diff --git a/Sources/xcodes/App.swift b/Sources/xcodes/App.swift
index 36ee7e5e..d2f4fb23 100644
--- a/Sources/xcodes/App.swift
+++ b/Sources/xcodes/App.swift
@@ -22,6 +22,11 @@ func getDirectory(possibleDirectory: String?, default: Path = Path.root.join("Ap
     return directory
 }
 
+/// Resolves the `--path` argument of `install`, treating relative paths as relative to the current directory.
+func xipPath(from pathString: String?) -> Path? {
+    pathString.map { Path($0) ?? Path.cwd/$0 }
+}
+
 struct GlobalDirectoryOption: ParsableArguments {
     @Option(help: "The directory where your Xcodes are installed. Defaults to /Applications.",
             completion: .directory)
@@ -277,7 +282,7 @@ struct Xcodes: AsyncParsableCommand {
                 installation = .latest
             } else if latestPrerelease {
                 installation = .latestPrerelease
-            } else if let pathString = pathString, let path = Path(pathString) {
+            } else if let path = xipPath(from: pathString) {
                 installation = .path(versionString, path)
             } else {
                 installation = .version(versionString)
diff --git a/Tests/xcodesTests/XipPathTests.swift b/Tests/xcodesTests/XipPathTests.swift
new file mode 100644
index 00000000..4ef7fc19
--- /dev/null
+++ b/Tests/xcodesTests/XipPathTests.swift
@@ -0,0 +1,18 @@
+import XCTest
+import Path
+@testable import xcodes
+
+final class XipPathTests: XCTestCase {
+    func test_xipPath_nilWhenNoPathIsGiven() {
+        XCTAssertNil(xipPath(from: nil))
+    }
+
+    func test_xipPath_keepsAbsolutePath() {
+        XCTAssertEqual(xipPath(from: "/tmp/Xcode-14.0.0.xip"), Path.root/"tmp/Xcode-14.0.0.xip")
+    }
+
+    func test_xipPath_resolvesRelativePathAgainstCurrentDirectory() {
+        XCTAssertEqual(xipPath(from: "Xcode-14.0.0.xip"), Path.cwd/"Xcode-14.0.0.xip")
+        XCTAssertEqual(xipPath(from: "Downloads/Xcode-14.0.0.xip"), Path.cwd/"Downloads/Xcode-14.0.0.xip")
+    }
+}