diff --git a/core/src/actions/base.ts b/core/src/actions/base.ts
index a0c66b280d..255a8cf44e 100644
--- a/core/src/actions/base.ts
+++ b/core/src/actions/base.ts
@@ -422,7 +422,7 @@ export abstract class BaseAction<
       return true
     }
 
-    const path = this.basePath()
+    const path = this.sourcePath()
 
     for (const source of linkedSources) {
       if (path === source.path || pathIsInside(path, source.path)) {
@@ -443,14 +443,13 @@ export abstract class BaseAction<
     return internal?.groupName
   }
 
-  // TODO: rename to sourcePath
-  basePath(): string {
+  sourcePath(): string {
     const basePath = this.remoteSourcePath || this._config.internal.basePath
     const sourceRelPath = this._config.source?.path
 
     if (sourceRelPath) {
       // TODO: validate that this is a directory here?
-      return joinWithPosix(basePath, sourceRelPath)
+      return getSourceAbsPath(basePath, sourceRelPath)
     } else {
       return basePath
     }
@@ -670,7 +669,7 @@ export abstract class RuntimeAction<
    */
   getBuildPath() {
     const buildAction = this.getBuildAction()
-    return buildAction?.getBuildPath() || this.basePath()
+    return buildAction?.getBuildPath() || this.sourcePath()
   }
 }
 
@@ -852,6 +851,11 @@ export function actionRefMatches(a: ActionReference, b: ActionReference) {
   return a.kind === b.kind && a.name === b.name
 }
 
+export function getSourceAbsPath(basePath: string, sourceRelPath: string) {
+  // TODO: validate that this is a directory here?
+  return joinWithPosix(basePath, sourceRelPath)
+}
+
 export function describeActionConfig(config: ActionConfig) {
   const d = `${config.type} ${config.kind} ${config.name}`
   if (config.internal?.moduleName) {
diff --git a/core/src/actions/build.ts b/core/src/actions/build.ts
index dc4ffd9e7c..1e422306ba 100644
--- a/core/src/actions/build.ts
+++ b/core/src/actions/build.ts
@@ -188,7 +188,7 @@ export class BuildAction<
    */
   getBuildPath() {
     if (this._config.buildAtSource) {
-      return this.basePath()
+      return this.sourcePath()
     } else {
       return join(this.baseBuildDirectory, this.name)
     }
diff --git a/core/src/actions/helpers.ts b/core/src/actions/helpers.ts
index b157d3d8d5..e52fbbc43a 100644
--- a/core/src/actions/helpers.ts
+++ b/core/src/actions/helpers.ts
@@ -83,7 +83,7 @@ export async function warnOnLinkedActions(garden: Garden, log: Log, actions: Act
 
   const linkedActionsMsg = actions
     .filter((a) => a.isLinked(linkedSources))
-    .map((a) => `${a.longDescription()} linked to path ${chalk.white(a.basePath())}`)
+    .map((a) => `${a.longDescription()} linked to path ${chalk.white(a.sourcePath())}`)
     .map((msg) => "  " + msg) // indent list
 
   if (linkedActionsMsg.length > 0) {
diff --git a/core/src/build-staging/build-staging.ts b/core/src/build-staging/build-staging.ts
index 46bbafe4f4..92613ad64f 100644
--- a/core/src/build-staging/build-staging.ts
+++ b/core/src/build-staging/build-staging.ts
@@ -61,13 +61,13 @@ export class BuildStaging {
     }
 
     // Normalize to relative POSIX-style paths
-    const files = action.getFullVersion().files.map((f) => normalizeRelativePath(action.basePath(), f))
+    const files = action.getFullVersion().files.map((f) => normalizeRelativePath(action.sourcePath(), f))
 
     const buildPath = action.getBuildPath()
     await this.ensureDir(buildPath)
 
     await this.sync({
-      sourceRoot: resolve(this.projectRoot, action.basePath()),
+      sourceRoot: resolve(this.projectRoot, action.sourcePath()),
       targetRoot: buildPath,
       withDelete,
       log,
diff --git a/core/src/config/base.ts b/core/src/config/base.ts
index 6a6bcefeb2..cd46dad812 100644
--- a/core/src/config/base.ts
+++ b/core/src/config/base.ts
@@ -48,7 +48,21 @@ export interface YamlDocumentWithSource extends Document {
 }
 
 export interface GardenResourceInternalFields {
+  /**
+   * The path/working directory where commands and operations relating to the config should be executed. This is
+   * most commonly the directory containing the config file.
+   *
+   * Note: WHen possible, use `action.getSourcePath()` instead, since it factors in remote source paths and source
+   * overrides (i.e. `BaseActionConfig.source.path`). This is a lower-level field that doesn't contain template strings,
+   * and can thus be used early in the resolution flow.
+   */
   basePath: string
+  /**
+   * The path to the resource's config file, if any.
+   *
+   * Configs that are read from a file should always have this set, but generated configs (e.g. from templates
+   * or `augmentGraph` handlers) don't necessarily have a path on disk.
+   */
   configFilePath?: string
   // -> set by templates
   inputs?: DeepPrimitiveMap
diff --git a/core/src/config/template-contexts/actions.ts b/core/src/config/template-contexts/actions.ts
index 497db74d89..697e1b7b0a 100644
--- a/core/src/config/template-contexts/actions.ts
+++ b/core/src/config/template-contexts/actions.ts
@@ -219,7 +219,7 @@ class ActionReferencesContext extends ConfigContext {
           version: action.versionString(),
           disabled: action.isDisabled(),
           buildPath: action.getBuildPath(),
-          sourcePath: action.basePath(),
+          sourcePath: action.sourcePath(),
           mode: action.mode(),
           variables: action.getVariables(),
         })
@@ -297,7 +297,7 @@ export class ActionSpecContext extends OutputConfigContext {
 
