diff --git a/pkg/api/kpm_run.go b/pkg/api/kpm_run.go
index 28aa30d8..7f607ab2 100644
--- a/pkg/api/kpm_run.go
+++ b/pkg/api/kpm_run.go
@@ -143,6 +143,8 @@ func RunPkgInPath(opts *opt.CompileOptions) (string, error) {
 		// no entry
 		opts.Merge(kcl.WithKFilenames(opts.PkgPath()))
 	}
+	// set the 'kcl.mod' path as the work dir.
+	opts.Merge(kcl.WithWorkDir(opts.PkgPath()))
 
 	// Calculate the absolute path of entry file described by '--input'.
 	compiler := runner.NewCompilerWithOpts(opts)
diff --git a/pkg/api/kpm_run_test.go b/pkg/api/kpm_run_test.go
index 0f01e4a6..76568ae4 100644
--- a/pkg/api/kpm_run_test.go
+++ b/pkg/api/kpm_run_test.go
@@ -113,3 +113,12 @@ func TestRunTar(t *testing.T) {
 		os.RemoveAll(untarPath)
 	}
 }
+
+func TestRunWithWorkdir(t *testing.T) {
+	pkgPath := getTestDir(filepath.Join("test_work_dir", "dev"))
+	opts := opt.DefaultCompileOptions()
+	opts.SetPkgPath(pkgPath)
+	result, err := RunPkgInPath(opts)
+	assert.Equal(t, err, nil)
+	assert.Equal(t, result, "base: base\nmain: main")
+}
diff --git a/pkg/api/test_data/test_work_dir/base/base.k b/pkg/api/test_data/test_work_dir/base/base.k
new file mode 100644
index 00000000..36c04d8f
--- /dev/null
+++ b/pkg/api/test_data/test_work_dir/base/base.k
@@ -0,0 +1 @@
+base = "base"
\ No newline at end of file
diff --git a/pkg/api/test_data/test_work_dir/dev/kcl.mod b/pkg/api/test_data/test_work_dir/dev/kcl.mod
new file mode 100644
index 00000000..38c7e776
--- /dev/null
+++ b/pkg/api/test_data/test_work_dir/dev/kcl.mod
@@ -0,0 +1,8 @@
+[package]
+name = "helloworld"
+edition = "0.5.0"
+version = "0.1.0"
+
+[profile]
+entries = ["../base/base.k", "main.k"]
+
diff --git a/pkg/api/test_data/test_work_dir/dev/kcl.mod.lock b/pkg/api/test_data/test_work_dir/dev/kcl.mod.lock
new file mode 100644
index 00000000..e69de29b
diff --git a/pkg/api/test_data/test_work_dir/dev/main.k b/pkg/api/test_data/test_work_dir/dev/main.k
new file mode 100644
index 00000000..cc7380ab
--- /dev/null
+++ b/pkg/api/test_data/test_work_dir/dev/main.k
@@ -0,0 +1 @@
+main = "main"
\ No newline at end of file