diff --git a/ccache.c b/ccache.c
index ea9b39b..498e8ad 100644
--- a/ccache.c
+++ b/ccache.c
@@ -2465,7 +2484,22 @@ initialize(void)
 		umask(conf->umask);
 	}
 
-	current_working_dir = get_cwd();
+	/* set current_working_dir in a canonical form */
+	{
+		char *cp;
+		cp = get_cwd();
+		if(cp) {
+			/* canonicalize, resolve symlink, etc. */
+			current_working_dir = x_realpath(cp);
+			free(cp);
+		}
+		if(!current_working_dir) {
+			cc_log("Unable to determine current working directory: %s",
+			       strerror(errno));
+			failed();
+		}
+	}
+
 }
 
 /* Reset the global state. Used by the test suite. */