diff --git a/api/exec/stack_manager.go b/api/exec/stack_manager.go
index 232ad68b5..d8da84df1 100644
--- a/api/exec/stack_manager.go
+++ b/api/exec/stack_manager.go
@@ -81,7 +81,8 @@ func (manager *StackManager) Deploy(stack *portainer.Stack, prune bool, endpoint
 		env = append(env, envvar.Name+"="+envvar.Value)
 	}
 
-	return runCommandAndCaptureStdErr(command, args, env, stack.ProjectPath)
+	stackFolder := path.Dir(stackFilePath)
+	return runCommandAndCaptureStdErr(command, args, env, stackFolder)
 }
 
 // Remove executes the docker stack rm command.