diff --git a/src/go/rpk/pkg/config/config_test.go b/src/go/rpk/pkg/config/config_test.go
index f54d990a1cb20..3b6275c40a937 100644
--- a/src/go/rpk/pkg/config/config_test.go
+++ b/src/go/rpk/pkg/config/config_test.go
@@ -1724,6 +1724,7 @@ func TestReadOrGenerate(t *testing.T) {
 		name        string
 		setup       func(afero.Fs) error
 		configFile  string
+		check       func(st *testing.T, conf *Config)
 		expectError bool
 	}{
 		{
@@ -1751,7 +1752,12 @@ func TestReadOrGenerate(t *testing.T) {
 		},
 		{
 			name:       "it should set config_file to the right value",
-			configFile: "/some/arbitrary/path/redpanda.yaml",
+			configFile: "./redpanda.yaml",
+			check: func(st *testing.T, conf *Config) {
+				path, err := filepath.Abs("./redpanda.yaml")
+				require.NoError(st, err)
+				require.Exactly(st, conf.ConfigFile, path)
+			},
 		},
 	}
 
@@ -1771,7 +1777,9 @@ func TestReadOrGenerate(t *testing.T) {
 			require.NoError(t, err)
 			conf, err := mgr.Read(tt.configFile)
 			require.NoError(t, err)
-			require.Exactly(t, tt.configFile, conf.ConfigFile)
+			if tt.check != nil {
+				tt.check(t, conf)
+			}
 		})
 	}
 }
diff --git a/src/go/rpk/pkg/config/manager.go b/src/go/rpk/pkg/config/manager.go
index eb3c70db09bce..c6b03345a5935 100644
--- a/src/go/rpk/pkg/config/manager.go
+++ b/src/go/rpk/pkg/config/manager.go
@@ -98,8 +98,12 @@ func (m *manager) FindOrGenerate(path string) (*Config, error) {
 // Tries reading a config file at the given path, or generates a default config
 // and writes it to the path.
 func readOrGenerate(fs afero.Fs, v *viper.Viper, path string) (*Config, error) {
-	v.SetConfigFile(path)
-	err := v.ReadInConfig()
+	abs, err := absPath(path)
+	if err != nil {
+		return nil, err
+	}
+	v.SetConfigFile(abs)
+	err = v.ReadInConfig()
 	if err == nil {
 		// The config file's there, there's nothing to do.
 		return unmarshal(v)
@@ -109,25 +113,25 @@ func readOrGenerate(fs afero.Fs, v *viper.Viper, path string) (*Config, error) {
 	if err != nil && !notFound && !notExist {
 		return nil, fmt.Errorf(
 			"An error happened while trying to read %s: %v",
-			path,
+			abs,
 			err,
 		)
 	}
 	log.Debug(err)
 	log.Infof(
 		"Couldn't find config file at %s. Generating it.",
-		path,
+		abs,
 	)
-	v.Set("config_file", path)
-	err = createConfigDir(fs, path)
+	v.Set("config_file", abs)
+	err = createConfigDir(fs, abs)
 	if err != nil {
 		return nil, err
 	}
-	err = v.WriteConfigAs(path)
+	err = v.WriteConfigAs(abs)
 	if err != nil {
 		return nil, fmt.Errorf(
 			"Couldn't write config to %s: %v",
-			path,
+			abs,
 			err,
 		)
 	}