diff --git a/Cargo.lock b/Cargo.lock
index fb66e5eaa..5aaf59dcc 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1090,6 +1090,7 @@ dependencies = [
  "native-tls",
  "normpath",
  "once_cell",
+ "path-slash",
  "pep440_rs",
  "pep508_rs",
  "platform-info",
diff --git a/Cargo.toml b/Cargo.toml
index 6bac735fc..280efb7bc 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -71,6 +71,7 @@ lddtree = "0.3.3"
 cc = "1.0.72"
 dunce = "1.0.2"
 normpath = "1.0.0"
+path-slash = "0.2.1"
 pep440_rs = { version = "0.3.6", features = ["serde"] }
 pep508_rs = { version = "0.2.1", features = ["serde"] }
 time = "0.3.17"
diff --git a/src/source_distribution.rs b/src/source_distribution.rs
index 0f4361a72..fe7022329 100644
--- a/src/source_distribution.rs
+++ b/src/source_distribution.rs
@@ -6,6 +6,7 @@ use cargo_metadata::{Metadata, MetadataCommand};
 use fs_err as fs;
 use ignore::overrides::Override;
 use normpath::PathExt as _;
+use path_slash::PathExt as _;
 use std::collections::HashMap;
 use std::path::{Path, PathBuf};
 use std::process::Command;
@@ -456,9 +457,9 @@ fn add_cargo_package_files_to_sdist(
             let mut deps_to_keep = known_path_deps.clone();
             // Also need to the main Python binding crate
             let main_member_name = abs_manifest_dir
-                .strip_prefix(&sdist_root)
+                .strip_prefix(workspace_root)
                 .unwrap()
-                .to_str()
+                .to_slash()
                 .unwrap()
                 .to_string();
             deps_to_keep.insert(
diff --git a/test-crates/pyo3-mixed-workspace/README.md b/test-crates/pyo3-mixed-workspace/README.md
new file mode 100644
index 000000000..ae4698129
--- /dev/null
+++ b/test-crates/pyo3-mixed-workspace/README.md
@@ -0,0 +1,14 @@
+# pyo3-mixed src layout
+
+A package for testing maturin with a nested workspace.
+
+## Usage
+
+```bash
+pip install .
+```
+
+```python
+import pyo3_mixed_workspace
+assert pyo3_mixed_workspace.get_42() == 42
+```
diff --git a/test-crates/pyo3-mixed-workspace/check_installed/check_installed.py b/test-crates/pyo3-mixed-workspace/check_installed/check_installed.py
new file mode 100755
index 000000000..0b891b235
--- /dev/null
+++ b/test-crates/pyo3-mixed-workspace/check_installed/check_installed.py
@@ -0,0 +1,7 @@
+#!/usr/bin/env python3
+
+import pyo3_mixed_workspace as pyo3_mixed
+
+assert pyo3_mixed.get_42() == 42
+
+print("SUCCESS")
diff --git a/test-crates/pyo3-mixed-workspace/pyproject.toml b/test-crates/pyo3-mixed-workspace/pyproject.toml
new file mode 100644
index 000000000..de98823c9
--- /dev/null
+++ b/test-crates/pyo3-mixed-workspace/pyproject.toml
@@ -0,0 +1,19 @@
+[build-system]
+requires = ["maturin>=1.0,<2.0"]
+build-backend = "maturin"
+
+[project]
+name = "pyo3-mixed-workspace"
+classifiers = [
+    "Programming Language :: Python",
+    "Programming Language :: Rust"
+]
+requires-python = ">=3.7"
+
+[project.scripts]
+get_42 = "pyo3_mixed_workspace:get_42"
+
+[tool.maturin]
+python-packages = ["pyo3_mixed_workspace", "tests"]
+module-name = "pyo3_mixed_workspace.pyo3_mixed_workspace_py"
+manifest-path = "rust/python/pyo3-mixed-workspace-py/Cargo.toml"
diff --git a/test-crates/pyo3-mixed-workspace/rust/Cargo.lock b/test-crates/pyo3-mixed-workspace/rust/Cargo.lock
new file mode 100644
index 000000000..833e5715d
--- /dev/null
+++ b/test-crates/pyo3-mixed-workspace/rust/Cargo.lock
@@ -0,0 +1,297 @@
+# This file is automatically @generated by Cargo.
