diff --git a/lib/steep/cli.rb b/lib/steep/cli.rb
index 6d97f9ec4..5c4702ab4 100644
--- a/lib/steep/cli.rb
+++ b/lib/steep/cli.rb
@@ -254,7 +254,8 @@ def process_binstub
 #!/usr/bin/env bash
 
 BINSTUB_DIR=$(cd $(dirname $0); pwd)
-GEMFILE=${BINSTUB_DIR}/#{gemfile_path}
+GEMFILE=$(readlink -f ${BINSTUB_DIR}/#{gemfile_path})
+GEMFILE_DIR=$(dirname ${GEMFILE})
 
 STEEP="bundle exec --gemfile=${GEMFILE} steep"
 
@@ -262,7 +263,7 @@ def process_binstub
   STEEP="rbenv exec ${STEEP}"
 else
   if type "rvm" > /dev/null 2>&1; then
-    STEEP="rvm ${REPO_ROOT} do ${STEEP}"
+    STEEP="rvm ${GEMFILE_DIR} do ${STEEP}"
   fi
 fi
 
diff --git a/test/cli_test.rb b/test/cli_test.rb
index 3b9fecd45..292bd478d 100644
--- a/test/cli_test.rb
+++ b/test/cli_test.rb
@@ -557,7 +557,8 @@ def test_binstub_generate
 #!/usr/bin/env bash
 
 BINSTUB_DIR=$(cd $(dirname $0); pwd)
-GEMFILE=${BINSTUB_DIR}/../Gemfile
+GEMFILE=$(readlink -f ${BINSTUB_DIR}/../Gemfile)
+GEMFILE_DIR=$(dirname ${GEMFILE})
 
 STEEP="bundle exec --gemfile=${GEMFILE} steep"
 
@@ -565,7 +566,7 @@ def test_binstub_generate
   STEEP="rbenv exec ${STEEP}"
 else
   if type "rvm" > /dev/null 2>&1; then
-    STEEP="rvm ${REPO_ROOT} do ${STEEP}"
+    STEEP="rvm ${GEMFILE_DIR} do ${STEEP}"
   fi
 fi