diff --git a/src/tools/rust-analyzer/crates/rust-analyzer/src/handlers/request.rs b/src/tools/rust-analyzer/crates/rust-analyzer/src/handlers/request.rs
index 41996db32ea94..1e24bf3aae3b0 100644
--- a/src/tools/rust-analyzer/crates/rust-analyzer/src/handlers/request.rs
+++ b/src/tools/rust-analyzer/crates/rust-analyzer/src/handlers/request.rs
@@ -860,6 +860,11 @@ pub(crate) fn handle_runnables(
                 if cmd == "run" && spec.target_kind != TargetKind::Bin {
                     continue;
                 }
+                let cwd = if cmd != "test" || spec.target_kind == TargetKind::Bin {
+                    spec.workspace_root.clone()
+                } else {
+                    spec.cargo_toml.parent().to_path_buf()
+                };
                 let mut cargo_args =
                     vec![cmd.to_owned(), "--package".to_owned(), spec.package.clone()];
                 let all_targets = cmd != "run" && !is_crate_no_std;
@@ -876,6 +881,7 @@ pub(crate) fn handle_runnables(
                     kind: lsp_ext::RunnableKind::Cargo,
                     args: lsp_ext::CargoRunnable {
                         workspace_root: Some(spec.workspace_root.clone().into()),
+                        cwd: Some(cwd.into()),
                         override_cargo: config.override_cargo.clone(),
                         cargo_args,
                         cargo_extra_args: config.cargo_extra_args.clone(),
@@ -893,6 +899,7 @@ pub(crate) fn handle_runnables(
                     kind: lsp_ext::RunnableKind::Cargo,
                     args: lsp_ext::CargoRunnable {
                         workspace_root: None,
+                        cwd: None,
                         override_cargo: config.override_cargo,
                         cargo_args: vec!["check".to_owned(), "--workspace".to_owned()],
                         cargo_extra_args: config.cargo_extra_args,
diff --git a/src/tools/rust-analyzer/crates/rust-analyzer/src/lsp/ext.rs b/src/tools/rust-analyzer/crates/rust-analyzer/src/lsp/ext.rs
index 03bd83aab5f52..aa75633ac3561 100644
--- a/src/tools/rust-analyzer/crates/rust-analyzer/src/lsp/ext.rs
+++ b/src/tools/rust-analyzer/crates/rust-analyzer/src/lsp/ext.rs
@@ -441,6 +441,8 @@ pub struct CargoRunnable {
     pub override_cargo: Option<String>,
     #[serde(skip_serializing_if = "Option::is_none")]
     pub workspace_root: Option<PathBuf>,
+    #[serde(skip_serializing_if = "Option::is_none")]
+    pub cwd: Option<PathBuf>,
     // command, --package and --lib stuff
     pub cargo_args: Vec<String>,
     // user-specified additional cargo args, like `--release`.
diff --git a/src/tools/rust-analyzer/crates/rust-analyzer/src/lsp/to_proto.rs b/src/tools/rust-analyzer/crates/rust-analyzer/src/lsp/to_proto.rs
index 03daccc99c45e..1d7062c989774 100644
--- a/src/tools/rust-analyzer/crates/rust-analyzer/src/lsp/to_proto.rs
+++ b/src/tools/rust-analyzer/crates/rust-analyzer/src/lsp/to_proto.rs
@@ -1360,6 +1360,10 @@ pub(crate) fn runnable(
     let config = snap.config.runnables();
     let spec = CargoTargetSpec::for_file(snap, runnable.nav.file_id)?;
     let workspace_root = spec.as_ref().map(|it| it.workspace_root.clone());
+    let cwd = match runnable.kind {
+        ide::RunnableKind::Bin { .. } => workspace_root.clone().map(|it| it.into()),
+        _ => spec.as_ref().map(|it| it.cargo_toml.parent().into()),
+    };
     let target = spec.as_ref().map(|s| s.target.clone());
     let (cargo_args, executable_args) =
         CargoTargetSpec::runnable_args(snap, spec, &runnable.kind, &runnable.cfg);
@@ -1372,6 +1376,7 @@ pub(crate) fn runnable(
         kind: lsp_ext::RunnableKind::Cargo,
         args: lsp_ext::CargoRunnable {
             workspace_root: workspace_root.map(|it| it.into()),
+            cwd,
             override_cargo: config.override_cargo,
             cargo_args,
             cargo_extra_args: config.cargo_extra_args,
