diff --git a/setup.go b/setup.go
index 9f27b3a9..6611b976 100644
--- a/setup.go
+++ b/setup.go
@@ -24,13 +24,14 @@ import (
 
 func (e *Executor) Setup() error {
 	e.setupLogger()
-	if err := e.setCurrentDir(); err != nil {
+	node, err := e.getRootNode()
+	if err != nil {
 		return err
 	}
 	if err := e.setupTempDir(); err != nil {
 		return err
 	}
-	if err := e.readTaskfile(); err != nil {
+	if err := e.readTaskfile(node); err != nil {
 		return err
 	}
 	e.setupFuzzyModel()
@@ -44,45 +45,25 @@ func (e *Executor) Setup() error {
 	if err := e.readDotEnvFiles(); err != nil {
 		return err
 	}
-
 	if err := e.doVersionChecks(); err != nil {
 		return err
 	}
 	e.setupDefaults()
 	e.setupConcurrencyState()
-
 	return nil
 }
 
-func (e *Executor) setCurrentDir() error {
-	// If the entrypoint is already set, we don't need to do anything
-	if e.Entrypoint != "" {
-		return nil
-	}
-
-	// Default the directory to the current working directory
-	if e.Dir == "" {
-		wd, err := os.Getwd()
-		if err != nil {
-			return err
-		}
-		e.Dir = wd
-	} else {
-		var err error
-		e.Dir, err = filepath.Abs(e.Dir)
-		if err != nil {
-			return err
-		}
-	}
-
-	return nil
-}
-
-func (e *Executor) readTaskfile() error {
+func (e *Executor) getRootNode() (taskfile.Node, error) {
 	node, err := taskfile.NewRootNode(e.Dir, e.Entrypoint, e.Insecure)
 	if err != nil {
-		return err
+		return nil, err
 	}
+	e.Dir = node.BaseDir()
+	return node, err
+}
+
+func (e *Executor) readTaskfile(node taskfile.Node) error {
+	var err error
 	e.Taskfile, err = taskfile.Read(
 		node,
 		e.Insecure,
diff --git a/task_test.go b/task_test.go
index 8cfa832b..4c02565c 100644
--- a/task_test.go
+++ b/task_test.go
@@ -109,6 +109,7 @@ func TestVars(t *testing.T) {
 
 func TestSpecialVars(t *testing.T) {
 	const dir = "testdata/special_vars"
+	const subdir = "testdata/special_vars/subdir"
 	toAbs := func(rel string) string {
 		abs, err := filepath.Abs(rel)
 		assert.NoError(t, err)
@@ -122,28 +123,32 @@ func TestSpecialVars(t *testing.T) {
 		// Root
 		{target: "print-task", expected: "print-task"},
 		{target: "print-root-dir", expected: toAbs(dir)},
+		{target: "print-taskfile", expected: toAbs(dir) + "/Taskfile.yml"},
 		{target: "print-taskfile-dir", expected: toAbs(dir)},
 		{target: "print-task-version", expected: "unknown"},
 		// Included
 		{target: "included:print-task", expected: "included:print-task"},
 		{target: "included:print-root-dir", expected: toAbs(dir)},
+		{target: "included:print-taskfile", expected: toAbs(dir) + "/included/Taskfile.yml"},
 		{target: "included:print-taskfile-dir", expected: toAbs(dir) + "/included"},
 		{target: "included:print-task-version", expected: "unknown"},
 	}
 
-	for _, test := range tests {
-		t.Run(test.target, func(t *testing.T) {
-			var buff bytes.Buffer
-			e := &task.Executor{
-				Dir:    dir,
-				Stdout: &buff,
-				Stderr: &buff,
-				Silent: true,
-			}
-			require.NoError(t, e.Setup())
-			require.NoError(t, e.Run(context.Background(), &ast.Call{Task: test.target}))
-			assert.Equal(t, test.expected+"\n", buff.String())
-		})
+	for _, dir := range []string{dir, subdir} {
+		for _, test := range tests {
+			t.Run(test.target, func(t *testing.T) {
+				var buff bytes.Buffer
+				e := &task.Executor{
+					Dir:    dir,
+					Stdout: &buff,
+					Stderr: &buff,
+					Silent: true,
+				}
+				require.NoError(t, e.Setup())
+				require.NoError(t, e.Run(context.Background(), &ast.Call{Task: test.target}))
+				assert.Equal(t, test.expected+"\n", buff.String())
+			})
+		}
 	}
 }
 
diff --git a/taskfile/node.go b/taskfile/node.go
index 8b9dc287..27f9ab58 100644
--- a/taskfile/node.go
+++ b/taskfile/node.go
@@ -24,6 +24,7 @@ func NewRootNode(
 	entrypoint string,
 	insecure bool,
 ) (Node, error) {
+	dir = getDefaultDir(entrypoint, dir)
 	// Check if there is something to read on STDIN
 	stat, _ := os.Stdin.Stat()
 	if (stat.Mode()&os.ModeCharDevice) == 0 && stat.Size() > 0 {
@@ -68,3 +69,26 @@ func getScheme(uri string) string {
 	}
 	return ""
 }
+
+func getDefaultDir(entrypoint, dir string) string {
+	// If the entrypoint and dir are empty, we default the directory to the current working directory
+	if dir == "" {
+		if entrypoint == "" {
+			wd, err := os.Getwd()
+			if err != nil {
+				return ""
+			}
+			dir = wd
+		}
+		return dir
+	}
+
+	// If the directory is set, ensure it is an absolute path
+	var err error
+	dir, err = filepath.Abs(dir)
+	if err != nil {
+		return ""
+	}
+
+	return dir
+}
diff --git a/testdata/special_vars/Taskfile.yml b/testdata/special_vars/Taskfile.yml
index 271356cf..23415818 100644
--- a/testdata/special_vars/Taskfile.yml
+++ b/testdata/special_vars/Taskfile.yml
@@ -8,5 +8,6 @@ includes:
 tasks:
   print-task: echo {{.TASK}}
   print-root-dir: echo {{.ROOT_DIR}}
+  print-taskfile: echo {{.TASKFILE}}
   print-taskfile-dir: echo {{.TASKFILE_DIR}}
   print-task-version: echo {{.TASK_VERSION}}
diff --git a/testdata/special_vars/included/Taskfile.yml b/testdata/special_vars/included/Taskfile.yml
index 5eb75b15..63562f97 100644
--- a/testdata/special_vars/included/Taskfile.yml
+++ b/testdata/special_vars/included/Taskfile.yml
@@ -3,5 +3,6 @@ version: '3'
 tasks:
   print-task: echo {{.TASK}}
   print-root-dir: echo {{.ROOT_DIR}}
+  print-taskfile: echo {{.TASKFILE}}
   print-taskfile-dir: echo {{.TASKFILE_DIR}}
   print-task-version: echo {{.TASK_VERSION}}
diff --git a/testdata/special_vars/subdir/.gitkeep b/testdata/special_vars/subdir/.gitkeep
new file mode 100644
index 00000000..e69de29b