     const name = action.name
     const buildPath = action.getBuildPath()
-    const sourcePath = action.basePath()
+    const sourcePath = action.sourcePath()
     const parentName = internal?.parentName
     const templateName = internal?.templateName
 
diff --git a/core/src/graph/actions.ts b/core/src/graph/actions.ts
index db73c0294f..bcc98e00b0 100644
--- a/core/src/graph/actions.ts
+++ b/core/src/graph/actions.ts
@@ -63,7 +63,7 @@ import { LinkedSource, LinkedSourceMap } from "../config-store/local"
 import { relative } from "path"
 import { profileAsync } from "../util/profiling"
 import { uuidv4 } from "../util/random"
-import { getConfigBasePath } from "../vcs/vcs"
+import { getSourcePath } from "../vcs/vcs"
 import { actionIsDisabled } from "../actions/base"
 
 export const actionConfigsToGraph = profileAsync(async function actionConfigsToGraph({
@@ -125,7 +125,7 @@ export const actionConfigsToGraph = profileAsync(async function actionConfigsToG
   }
 
   // Optimize file scanning by avoiding unnecessarily broad scans when project is not in repo root.
-  const allPaths = Object.values(configsByKey).map((c) => getConfigBasePath(c))
+  const allPaths = Object.values(configsByKey).map((c) => getSourcePath(c))
   const minimalRoots = await garden.vcs.getMinimalRoots(log, allPaths)
 
   const router = await garden.getActionRouter()
@@ -177,7 +177,7 @@ export const actionConfigsToGraph = profileAsync(async function actionConfigsToG
           configsByKey,
           mode,
           linkedSources,
-          scanRoot: minimalRoots[getConfigBasePath(config)],
+          scanRoot: minimalRoots[getSourcePath(config)],
         })
 
         if (!action.supportsMode(mode)) {
diff --git a/core/src/plugins/hadolint/hadolint.ts b/core/src/plugins/hadolint/hadolint.ts
index 64aa233544..c4ef382ea7 100644
--- a/core/src/plugins/hadolint/hadolint.ts
+++ b/core/src/plugins/hadolint/hadolint.ts
@@ -179,7 +179,7 @@ provider.addHandler("augmentGraph", async ({ ctx, actions }) => {
     .filter(isHadolintTest)
     // Can't really reason about templated dockerfile spec field
     .filter((a) => !mayContainTemplateString(a.getConfig("spec").dockerfilePath))
-    .map((a) => resolve(a.basePath(), a.getConfig("spec").dockerfilePath))
+    .map((a) => resolve(a.sourcePath(), a.getConfig("spec").dockerfilePath))
 
   const pickCompatibleAction = (action: BaseAction): action is BuildAction | HadolintTest => {
     // Make sure we don't step on an existing custom hadolint module
@@ -187,7 +187,7 @@ provider.addHandler("augmentGraph", async ({ ctx, actions }) => {
       const dockerfilePath = action.getConfig("spec").dockerfilePath
       if (
         !mayContainTemplateString(dockerfilePath) &&
-        existingHadolintDockerfiles.includes(resolve(action.basePath(), dockerfilePath))
+        existingHadolintDockerfiles.includes(resolve(action.sourcePath(), dockerfilePath))
       ) {
         return false
       }
@@ -222,7 +222,7 @@ provider.addHandler("augmentGraph", async ({ ctx, actions }) => {
       description: `hadolint test for '${action.longDescription()}' (auto-generated)`,
       include,
       internal: {
-        basePath: action.basePath(),
+        basePath: action.sourcePath(),
       },
       timeout: action.getConfig().timeout,
       spec: {
@@ -286,7 +286,7 @@ hadolintTest.addHandler("configure", async ({ ctx, config }) => {
 
 hadolintTest.addHandler("run", async ({ ctx, log, action }) => {
   const spec = action.getSpec()
-  const dockerfilePath = join(action.basePath(), spec.dockerfilePath)
+  const dockerfilePath = join(action.sourcePath(), spec.dockerfilePath)
   const startedAt = new Date()
   let dockerfile: string
 
