diff --git i/lib/bb/build.py w/lib/bb/build.py
index 6da5baf..1531c3d 100644
--- i/lib/bb/build.py
+++ w/lib/bb/build.py
@@ -223,6 +223,8 @@ def exec_func_shell(function, d, runfile, logfile, cwd=None, fakeroot=False):
         data.emit_func(function, script, d)

         script.write("set -x\n")
+        if cwd:
+            script.write("cd %s" % cwd)
         script.write("%s\n" % function)
         os.fchmod(script.fileno(), 0775)

@@ -235,7 +237,7 @@ def exec_func_shell(function, d, runfile, logfile, cwd=None, fakeroot=False):
         logfile = LogTee(logger, logfile)

     try:
-        bb.process.run(cmd, cwd=cwd, shell=False, stdin=NULL, log=logfile)
+        bb.process.run(cmd, shell=False, stdin=NULL, log=logfile)
     except bb.process.CmdError:
         raise FuncFailed(function, logfile.name)