diff --git a/cmake/test.cmake b/cmake/test.cmake
index fbbf8afe4c..a9deb37892 100644
--- a/cmake/test.cmake
+++ b/cmake/test.cmake
@@ -15,6 +15,7 @@ endfunction()
 #   PYTHON_COMMAND     - Python code to execute; should call sys.exit
 #                        with an appropriate exitcode to indicate success
 #                        or failure.
+#   WORKING_DIRECTORY  - Directory from which the test executable will be called.
 #   COMMAND            - Command line to execute as a test
 #   NO_STANDALONE_INIT - Only allowable with PYTHON_MODULE or
 #                        PYTHON_COMMAND. With those modes, this
@@ -49,9 +50,9 @@ function(mayaUsd_add_test test_name)
     # -----------------
 
     cmake_parse_arguments(PREFIX
-        "NO_STANDALONE_INIT"            # options
-        "PYTHON_MODULE;PYTHON_COMMAND"  # one_value keywords
-        "COMMAND;ENV"                   # multi_value keywords
+        "NO_STANDALONE_INIT"                              # options
+        "PYTHON_MODULE;PYTHON_COMMAND;WORKING_DIRECTORY"  # one_value keywords
+        "COMMAND;ENV"                                     # multi_value keywords
         ${ARGN}
     )
 
@@ -74,6 +75,13 @@ function(mayaUsd_add_test test_name)
             "used with PYTHON_MODULE or PYTHON_COMMAND")
     endif()
 
+    # set the working_dir
+    if(PREFIX_WORKING_DIRECTORY)
+        set(working_dir ${PREFIX_WORKING_DIRECTORY})
+    else()
+        set(working_dir ${CMAKE_CURRENT_SOURCE_DIR})
+    endif()
+
     # --------------
     # 2) Create test
     # --------------
@@ -116,7 +124,7 @@ finally:
 
     add_test(
         NAME "${test_name}"
-        WORKING_DIRECTORY ${CMAKE_CURRENT_SOURCE_DIR}
+        WORKING_DIRECTORY ${working_dir}
         COMMAND ${command}
     )
 
diff --git a/test/lib/ufe/CMakeLists.txt b/test/lib/ufe/CMakeLists.txt
index 53168d6baa..f0599216e5 100644
--- a/test/lib/ufe/CMakeLists.txt
+++ b/test/lib/ufe/CMakeLists.txt
@@ -56,6 +56,7 @@ mayaUsd_copyFiles(${TARGET_NAME} DESTINATION ${CMAKE_CURRENT_BINARY_DIR}
 foreach(script ${test_script_files})
     mayaUsd_get_unittest_target(target ${script})
     mayaUsd_add_test(${target}
+        WORKING_DIRECTORY ${CMAKE_CURRENT_BINARY_DIR}
         PYTHON_MODULE ${target}
         ENV
             "MAYA_PLUG_IN_PATH=${CMAKE_CURRENT_BINARY_DIR}/ufeTestPlugins"