+# It is not intended for manual editing.
+version = 3
+
+[[package]]
+name = "autocfg"
+version = "1.1.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "d468802bab17cbc0cc575e9b053f41e72aa36bfa6b7f55e3529ffa43161b97fa"
+
+[[package]]
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+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "bef38d45163c2f1dde094a7dfd33ccf595c92905c8f8f4fdc18d06fb1037718a"
+
+[[package]]
+name = "cc"
+version = "1.0.83"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "f1174fb0b6ec23863f8b971027804a42614e347eafb0a95bf0b12cdae21fc4d0"
+dependencies = [
+ "libc",
+]
+
+[[package]]
+name = "cfg-if"
+version = "1.0.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "baf1de4339761588bc0619e3cbc0120ee582ebb74b53b4efbf79117bd2da40fd"
+
+[[package]]
+name = "indoc"
+version = "1.0.9"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "bfa799dd5ed20a7e349f3b4639aa80d74549c81716d9ec4f994c9b5815598306"
+
+[[package]]
+name = "libc"
+version = "0.2.149"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "a08173bc88b7955d1b3145aa561539096c421ac8debde8cbc3612ec635fee29b"
+
+[[package]]
+name = "lock_api"
+version = "0.4.11"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "3c168f8615b12bc01f9c17e2eb0cc07dcae1940121185446edc3744920e8ef45"
+dependencies = [
+ "autocfg",
+ "scopeguard",
+]
+
+[[package]]
+name = "memoffset"
+version = "0.9.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "5a634b1c61a95585bd15607c6ab0c4e5b226e695ff2800ba0cdccddf208c406c"
+dependencies = [
+ "autocfg",
+]
+
+[[package]]
+name = "once_cell"
+version = "1.18.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "dd8b5dd2ae5ed71462c540258bedcb51965123ad7e7ccf4b9a8cafaa4a63576d"
+
+[[package]]
+name = "parking_lot"
+version = "0.12.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "3742b2c103b9f06bc9fff0a37ff4912935851bee6d36f3c02bcc755bcfec228f"
+dependencies = [
+ "lock_api",
+ "parking_lot_core",
+]
+
+[[package]]
+name = "parking_lot_core"
+version = "0.9.9"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "4c42a9226546d68acdd9c0a280d17ce19bfe27a46bf68784e4066115788d008e"
+dependencies = [
+ "cfg-if",
+ "libc",
+ "redox_syscall",
+ "smallvec",
+ "windows-targets",
+]
+
+[[package]]
+name = "proc-macro2"
+version = "1.0.69"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "134c189feb4956b20f6f547d2cf727d4c0fe06722b20a0eec87ed445a97f92da"
+dependencies = [
+ "unicode-ident",
+]
+
+[[package]]
+name = "pyo3"
+version = "0.19.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "e681a6cfdc4adcc93b4d3cf993749a4552018ee0a9b65fc0ccfad74352c72a38"
+dependencies = [
+ "cfg-if",
+ "indoc",
+ "libc",
+ "memoffset",
+ "parking_lot",
+ "pyo3-build-config",
+ "pyo3-ffi",
+ "pyo3-macros",
+ "unindent",
+]
+
+[[package]]
+name = "pyo3-build-config"
+version = "0.19.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "076c73d0bc438f7a4ef6fdd0c3bb4732149136abd952b110ac93e4edb13a6ba5"
+dependencies = [
+ "once_cell",
+ "python3-dll-a",
+ "target-lexicon",
+]
+
+[[package]]
+name = "pyo3-ffi"
+version = "0.19.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "e53cee42e77ebe256066ba8aa77eff722b3bb91f3419177cf4cd0f304d3284d9"
+dependencies = [
+ "libc",
+ "pyo3-build-config",
+]
+
+[[package]]
+name = "pyo3-macros"
+version = "0.19.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "dfeb4c99597e136528c6dd7d5e3de5434d1ceaf487436a3f03b2d56b6fc9efd1"
