diff --git a/shub/build_egg.py b/shub/build_egg.py
index 0efef160..d93037de 100644
--- a/shub/build_egg.py
+++ b/shub/build_egg.py
@@ -7,6 +7,7 @@
 
 from shub.exceptions import NotFoundException, ShubException, SubcommandException
 from shub.utils import (
+    _project_cwd,
     create_default_setup_py,
     inside_project,
     remember_cwd,
@@ -54,7 +55,8 @@ def cli(filename, debug):
 def build_egg_cmd(filename, debug=False):
     tmpdir = None
     try:
-        egg, tmpdir = build_project_egg()
+        with _project_cwd():
+            egg, tmpdir = build_project_egg()
         click.echo(f"Writing egg to {filename}")
         try:
             shutil.copyfile(egg, filename)
diff --git a/shub/deploy.py b/shub/deploy.py
index 95ebe0ef..f95becee 100644
--- a/shub/deploy.py
+++ b/shub/deploy.py
@@ -17,7 +17,12 @@
     print_warning,
 )
 from shub.image.upload import upload_cmd
-from shub.utils import create_scrapinghub_yml_wizard, make_deploy_request, run_cmd
+from shub.utils import (
+    _project_cwd,
+    create_scrapinghub_yml_wizard,
+    make_deploy_request,
+    run_cmd,
+)
 
 # The previous name of build_project_egg(), which deploy wrappers built on top
 # of shub still import from here.
@@ -115,6 +120,12 @@ def cli(target, version, debug, egg, build_egg, verbose, keep_log, ignore_size):
 
 
 def deploy_cmd(target, version, debug, egg, verbose, keep_log, conf=None):
+    egg = egg and str(Path(egg).absolute())
+    with _project_cwd():
+        _deploy_cmd(target, version, debug, egg, verbose, keep_log, conf)
+
+
+def _deploy_cmd(target, version, debug, egg, verbose, keep_log, conf):
     tmpdir = None
     try:
         conf = conf or load_shub_config()
diff --git a/shub/utils.py b/shub/utils.py
index 1a64efbb..3febe0ba 100644
--- a/shub/utils.py
+++ b/shub/utils.py
@@ -70,6 +70,17 @@ def remember_cwd():
         os.chdir(current_dir)
 
 
+@contextlib.contextmanager
+def _project_cwd():
+    """Change the current directory to that of the closest scrapy.cfg, if any,
+    and restore it afterwards."""
+    scrapy_cfg = closest_file("scrapy.cfg")
+    with remember_cwd():
+        if scrapy_cfg:
+            os.chdir(Path(scrapy_cfg).parent)
+        yield
+
+
 def get_scrapinghub_client_from_config(conf):
     return ScrapinghubClient(conf.apikey, dash_endpoint=conf.endpoint)
 
diff --git a/tests/test_build_egg.py b/tests/test_build_egg.py
index ca341cdc..313e7863 100644
--- a/tests/test_build_egg.py
+++ b/tests/test_build_egg.py
@@ -226,6 +226,27 @@ def test_overwrites_write_only_destination(self):
             result = self.runner.invoke(build_egg.cli, ["wo.egg"])
             assert 0 == result.exit_code, result.output
 
+    def _build_egg_from_subdir(self):
+        os.chdir("project")
+        result = self.runner.invoke(build_egg.cli, ["built.egg"])
+        assert 0 == result.exit_code, result.output
+        with zipfile.ZipFile("built.egg") as z:
+            return z.namelist()
+
+    def test_builds_egg_from_subdir(self):
+        if shutil.which("git") is None:
+            self.skipTest("git executable not found")
+        with self.runner.isolated_filesystem():
+            make_git_project()
+            names = self._build_egg_from_subdir()
+        assert "project/__init__.py" in names
+
+    def test_builds_egg_from_subdir_without_git_repo(self):
+        with self.runner.isolated_filesystem():
+            self._make_project()
+            names = self._build_egg_from_subdir()
+        assert "project/__init__.py" in names
+
     def test_requires_a_scrapy_project(self):
         with self.runner.isolated_filesystem():
             self.assertInvokeRaises(NotFoundException, build_egg.cli, ["built.egg"])
diff --git a/tests/test_deploy.py b/tests/test_deploy.py
index f5460823..99c0d946 100644
--- a/tests/test_deploy.py
+++ b/tests/test_deploy.py
@@ -103,12 +103,13 @@ def test_deploys_given_egg(self, mock_deploy_req, mock_build):
             self._make_project()
             with Path("given.egg").open("w") as f:
                 f.write("egg content")
+            given_egg = str(Path("given.egg").absolute())
             result = self.runner.invoke(deploy.cli, ("--egg", "given.egg"))
             assert 0 == result.exit_code, result.output
             name, egg = mock_deploy_req.call_args[0][2][-1]
             egg.close()
-        assert "Using egg: given.egg" in result.output
-        assert ("egg", "given.egg") == (name, egg.name)
+        assert f"Using egg: {given_egg}" in result.output
+        assert ("egg", given_egg) == (name, egg.name)
         mock_build.assert_not_called()
 
     @patch("shub.deploy.make_deploy_request")
@@ -337,6 +338,15 @@ def test_deploy_default_from_git_repo(self, mock_deploy_req):
             result = self.runner.invoke(deploy.cli)
             assert 0 == result.exit_code, result.output
 
+    @patch("shub.deploy.make_deploy_request")
+    def test_deploy_from_subdir(self, mock_deploy_req):
+        with self.runner.isolated_filesystem():
+            make_git_project()
+            os.chdir("project")
+            result = self.runner.invoke(deploy.cli)
+            assert 0 == result.exit_code, result.output
+        mock_deploy_req.assert_called_once()
+
 
 class DeployFilesTest(unittest.TestCase):
     def setUp(self):