diff --git a/releasenotes.md b/releasenotes.md
index 4c83cd147..608087ae0 100644
--- a/releasenotes.md
+++ b/releasenotes.md
@@ -84,6 +84,7 @@
 - Fix aligned alloc for Win32 targets.
 - Compiler didn't detect when a module name was used both as a generic and regular module.
 - Assigning a const zero to an aliased distinct caused an error.
+- `--path` is now properly respected.
 
 ### Stdlib changes
 
diff --git a/src/compiler/compiler.c b/src/compiler/compiler.c
index 446c329c0..b1a6615d5 100644
--- a/src/compiler/compiler.c
+++ b/src/compiler/compiler.c
@@ -32,6 +32,12 @@ const char* c3_suffix_list[3] = { ".c3", ".c3t", ".c3i" };
 
 void compiler_init(BuildOptions *build_options)
 {
+	// Process --path
+	if (build_options->path && !dir_change(build_options->path))
+	{
+		error_exit("Failed to change path to '%s'.", build_options->path);
+	}
+
 	compiler_init_time = -1;
 	compiler_parsing_time = -1;
 	compiler_sema_time = -1;
diff --git a/src/utils/file_utils.c b/src/utils/file_utils.c
index eeae7a4ef..b3f9b1075 100644
--- a/src/utils/file_utils.c
+++ b/src/utils/file_utils.c
@@ -373,13 +373,10 @@ const char *find_rel_exe_dir(const char *dir)
 		return scratch_buffer_to_string();
 	}
 	return NULL;
-
-
 }
 
 const char *find_lib_dir(void)
 {
-
 	char *path = find_executable_path();
 
 	INFO_LOG("Detected executable path at %s", path);