diff --git a/src/tools/rust-analyzer/crates/rust-analyzer/tests/slow-tests/main.rs b/src/tools/rust-analyzer/crates/rust-analyzer/tests/slow-tests/main.rs
index d886e405e14ea..43a8305010582 100644
--- a/src/tools/rust-analyzer/crates/rust-analyzer/tests/slow-tests/main.rs
+++ b/src/tools/rust-analyzer/crates/rust-analyzer/tests/slow-tests/main.rs
@@ -260,6 +260,7 @@ fn main() {}
               "executableArgs": ["test_eggs", "--exact", "--show-output"],
               "cargoExtraArgs": [],
               "overrideCargo": null,
+              "cwd": server.path().join("foo"),
               "workspaceRoot": server.path().join("foo")
             },
             "kind": "cargo",
@@ -279,6 +280,7 @@ fn main() {}
           {
             "args": {
               "overrideCargo": null,
+              "cwd": server.path().join("foo"),
               "workspaceRoot": server.path().join("foo"),
               "cargoArgs": [
                 "test",
@@ -325,6 +327,7 @@ fn main() {}
               "executableArgs": [],
               "cargoExtraArgs": [],
               "overrideCargo": null,
+              "cwd": server.path().join("foo"),
               "workspaceRoot": server.path().join("foo")
             },
             "kind": "cargo",
@@ -336,6 +339,7 @@ fn main() {}
               "executableArgs": [],
               "cargoExtraArgs": [],
               "overrideCargo": null,
+              "cwd": server.path().join("foo"),
               "workspaceRoot": server.path().join("foo")
             },
             "kind": "cargo",
@@ -415,6 +419,7 @@ mod tests {
                     "args": {
                         "overrideCargo": null,
                         "workspaceRoot": server.path().join(runnable),
+                        "cwd": server.path().join(runnable),
                         "cargoArgs": [
                             "test",
                             "--package",
@@ -432,6 +437,94 @@ mod tests {
     }
 }
 
+// The main fn in packages should be run from the workspace root
+#[test]
+fn test_runnables_cwd() {
+    if skip_slow_tests() {
+        return;
+    }
+
+    let server = Project::with_fixture(
+        r#"
+//- /foo/Cargo.toml
+[workspace]
+members = ["mainpkg", "otherpkg"]
+
+//- /foo/mainpkg/Cargo.toml
+[package]
+name = "mainpkg"
+version = "0.1.0"
+
+//- /foo/mainpkg/src/main.rs
+fn main() {}
+
+//- /foo/otherpkg/Cargo.toml
+[package]
+name = "otherpkg"
+version = "0.1.0"
+
+//- /foo/otherpkg/src/lib.rs
+#[test]
+fn otherpkg() {}
+"#,
+    )
+    .root("foo")
+    .server()
+    .wait_until_workspace_is_loaded();
+
+    server.request::<Runnables>(
+        RunnablesParams { text_document: server.doc_id("foo/mainpkg/src/main.rs"), position: None },
+        json!([
+            "{...}",
+            {
+                "label": "cargo test -p mainpkg --all-targets",
+                "kind": "cargo",
+                "args": {
+                    "overrideCargo": null,
+                    "workspaceRoot": server.path().join("foo"),
+                    "cwd": server.path().join("foo"),
+                    "cargoArgs": [
+                        "test",
+                        "--package",
+                        "mainpkg",
+                        "--all-targets"
+                    ],
+                    "cargoExtraArgs": [],
+                    "executableArgs": []
+                },
+            },
+            "{...}",
+            "{...}"
+        ]),
+    );
+
+    server.request::<Runnables>(
+        RunnablesParams { text_document: server.doc_id("foo/otherpkg/src/lib.rs"), position: None },
+        json!([
+            "{...}",
+            {
+                "label": "cargo test -p otherpkg --all-targets",
+                "kind": "cargo",
+                "args": {
+                    "overrideCargo": null,
+                    "workspaceRoot": server.path().join("foo"),
