diff --git a/lib/services/plugins-service.ts b/lib/services/plugins-service.ts
index fcde558f11..7e3f45e6f6 100644
--- a/lib/services/plugins-service.ts
+++ b/lib/services/plugins-service.ts
@@ -101,7 +101,7 @@ export class PluginsService implements IPluginsService {
 	}
 	
 	public ensureAllDependenciesAreInstalled(): IFuture<void> {
-		return this.$childProcess.exec("npm install");
+		return this.$childProcess.exec("npm install ", { cwd: this.$projectData.projectDir });
 	}
 	
 	public getAllInstalledPlugins(): IFuture<IPluginData[]> {
diff --git a/lib/tools/broccoli/trees/node-modules-tree.ts b/lib/tools/broccoli/trees/node-modules-tree.ts
index 5a970d4e73..651bba7df4 100644
--- a/lib/tools/broccoli/trees/node-modules-tree.ts
+++ b/lib/tools/broccoli/trees/node-modules-tree.ts
@@ -8,7 +8,7 @@ import destCopy from '../node-modules-dest-copy';
 
 class NodeModulesTree implements INodeModulesTree {	
 	public makeNodeModulesTree(absoluteOutputPath: string, projectDir: string): any {
-		let nodeModulesFunnel = new Funnel(".", { include: ["node_modules/**"] });
+		let nodeModulesFunnel = new Funnel(".", { include: [projectDir + "/node_modules/**"] });
    		let result = destCopy(nodeModulesFunnel, absoluteOutputPath, "node_modules", projectDir);   
 		return result;	
 	}