diff --git a/bake/bake.go b/bake/bake.go
index 39cd927e..0fac4e3a 100644
--- a/bake/bake.go
+++ b/bake/bake.go
@@ -1048,12 +1048,12 @@ func toBuildOpt(t *Target, inp *Input) (*build.Options, error) {
 		bi.DockerfileInline = *t.DockerfileInline
 	}
 	updateContext(&bi, inp)
-	if !build.IsRemoteURL(bi.ContextPath) && bi.ContextState == nil && !path.IsAbs(bi.DockerfilePath) {
-		bi.DockerfilePath = path.Join(bi.ContextPath, bi.DockerfilePath)
-	}
 	if strings.HasPrefix(bi.ContextPath, "cwd://") {
 		bi.ContextPath = path.Clean(strings.TrimPrefix(bi.ContextPath, "cwd://"))
 	}
+	if !build.IsRemoteURL(bi.ContextPath) && bi.ContextState == nil && !path.IsAbs(bi.DockerfilePath) {
+		bi.DockerfilePath = path.Join(bi.ContextPath, bi.DockerfilePath)
+	}
 	for k, v := range bi.NamedContexts {
 		if strings.HasPrefix(v.Path, "cwd://") {
 			bi.NamedContexts[k] = build.NamedContext{Path: path.Clean(strings.TrimPrefix(v.Path, "cwd://"))}
diff --git a/bake/bake_test.go b/bake/bake_test.go
index efebea20..75306cb2 100644
--- a/bake/bake_test.go
+++ b/bake/bake_test.go
@@ -386,18 +386,19 @@ func TestHCLCwdPrefix(t *testing.T) {
 	m, g, err := ReadTargets(ctx, []File{fp}, []string{"app"}, nil, nil)
 	require.NoError(t, err)
 
-	require.Equal(t, 1, len(m))
-	_, ok := m["app"]
-	require.True(t, ok)
-
-	_, err = TargetsToBuildOpt(m, &Input{})
+	bo, err := TargetsToBuildOpt(m, &Input{})
 	require.NoError(t, err)
 
-	require.Equal(t, "test", *m["app"].Dockerfile)
-	require.Equal(t, "foo", *m["app"].Context)
-
 	require.Equal(t, 1, len(g))
 	require.Equal(t, []string{"app"}, g["default"].Targets)
+
+	require.Equal(t, 1, len(m))
+	require.Contains(t, m, "app")
+	require.Equal(t, "test", *m["app"].Dockerfile)
+	require.Equal(t, "foo", *m["app"].Context)
+
+	require.Equal(t, "foo/test", bo["app"].Inputs.DockerfilePath)
+	require.Equal(t, "foo", bo["app"].Inputs.ContextPath)
 }
 
 func TestOverrideMerge(t *testing.T) {