diff --git a/crates/ruff/src/lib.rs b/crates/ruff/src/lib.rs
index 882240b3b69c5..c7c32a223587b 100644
--- a/crates/ruff/src/lib.rs
+++ b/crates/ruff/src/lib.rs
@@ -112,7 +112,7 @@ fn is_stdin(files: &[PathBuf], stdin_filename: Option<&Path>) -> bool {
     file == Path::new("-")
 }
 
-/// Returns the default set of files if none are provided, otherwise returns `None`.
+/// Returns the default set of files if none are provided, otherwise returns provided files.
 fn resolve_default_files(files: Vec<PathBuf>, is_stdin: bool) -> Vec<PathBuf> {
     if files.is_empty() {
         if is_stdin {
diff --git a/crates/ruff/src/resolve.rs b/crates/ruff/src/resolve.rs
index 4fbea4dad6eb6..b68d2c61fd7ac 100644
--- a/crates/ruff/src/resolve.rs
+++ b/crates/ruff/src/resolve.rs
@@ -1,6 +1,6 @@
 use std::path::Path;
 
-use anyhow::Result;
+use anyhow::{bail, Result};
 use log::debug;
 use path_absolutize::path_dedot;
 
@@ -21,10 +21,14 @@ pub fn resolve(
     config_arguments: &ConfigArguments,
     stdin_filename: Option<&Path>,
 ) -> Result<PyprojectConfig> {
+    let Ok(cwd) = std::env::current_dir() else {
+        bail!("Working directory does not exist")
+    };
+
     // First priority: if we're running in isolated mode, use the default settings.
     if config_arguments.isolated {
         let config = config_arguments.transform(Configuration::default());
-        let settings = config.into_settings(&path_dedot::CWD)?;
+        let settings = config.into_settings(&cwd)?;
         debug!("Isolated mode, not reading any pyproject.toml");
         return Ok(PyprojectConfig::new(
             PyprojectDiscoveryStrategy::Fixed,
@@ -58,11 +62,7 @@ pub fn resolve(
     // that directory. (With `Strategy::Hierarchical`, we'll end up finding
     // the "closest" `pyproject.toml` file for every Python file later on,
     // so these act as the "default" settings.)
-    if let Some(pyproject) = pyproject::find_settings_toml(
-        stdin_filename
-            .as_ref()
-            .unwrap_or(&path_dedot::CWD.as_path()),
-    )? {
+    if let Some(pyproject) = pyproject::find_settings_toml(stdin_filename.unwrap_or(&cwd))? {
         debug!(
             "Using configuration file (via parent) at: {}",
             pyproject.display()
@@ -130,17 +130,13 @@ pub fn resolve(
         // `pyproject::find_settings_toml`.)
         // However, there may be a `pyproject.toml` with a `requires-python`
         // specified, and that is what we look for in this step.
-        let fallback = find_fallback_target_version(
-            stdin_filename
-                .as_ref()
-                .unwrap_or(&path_dedot::CWD.as_path()),
-        );
+        let fallback = find_fallback_target_version(stdin_filename.unwrap_or(&cwd));
         if let Some(version) = fallback {
             debug!("Derived `target-version` from found `requires-python`: {version:?}");
         }
         config.target_version = fallback.map(ast::PythonVersion::from);
     }
-    let settings = config.into_settings(&path_dedot::CWD)?;
+    let settings = config.into_settings(&cwd)?;
     Ok(PyprojectConfig::new(
         PyprojectDiscoveryStrategy::Hierarchical,
         settings,
diff --git a/crates/ruff/tests/direxist_guard.rs b/crates/ruff/tests/direxist_guard.rs
new file mode 100644
index 0000000000000..3812d9ba0336f
--- /dev/null
+++ b/crates/ruff/tests/direxist_guard.rs
@@ -0,0 +1,30 @@
+//! Test to verify Ruff's behavior when run from deleted directory.
+//! It has to be isolated in a separate module.
+//! Tests in the same module become flaky under `cargo test`s parallel execution
+//! due to in-test working directory manipulation.
+
+#![cfg(target_family = "unix")]
+
+use std::env::set_current_dir;
+use std::process::Command;
+
+use insta_cmd::{assert_cmd_snapshot, get_cargo_bin};
+const BIN_NAME: &str = "ruff";
+
+#[test]
+fn check_in_deleted_directory_errors() {
+    let temp_dir = tempfile::tempdir().unwrap();
+    let temp_path = temp_dir.path().to_path_buf();
+    set_current_dir(&temp_path).unwrap();
+    drop(temp_dir);
+
+    assert_cmd_snapshot!(Command::new(get_cargo_bin(BIN_NAME)).arg("check"), @r###"
+            success: false
+            exit_code: 2
+            ----- stdout -----
+
+            ----- stderr -----
+            ruff failed
+              Cause: Working directory does not exist
+            "###);
+}