+dependencies = [
+ "proc-macro2",
+ "pyo3-macros-backend",
+ "quote",
+ "syn",
+]
+
+[[package]]
+name = "pyo3-macros-backend"
+version = "0.19.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "947dc12175c254889edc0c02e399476c2f652b4b9ebd123aa655c224de259536"
+dependencies = [
+ "proc-macro2",
+ "quote",
+ "syn",
+]
+
+[[package]]
+name = "pyo3-mixed-workspace"
+version = "2.1.3"
+
+[[package]]
+name = "pyo3-mixed-workspace-py"
+version = "2.1.3"
+dependencies = [
+ "pyo3",
+ "pyo3-mixed-workspace",
+]
+
+[[package]]
+name = "python3-dll-a"
+version = "0.2.9"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "d5f07cd4412be8fa09a721d40007c483981bbe072cd6a21f2e83e04ec8f8343f"
+dependencies = [
+ "cc",
+]
+
+[[package]]
+name = "quote"
+version = "1.0.33"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "5267fca4496028628a95160fc423a33e8b2e6af8a5302579e322e4b520293cae"
+dependencies = [
+ "proc-macro2",
+]
+
+[[package]]
+name = "redox_syscall"
+version = "0.4.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "4722d768eff46b75989dd134e5c353f0d6296e5aaa3132e776cbdb56be7731aa"
+dependencies = [
+ "bitflags",
+]
+
+[[package]]
+name = "scopeguard"
+version = "1.2.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "94143f37725109f92c262ed2cf5e59bce7498c01bcc1502d7b9afe439a4e9f49"
+
+[[package]]
+name = "smallvec"
+version = "1.11.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "942b4a808e05215192e39f4ab80813e599068285906cc91aa64f923db842bd5a"
+
+[[package]]
+name = "syn"
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+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "72b64191b275b66ffe2469e8af2c1cfe3bafa67b529ead792a6d0160888b4237"
+dependencies = [
+ "proc-macro2",
+ "quote",
+ "unicode-ident",
+]
+
+[[package]]
+name = "target-lexicon"
+version = "0.12.12"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "14c39fd04924ca3a864207c66fc2cd7d22d7c016007f9ce846cbb9326331930a"
+
+[[package]]
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+
+[[package]]
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+source = "registry+https://github.com/rust-lang/crates.io-index"
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+
+[[package]]
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+checksum = "9a2fa6e2155d7247be68c096456083145c183cbbbc2764150dda45a87197940c"
+dependencies = [
+ "windows_aarch64_gnullvm",
+ "windows_aarch64_msvc",
+ "windows_i686_gnu",
+ "windows_i686_msvc",
+ "windows_x86_64_gnu",
+ "windows_x86_64_gnullvm",
+ "windows_x86_64_msvc",
+]
+
+[[package]]
+name = "windows_aarch64_gnullvm"
+version = "0.48.5"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "2b38e32f0abccf9987a4e3079dfb67dcd799fb61361e53e2882c3cbaf0d905d8"
+
+[[package]]
+name = "windows_aarch64_msvc"
+version = "0.48.5"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "dc35310971f3b2dbbf3f0690a219f40e2d9afcf64f9ab7cc1be722937c26b4bc"
+
+[[package]]
+name = "windows_i686_gnu"
+version = "0.48.5"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "a75915e7def60c94dcef72200b9a8e58e5091744960da64ec734a6c6e9b3743e"
+
+[[package]]
+name = "windows_i686_msvc"
+version = "0.48.5"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "8f55c233f70c4b27f66c523580f78f1004e8b5a8b659e05a4eb49d4166cca406"
+
+[[package]]
+name = "windows_x86_64_gnu"
+version = "0.48.5"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "53d40abd2583d23e4718fddf1ebec84dbff8381c07cae67ff7768bbf19c6718e"
