diff --git a/CHANGELOG.md b/CHANGELOG.md
index ca1ce2f45..8e805eea7 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,9 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## [Unreleased]
 
+### Fixed
+- Fixed `ERROR: The workspace root package should be a workspace member` when building contract under Windows - [#261](https://github.com/paritytech/cargo-contract/pull/261)
+
 ### Removed
 - Remove support for `--binaryen-as-dependency` - [#251](https://github.com/paritytech/cargo-contract/pull/251)
 
diff --git a/src/workspace/mod.rs b/src/workspace/mod.rs
index 7f242d2a0..ece11fb27 100644
--- a/src/workspace/mod.rs
+++ b/src/workspace/mod.rs
@@ -108,14 +108,24 @@ impl Workspace {
             .members
             .iter_mut()
             .find_map(|(_, (_, manifest))| {
-                if manifest.path().directory() == Some(package_path) {
+                /// `package_path` is always absolute and canonicalized. Thus we need to
+                /// canonicalize the manifest's directory path as well in order to compare
+                /// both of them.
+                let manifest_path = manifest.path().directory()?;
+                let manifest_path = manifest_path
+                    .canonicalize()
+                    .unwrap_or_else(|_| panic!("Cannot canonicalize {}", manifest_path.display()));
+                if manifest_path == package_path {
                     Some(manifest)
                 } else {
                     None
                 }
             })
             .ok_or_else(|| {
-                anyhow::anyhow!("The workspace root package should be a workspace member")
+                anyhow::anyhow!(
+                    "Cannot find package with package path {} in members",
+                    package_path.display(),
+                )
             })?;
         f(manifest)?;
         Ok(self)