@@ -294,12 +294,12 @@ hadolintTest.addHandler("run", async ({ ctx, log, action }) => {
     dockerfile = (await readFile(dockerfilePath)).toString()
   } catch {
     throw new ConfigurationError({
-      message: `hadolint: Could not find Dockerfile at ${spec.dockerfilePath}. Action path: ${action.basePath()}`,
+      message: `hadolint: Could not find Dockerfile at ${spec.dockerfilePath}. Action path: ${action.sourcePath()}`,
     })
   }
 
   let configPath: string
-  const moduleConfigPath = join(action.basePath(), configFilename)
+  const moduleConfigPath = join(action.sourcePath(), configFilename)
   const projectConfigPath = join(ctx.projectRoot, configFilename)
 
   if (await pathExists(moduleConfigPath)) {
diff --git a/core/src/plugins/kubernetes/container/deployment.ts b/core/src/plugins/kubernetes/container/deployment.ts
index 41a925e7cd..839080c574 100644
--- a/core/src/plugins/kubernetes/container/deployment.ts
+++ b/core/src/plugins/kubernetes/container/deployment.ts
@@ -609,7 +609,7 @@ export function configureVolumes(
       volumes.push({
         name: volumeName,
         hostPath: {
-          path: resolve(action.basePath(), volume.hostPath),
+          path: resolve(action.sourcePath(), volume.hostPath),
         },
       })
     } else if (volume.action) {
diff --git a/core/src/plugins/kubernetes/container/sync.ts b/core/src/plugins/kubernetes/container/sync.ts
index a25114dd9a..855c689234 100644
--- a/core/src/plugins/kubernetes/container/sync.ts
+++ b/core/src/plugins/kubernetes/container/sync.ts
@@ -33,7 +33,7 @@ export const k8sContainerStartSync: DeployActionHandler<"startSync", ContainerDe
     log,
     action,
     actionDefaults: {},
-    basePath: action.basePath(),
+    basePath: action.sourcePath(),
     defaultNamespace,
     defaultTarget: target,
     deployedResources,
@@ -75,7 +75,7 @@ export const k8sContainerGetSyncStatus: DeployActionHandler<"getSyncStatus", Con
     log,
     action,
     actionDefaults: {},
-    basePath: action.basePath(),
+    basePath: action.sourcePath(),
     defaultNamespace,
     defaultTarget: target,
     deployedResources,
diff --git a/core/src/plugins/kubernetes/helm/sync.ts b/core/src/plugins/kubernetes/helm/sync.ts
index ed24433d02..5597431078 100644
--- a/core/src/plugins/kubernetes/helm/sync.ts
+++ b/core/src/plugins/kubernetes/helm/sync.ts
@@ -41,7 +41,7 @@ export const helmStartSync: DeployActionHandler<"startSync", HelmDeployAction> =
     action,
     actionDefaults: spec.sync.defaults || {},
     defaultTarget: spec.defaultTarget,
-    basePath: action.basePath(),
+    basePath: action.sourcePath(),
     defaultNamespace: namespace,
     deployedResources,
     syncs: spec.sync.paths,
@@ -79,7 +79,7 @@ export const helmGetSyncStatus: DeployActionHandler<"getSyncStatus", HelmDeployA
     action,
     actionDefaults: spec.sync.defaults || {},
     defaultTarget: spec.defaultTarget,
-    basePath: action.basePath(),
+    basePath: action.sourcePath(),
     defaultNamespace: namespace,
     deployedResources,
     syncs: spec.sync.paths,
diff --git a/core/src/plugins/kubernetes/kubernetes-type/sync.ts b/core/src/plugins/kubernetes/kubernetes-type/sync.ts
index 1363b37ee9..1d978fd9a7 100644
--- a/core/src/plugins/kubernetes/kubernetes-type/sync.ts
+++ b/core/src/plugins/kubernetes/kubernetes-type/sync.ts
@@ -44,7 +44,7 @@ export const kubernetesStartSync: DeployActionHandler<"startSync", KubernetesDep
     action,
     actionDefaults: spec.sync.defaults || {},
     defaultTarget: spec.defaultTarget,
-    basePath: action.basePath(),
+    basePath: action.sourcePath(),
     defaultNamespace: namespace,
     deployedResources,
     syncs: spec.sync.paths,
@@ -84,7 +84,7 @@ export const kubernetesGetSyncStatus: DeployActionHandler<"getSyncStatus", Kuber
     action,
     actionDefaults: spec.sync.defaults || {},
     defaultTarget: spec.defaultTarget,
-    basePath: action.basePath(),
+    basePath: action.sourcePath(),
     defaultNamespace: namespace,
     deployedResources,
     syncs: spec.sync.paths,
diff --git a/core/src/plugins/kubernetes/local-mode.ts b/core/src/plugins/kubernetes/local-mode.ts
index c84f10f688..e290a7ae11 100644
--- a/core/src/plugins/kubernetes/local-mode.ts
+++ b/core/src/plugins/kubernetes/local-mode.ts
@@ -540,7 +540,7 @@ function getLocalAppCommand({ spec: localModeSpec, action }: StartLocalModeParam
   }
   const commandName = command[0]
   const commandArgs = command.slice(1)
-  const cwd = isAbsolute(commandName) ? undefined : action.basePath()
+  const cwd = isAbsolute(commandName) ? undefined : action.sourcePath()
   return { command: commandName, args: commandArgs, cwd, description: "Local app" }
 }
 
diff --git a/core/src/plugins/kubernetes/sync.ts b/core/src/plugins/kubernetes/sync.ts
index 6f85538622..e0d10a4af8 100644
--- a/core/src/plugins/kubernetes/sync.ts
+++ b/core/src/plugins/kubernetes/sync.ts
@@ -264,7 +264,7 @@ export function convertContainerSyncSpec(
   const spec = action.getSpec()
   const kind: SyncableKind = spec.daemon ? "DaemonSet" : "Deployment"
   const target = { kind, name: action.name }
-  const sourcePath = action.basePath()
+  const sourcePath = action.sourcePath()
   const syncSpec = spec.sync
 