+
+[[package]]
+name = "windows_x86_64_gnullvm"
+version = "0.48.5"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "0b7b52767868a23d5bab768e390dc5f5c55825b6d30b86c844ff2dc7414044cc"
+
+[[package]]
+name = "windows_x86_64_msvc"
+version = "0.48.5"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "ed94fce61571a4006852b7389a063ab983c02eb1bb37b47f8272ce92d06d9538"
diff --git a/test-crates/pyo3-mixed-workspace/rust/Cargo.toml b/test-crates/pyo3-mixed-workspace/rust/Cargo.toml
new file mode 100644
index 000000000..3e2e6ad57
--- /dev/null
+++ b/test-crates/pyo3-mixed-workspace/rust/Cargo.toml
@@ -0,0 +1,6 @@
+[workspace]
+resolver = "2"
+members = [
+    "pyo3-mixed-workspace",
+    "python/pyo3-mixed-workspace-py",
+]
diff --git a/test-crates/pyo3-mixed-workspace/rust/pyo3-mixed-workspace/Cargo.toml b/test-crates/pyo3-mixed-workspace/rust/pyo3-mixed-workspace/Cargo.toml
new file mode 100644
index 000000000..1c3bae17e
--- /dev/null
+++ b/test-crates/pyo3-mixed-workspace/rust/pyo3-mixed-workspace/Cargo.toml
@@ -0,0 +1,7 @@
+[package]
+name = "pyo3-mixed-workspace"
+version = "2.1.3"
+description = "Implements a dummy function combining rust and python"
+edition = "2021"
+
+[dependencies]
diff --git a/test-crates/pyo3-mixed-workspace/rust/pyo3-mixed-workspace/src/lib.rs b/test-crates/pyo3-mixed-workspace/rust/pyo3-mixed-workspace/src/lib.rs
new file mode 100644
index 000000000..d681ef926
--- /dev/null
+++ b/test-crates/pyo3-mixed-workspace/rust/pyo3-mixed-workspace/src/lib.rs
@@ -0,0 +1,3 @@
+pub fn get_21_lib() -> usize {
+    21
+}
diff --git a/test-crates/pyo3-mixed-workspace/rust/python/pyo3-mixed-workspace-py/Cargo.toml b/test-crates/pyo3-mixed-workspace/rust/python/pyo3-mixed-workspace-py/Cargo.toml
new file mode 100644
index 000000000..db38ad4f0
--- /dev/null
+++ b/test-crates/pyo3-mixed-workspace/rust/python/pyo3-mixed-workspace-py/Cargo.toml
@@ -0,0 +1,14 @@
+[package]
+authors = ["konstin <konstin@mailbox.org>"]
+name = "pyo3-mixed-workspace-py"
+version = "2.1.3"
+description = "Implements a dummy function combining rust and python"
+edition = "2021"
+
+[dependencies]
+pyo3-mixed-workspace = { path = "../../pyo3-mixed-workspace" }
+pyo3 = { version = "0.19.0", features = ["extension-module", "generate-import-lib"] }
+
+[lib]
+name = "pyo3_mixed_workspace_py"
+crate-type = ["cdylib"]
diff --git a/test-crates/pyo3-mixed-workspace/rust/python/pyo3-mixed-workspace-py/src/lib.rs b/test-crates/pyo3-mixed-workspace/rust/python/pyo3-mixed-workspace-py/src/lib.rs
new file mode 100644
index 000000000..8b0e0d629
--- /dev/null
+++ b/test-crates/pyo3-mixed-workspace/rust/python/pyo3-mixed-workspace-py/src/lib.rs
@@ -0,0 +1,15 @@
+use pyo3::prelude::*;
+
+use pyo3_mixed_workspace::get_21_lib;
+
+#[pyfunction]
+fn get_21() -> usize {
+    get_21_lib()
+}
+
+#[pymodule]
+fn pyo3_mixed_workspace_py(_py: Python, m: &PyModule) -> PyResult<()> {
+    m.add_function(wrap_pyfunction!(get_21, m)?)?;
+
+    Ok(())
+}
diff --git a/test-crates/pyo3-mixed-workspace/src/pyo3_mixed_workspace/__init__.py b/test-crates/pyo3-mixed-workspace/src/pyo3_mixed_workspace/__init__.py
new file mode 100644
index 000000000..0674c34a4
--- /dev/null
+++ b/test-crates/pyo3-mixed-workspace/src/pyo3_mixed_workspace/__init__.py
@@ -0,0 +1,6 @@
+from .python_module.double import double
+from .pyo3_mixed_workspace_py import get_21
