diff --git a/lib/modules/manager/pep621/processors/pdm.spec.ts b/lib/modules/manager/pep621/processors/pdm.spec.ts
index b6a2801cbdc9fb8d5b5714a73578e0865e5ba79b..c5b1523a35db19a38056c381423495435132ae81 100644
--- a/lib/modules/manager/pep621/processors/pdm.spec.ts
+++ b/lib/modules/manager/pep621/processors/pdm.spec.ts
@@ -160,7 +160,7 @@ describe('modules/manager/pep621/processors/pdm', () => {
       });
 
       const result = await processor.updateArtifacts({
-        packageFileName: 'pyproject.toml',
+        packageFileName: 'folder/pyproject.toml',
         newPackageFileContent: '',
         config: {
           updateType: 'lockFileMaintenance',
@@ -179,6 +179,9 @@ describe('modules/manager/pep621/processors/pdm', () => {
       expect(execSnapshots).toMatchObject([
         {
           cmd: 'pdm update',
+          options: {
+            cwd: '/tmp/github/some/repo/folder',
+          },
         },
       ]);
     });
diff --git a/lib/modules/manager/pep621/processors/pdm.ts b/lib/modules/manager/pep621/processors/pdm.ts
index bd21052cd3da36b53d00c17c523c94e3af9657f8..c82330e6d05e2d36ab268e48ecd84b441c0e2ae7 100644
--- a/lib/modules/manager/pep621/processors/pdm.ts
+++ b/lib/modules/manager/pep621/processors/pdm.ts
@@ -74,6 +74,7 @@ export class PdmProcessor implements PyProjectProcessor {
       };
 
       const execOptions: ExecOptions = {
+        cwdFile: packageFileName,
         docker: {},
         toolConstraints: [pythonConstraint, pdmConstraint],
       };