   if (!syncSpec || !target) {
@@ -832,7 +832,7 @@ function getSyncKeyPrefix(ctx: PluginContext, action: SupportedRuntimeAction) {
  *  It cannot contain any characters that can break the command execution (like / \ < > | :).
  */
 function getSyncKey({ ctx, action, spec }: PrepareSyncParams, target: SyncableResource): string {
-  const sourcePath = relative(action.basePath(), spec.sourcePath)
+  const sourcePath = relative(action.sourcePath(), spec.sourcePath)
   const containerPath = spec.containerPath
   return kebabCase(
     `${getSyncKeyPrefix(ctx, action)}${target.kind}--${target.metadata.name}--${sourcePath}--${containerPath}`
diff --git a/core/src/plugins/kubernetes/volumes/configmap.ts b/core/src/plugins/kubernetes/volumes/configmap.ts
index 215bdf114e..e9cd89bf86 100644
--- a/core/src/plugins/kubernetes/volumes/configmap.ts
+++ b/core/src/plugins/kubernetes/volumes/configmap.ts
@@ -161,7 +161,7 @@ function getKubernetesAction(action: Resolved<ConfigmapAction>) {
     type: "kubernetes",
     name: action.name,
     internal: {
-      basePath: action.basePath(),
+      basePath: action.sourcePath(),
     },
     include: [],
     timeout: KUBECTL_DEFAULT_TIMEOUT,
diff --git a/core/src/plugins/kubernetes/volumes/persistentvolumeclaim.ts b/core/src/plugins/kubernetes/volumes/persistentvolumeclaim.ts
index f7ae133182..d5d2228765 100644
--- a/core/src/plugins/kubernetes/volumes/persistentvolumeclaim.ts
+++ b/core/src/plugins/kubernetes/volumes/persistentvolumeclaim.ts
@@ -207,7 +207,7 @@ function getKubernetesAction(action: Resolved<PersistentVolumeClaimAction>) {
     type: "kubernetes",
     name: action.name,
     internal: {
-      basePath: action.basePath(),
+      basePath: action.sourcePath(),
     },
     include: [],
     timeout: KUBECTL_DEFAULT_TIMEOUT,
diff --git a/core/src/tasks/resolve-action.ts b/core/src/tasks/resolve-action.ts
index abf7def209..c41acb550c 100644
--- a/core/src/tasks/resolve-action.ts
+++ b/core/src/tasks/resolve-action.ts
@@ -147,7 +147,7 @@ export class ResolveActionTask<T extends Action> extends BaseActionTask<T, Resol
 
     const actionVariables = resolveTemplateStrings({
       value: await mergeVariables({
-        basePath: action.basePath(),
+        basePath: action.sourcePath(),
         variables: config.variables,
         varfiles: config.varfiles,
       }),
@@ -261,7 +261,7 @@ export class ResolveActionTask<T extends Action> extends BaseActionTask<T, Resol
       })
     }
 
-    const path = this.action.basePath()
+    const path = this.action.sourcePath()
     const internal = this.action.getInternal()
 
     spec = validateWithPath({
diff --git a/core/src/vcs/vcs.ts b/core/src/vcs/vcs.ts
index e1b8a53e95..4c481e4f42 100644
--- a/core/src/vcs/vcs.ts
+++ b/core/src/vcs/vcs.ts
@@ -27,7 +27,7 @@ import type { TaskConfig } from "../config/task"
 import type { TestConfig } from "../config/test"
 import type { GardenModule } from "../types/module"
 import { validateInstall } from "../util/validateInstall"
-import { isActionConfig } from "../actions/base"
+import { getSourceAbsPath, isActionConfig } from "../actions/base"
 import type { BaseActionConfig } from "../actions/types"
 import { Garden } from "../garden"
 import chalk from "chalk"
@@ -195,7 +195,7 @@ export abstract class VcsHandler {
     }
 
     const configPath = getConfigFilePath(config)
-    const path = getConfigBasePath(config)
+    const path = getSourcePath(config)
 
     let result: TreeVersion = { contentHash: NEW_RESOURCE_VERSION, files: [] }
 
@@ -264,7 +264,7 @@ export abstract class VcsHandler {
 
   async resolveTreeVersion(params: GetTreeVersionParams): Promise<TreeVersion> {
     // the version file is used internally to specify versions outside of source control
-    const path = getConfigBasePath(params.config)
+    const path = getSourcePath(params.config)
     const versionFilePath = join(path, GARDEN_TREEVERSION_FILENAME)
     const fileVersion = await readTreeVersionFile(versionFilePath)
     return fileVersion || (await this.getTreeVersion(params))
@@ -445,7 +445,7 @@ export function hashStrings(hashes: string[]) {
 }
 
 export function getResourceTreeCacheKey(config: ModuleConfig | BaseActionConfig) {
-  const cacheKey = ["source", getConfigBasePath(config)]
+  const cacheKey = ["source", getSourcePath(config)]
 
   if (config.include) {
     cacheKey.push("include", hashStrings(config.include.sort()))
@@ -461,8 +461,14 @@ export function getConfigFilePath(config: ModuleConfig | BaseActionConfig) {
   return isActionConfig(config) ? config.internal?.configFilePath : config.configPath
 }
 
