diff --git a/README.markdown b/README.markdown
index aee26ed..dac3b69 100644
--- a/README.markdown
+++ b/README.markdown
@@ -95,6 +95,7 @@ unfinished form on my harddrive for more than a year. Finally it slipped out.
     <tr><td><code>-mns name dll_or_exe [dll_or_exe_2]</code></td><td>Create a separate namespace with the given name for the listed dll:s. All modules loaded in those module(s) will be namespaced.</td></tr>
     <tr><td><code>-lcl LineCountLimit</code></td><td>Count number of times a line is executed up to the specified limit</td></tr>
     <tr><td><code>-tec</code></td><td>Passthrough the exitcode of the application inspected</td></tr>
+    <tr><td><code>-twd</code></td><td>Use the application's path as working directory</td></tr>
 </table>
 
 ## License
diff --git a/Source/CoverageConfiguration.pas b/Source/CoverageConfiguration.pas
index 92e05fa..c9a84a6 100644
--- a/Source/CoverageConfiguration.pas
+++ b/Source/CoverageConfiguration.pas
@@ -46,6 +46,7 @@   TCoverageConfiguration = class(TInterfacedObject, ICoverageConfiguration)
     FXmlMergeGenerics: Boolean;
     FHtmlOutput: Boolean;
     FTestExeExitCode: Boolean;
+    FUseTestExePathAsWorkingDir: Boolean;
     FExcludeSourceMaskLst: TStrings;
     FLoadingFromDProj: Boolean;
     FModuleNameSpaces: TModuleNameSpaceList;
@@ -112,6 +113,7 @@   TCoverageConfiguration = class(TInterfacedObject, ICoverageConfiguration)
     function XmlMergeGenerics: Boolean;
     function HtmlOutput: Boolean;
     function TestExeExitCode: Boolean;
+    function UseTestExePathAsWorkingDir: Boolean;
     function LineCountLimit: Integer;
 
     function ModuleNameSpace(const AModuleName: string): TModuleNameSpace;
@@ -362,6 +364,11 @@ function TCoverageConfiguration.TestExeExitCode: Boolean;
   Result := FTestExeExitCode;
 end;
 
+function TCoverageConfiguration.UseTestExePathAsWorkingDir: Boolean;
+begin
+  Result := FUseTestExePathAsWorkingDir;
+end;
+
 function TCoverageConfiguration.IsPathInExclusionList(const APath: TFileName): Boolean;
 var
   Mask: string;
@@ -396,6 +403,7 @@ procedure TCoverageConfiguration.ParseBooleanSwitches;
   FHtmlOutput := IsSet(I_CoverageConfiguration.cPARAMETER_HTML_OUTPUT);
   uConsoleOutput.G_Verbose_Output := IsSet(I_CoverageConfiguration.cPARAMETER_VERBOSE);
   FTestExeExitCode := IsSet(I_CoverageConfiguration.cPARAMETER_TESTEXE_EXIT_CODE);
+  FUseTestExePathAsWorkingDir := IsSet(I_CoverageConfiguration.cPARAMETER_USE_TESTEXE_WORKING_DIR);
 end;
 
 procedure TCoverageConfiguration.ExcludeSourcePaths;
@@ -572,7 +580,8 @@ procedure TCoverageConfiguration.ParseSwitch(var AParameter: Integer);
   or (SwitchItem = I_CoverageConfiguration.cPARAMETER_XML_LINES_MERGE_GENERICS)
   or (SwitchItem = I_CoverageConfiguration.cPARAMETER_HTML_OUTPUT)
   or (SwitchItem = I_CoverageConfiguration.cPARAMETER_VERBOSE)
-  or (SwitchItem = I_CoverageConfiguration.cPARAMETER_TESTEXE_EXIT_CODE) then
+  or (SwitchItem = I_CoverageConfiguration.cPARAMETER_TESTEXE_EXIT_CODE)
+  or (SwitchItem = I_CoverageConfiguration.cPARAMETER_USE_TESTEXE_WORKING_DIR) then
   begin
     // do nothing, because its already parsed
   end
diff --git a/Source/Debugger.pas b/Source/Debugger.pas
index abdc212..083c915 100644
--- a/Source/Debugger.pas
+++ b/Source/Debugger.pas
@@ -266,7 +266,9 @@ procedure TDebugger.PrintUsage;
   ConsoleOutput(I_CoverageConfiguration.cPARAMETER_LINE_COUNT +
     ' [number]       -- Count number of times a line is executed up to the specified limit (default 0 - disabled)');
   ConsoleOutput(I_CoverageConfiguration.cPARAMETER_TESTEXE_EXIT_CODE +
-    ' [number]       -- Passthrough the exitcode of the application');
+    '                -- Passthrough the exitcode of the application');
+  ConsoleOutput(I_CoverageConfiguration.cPARAMETER_USE_TESTEXE_WORKING_DIR +
+    '                -- Use the application''s path as working directory');
 
 end;
 
@@ -387,6 +389,7 @@ function TDebugger.StartProcessToDebug: Boolean;
   StartInfo: TStartupInfo;
   ProcInfo: TProcessInformation;
   Parameters: string;
+  WorkingDir: PChar;
 begin
   Parameters := FCoverageConfiguration.ApplicationParameters;
   FLogManager.Log(
@@ -402,6 +405,12 @@ function TDebugger.StartProcessToDebug: Boolean;
   StartInfo.hStdOutput := GetStdHandle(STD_OUTPUT_HANDLE);
   StartInfo.hStdError := GetStdHandle(STD_ERROR_HANDLE);
 
+  WorkingDir := nil;
+  if FCoverageConfiguration.UseTestExePathAsWorkingDir then
+  begin
+    WorkingDir := PChar(ExtractFilePath(FCoverageConfiguration.ExeFileName));
+  end;
+
   Parameters := '"' + FCoverageConfiguration.ExeFileName + '" ' + Parameters;
   Result := CreateProcess(
     nil,
@@ -411,7 +420,7 @@ function TDebugger.StartProcessToDebug: Boolean;
     True,
     CREATE_NEW_PROCESS_GROUP + NORMAL_PRIORITY_CLASS + DEBUG_PROCESS,
     nil,
-    nil,
+    WorkingDir,
     StartInfo,
     ProcInfo
   );
diff --git a/Source/I_CoverageConfiguration.pas b/Source/I_CoverageConfiguration.pas
index 658aceb..67a6d5e 100644
--- a/Source/I_CoverageConfiguration.pas
+++ b/Source/I_CoverageConfiguration.pas
@@ -40,6 +40,7 @@ interface
     function XmlMergeGenerics: Boolean;
     function HtmlOutput: Boolean;
     function TestExeExitCode: Boolean;
+    function UseTestExePathAsWorkingDir: Boolean;
     function ModuleNameSpace(const AModuleName: string): TModuleNameSpace;
     function UnitNameSpace(const AModuleName: string): TUnitNameSpace;
     function LineCountLimit: Integer;
@@ -74,6 +75,7 @@ interface
   cPARAMETER_UNIT_NAMESPACE = '-uns';
   cPARAMETER_EMMA_SEPARATE_META = '-meta';
   cPARAMETER_TESTEXE_EXIT_CODE = '-tec';
+  cPARAMETER_USE_TESTEXE_WORKING_DIR = '-twd';
   cPARAMETER_LINE_COUNT = '-lcl';
 
   cIGNORE_UNIT_PREFIX = '!';