diff --git a/cabal-testsuite/Test/Cabal/Monad.hs b/cabal-testsuite/Test/Cabal/Monad.hs
index 419fe35d21ff5a636cbb1a787bbf55047ef70ad4..350e6d8100f637e7c494c59e1af3ebb67381eec0 100644
--- a/cabal-testsuite/Test/Cabal/Monad.hs
+++ b/cabal-testsuite/Test/Cabal/Monad.hs
@@ -326,7 +326,7 @@ testPrefixDir env = testWorkDir env </> "usr"
 -- | The absolute path to the build directory that should be used
 -- for the current package in a test.
 testDistDir :: TestEnv -> FilePath
-testDistDir env = testWorkDir env </> testRelativeCurrentDir env </> "dist"
+testDistDir env = testWorkDir env </> "work" </> testRelativeCurrentDir env </> "dist"
 
 -- | The absolute path to the shared package database that should
 -- be used by all packages in this test.