-export function getConfigBasePath(config: ModuleConfig | BaseActionConfig) {
-  return isActionConfig(config) ? config.internal.basePath : config.path
+export function getSourcePath(config: ModuleConfig | BaseActionConfig) {
+  if (isActionConfig(config)) {
+    const basePath = config.internal.basePath
+    const sourceRelPath = config.source?.path
+    return sourceRelPath ? getSourceAbsPath(basePath, sourceRelPath) : basePath
+  } else {
+    return config.path
+  }
 }
 
 export function describeConfig(config: ModuleConfig | BaseActionConfig) {
diff --git a/core/test/data/test-projects/action-source-path/project.garden.yml b/core/test/data/test-projects/action-source-path/project.garden.yml
new file mode 100644
index 0000000000..8afa2d120a
--- /dev/null
+++ b/core/test/data/test-projects/action-source-path/project.garden.yml
@@ -0,0 +1,7 @@
+apiVersion: garden.io/v1
+kind: Project
+name: action-source-path
+environments:
+  - name: local
+providers:
+  - name: test-plugin
diff --git a/core/test/data/test-projects/action-source-path/some-dir/some-other-file.txt b/core/test/data/test-projects/action-source-path/some-dir/some-other-file.txt
new file mode 100644
index 0000000000..1910281566
--- /dev/null
+++ b/core/test/data/test-projects/action-source-path/some-dir/some-other-file.txt
@@ -0,0 +1 @@
+foo
\ No newline at end of file
diff --git a/core/test/data/test-projects/action-source-path/some-dir/tps-report.txt b/core/test/data/test-projects/action-source-path/some-dir/tps-report.txt
new file mode 100644
index 0000000000..9b6855708a
--- /dev/null
+++ b/core/test/data/test-projects/action-source-path/some-dir/tps-report.txt
@@ -0,0 +1 @@
+We're putting the new cover letter on all of these now, Peter. Didn't you get the memo?
\ No newline at end of file
diff --git a/core/test/data/test-projects/action-source-path/some-dir/with-source.garden.yml b/core/test/data/test-projects/action-source-path/some-dir/with-source.garden.yml
new file mode 100644
index 0000000000..28461e092d
--- /dev/null
+++ b/core/test/data/test-projects/action-source-path/some-dir/with-source.garden.yml
@@ -0,0 +1,7 @@
+kind: Build
+type: test
+name: with-source
+source:
+  path: ../
+include: [some-dir/**/*]
+exclude: [some-dir/tps-report.txt]
diff --git a/core/test/integ/src/plugins/hadolint/hadolint.ts b/core/test/integ/src/plugins/hadolint/hadolint.ts
index bd90cdbd9e..18c3eb0681 100644
--- a/core/test/integ/src/plugins/hadolint/hadolint.ts
+++ b/core/test/integ/src/plugins/hadolint/hadolint.ts
@@ -95,7 +95,7 @@ describe("hadolint provider", () => {
     const graph = await garden.getConfigGraph({ log: garden.log, emit: false })
     const testAction = graph.getTest("hadolint-foo")
 
-    expect(testAction.basePath()).to.equal(tmpPath)
+    expect(testAction.sourcePath()).to.equal(tmpPath)
     expect(testAction.getConfig("spec")).to.eql({ dockerfilePath: "foo.Dockerfile" })
     expect(testAction.getConfig().description).to.include("auto-generated")
   })
@@ -143,7 +143,7 @@ describe("hadolint provider", () => {
     const graph = await garden.getConfigGraph({ log: garden.log, emit: false })
     const testAction = graph.getTest("hadolint-foo")
 
-    expect(testAction.basePath()).to.equal(tmpPath)
+    expect(testAction.sourcePath()).to.equal(tmpPath)
     expect(testAction.getConfig("spec")).to.eql({ dockerfilePath: "foo.Dockerfile" })
     expect(testAction.getConfig().description).to.include("auto-generated")
   })
diff --git a/core/test/integ/src/plugins/kubernetes/sync-mode.ts b/core/test/integ/src/plugins/kubernetes/sync-mode.ts
index 5dd7d96d90..b98534cbc0 100644
--- a/core/test/integ/src/plugins/kubernetes/sync-mode.ts
+++ b/core/test/integ/src/plugins/kubernetes/sync-mode.ts
@@ -122,7 +122,7 @@ describe("sync mode deployments and sync behavior", () => {
     const workload = status.detail?.detail.workload!
 
     // First, we create a file locally and verify that it gets synced into the pod
-    const actionPath = action.basePath()
+    const actionPath = action.sourcePath()
     await writeFile(join(actionPath, "made_locally"), "foo")
     await sleep(300)
     const execRes = await execInPod(["/bin/sh", "-c", "cat /tmp/made_locally"], log, workload)
@@ -183,7 +183,7 @@ describe("sync mode deployments and sync behavior", () => {
     })
 
     const workload = status.detail?.detail.workload!
-    const actionPath = action.basePath()
+    const actionPath = action.sourcePath()
 
