diff --git a/dlls/shell32/shlexec.c b/dlls/shell32/shlexec.c
index d3ff821135..ce0b8f6d2b 100644
--- a/dlls/shell32/shlexec.c
+++ b/dlls/shell32/shlexec.c
@@ -1807,6 +1807,14 @@ static BOOL SHELL_execute( LPSHELLEXECUTEINFOW sei, SHELL_ExecuteW32 execfunc )
     lpFile = sei_tmp.lpFile;
     wcmd = wcmdBuffer;
     strcpyW(wcmd, wszApplicationName);
+    if (sei_tmp.lpDirectory)
+    {
+        LPCWSTR searchPath[] = {
+            sei_tmp.lpDirectory,
+            NULL
+        };
+        PathFindOnPathW(wcmd, searchPath);
+    }
     retval = SHELL_quote_and_execute( wcmd, wszParameters, wszEmpty,
                                       wszApplicationName, NULL, &sei_tmp,
                                       sei, execfunc );
diff --git a/dlls/shell32/tests/shlexec.c b/dlls/shell32/tests/shlexec.c
index 583504e275..d2c9d370c5 100644
--- a/dlls/shell32/tests/shlexec.c
+++ b/dlls/shell32/tests/shlexec.c
@@ -2846,7 +2846,7 @@ static void test_directory(void)
                         NULL, "test2.exe", params, tmpdir, NULL);
     okShell(rc > 32, "returned %lu\n", rc);
     okChildInt("argcA", 4);
-    todo_wine okChildString("argvA0", path);
+    okChildString("argvA0", path);
     okChildString("argvA3", "Exec");
     okChildPath("longPath", path);
 
@@ -2859,7 +2859,7 @@ static void test_directory(void)
                         NULL, "test2.exe", params, "%TMPDIR%", NULL);
     okShell(rc > 32, "returned %lu\n", rc);
     okChildInt("argcA", 4);
-    todo_wine okChildString("argvA0", path);
+    okChildString("argvA0", path);
     okChildString("argvA3", "Exec");
     okChildPath("longPath", path);
 
@@ -2876,9 +2876,9 @@ static void test_directory(void)
                         NULL, strrchr(argv0, '\\') + 1, params, tmpdir, NULL);
     okShell(rc > 32, "returned %lu\n", rc);
     okChildInt("argcA", 4);
-    todo_wine okChildString("argvA0", path);
+    okChildString("argvA0", path);
     okChildString("argvA3", "Exec");
-    todo_wine okChildPath("longPath", path);
+    okChildPath("longPath", path);
     DeleteFileA(path);
 }