+                    "cwd": server.path().join("foo").join("otherpkg"),
+                    "cargoArgs": [
+                        "test",
+                        "--package",
+                        "otherpkg",
+                        "--all-targets"
+                    ],
+                    "cargoExtraArgs": [],
+                    "executableArgs": []
+                },
+            },
+            "{...}",
+            "{...}"
+        ]),
+    );
+}
+
 #[test]
 fn test_format_document() {
     if skip_slow_tests() {
diff --git a/src/tools/rust-analyzer/docs/dev/lsp-extensions.md b/src/tools/rust-analyzer/docs/dev/lsp-extensions.md
index c8728c33ea096..1c91e856e72e4 100644
--- a/src/tools/rust-analyzer/docs/dev/lsp-extensions.md
+++ b/src/tools/rust-analyzer/docs/dev/lsp-extensions.md
@@ -1,5 +1,5 @@
 <!---
-lsp/ext.rs hash: 422dcc22c2e56166
+lsp/ext.rs hash: 1babf76a3c2cef3b
 
 If you need to change the above hash to make the test pass, please check if you
 need to adjust this doc as well and ping this issue:
@@ -377,6 +377,7 @@ rust-analyzer supports only one `kind`, `"cargo"`. The `args` for `"cargo"` look
 ```typescript
 {
     workspaceRoot?: string;
+    cwd?: string;
     cargoArgs: string[];
     cargoExtraArgs: string[];
     executableArgs: string[];
diff --git a/src/tools/rust-analyzer/editors/code/src/debug.ts b/src/tools/rust-analyzer/editors/code/src/debug.ts
index bad1f48de8552..855e8b082ae88 100644
--- a/src/tools/rust-analyzer/editors/code/src/debug.ts
+++ b/src/tools/rust-analyzer/editors/code/src/debug.ts
@@ -3,7 +3,7 @@ import * as vscode from "vscode";
 import * as path from "path";
 import type * as ra from "./lsp_ext";
 
-import { Cargo, type ExecutableInfo, getRustcId, getSysroot } from "./toolchain";
+import { Cargo, getRustcId, getSysroot } from "./toolchain";
 import type { Ctx } from "./ctx";
 import { prepareEnv } from "./run";
 import { unwrapUndefinable } from "./undefinable";
@@ -12,7 +12,6 @@ const debugOutput = vscode.window.createOutputChannel("Debug");
 type DebugConfigProvider = (
     config: ra.Runnable,
     executable: string,
-    cargoWorkspace: string,
     env: Record<string, string>,
     sourceFileMap?: Record<string, string>,
 ) => vscode.DebugConfiguration;
@@ -134,7 +133,7 @@ async function getDebugConfiguration(
     }
 
     const env = prepareEnv(runnable, ctx.config.runnablesExtraEnv);
-    const { executable, workspace: cargoWorkspace } = await getDebugExecutableInfo(runnable, env);
+    const executable = await getDebugExecutable(runnable, env);
     let sourceFileMap = debugOptions.sourceFileMap;
     if (sourceFileMap === "auto") {
         // let's try to use the default toolchain
@@ -148,13 +147,7 @@ async function getDebugConfiguration(
     }
 
     const provider = unwrapUndefinable(knownEngines[debugEngine.id]);
-    const debugConfig = provider(
-        runnable,
-        simplifyPath(executable),
-        cargoWorkspace,
-        env,
-        sourceFileMap,
-    );
+    const debugConfig = provider(runnable, simplifyPath(executable), env, sourceFileMap);
     if (debugConfig.type in debugOptions.engineSettings) {
         const settingsMap = (debugOptions.engineSettings as any)[debugConfig.type];
         for (var key in settingsMap) {
@@ -176,21 +169,20 @@ async function getDebugConfiguration(
     return debugConfig;
 }
 
-async function getDebugExecutableInfo(
+async function getDebugExecutable(
     runnable: ra.Runnable,
     env: Record<string, string>,
-): Promise<ExecutableInfo> {
+): Promise<string> {
     const cargo = new Cargo(runnable.args.workspaceRoot || ".", debugOutput, env);
-    const executableInfo = await cargo.executableInfoFromArgs(runnable.args.cargoArgs);
+    const executable = await cargo.executableFromArgs(runnable.args.cargoArgs);
 
     // if we are here, there were no compilation errors.