     // First, we create a non-ignored file locally
     await writeFile(join(actionPath, "made_locally"), "foo")
@@ -394,7 +394,7 @@ describe("sync mode deployments and sync behavior", () => {
             mode: "two-way",
             defaultDirectoryMode: 0o755,
             defaultFileMode: 0o644,
-            sourcePath: join(action.basePath(), "src"),
+            sourcePath: join(action.sourcePath(), "src"),
             containerPath: "/app/src",
           },
         ],
diff --git a/core/test/unit/src/actions/action-configs-to-graph.ts b/core/test/unit/src/actions/action-configs-to-graph.ts
index 044eae240d..9d96bbeada 100644
--- a/core/test/unit/src/actions/action-configs-to-graph.ts
+++ b/core/test/unit/src/actions/action-configs-to-graph.ts
@@ -61,7 +61,7 @@ describe("actionConfigsToGraph", () => {
     expect(actions.length).to.equal(1)
     expect(action.kind).to.equal("Build")
     expect(action.name).to.equal("foo")
-    expect(action.basePath()).to.equal(tmpDir.path)
+    expect(action.sourcePath()).to.equal(tmpDir.path)
   })
 
   it("resolves a Deploy action", async () => {
@@ -93,7 +93,7 @@ describe("actionConfigsToGraph", () => {
     expect(actions.length).to.equal(1)
     expect(action.kind).to.equal("Deploy")
     expect(action.name).to.equal("foo")
-    expect(action.basePath()).to.equal(tmpDir.path)
+    expect(action.sourcePath()).to.equal(tmpDir.path)
   })
 
   it("resolves a Run action", async () => {
@@ -125,7 +125,7 @@ describe("actionConfigsToGraph", () => {
     expect(actions.length).to.equal(1)
     expect(action.kind).to.equal("Run")
     expect(action.name).to.equal("foo")
-    expect(action.basePath()).to.equal(tmpDir.path)
+    expect(action.sourcePath()).to.equal(tmpDir.path)
   })
 
   it("resolves a Test action", async () => {
@@ -157,7 +157,7 @@ describe("actionConfigsToGraph", () => {
     expect(actions.length).to.equal(1)
     expect(action.kind).to.equal("Test")
     expect(action.name).to.equal("foo")
-    expect(action.basePath()).to.equal(tmpDir.path)
+    expect(action.sourcePath()).to.equal(tmpDir.path)
   })
 
   it("resolves actions in groups", async () => {
@@ -196,7 +196,7 @@ describe("actionConfigsToGraph", () => {
     expect(actions.length).to.equal(1)
     expect(action.kind).to.equal("Test")
     expect(action.name).to.equal("foo")
-    expect(action.basePath()).to.equal(tmpDir.path)
+    expect(action.sourcePath()).to.equal(tmpDir.path)
   })
 
   it("adds dependencies from copyFrom on Build actions", async () => {
diff --git a/core/test/unit/src/build-staging/build-staging.ts b/core/test/unit/src/build-staging/build-staging.ts
index 6b6ce121fc..4a0045d6b8 100644
--- a/core/test/unit/src/build-staging/build-staging.ts
+++ b/core/test/unit/src/build-staging/build-staging.ts
@@ -452,7 +452,7 @@ function commonSyncTests(legacyBuildSync: boolean) {
       const graph = await garden.getConfigGraph({ log: garden.log, emit: false })
       const buildActionA = graph.getBuild("module-a")
 
-      buildActionA.getFullVersion().files = [join(buildActionA.basePath(), defaultConfigFilename)]
+      buildActionA.getFullVersion().files = [join(buildActionA.sourcePath(), defaultConfigFilename)]
 
       await buildStaging.syncFromSrc({ action: buildActionA, log: garden.log })
       const buildDirA = buildStaging.getBuildPath(buildActionA.getConfig())
diff --git a/core/test/unit/src/plugins/container/build.ts b/core/test/unit/src/plugins/container/build.ts
index 96cef25baf..3b0c3fcec1 100644
--- a/core/test/unit/src/plugins/container/build.ts
+++ b/core/test/unit/src/plugins/container/build.ts
@@ -106,7 +106,7 @@ context("build.ts", () => {
       const action = await getAction()
 
       action["_config"].spec.dockerfile = "docker-dir/Dockerfile"
-      action.treeVersion().files.push(join(action.basePath(), "docker-dir", "Dockerfile"))
+      action.treeVersion().files.push(join(action.sourcePath(), "docker-dir", "Dockerfile"))
 
       sinon.replace(action, "getOutputs", () => ({ localImageId: "some/image" }))
 
diff --git a/core/test/unit/src/vcs/vcs.ts b/core/test/unit/src/vcs/vcs.ts
index 9119e814fd..b4a469363e 100644
--- a/core/test/unit/src/vcs/vcs.ts
+++ b/core/test/unit/src/vcs/vcs.ts
@@ -20,7 +20,7 @@ import {
   NamedModuleVersion,
   NamedTreeVersion,
   describeConfig,
-  getConfigBasePath,
+  getSourcePath,
   getConfigFilePath,
   GetTreeVersionParams,
 } from "../../../../src/vcs/vcs"
@@ -61,7 +61,7 @@ export class TestVcsHandler extends VcsHandler {
   }
 
   override async getTreeVersion(params: GetTreeVersionParams) {
-    return this.testTreeVersions[getConfigBasePath(params.config)] || super.getTreeVersion(params)
+    return this.testTreeVersions[getSourcePath(params.config)] || super.getTreeVersion(params)
   }
 
   setTestTreeVersion(path: string, version: TreeVersion) {
@@ -194,6 +194,21 @@ describe("VcsHandler", () => {
       expect(version.files).to.eql([resolve(moduleConfig.path, "yes.txt")])
     })
 
