diff --git a/src/cargo/core/workspace.rs b/src/cargo/core/workspace.rs
index ccde5b9ecce..cdee37b376a 100644
--- a/src/cargo/core/workspace.rs
+++ b/src/cargo/core/workspace.rs
@@ -873,11 +873,7 @@ impl<'cfg> Workspace<'cfg> {
                 MaybePackage::Package(ref p) => p.clone(),
                 MaybePackage::Virtual(_) => continue,
             };
-            let mut src = PathSource::new(
-                pkg.manifest_path(),
-                pkg.package_id().source_id(),
-                self.config,
-            );
+            let mut src = PathSource::new(pkg.root(), pkg.package_id().source_id(), self.config);
             src.preload_with(pkg);
             registry.add_preloaded(Box::new(src));
         }
diff --git a/src/cargo/sources/path.rs b/src/cargo/sources/path.rs
index cf406e8ddb2..64b0f77ed5a 100644
--- a/src/cargo/sources/path.rs
+++ b/src/cargo/sources/path.rs
@@ -522,6 +522,10 @@ impl<'cfg> Source for PathSource<'cfg> {
 
     fn fingerprint(&self, pkg: &Package) -> CargoResult<String> {
         let (max, max_path) = self.last_modified_file(pkg)?;
+        // Note that we try to strip the prefix of this package to get a
+        // relative path to ensure that the fingerprint remains consistent
+        // across entire project directory renames.
+        let max_path = max_path.strip_prefix(&self.path).unwrap_or(&max_path);
         Ok(format!("{} ({})", max, max_path.display()))
     }
 
diff --git a/tests/testsuite/freshness.rs b/tests/testsuite/freshness.rs
index 26d898484fc..1ff8b8374f2 100644
--- a/tests/testsuite/freshness.rs
+++ b/tests/testsuite/freshness.rs
@@ -857,20 +857,30 @@ fn no_rebuild_when_rename_dir() {
         .file(
             "Cargo.toml",
             r#"
-            [package]
-            name = "bar"
-            version = "0.0.1"
-            authors = []
+                [package]
+                name = "bar"
+                version = "0.0.1"
+                authors = []
 
-            [dependencies]
-            foo = { path = "foo" }
-        "#,
+                [workspace]
+
+                [dependencies]
+                foo = { path = "foo" }
+            "#,
         )
-        .file("src/lib.rs", "")
+        .file("src/_unused.rs", "")
+        .file("build.rs", "fn main() {}")
         .file("foo/Cargo.toml", &basic_manifest("foo", "0.0.1"))
         .file("foo/src/lib.rs", "")
+        .file("foo/build.rs", "fn main() {}")
         .build();
 
+    // make sure the most recently modified file is `src/lib.rs`, not
+    // `Cargo.toml`, to expose a historical bug where we forgot to strip the
+    // `Cargo.toml` path from looking for the package root.
+    cargo_test_support::sleep_ms(100);
+    fs::write(p.root().join("src/lib.rs"), "").unwrap();
+
     p.cargo("build").run();
     let mut new = p.root();
     new.pop();