+
+
+def get_42() -> int:
+    return double(get_21)
diff --git a/test-crates/pyo3-mixed-workspace/src/pyo3_mixed_workspace/python_module/__init__.py b/test-crates/pyo3-mixed-workspace/src/pyo3_mixed_workspace/python_module/__init__.py
new file mode 100644
index 000000000..e69de29bb
diff --git a/test-crates/pyo3-mixed-workspace/src/pyo3_mixed_workspace/python_module/double.py b/test-crates/pyo3-mixed-workspace/src/pyo3_mixed_workspace/python_module/double.py
new file mode 100644
index 000000000..2eed18d52
--- /dev/null
+++ b/test-crates/pyo3-mixed-workspace/src/pyo3_mixed_workspace/python_module/double.py
@@ -0,0 +1,5 @@
+from typing import Callable
+
+
+def double(fn: Callable[[], int]) -> int:
+    return 2 * fn()
diff --git a/test-crates/pyo3-mixed-workspace/src/tests/test_pyo3_mixed.py b/test-crates/pyo3-mixed-workspace/src/tests/test_pyo3_mixed.py
new file mode 100644
index 000000000..903c95b2a
--- /dev/null
+++ b/test-crates/pyo3-mixed-workspace/src/tests/test_pyo3_mixed.py
@@ -0,0 +1,7 @@
+#!/usr/bin/env python3
+
+import pyo3_mixed_workspace as pyo3_mixed
+
+
+def test_get_42():
+    assert pyo3_mixed.get_42() == 42
diff --git a/test-crates/pyo3-mixed-workspace/tox.ini b/test-crates/pyo3-mixed-workspace/tox.ini
new file mode 100644
index 000000000..a7427eacf
--- /dev/null
+++ b/test-crates/pyo3-mixed-workspace/tox.ini
@@ -0,0 +1,7 @@
+[tox]
+envlist = py36,py37,py38
+isolated_build = True
+
+[testenv]
+deps = pytest
+commands = pytest src/tests/
diff --git a/tests/run.rs b/tests/run.rs
index f0e87078a..0e132631f 100644
--- a/tests/run.rs
+++ b/tests/run.rs
@@ -483,6 +483,40 @@ fn workspace_cargo_lock() {
     handle_result(other::test_workspace_cargo_lock())
 }
 
+#[test]
+fn workspace_members_beneath_pyproject_sdist() {
+    let cargo_toml = expect![[r#"
+        [workspace]
+        resolver = "2"
+        members = ["pyo3-mixed-workspace", "python/pyo3-mixed-workspace-py"]
+        "#]];
+    handle_result(other::test_source_distribution(
+        "test-crates/pyo3-mixed-workspace/rust/python/pyo3-mixed-workspace-py",
+        SdistGenerator::Cargo,
+        expect![[r#"
+            {
+                "pyo3_mixed_workspace-2.1.3/PKG-INFO",
+                "pyo3_mixed_workspace-2.1.3/pyproject.toml",
+                "pyo3_mixed_workspace-2.1.3/rust/Cargo.lock",
+                "pyo3_mixed_workspace-2.1.3/rust/Cargo.toml",
+                "pyo3_mixed_workspace-2.1.3/rust/pyo3-mixed-workspace/Cargo.toml",
+                "pyo3_mixed_workspace-2.1.3/rust/pyo3-mixed-workspace/src/lib.rs",
+                "pyo3_mixed_workspace-2.1.3/rust/python/pyo3-mixed-workspace-py/Cargo.toml",
+                "pyo3_mixed_workspace-2.1.3/rust/python/pyo3-mixed-workspace-py/src/lib.rs",
+                "pyo3_mixed_workspace-2.1.3/src/pyo3_mixed_workspace/__init__.py",
+                "pyo3_mixed_workspace-2.1.3/src/pyo3_mixed_workspace/python_module/__init__.py",
+                "pyo3_mixed_workspace-2.1.3/src/pyo3_mixed_workspace/python_module/double.py",
+                "pyo3_mixed_workspace-2.1.3/src/tests/test_pyo3_mixed.py",
+            }
+        "#]],
+        Some((
+            Path::new("pyo3_mixed_workspace-2.1.3/rust/Cargo.toml"),
+            cargo_toml,
+        )),
+        "sdist-workspace-members-beneath_pyproject",
+    ))
+}
+
 #[test]
 fn workspace_members_non_local_dep_sdist() {
     let cargo_toml = expect![[r#"