diff --git a/src/pkg/bundle/common.go b/src/pkg/bundle/common.go
index fd98f9e5..988b7580 100644
--- a/src/pkg/bundle/common.go
+++ b/src/pkg/bundle/common.go
@@ -106,10 +106,6 @@ func (b *Bundle) ValidateBundleResources(spinner *message.Spinner) error {
 
 	// validate access to packages as well as components referenced in the package
 	for idx, pkg := range bundle.Packages {
-		// if package path is set, make it relative to source directory
-		if pkg.Path != "" {
-			pkg.Path = filepath.Join(b.cfg.CreateOpts.SourceDirectory, pkg.Path)
-		}
 
 		spinner.Updatef("Validating Bundle Package: %s", pkg.Name)
 		if pkg.Name == "" {
@@ -158,7 +154,7 @@ func (b *Bundle) ValidateBundleResources(spinner *message.Spinner) error {
 			if utils.IsRegistryURL(b.cfg.CreateOpts.Output) {
 				return fmt.Errorf("detected local Zarf package: %s, outputting to an OCI registry is not supported when using local Zarf packages", pkg.Name)
 			}
-			path := getPkgPath(pkg, bundle.Metadata.Architecture)
+			path := getPkgPath(pkg, bundle.Metadata.Architecture, b.cfg.CreateOpts.SourceDirectory)
 			bundle.Packages[idx].Path = path
 		}
 
@@ -212,9 +208,13 @@ func (b *Bundle) ValidateBundleResources(spinner *message.Spinner) error {
 	return nil
 }
 
-func getPkgPath(pkg types.Package, arch string) string {
+func getPkgPath(pkg types.Package, arch string, srcDir string) string {
 	var fullPkgName string
 	var path string
+	// Set path relative to the source directory if not absolute
+	if !filepath.IsAbs(pkg.Path) {
+		pkg.Path = filepath.Join(srcDir, pkg.Path)
+	}
 	if strings.HasSuffix(pkg.Path, ".tar.zst") {
 		// use the provided pkg tarball
 		path = pkg.Path
diff --git a/src/pkg/bundle/common_test.go b/src/pkg/bundle/common_test.go
index 7cdc3669..daa5eadd 100644
--- a/src/pkg/bundle/common_test.go
+++ b/src/pkg/bundle/common_test.go
@@ -149,8 +149,9 @@ func Test_validateOverrides(t *testing.T) {
 
 func Test_getPkgPath(t *testing.T) {
 	type args struct {
-		pkg  types.Package
-		arch string
+		pkg    types.Package
+		arch   string
+		srcDir string
 	}
 	tests := []struct {
 		name string
@@ -160,39 +161,52 @@ func Test_getPkgPath(t *testing.T) {
 		{
 			name: "init full path",
 			args: args{
-				pkg:  types.Package{Name: "init", Ref: "0.0.1", Path: "../fake/path/custom-init.tar.zst"},
-				arch: "fake64",
+				pkg:    types.Package{Name: "init", Ref: "0.0.1", Path: "../fake/path/custom-init.tar.zst"},
+				arch:   "fake64",
+				srcDir: "/mock/source",
 			},
-			want: "../fake/path/custom-init.tar.zst",
+			want: "/mock/fake/path/custom-init.tar.zst",
 		},
 		{
 			name: "init directory only path",
 			args: args{
-				pkg:  types.Package{Name: "init", Ref: "0.0.1", Path: "../fake/path"},
-				arch: "fake64",
+				pkg:    types.Package{Name: "init", Ref: "0.0.1", Path: "../fake/path"},
+				arch:   "fake64",
+				srcDir: "/mock/source",
 			},
-			want: "../fake/path/zarf-init-fake64-0.0.1.tar.zst",
+			want: "/mock/fake/path/zarf-init-fake64-0.0.1.tar.zst",
 		},
 		{
 			name: "full path",
 			args: args{
-				pkg:  types.Package{Name: "nginx", Ref: "0.0.1", Path: "./fake/zarf-package-nginx-fake64-0.0.1.tar.zst"},
-				arch: "fake64",
+				pkg:    types.Package{Name: "nginx", Ref: "0.0.1", Path: "./fake/zarf-package-nginx-fake64-0.0.1.tar.zst"},
+				arch:   "fake64",
+				srcDir: "/mock/source",
 			},
-			want: "./fake/zarf-package-nginx-fake64-0.0.1.tar.zst",
+			want: "/mock/source/fake/zarf-package-nginx-fake64-0.0.1.tar.zst",
 		},
 		{
 			name: "directory only path",
 			args: args{
-				pkg:  types.Package{Name: "nginx", Ref: "0.0.1", Path: "/fake"},
-				arch: "fake64",
+				pkg:    types.Package{Name: "nginx", Ref: "0.0.1", Path: "fake"},
+				arch:   "fake64",
+				srcDir: "/mock/source",
+			},
+			want: "/mock/source/fake/zarf-package-nginx-fake64-0.0.1.tar.zst",
+		},
+		{
+			name: "absolute path",
+			args: args{
+				pkg:    types.Package{Name: "nginx", Ref: "0.0.1", Path: "/fake/zarf-package-nginx-fake64-0.0.1.tar.zst"},
+				arch:   "fake64",
+				srcDir: "/mock/source",
 			},
 			want: "/fake/zarf-package-nginx-fake64-0.0.1.tar.zst",
 		},
 	}
 	for _, tt := range tests {
 		t.Run(tt.name, func(t *testing.T) {
-			path := getPkgPath(tt.args.pkg, tt.args.arch)
+			path := getPkgPath(tt.args.pkg, tt.args.arch, tt.args.srcDir)
 			require.Equal(t, tt.want, path)
 		})
 	}