diff --git a/otherlibs/stdune/path.ml b/otherlibs/stdune/path.ml
index 34d3468ce314..aa476503417f 100644
--- a/otherlibs/stdune/path.ml
+++ b/otherlibs/stdune/path.ml
@@ -697,6 +697,10 @@ module Build = struct
   let lstat t = Unix.lstat (to_string t)
 
   let unlink_no_err t = Fpath.unlink_no_err (to_string t)
+
+  let to_absolute_filename (t : t) =
+    Outside_build_dir.to_absolute_filename
+      (Outside_build_dir.append_local (Fdecl.get build_dir) t)
 end
 
 module T : sig
diff --git a/otherlibs/stdune/path.mli b/otherlibs/stdune/path.mli
index 9fdfa22ef93b..45c4b04f4ef4 100644
--- a/otherlibs/stdune/path.mli
+++ b/otherlibs/stdune/path.mli
@@ -219,6 +219,8 @@ module Build : sig
   val lstat : t -> Unix.stats
 
   val unlink_no_err : t -> unit
+
+  val to_absolute_filename : t -> string
 end
 
 type t = private
diff --git a/src/dune_rules/context.ml b/src/dune_rules/context.ml
index 65a40d7a9d29..f0a45c64fcb3 100644
--- a/src/dune_rules/context.ml
+++ b/src/dune_rules/context.ml
@@ -514,9 +514,8 @@ let create ~(kind : Kind.t) ~path ~env ~env_nodes ~name ~merlin ~targets
       else env
     in
     let env =
-      let cwd = Sys.getcwd () in
       let extend_var var ?(path_sep = Bin.path_sep) v =
-        let v = Filename.concat cwd (Path.Build.to_string v) in
+        let v = Path.Build.to_absolute_filename v in
         match Env.get env var with
         | None -> (var, v)
         | Some prev -> (var, sprintf "%s%c%s" v path_sep prev)
diff --git a/test/blackbox-tests/test-cases/cram/public-name.t b/test/blackbox-tests/test-cases/cram/public-name.t
new file mode 100644
index 000000000000..bf661eec385e
--- /dev/null
+++ b/test/blackbox-tests/test-cases/cram/public-name.t
@@ -0,0 +1,32 @@
+Cram and public binaries with an absolute build directory
+
+  $ mkdir fresh && cd fresh
+
+  $ cat >dune-project <<EOF
+  > (lang dune 2.8)
+  > (cram enable)
+  > (name public-name-exe-test)
+  > EOF
+  $ touch public-name-exe-test.opam
+
+  $ mkdir helper
+  $ cat >helper/dune <<EOF
+  > (executable (public_name helper))
+  > EOF
+  $ cat >helper/helper.ml <<EOF
+  > print_endline "Helper launched successfully";;
+  > EOF
+
+  $ mkdir tests
+  $ cat >tests/run.t <<EOF
+  >   $ helper
+  >   Helper launched successfully
+  > EOF
+  $ echo "(cram (deps %{bin:helper}))" > tests/dune
+
+Running `dune runtest` with a relative build directory works
+
+  $ DUNE_BUILD_DIR=./_other_build dune runtest
+
+  $ export NEW_BUILD_DIR="$PWD/_other_build"
+  $ DUNE_BUILD_DIR="$NEW_BUILD_DIR" dune runtest --auto-promote