diff --git a/src/fileio.cpp b/src/fileio.cpp
index b1ecca60fa..a63f74dce2 100644
--- a/src/fileio.cpp
+++ b/src/fileio.cpp
@@ -822,11 +822,11 @@ void DetermineBasePaths(const char *exe)
 		if (end == std::string::npos) {
 			/* _config_file is not in a folder, so use current directory. */
 			tmp = cwd;
-			AppendPathSeparator(tmp);
-			_searchpaths[SP_WORKING_DIR] = tmp;
 		} else {
-			_searchpaths[SP_WORKING_DIR] = _config_file.substr(0, end + 1);
+			tmp = FS2OTTD(std::filesystem::weakly_canonical(std::filesystem::path(OTTD2FS(_config_file))).parent_path());
 		}
+		AppendPathSeparator(tmp);
+		_searchpaths[SP_WORKING_DIR] = tmp;
 	}
 
 	/* Change the working directory to that one of the executable */