diff --git a/Sources/XcodeGenKit/SourceGenerator.swift b/Sources/XcodeGenKit/SourceGenerator.swift
index 3161ca6e..ca5c050b 100644
--- a/Sources/XcodeGenKit/SourceGenerator.swift
+++ b/Sources/XcodeGenKit/SourceGenerator.swift
@@ -61,7 +61,7 @@ class SourceGenerator {
             rootGroups.insert(localPackageGroup!)
         }
         
-        let absolutePath = path.isAbsolute ? path : project.basePath + path.normalize()
+        let absolutePath = project.basePath + path.normalize()
 
         // Get local pakcage's relative path from generating project's root
         let fileReferencePath = try? absolutePath.relativePath(from: projectDirectory ?? project.basePath).string
diff --git a/Tests/Fixtures/SPM/SPM.xcodeproj/project.pbxproj b/Tests/Fixtures/SPM/SPM.xcodeproj/project.pbxproj
index b6d4a7bd..a5886840 100644
--- a/Tests/Fixtures/SPM/SPM.xcodeproj/project.pbxproj
+++ b/Tests/Fixtures/SPM/SPM.xcodeproj/project.pbxproj
@@ -49,7 +49,7 @@
 		4E22B8BCC18A29EFE1DE3BE4 /* Assets.xcassets */ = {isa = PBXFileReference; lastKnownFileType = folder.assetcatalog; path = Assets.xcassets; sourceTree = "<group>"; };
 		61C17B77601A9D1B7895AB42 /* StaticLibrary.swift */ = {isa = PBXFileReference; lastKnownFileType = sourcecode.swift; path = StaticLibrary.swift; sourceTree = "<group>"; };
 		A9601593D0AD02931266A4E5 /* App.xctestplan */ = {isa = PBXFileReference; path = App.xctestplan; sourceTree = "<group>"; };
-		C1DE9A872F470EAA65B9B0B0 /* XcodeGen */ = {isa = PBXFileReference; lastKnownFileType = folder; name = XcodeGen; path = ../../..; sourceTree = "<group>"; };
+		C1DE9A872F470EAA65B9B0B0 /* XcodeGen */ = {isa = PBXFileReference; lastKnownFileType = folder; name = XcodeGen; path = ../../..; sourceTree = SOURCE_ROOT; };
 /* End PBXFileReference section */
 
 /* Begin PBXFrameworksBuildPhase section */