diff --git a/src/cargo.rs b/src/cargo.rs
index 9c976afcb..654ed580a 100644
--- a/src/cargo.rs
+++ b/src/cargo.rs
@@ -1,6 +1,6 @@
+use serde::Deserialize;
 use std::path::{Path, PathBuf};
 use std::process::{Command, ExitStatus};
-use std::{env, fs};
 
 use crate::errors::*;
 use crate::extensions::CommandExt;
@@ -54,7 +54,7 @@ impl<'a> From<&'a str> for Subcommand {
 
 #[derive(Debug)]
 pub struct Root {
-    path: PathBuf,
+    pub path: PathBuf,
 }
 
 impl Root {
@@ -64,26 +64,28 @@ impl Root {
 }
 
 /// Cargo project root
-pub fn root() -> Result<Option<Root>> {
-    let cd = env::current_dir().wrap_err("couldn't get current directory")?;
-
-    let mut dir = &*cd;
-    loop {
-        let toml = dir.join("Cargo.toml");
-
-        if fs::metadata(&toml).is_ok() {
-            return Ok(Some(Root {
-                path: dir.to_owned(),
-            }));
-        }
-
-        match dir.parent() {
-            Some(p) => dir = p,
-            None => break,
-        }
+pub fn root(cd: Option<&Path>) -> Result<Option<Root>> {
+    #[derive(Deserialize)]
+    struct Manifest {
+        workspace_root: PathBuf,
     }
-
-    Ok(None)
+    let mut command = std::process::Command::new(
+        std::env::var("CARGO")
+            .ok()
+            .unwrap_or_else(|| "cargo".to_string()),
+    );
+    command
+        .arg("metadata")
+        .arg("--format-version=1")
+        .arg("--no-deps");
+    if let Some(cd) = cd {
+        command.current_dir(cd);
+    }
+    let output = command.output()?;
+    let manifest: Option<Manifest> = serde_json::from_slice(&output.stdout)?;
+    Ok(manifest.map(|m| Root {
+        path: m.workspace_root,
+    }))
 }
 
 /// Pass-through mode
diff --git a/src/docker.rs b/src/docker.rs
index 6f9085696..bccb1edf1 100644
--- a/src/docker.rs
+++ b/src/docker.rs
@@ -111,7 +111,17 @@ pub fn run(
     }
     #[cfg(not(target_os = "windows"))]
     {
-        mount_root = host_root.clone();
+        mount_root = mount_finder.find_mount_path(host_root.clone());
+    }
+    let mount_cwd: PathBuf;
+    #[cfg(target_os = "windows")]
+    {
+        // On Windows, we can not mount the directory name directly. Instead, we use wslpath to convert the path to a linux compatible path.
+        mount_cwd = wslpath(&std::env::current_dir()?, verbose)?;
+    }
+    #[cfg(not(target_os = "windows"))]
+    {
+        mount_cwd = mount_finder.find_mount_path(std::env::current_dir()?);
     }
     let sysroot = mount_finder.find_mount_path(sysroot);
 
@@ -236,9 +246,20 @@ pub fn run(
         .args(&["-v", &format!("{}:/target:Z", target_dir.display())]);
 
     if env_volumes {
-        docker.args(&["-w", &mount_root.display().to_string()]);
-    } else {
+        docker.args(&["-w".as_ref(), mount_cwd.as_os_str()]);
+    } else if mount_cwd == root {
         docker.args(&["-w", "/project"]);
+    } else {
+        // We do this to avoid clashes with path separators. Windows uses `\` as a path separator on Path::join
+        let cwd = &std::env::current_dir()?;
+        let working_dir = Path::new("project").join(cwd.strip_prefix(root)?);
+        // No [T].join for OsStr
+        let mut mount_wd = std::ffi::OsString::new();
+        for part in working_dir.iter() {
+            mount_wd.push("/");
+            mount_wd.push(part);
+        }
+        docker.args(&["-w".as_ref(), mount_wd.as_os_str()]);
     }
 
     // When running inside NixOS or using Nix packaging we need to add the Nix
diff --git a/src/main.rs b/src/main.rs
index 04e24e26d..0012ffa6c 100644
--- a/src/main.rs
+++ b/src/main.rs
@@ -282,7 +282,7 @@ fn run() -> Result<ExitStatus> {
 
     let host_version_meta =
         rustc_version::version_meta().wrap_err("couldn't fetch the `rustc` version")?;
-    if let Some(root) = cargo::root()? {
+    if let Some(root) = cargo::root(None)? {
         let host = host_version_meta.host();
         let toml = toml(&root)?;
         let config = Config::new(toml);
diff --git a/src/tests.rs b/src/tests.rs
index 90c4278ba..6970ff077 100644
--- a/src/tests.rs
+++ b/src/tests.rs
@@ -15,23 +15,10 @@ static WORKSPACE: OnceCell<PathBuf> = OnceCell::new();
 pub fn get_cargo_workspace() -> &'static Path {
     let manifest_dir = env!("CARGO_MANIFEST_DIR");
     WORKSPACE.get_or_init(|| {
-        #[derive(Deserialize)]
-        struct Manifest {
-            workspace_root: PathBuf,
-        }
-        let output = std::process::Command::new(
-            std::env::var("CARGO")
-                .ok()
-                .unwrap_or_else(|| "cargo".to_string()),
-        )
-        .arg("metadata")
-        .arg("--format-version=1")
-        .arg("--no-deps")
-        .current_dir(manifest_dir)
-        .output()
-        .unwrap();
-        let manifest: Manifest = serde_json::from_slice(&output.stdout).unwrap();
-        manifest.workspace_root
+        crate::cargo::root(Some(manifest_dir.as_ref()))
+            .unwrap()
+            .unwrap()
+            .path
     })
 }