diff --git a/src/Components/Modules/FileSystem.cpp b/src/Components/Modules/FileSystem.cpp
index ab6970f2..641714f9 100644
--- a/src/Components/Modules/FileSystem.cpp
+++ b/src/Components/Modules/FileSystem.cpp
@@ -243,9 +243,9 @@ namespace Components
 
 	void FileSystem::RegisterFolder(const char* folder)
 	{
-		std::string fs_cdpath = Dvar::Var("fs_cdpath").get<std::string>();
-		std::string fs_basepath = Dvar::Var("fs_basepath").get<std::string>();
-		std::string fs_homepath = Dvar::Var("fs_homepath").get<std::string>();
+		const auto fs_cdpath = Dvar::Var("fs_cdpath").get<std::string>();
+		const auto fs_basepath = Dvar::Var("fs_basepath").get<std::string>();
+		const auto fs_homepath = Dvar::Var("fs_homepath").get<std::string>();
 
 		if (!fs_cdpath.empty())   Game::FS_AddLocalizedGameDirectory(fs_cdpath.data(),   folder);
 		if (!fs_basepath.empty()) Game::FS_AddLocalizedGameDirectory(fs_basepath.data(), folder);
@@ -323,6 +323,12 @@ namespace Components
 		Utils::Hook::Call<void(void*)>(0x4291A0)(iwd);
 	}
 
+	const char* FileSystem::Sys_DefaultInstallPath_Hk()
+	{
+		static auto current_path = std::filesystem::current_path().string();
+		return current_path.data();
+	}
+
 	FileSystem::FileSystem()
 	{
 		FileSystem::MemAllocator.clear();
@@ -370,6 +376,9 @@ namespace Components
 
 		// Handle IWD freeing
 		Utils::Hook(0x642F60, FileSystem::IwdFreeStub, HOOK_CALL).install()->quick();
+
+		// Set the working dir based on info from the Xlabs launcher
+		Utils::Hook(0x4326E0, FileSystem::Sys_DefaultInstallPath_Hk, HOOK_JUMP).install()->quick();
 	}
 
 	FileSystem::~FileSystem()
diff --git a/src/Components/Modules/FileSystem.hpp b/src/Components/Modules/FileSystem.hpp
index 2a1064f5..50573b40 100644
--- a/src/Components/Modules/FileSystem.hpp
+++ b/src/Components/Modules/FileSystem.hpp
@@ -116,5 +116,7 @@ namespace Components
 		static int LoadTextureSync(Game::GfxImageLoadDef **loadDef, Game::GfxImage *image);
 
 		static void IwdFreeStub(Game::iwd_t* iwd);
+
+		static const char* Sys_DefaultInstallPath_Hk();
 	};
 }
diff --git a/src/Utils/Utils.cpp b/src/Utils/Utils.cpp
index 6d9cd4df..520faa9d 100644
--- a/src/Utils/Utils.cpp
+++ b/src/Utils/Utils.cpp
@@ -106,13 +106,18 @@ namespace Utils
 
 	void SetEnvironment()
 	{
-		wchar_t exeName[512];
-		GetModuleFileNameW(GetModuleHandle(nullptr), exeName, sizeof(exeName) / sizeof(wchar_t));
+		char* buffer{};
+		std::size_t size{};
+		if (_dupenv_s(&buffer, &size, "XLABS_MW2_INSTALL") != 0 || buffer == nullptr)
+		{
+			return;
+		}
 
-		auto* exeBaseName = wcsrchr(exeName, L'\\');
-		exeBaseName[0] = L'\0';
+		const auto _0 = gsl::finally([&] { std::free(buffer); });
 
-		SetCurrentDirectoryW(exeName);
+		std::string dir{buffer, size};
+		SetCurrentDirectoryA(dir.data());
+		SetDllDirectoryA(dir.data());
 	}
 
 	HMODULE GetNTDLL()