diff --git a/src/main/groovy/io/ballerina/plugin/BallerinaPlugin.groovy b/src/main/groovy/io/ballerina/plugin/BallerinaPlugin.groovy
index 01be1ee..0e6abea 100644
--- a/src/main/groovy/io/ballerina/plugin/BallerinaPlugin.groovy
+++ b/src/main/groovy/io/ballerina/plugin/BallerinaPlugin.groovy
@@ -50,6 +50,7 @@ class BallerinaPlugin implements Plugin<Project> {
         def balBuildTarget = 'build/bal_build_target'
         def balaArtifact = new File("$project.projectDir/build/bala_unzipped/")
         def projectDirectory = new File("$project.projectDir")
+        def parentDirectory = new File("$projectDirectory.parent")
         def ballerinaCentralAccessToken = System.getenv('BALLERINA_CENTRAL_ACCESS_TOKEN')
         def groupParams = ''
         def disableGroups = ''
@@ -298,9 +299,9 @@ class BallerinaPlugin implements Plugin<Project> {
                             }
                             startBallerinaContainer(project, ballerinaDockerTag)
                             if (Os.isFamily(Os.FAMILY_WINDOWS)) {
-                                commandLine 'cmd', '/c', "docker exec $CONTAINER_NAME bal pack --target-dir ${balBuildTarget} ${debugParams}"
+                                commandLine 'cmd', '/c', "docker exec -w /home/ballerina/$parentDirectory.name/$projectDirectory.name $CONTAINER_NAME bal pack --target-dir ${balBuildTarget} ${debugParams}"
                             } else {
-                                commandLine 'sh', '-c', "docker exec $CONTAINER_NAME bal pack --target-dir ${balBuildTarget} ${debugParams}"
+                                commandLine 'sh', '-c', "docker exec -w /home/ballerina/$parentDirectory.name/$projectDirectory.name $CONTAINER_NAME bal pack --target-dir ${balBuildTarget} ${debugParams}"
                             }
                         } else {
                             String distributionBinPath = project.projectDir.absolutePath + "/build/jballerina-tools-${ballerinaExtension.langVersion}/bin"
@@ -323,9 +324,9 @@ class BallerinaPlugin implements Plugin<Project> {
                                 }
                                 startBallerinaContainer(project, ballerinaDockerTag)
                                 if (Os.isFamily(Os.FAMILY_WINDOWS)) {
-                                    commandLine 'cmd', '/c', "docker exec $CONTAINER_NAME bal test ${graalvmFlag} ${testCoverageParams} ${groupParams} ${disableGroups} ${debugParams}"
+                                    commandLine 'cmd', '/c', "docker exec -w /home/ballerina/$parentDirectory.name/$projectDirectory.name $CONTAINER_NAME bal test ${graalvmFlag} ${testCoverageParams} ${groupParams} ${disableGroups} ${debugParams}"
                                 } else {
-                                    commandLine 'sh', '-c', "docker exec $CONTAINER_NAME bal test ${graalvmFlag} ${testCoverageParams} ${groupParams} ${disableGroups} ${debugParams}"
+                                    commandLine 'sh', '-c', "docker exec -w /home/ballerina/$parentDirectory.name/$projectDirectory.name $CONTAINER_NAME bal test ${graalvmFlag} ${testCoverageParams} ${groupParams} ${disableGroups} ${debugParams}"
                                 }
                             } else if (Os.isFamily(Os.FAMILY_WINDOWS)) {
                                 commandLine 'cmd', '/c', "$balJavaDebugParam $distributionBinPath/bal.bat test --offline ${graalvmFlag} ${testCoverageParams} ${groupParams} ${disableGroups} ${debugParams} && exit %%ERRORLEVEL%%"
@@ -400,9 +401,9 @@ class BallerinaPlugin implements Plugin<Project> {
                         if (buildOnDocker) {
                             startBallerinaContainer(project, ballerinaDockerTag)
                             if (Os.isFamily(Os.FAMILY_WINDOWS)) {
-                                commandLine 'cmd', '/c', "docker exec $CONTAINER_NAME bal test ${graalvmFlag} ${testCoverageParams} ${groupParams} ${disableGroups} ${debugParams}"
+                                commandLine 'cmd', '/c', "docker exec -w /home/ballerina/$parentDirectory.name/$projectDirectory.name $CONTAINER_NAME bal test ${graalvmFlag} ${testCoverageParams} ${groupParams} ${disableGroups} ${debugParams}"
                             } else {
-                                commandLine 'sh', '-c', "docker exec $CONTAINER_NAME bal test ${graalvmFlag} ${testCoverageParams} ${groupParams} ${disableGroups} ${debugParams}"
+                                commandLine 'sh', '-c', "docker exec -w /home/ballerina/$parentDirectory.name/$projectDirectory.name $CONTAINER_NAME bal test ${graalvmFlag} ${testCoverageParams} ${groupParams} ${disableGroups} ${debugParams}"
                             }
                         } else {
                             String distributionBinPath = project.projectDir.absolutePath + "/build/jballerina-tools-${ballerinaExtension.langVersion}/bin"
@@ -462,10 +463,12 @@ class BallerinaPlugin implements Plugin<Project> {
         if (!stdOut.toString().contains(CONTAINER_NAME)) {
             project.exec {
                 println "Starting Ballerina container."
+                def projectDir = new File(project.projectDir.toString())
+                def parentDir = new File(projectDir.parent.toString())
                 if (Os.isFamily(Os.FAMILY_WINDOWS)) {
-                    commandLine 'cmd', '/c', "docker run --rm -dt --name $CONTAINER_NAME --net=host --user \$(id -u):\$(id -g) -v ${project.projectDir}/..:/home -v ${project.projectDir}:/home/ballerina ballerina/ballerina:$ballerinaDockerTag"
+                    commandLine 'cmd', '/c', "docker run --rm -dt --name $CONTAINER_NAME --net=host --user ballerina:\$(id -g) -v $parentDir:/home/ballerina/$parentDir.name -v $projectDir:/home/ballerina/$parentDir.name/$projectDir.name ballerina/ballerina:$ballerinaDockerTag"
                 } else {
-                    commandLine 'sh', '-c', "docker run --rm -dt --name $CONTAINER_NAME --net=host --user \$(id -u):\$(id -g) -v ${project.projectDir}/..:/home -v ${project.projectDir}:/home/ballerina ballerina/ballerina:$ballerinaDockerTag"
+                    commandLine 'sh', '-c', "docker run --rm -dt --name $CONTAINER_NAME --net=host --user ballerina:\$(id -g) -v $parentDir:/home/ballerina/$parentDir.name -v $projectDir:/home/ballerina/$parentDir.name/$projectDir.name  ballerina/ballerina:$ballerinaDockerTag"
                 }
             }
         } else {