diff --git a/.changeset/chilled-bobcats-repeat.md b/.changeset/chilled-bobcats-repeat.md
new file mode 100644
index 0000000000..572a82b589
--- /dev/null
+++ b/.changeset/chilled-bobcats-repeat.md
@@ -0,0 +1,5 @@
+---
+'@backstage/cli': patch
+---
+
+Resolve config options against both the current directory and the monorepo root directory.
diff --git a/packages/cli/src/lib/config.ts b/packages/cli/src/lib/config.ts
index c813ce59fd..9bb32fa481 100644
--- a/packages/cli/src/lib/config.ts
+++ b/packages/cli/src/lib/config.ts
@@ -24,6 +24,7 @@ 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[];
@@ -38,7 +39,11 @@ export async function loadCliConfig(options: Options) {
   const configTargets: ConfigTarget[] = [];
   options.args.forEach(arg => {
     if (!isValidUrl(arg)) {
-      configTargets.push({ path: paths.resolveTargetRoot(arg) });
+      let path = paths.resolveTarget(arg);
+      if (!pathExistsSync(path)) {
+        path = paths.resolveOwnRoot(arg);
+      }
+      configTargets.push({ path });
     }
   });