplevel)
+export SIMTEST_STATIC_INIT_MOVE=$root_dir"/examples/move/basics"
 
 cargo ${CARGO_COMMAND[@]} \
   --config "build.rustflags = [$RUST_FLAGS]" \