diff --git a/tooling/templatize/pkg/ev2/pipeline.go b/tooling/templatize/pkg/ev2/pipeline.go
index d3fe0a807..b1dcc0179 100644
--- a/tooling/templatize/pkg/ev2/pipeline.go
+++ b/tooling/templatize/pkg/ev2/pipeline.go
@@ -50,13 +50,12 @@ func PrecompilePipelineForEV2(pipelineFilePath string, vars config.Variables) (*
 	}
 
 	// store the processed files to disk relative to the pipeline directory
-	_, restoreDir, err := processedPipeline.EnterPipelineDir()
-	if err != nil {
-		return nil, fmt.Errorf("failed to enter pipeline directory: %w", err)
-	}
-	defer restoreDir()
 	for filePath, content := range processedFiles {
-		err := os.WriteFile(filePath, content, 0644)
+		absFilePath, err := processedPipeline.AbsoluteFilePath(filePath)
+		if err != nil {
+			return nil, fmt.Errorf("failed to get absolute file path for %q: %w", filePath, err)
+		}
+		err = os.WriteFile(absFilePath, content, 0644)
 		if err != nil {
 			return nil, fmt.Errorf("failed to write precompiled file %q: %w", filePath, err)
 		}
@@ -66,18 +65,15 @@ func PrecompilePipelineForEV2(pipelineFilePath string, vars config.Variables) (*
 }
 
 func readReferencedPipelineFiles(p *pipeline.Pipeline) (map[string][]byte, error) {
-	// switch to pipeline directory to ensure relative paths are resolvable
-	_, restoreDir, err := p.EnterPipelineDir()
-	if err != nil {
-		return nil, fmt.Errorf("failed to enter pipeline directory: %w", err)
-	}
-	defer restoreDir()
-
 	referencedFiles := make(map[string][]byte)
 	for _, rg := range p.ResourceGroups {
 		for _, step := range rg.Steps {
 			if step.Parameters != "" {
-				paramFileContent, err := os.ReadFile(step.Parameters)
+				absFilePath, err := p.AbsoluteFilePath(step.Parameters)
+				if err != nil {
+					return nil, fmt.Errorf("failed to get absolute file path for %q: %w", step.Parameters, err)
+				}
+				paramFileContent, err := os.ReadFile(absFilePath)
 				if err != nil {
 					return nil, fmt.Errorf("failed to read parameter file %q: %w", step.Parameters, err)
 				}
diff --git a/tooling/templatize/pkg/pipeline/common.go b/tooling/templatize/pkg/pipeline/common.go
index e8c2fb1d3..2a2584000 100644
--- a/tooling/templatize/pkg/pipeline/common.go
+++ b/tooling/templatize/pkg/pipeline/common.go
@@ -2,7 +2,6 @@ package pipeline
 
 import (
 	"fmt"
-	"os"
 	"path/filepath"
 
 	"gopkg.in/yaml.v3"
@@ -26,22 +25,6 @@ func (p *Pipeline) PipelineFilePath() string {
 	return p.pipelineFilePath
 }
 
-func (p *Pipeline) EnterPipelineDir() (string, func(), error) {
-	currentDir, err := os.Getwd()
-	if err != nil {
-		return "", nil, err
-	}
-
-	pipelineDir, err := filepath.Abs(filepath.Dir(p.pipelineFilePath))
-	if err != nil {
-		return "", nil, err
-	}
-	err = os.Chdir(pipelineDir)
-	if err != nil {
-		return "", nil, err
-	}
-
-	return pipelineDir, func() {
-		_ = os.Chdir(currentDir)
-	}, nil
+func (p *Pipeline) AbsoluteFilePath(filePath string) (string, error) {
+	return filepath.Abs(filepath.Join(filepath.Dir(p.pipelineFilePath), filePath))
 }
diff --git a/tooling/templatize/pkg/pipeline/common_test.go b/tooling/templatize/pkg/pipeline/common_test.go
index aa1f42f95..6a2ad5c8c 100644
--- a/tooling/templatize/pkg/pipeline/common_test.go
+++ b/tooling/templatize/pkg/pipeline/common_test.go
@@ -1,7 +1,6 @@
 package pipeline
 
 import (
-	"os"
 	"path/filepath"
 	"testing"
 
@@ -37,7 +36,7 @@ func TestDeepCopy(t *testing.T) {
 	}
 }
 
-func TestEnterPipelineDir(t *testing.T) {
+func TestAbsoluteFilePath(t *testing.T) {
 	configProvider := config.NewConfigProvider("../../testdata/config.yaml")
 	vars, err := configProvider.GetVariables("public", "int", "", config.NewConfigReplacements("r", "sr", "s"))
 	if err != nil {
@@ -48,21 +47,39 @@ func TestEnterPipelineDir(t *testing.T) {
 		t.Errorf("failed to read new pipeline: %v", err)
 	}
 
-	originalDir, _ := os.Getwd()
-
-	pipelineDir, cleanup, err := pipeline.EnterPipelineDir()
-	if err != nil {
-		t.Errorf("failed to enter pipeline dir: %v", err)
+	abspath := func (path string) string {
+		abs, _ := filepath.Abs(path)
+		return abs
+	}
+	testCases := []struct {
+		name            string
+		relativeFile	string
+		absoluteFile    string
+	}{
+		{
+			name: "basic",
+			relativeFile: "test.bicepparam",
+			absoluteFile: abspath("../../testdata/test.bicepparam"),
+		},
+		{
+			name: "go one lower",
+			relativeFile: "../test.bicepparam",
+			absoluteFile: abspath("../../test.bicepparam"),
+		},
+		{
+			name: "subdir",
+			relativeFile: "subdir/test.bicepparam",
+			absoluteFile: abspath("../../testdata/subdir/test.bicepparam"),
+		},
+	}
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			abs, err := pipeline.AbsoluteFilePath(tc.relativeFile)
+			if err != nil {
+				t.Errorf("failed to get absolute file path: %v", err)
+			}
+			assert.Equal(t, abs, tc.absoluteFile, "expected absolute file path to be correct")
+		})
 	}
-	defer cleanup()
-
-	currentDir, _ := os.Getwd()
-	pipelineAbsDir, _ := filepath.Abs(pipelineDir)
-	assert.Equal(t, pipelineDir, pipelineAbsDir, "expected absolute pipeline dir to be announced")
-	assert.Equal(t, currentDir, pipelineAbsDir, "expected to be in pipeline dir")
-
-	cleanup()
-	restoredDir, _ := os.Getwd()
-	assert.Equal(t, restoredDir, originalDir, "expected to return to original dir")
 
 }