-    return executableInfo;
+    return executable;
 }
 
 function getCCppDebugConfig(
     runnable: ra.Runnable,
     executable: string,
-    cargoWorkspace: string,
     env: Record<string, string>,
     sourceFileMap?: Record<string, string>,
 ): vscode.DebugConfiguration {
@@ -200,7 +192,7 @@ function getCCppDebugConfig(
         name: runnable.label,
         program: executable,
         args: runnable.args.executableArgs,
-        cwd: cargoWorkspace || runnable.args.workspaceRoot,
+        cwd: runnable.args.cwd || runnable.args.workspaceRoot || ".",
         sourceFileMap,
         env,
         // See https://github.com/rust-lang/rust-analyzer/issues/16901#issuecomment-2024486941
@@ -213,7 +205,6 @@ function getCCppDebugConfig(
 function getCodeLldbDebugConfig(
     runnable: ra.Runnable,
     executable: string,
-    cargoWorkspace: string,
     env: Record<string, string>,
     sourceFileMap?: Record<string, string>,
 ): vscode.DebugConfiguration {
@@ -223,7 +214,7 @@ function getCodeLldbDebugConfig(
         name: runnable.label,
         program: executable,
         args: runnable.args.executableArgs,
-        cwd: cargoWorkspace || runnable.args.workspaceRoot,
+        cwd: runnable.args.cwd || runnable.args.workspaceRoot || ".",
         sourceMap: sourceFileMap,
         sourceLanguages: ["rust"],
         env,
@@ -233,7 +224,6 @@ function getCodeLldbDebugConfig(
 function getNativeDebugConfig(
     runnable: ra.Runnable,
     executable: string,
-    cargoWorkspace: string,
     env: Record<string, string>,
     _sourceFileMap?: Record<string, string>,
 ): vscode.DebugConfiguration {
@@ -244,7 +234,7 @@ function getNativeDebugConfig(
         target: executable,
         // See https://github.com/WebFreak001/code-debug/issues/359
         arguments: quote(runnable.args.executableArgs),
-        cwd: cargoWorkspace || runnable.args.workspaceRoot,
+        cwd: runnable.args.cwd || runnable.args.workspaceRoot || ".",
         env,
         valuesFormatting: "prettyPrinters",
     };
diff --git a/src/tools/rust-analyzer/editors/code/src/lsp_ext.ts b/src/tools/rust-analyzer/editors/code/src/lsp_ext.ts
index 9a7a4aae9598e..8e48aeef15898 100644
--- a/src/tools/rust-analyzer/editors/code/src/lsp_ext.ts
+++ b/src/tools/rust-analyzer/editors/code/src/lsp_ext.ts
@@ -226,6 +226,7 @@ export type Runnable = {
     kind: "cargo";
     args: {
         workspaceRoot?: string;
+        cwd?: string;
         cargoArgs: string[];
         cargoExtraArgs: string[];
         executableArgs: string[];
diff --git a/src/tools/rust-analyzer/editors/code/src/toolchain.ts b/src/tools/rust-analyzer/editors/code/src/toolchain.ts
index a0b34406c1b08..58e5fc747a190 100644
--- a/src/tools/rust-analyzer/editors/code/src/toolchain.ts
+++ b/src/tools/rust-analyzer/editors/code/src/toolchain.ts
@@ -9,17 +9,11 @@ import { unwrapUndefinable } from "./undefinable";
 
 interface CompilationArtifact {
     fileName: string;
-    workspace: string;
     name: string;
     kind: string;
     isTest: boolean;
 }
 
-export interface ExecutableInfo {
-    executable: string;
-    workspace: string;
-}
-
 export interface ArtifactSpec {
     cargoArgs: string[];
     filter?: (artifacts: CompilationArtifact[]) => CompilationArtifact[];
@@ -74,7 +68,6 @@ export class Cargo {
                             artifacts.push({
                                 fileName: message.executable,
                                 name: message.target.name,
-                                workspace: path.dirname(message.manifest_path),
                                 kind: message.target.kind[0],
                                 isTest: message.profile.test,
                             });
@@ -93,7 +86,7 @@ export class Cargo {
         return spec.filter?.(artifacts) ?? artifacts;
     }
 
-    async executableInfoFromArgs(args: readonly string[]): Promise<ExecutableInfo> {
+    async executableFromArgs(args: readonly string[]): Promise<string> {
         const artifacts = await this.getArtifacts(Cargo.artifactSpec(args));
 
         if (artifacts.length === 0) {
@@ -103,10 +96,7 @@ export class Cargo {
         }
 
         const artifact = unwrapUndefinable(artifacts[0]);
-        return {
-            executable: artifact.fileName,
-            workspace: artifact.workspace,
-        };
+        return artifact.fileName;
     }
 
     private async runCargo(