+    it("should join the config's base path with source.path (if provided) when calling getFiles", async () => {
+      const projectRoot = getDataDir("test-projects", "action-source-path")
+      const garden = await makeTestGarden(projectRoot)
+      const log = garden.log
+      const graph = await garden.getConfigGraph({ emit: false, log })
+      const action = graph.getActionByRef("build.with-source")
+      const config = action.getConfig()
+      const treeVersion = await garden.vcs.getTreeVersion({
+        log,
+        projectName: garden.projectName,
+        config,
+      })
+      expect(treeVersion.files).to.eql([join(config.internal.basePath, "../", "/some-dir/some-other-file.txt")])
+    })
+
     it("should not be affected by changes to the module's garden.yml that don't affect the module config", async () => {
       const projectRoot = getDataDir("test-projects", "multiple-module-config")
       const garden = await makeTestGarden(projectRoot)
@@ -649,7 +664,7 @@ describe("helpers", () => {
     })
 
     it("getConfigBasePath", () => {
-      const configBasePath = getConfigBasePath(baseActionConfig)
+      const configBasePath = getSourcePath(baseActionConfig)
       expect(configBasePath).to.equal(baseActionConfig.internal.basePath)
     })
 
@@ -681,7 +696,7 @@ describe("helpers", () => {
     })
 
     it("getConfigBasePath", () => {
-      const configBasePath = getConfigBasePath(moduleConfig)
+      const configBasePath = getSourcePath(moduleConfig)
       expect(configBasePath).to.equal(moduleConfig.path)
     })
 
diff --git a/plugins/conftest-container/src/index.ts b/plugins/conftest-container/src/index.ts
index b0ad630c29..f52dd8f23f 100644
--- a/plugins/conftest-container/src/index.ts
+++ b/plugins/conftest-container/src/index.ts
@@ -53,7 +53,7 @@ export const gardenPlugin = () =>
                 name,
                 description: `conftest test for module '${action.name}' (auto-generated by conftest-container)`,
                 internal: {
-                  basePath: action.basePath(),
+                  basePath: action.sourcePath(),
                 },
                 timeout: action.getConfig().timeout,
                 spec: {
diff --git a/plugins/conftest-kubernetes/src/index.ts b/plugins/conftest-kubernetes/src/index.ts
index 9b135f5bb5..7ec59dbd4f 100644
--- a/plugins/conftest-kubernetes/src/index.ts
+++ b/plugins/conftest-kubernetes/src/index.ts
@@ -64,7 +64,7 @@ export const gardenPlugin = () =>
 
               // Make sure the policy path is valid POSIX on Windows
               const policyPath = slash(
-                relative(action.basePath(), resolve(ctx.projectRoot, provider.config.policyPath))
+                relative(action.sourcePath(), resolve(ctx.projectRoot, provider.config.policyPath))
               )
 
               const isHelmModule = action.isCompatible("helm")
@@ -77,7 +77,7 @@ export const gardenPlugin = () =>
                   name,
                   description: `conftest test for '${action.longDescription()}' (auto-generated by conftest-kubernetes)`,
                   internal: {
-                    basePath: action.basePath(),
+                    basePath: action.sourcePath(),
                   },
                   timeout: action.getConfig().timeout,
                   spec: {
@@ -96,7 +96,7 @@ export const gardenPlugin = () =>
                   name,
                   description: `conftest test for module '${action.longDescription()}' (auto-generated by conftest-kubernetes)`,
                   internal: {
-                    basePath: action.basePath(),
+                    basePath: action.sourcePath(),
                   },
                   timeout: action.getConfig().timeout,
                   spec: {
diff --git a/plugins/conftest/src/index.ts b/plugins/conftest/src/index.ts
index 80033192bb..7548b852c3 100644
--- a/plugins/conftest/src/index.ts
+++ b/plugins/conftest/src/index.ts
@@ -171,7 +171,7 @@ export const gardenPlugin = () =>
                 }
               }
 
-              const args = prepareArgs(ctx, provider, action.basePath(), spec)
+              const args = prepareArgs(ctx, provider, action.sourcePath(), spec)
               args.push(...files)
 
               const result = await ctx.tools["conftest.conftest"].exec({ log, args, ignoreError: true, cwd: buildPath })
@@ -276,7 +276,7 @@ export const gardenPlugin = () =>
               })
 
