diff --git a/src/Microsoft.TestPlatform.CrossPlatEngine/Hosting/DotnetTestHostManager.cs b/src/Microsoft.TestPlatform.CrossPlatEngine/Hosting/DotnetTestHostManager.cs
index 4848d3110c..40cdb8d058 100644
--- a/src/Microsoft.TestPlatform.CrossPlatEngine/Hosting/DotnetTestHostManager.cs
+++ b/src/Microsoft.TestPlatform.CrossPlatEngine/Hosting/DotnetTestHostManager.cs
@@ -177,7 +177,7 @@ public virtual TestProcessStartInfo GetTestHostProcessStartInfo(
             // G:\tmp\netcore-test\bin\Debug\netcoreapp1.0\netcore-test.dll
             startInfo.Arguments = args;
             startInfo.EnvironmentVariables = environmentVariables ?? new Dictionary<string, string>();
-            startInfo.WorkingDirectory = Directory.GetCurrentDirectory();
+            startInfo.WorkingDirectory = sourceDirectory;
 
             return startInfo;
         }
diff --git a/test/Microsoft.TestPlatform.AcceptanceTests/ExecutionTests.cs b/test/Microsoft.TestPlatform.AcceptanceTests/ExecutionTests.cs
index 2bef45604e..e58cc68761 100644
--- a/test/Microsoft.TestPlatform.AcceptanceTests/ExecutionTests.cs
+++ b/test/Microsoft.TestPlatform.AcceptanceTests/ExecutionTests.cs
@@ -72,5 +72,20 @@ public void RunMultipleTestAssembliesInParallel(string runnerFramework, string t
                 $"Number of {testhostProcessName} process created, expected: {expectedNumOfProcessCreated} actual: {numOfProcessCreatedTask.Result}");
             this.ValidateSummaryStatus(2, 2, 2);
         }
+
+        [CustomDataTestMethod]
+        [NET46TargetFramework]
+        [NETCORETargetFramework]
+        public void WorkingDirectoryIsSourceDirectory(string runnerFramework, string targetFramework, string targetRuntime)
+        {
+            AcceptanceTestBase.SetTestEnvironment(this.testEnvironment, runnerFramework, targetFramework, targetRuntime);
+
+            var assemblyPaths =
+                this.BuildMultipleAssemblyPath("SimpleTestProject3.dll").Trim('\"');
+            var arguments = PrepareArguments(assemblyPaths, this.GetTestAdapterPath(), string.Empty, this.FrameworkArgValue);
+            arguments = string.Concat(arguments, " /tests:WorkingDirectoryTest");
+            this.InvokeVsTest(arguments);
+            this.ValidateSummaryStatus(1, 0, 0);
+        }
     }
 }
\ No newline at end of file
diff --git a/test/Microsoft.TestPlatform.CrossPlatEngine.UnitTests/Hosting/DotnetTestHostManagerTests.cs b/test/Microsoft.TestPlatform.CrossPlatEngine.UnitTests/Hosting/DotnetTestHostManagerTests.cs
index 6e9c7e9c7a..da34657b15 100644
--- a/test/Microsoft.TestPlatform.CrossPlatEngine.UnitTests/Hosting/DotnetTestHostManagerTests.cs
+++ b/test/Microsoft.TestPlatform.CrossPlatEngine.UnitTests/Hosting/DotnetTestHostManagerTests.cs
@@ -257,14 +257,14 @@ public void GetTestHostProcessStartInfoShouldThrowExceptionWhenDotnetIsNotInstal
         }
 
         [TestMethod]
-        public void GetTestHostProcessStartInfoShouldIncludeCurrentDirectoryAsWorkingDirectory()
+        public void GetTestHostProcessStartInfoShouldIncludeSourceDirectoryAsWorkingDirectory()
         {
             // Absolute path to the source directory
             var sourcePath = Path.Combine($"{Path.DirectorySeparatorChar}tmp", "test.dll");
             this.mockFileHelper.Setup(ph => ph.Exists(@"\tmp\testhost.dll")).Returns(true);
             var startInfo = this.dotnetHostManager.GetTestHostProcessStartInfo(new[] { sourcePath }, null, this.defaultConnectionInfo);
 
