diff --git a/.changeset/chilled-bobcats-repeat.md b/.changeset/chilled-bobcats-repeat.md
deleted file mode 100644
index 572a82b589..0000000000
--- a/.changeset/chilled-bobcats-repeat.md
+++ /dev/null
@@ -1,5 +0,0 @@
----
-'@backstage/cli': patch
----
-
-Resolve config options against both the current directory and the monorepo root directory.
diff --git a/packages/cli/src/commands/build/buildBackend.ts b/packages/cli/src/commands/build/buildBackend.ts
index 5d42aa18d4..f82567de3c 100644
--- a/packages/cli/src/commands/build/buildBackend.ts
+++ b/packages/cli/src/commands/build/buildBackend.ts
@@ -18,6 +18,7 @@ import os from 'os';
 import fs from 'fs-extra';
 import { resolve as resolvePath } from 'path';
 import tar, { CreateOptions } from 'tar';
+import { paths } from '../../lib/paths';
 import { createDistWorkspace } from '../../lib/packager';
 import { getEnvironmentParallelism } from '../../lib/parallel';
 import { buildPackage, Output } from '../../lib/builder';
@@ -42,11 +43,18 @@ export async function buildBackend(options: BuildBackendOptions) {
     outputs: new Set([Output.cjs]),
   });
 
+  const resolvedConfigPaths = configPaths?.map(p => {
+    let path = paths.resolveTarget(p);
+    if (!fs.pathExistsSync(path)) {
+      path = paths.resolveOwnRoot(p);
+    }
+    return path;
+  });
   const tmpDir = await fs.mkdtemp(resolvePath(os.tmpdir(), 'backstage-bundle'));
   try {
     await createDistWorkspace([pkg.name], {
       targetDir: tmpDir,
-      configPaths,
+      configPaths: resolvedConfigPaths,
       buildDependencies: !skipBuildDependencies,
       buildExcludes: [pkg.name],
       parallelism: getEnvironmentParallelism(),
diff --git a/packages/cli/src/lib/config.ts b/packages/cli/src/lib/config.ts
index 9bb32fa481..a76571c3f6 100644
--- a/packages/cli/src/lib/config.ts
+++ b/packages/cli/src/lib/config.ts
@@ -24,7 +24,6 @@ import { paths } from './paths';
 import { isValidUrl } from './urls';
 import { getPackages } from '@manypkg/get-packages';
 import { PackageGraph } from './monorepo';
-import { pathExistsSync } from 'fs-extra';
 
 type Options = {
   args: string[];
@@ -39,11 +38,7 @@ export async function loadCliConfig(options: Options) {
   const configTargets: ConfigTarget[] = [];
   options.args.forEach(arg => {
     if (!isValidUrl(arg)) {
-      let path = paths.resolveTarget(arg);
-      if (!pathExistsSync(path)) {
-        path = paths.resolveOwnRoot(arg);
-      }
-      configTargets.push({ path });
+      configTargets.push({ path: paths.resolveTarget(arg) });
     }
   });