diff --git a/bazel/labgrid/driver/localhost.py b/bazel/labgrid/driver/localhost.py
index ed74c388eadd6e0d07737c43ec8a96326ea0e60f..0ee707f524bc70fd862331b5f66db3beebf00363 100644
--- a/bazel/labgrid/driver/localhost.py
+++ b/bazel/labgrid/driver/localhost.py
@@ -28,6 +28,7 @@ class LocalhostDriver(CommandMixin, Driver, CommandProtocol, FileTransferProtoco
 
     def _run(self, cmd, *, timeout=30.0, codec="utf-8", decodeerrors="strict"):
         env = exclude_runfile_env_vars(environ)
+        self._fix_env_path(env)
         process = run(
             cmd,
             stdout=PIPE,
@@ -60,3 +61,11 @@ class LocalhostDriver(CommandMixin, Driver, CommandProtocol, FileTransferProtoco
             copytree(source, destination)
         else:
             copy(source, destination)
+
+    def _fix_env_path(self, env):
+        """Fixes bug caused by cwd being in path when bazel test is ran.
+
+        See https://gitlab.arm.com/bazel/rules_labgrid/-/issues/58.
+        """
+        if "PATH" in env:
+            env["PATH"] = env["PATH"].replace(".:", "")