-            Assert.AreEqual(Directory.GetCurrentDirectory(), startInfo.WorkingDirectory);
+            Assert.AreEqual($"{Path.DirectorySeparatorChar}tmp", startInfo.WorkingDirectory);
         }
 
         [TestMethod]
diff --git a/test/TestAssets/SimpleTestProject3/SimpleTestProject3.csproj b/test/TestAssets/SimpleTestProject3/SimpleTestProject3.csproj
index ef036a0ef0..f744b66f64 100644
--- a/test/TestAssets/SimpleTestProject3/SimpleTestProject3.csproj
+++ b/test/TestAssets/SimpleTestProject3/SimpleTestProject3.csproj
@@ -2,8 +2,6 @@
   <PropertyGroup>
     <TargetFrameworks>netcoreapp1.0;net46;netcoreapp1.1</TargetFrameworks>
     <AssemblyName>SimpleTestProject3</AssemblyName>
-    <PackageTargetFallback Condition=" '$(TargetFramework)' == 'netcoreapp1.0' Or '$(TargetFramework)' == 'netcoreapp1.1' ">$(PackageTargetFallback);dnxcore50;portable-net45+win8</PackageTargetFallback>
-    <OutputType Condition=" '$(TargetFramework)' == 'netcoreapp1.0' Or '$(TargetFramework)' == 'netcoreapp1.1' ">Exe</OutputType>
   </PropertyGroup>
   <ItemGroup>
     <EmbeddedResource Include="**\*.resx" />
@@ -41,13 +39,7 @@
   <ItemGroup>
     <Service Include="{82a7f48d-3b50-4b1e-b82e-3ada8210c358}" />
   </ItemGroup>
-  <PropertyGroup Condition=" '$(TargetFramework)' == 'netcoreapp1.0' Or '$(TargetFramework)' == 'netcoreapp1.1' ">
-    <DebugType>portable</DebugType>
-  </PropertyGroup>
-  <PropertyGroup Condition=" '$(TargetFramework)' == 'net46'">
-    <DebugType>full</DebugType>
-  </PropertyGroup>
   <PropertyGroup Condition=" '$(Configuration)' == 'Release' ">
     <DefineConstants>$(DefineConstants);RELEASE</DefineConstants>
   </PropertyGroup>
-</Project>
\ No newline at end of file
+</Project>
diff --git a/test/TestAssets/SimpleTestProject3/UnitTest1.cs b/test/TestAssets/SimpleTestProject3/UnitTest1.cs
index 5f9361306b..b16d5bf7e8 100644
--- a/test/TestAssets/SimpleTestProject3/UnitTest1.cs
+++ b/test/TestAssets/SimpleTestProject3/UnitTest1.cs
@@ -5,31 +5,16 @@
 namespace SampleUnitTestProject3
 {
     using Microsoft.VisualStudio.TestTools.UnitTesting;
+    using System.IO;
+    using System.Reflection;
 
     [TestClass]
     public class UnitTest1
     {
         [TestMethod]
-        public void PassingTest()
-        {
-            Assert.AreEqual(2, 2);
-        }
-
-        [TestMethod]
-        public async Task AsyncTestMethod()
-        {
-            await Task.CompletedTask;
-        }
-    }
-
-    public class Class1
-    {
-        public void OverLoadededMethod()
-        {
-        }
-
-        public void OverLoadededMethod(string name)
+        public void WorkingDirectoryTest()
         {
+            Assert.AreEqual(Path.GetDirectoryName(typeof(UnitTest1).GetTypeInfo().Assembly.Location), Directory.GetCurrentDirectory());
         }
     }
 }