diff --git a/README.md b/README.md
index aa9b9bd..f3f55df 100644
--- a/README.md
+++ b/README.md
@@ -16,7 +16,8 @@
 |-----------------|-----------------------------------------------------------------------------------------------------------------|----------|
 | `timeout`       | Duration (in minutes) before the test is terminated. Defaults to 10 minutes with a maximum limit of 6 hours.    | Yes      |
 | `max-score`     | Points to be awarded if the test passes.                                                                        | No       |
-| `setup-command`         | Command to execute prior to the test, typically for environment setup or dependency installation.                                                                | No       |
+| `setup-command`         | Command to execute prior to the test, typically for environment setup or dependency installation.       | No       |
+| `working-directory`     | Relative location where pytest should start looking for tests.                                          | No       |
 
 ### Outputs
 
@@ -47,6 +48,7 @@ jobs:
         timeout: '15'
         max-score: '100'
         setup-command: 'pip install -r requirements.txt'
+        working-directory: 'some_subdir'
     - name: Autograding Reporter
       uses: ...
 ```
diff --git a/action.yml b/action.yml
index b41c688..1e880fa 100644
--- a/action.yml
+++ b/action.yml
@@ -12,6 +12,9 @@ inputs:
   setup-command:
     description: "Command to execute prior to the test, typically for environment setup or dependency installation."
     required: false
+  working-directory:
+    description: "Working directory to start the test."
+    required: false
 outputs:
   result:
     description: "Runner output"
@@ -23,3 +26,4 @@ runs:
     - "--timeout=${{ inputs.timeout }}"
     - "--max-score=${{ inputs.max-score }}"
     - "--setup-command=${{ inputs.setup-command }}"
+    - "--working-directory=${{ inputs.working-directory }}"
diff --git a/bin/run.sh b/bin/run.sh
index 7ec6b00..bff2703 100755
--- a/bin/run.sh
+++ b/bin/run.sh
@@ -3,7 +3,7 @@
 root="/opt/test-runner"
 export PYTHONPATH="$root:$PYTHONPATH"
 
-mkdir autograding_output
+mkdir -p autograding_output
 
 while [ $# -gt 0 ]; do
   case "$1" in
@@ -17,6 +17,9 @@ while [ $# -gt 0 ]; do
     --setup-command=*)
       SETUP_COMMAND="${1#*=}"
       ;;
+    --working-directory=*)
+      WORKING_DIR="${1#*=}"
+      ;;
     *)
       printf "***************************\n"
       printf "* Warning: Unknown argument.*\n"
@@ -34,7 +37,7 @@ if [ -n "$SETUP_COMMAND" ]; then
   eval "$SETUP_COMMAND"
 fi
 
-timeout "$TIMEOUT" python3 /opt/test-runner/bin/run.py ./ ./autograding_output/ "$MAX_SCORE"
+timeout "$TIMEOUT" python3 /opt/test-runner/bin/run.py ./$WORKING_DIR ./autograding_output/ "$MAX_SCORE"
 exit_status=$?
 if [ $exit_status -eq 124 ]; then
   echo "The command took longer than $TIMEOUT seconds to execute. Please increase the timeout to avoid this error."