               // Run conftest, piping the rendered chart to stdin
-              const args = prepareArgs(ctx, provider, action.basePath(), spec)
+              const args = prepareArgs(ctx, provider, action.sourcePath(), spec)
               args.push("-")
 
               const result = await ctx.tools["conftest.conftest"].exec({
diff --git a/plugins/jib/src/index.ts b/plugins/jib/src/index.ts
index 9486ff0e4c..c85965997b 100644
--- a/plugins/jib/src/index.ts
+++ b/plugins/jib/src/index.ts
@@ -236,7 +236,7 @@ export const gardenPlugin = () =>
                 await mvn({
                   ctx,
                   log,
-                  cwd: action.basePath(),
+                  cwd: action.sourcePath(),
                   args: [...mavenPhases, ...args],
                   openJdkPath,
                   binaryPath: mavenPath,
@@ -247,7 +247,7 @@ export const gardenPlugin = () =>
                 await mvnd({
                   ctx,
                   log,
-                  cwd: action.basePath(),
+                  cwd: action.sourcePath(),
                   args: [...mavenPhases, ...args],
                   openJdkPath,
                   binaryPath: mavendPath,
@@ -258,7 +258,7 @@ export const gardenPlugin = () =>
                 await gradle({
                   ctx,
                   log,
-                  cwd: action.basePath(),
+                  cwd: action.sourcePath(),
                   args,
                   openJdkPath,
                   binaryPath: gradlePath,
diff --git a/plugins/jib/src/util.ts b/plugins/jib/src/util.ts
index 21764f0838..641864dec1 100644
--- a/plugins/jib/src/util.ts
+++ b/plugins/jib/src/util.ts
@@ -121,7 +121,7 @@ export function getBuildFlags(action: Resolved<JibBuildAction>, projectType: Jib
   // TODO: don't assume action path is the project root
   // Unlike many other types,
   // jib-container builds are done from the source directory instead of the build staging directory.
-  const tarPath = resolve(action.basePath(), targetDir, tarFilename)
+  const tarPath = resolve(action.sourcePath(), targetDir, tarFilename)
 
   const dockerBuildArgs = getDockerBuildArgs(action.versionString(), buildArgs)
   const outputs = action.getOutputs()
diff --git a/plugins/jib/test/index.ts b/plugins/jib/test/index.ts
index c0975404d2..bc170d1044 100644
--- a/plugins/jib/test/index.ts
+++ b/plugins/jib/test/index.ts
@@ -79,7 +79,9 @@ describe("jib-container", function () {
 
         const tarPath = res.detail?.details.tarPath as string
 
-        expect(tarPath).to.equal(join(action.basePath(), "target", `jib-image-foo-${module.version.versionString}.tar`))
+        expect(tarPath).to.equal(
+          join(action.sourcePath(), "target", `jib-image-foo-${module.version.versionString}.tar`)
+        )
       })
 
       it("builds a gradle project", async () => {
@@ -97,7 +99,9 @@ describe("jib-container", function () {
 
         const tarPath = res.detail?.details.tarPath as string
 
-        expect(tarPath).to.equal(join(action.basePath(), "build", `jib-image-foo-${module.version.versionString}.tar`))
+        expect(tarPath).to.equal(
+          join(action.sourcePath(), "build", `jib-image-foo-${module.version.versionString}.tar`)
+        )
       })
     })
 
diff --git a/plugins/pulumi/src/helpers.ts b/plugins/pulumi/src/helpers.ts
index 22999dabd7..4ff4478545 100644
--- a/plugins/pulumi/src/helpers.ts
+++ b/plugins/pulumi/src/helpers.ts
@@ -239,7 +239,7 @@ export function getStackName(action: Resolved<PulumiDeploy>): string {
 }
 
 export function getActionStackRoot(action: Resolved<PulumiDeploy>): string {
-  return join(action.basePath(), action.getSpec("root"))
+  return join(action.sourcePath(), action.getSpec("root"))
 }
 
 /**
@@ -537,7 +537,7 @@ async function loadPulumiVarfile({
   log: Log
   varfilePath: string
 }): Promise<DeepPrimitiveMap> {
-  const resolvedPath = resolve(action.basePath(), varfilePath)
+  const resolvedPath = resolve(action.sourcePath(), varfilePath)
   if (!(await pathExists(resolvedPath))) {
     log.verbose(`Could not find varfile at path '${resolvedPath}' for pulumi action ${action.name}`)
     return {}
diff --git a/plugins/pulumi/src/index.ts b/plugins/pulumi/src/index.ts
index b9f306f76c..bb560714a5 100644
--- a/plugins/pulumi/src/index.ts
+++ b/plugins/pulumi/src/index.ts
@@ -56,7 +56,7 @@ export const gardenPlugin = () =>
             validate: async ({ action }) => {
               const root = action.getSpec("root")
               if (root) {
-                const absRoot = join(action.basePath(), root)
+                const absRoot = join(action.sourcePath(), root)
                 const exists = await pathExists(absRoot)
 
                 if (!exists) {
diff --git a/plugins/terraform/src/commands.ts b/plugins/terraform/src/commands.ts
index 4e1b2d61e0..027cf987a2 100644
--- a/plugins/terraform/src/commands.ts
+++ b/plugins/terraform/src/commands.ts
@@ -89,7 +89,7 @@ function makeActionCommand(commandName: string): PluginCommand {
       const resolvedAction = await garden.resolveAction({ graph, action, log })
       const spec = resolvedAction.getSpec()
 
-      const root = join(action.basePath(), spec.root)
+      const root = join(action.sourcePath(), spec.root)
 
       const provider = ctx.provider as TerraformProvider
       const workspace = spec.workspace || null
diff --git a/plugins/terraform/src/index.ts b/plugins/terraform/src/index.ts
index 1e34158c02..5111403151 100644
--- a/plugins/terraform/src/index.ts
+++ b/plugins/terraform/src/index.ts
@@ -101,7 +101,7 @@ export const gardenPlugin = () =>
             validate: async ({ action }) => {
               const root = action.getSpec("root")
               if (root) {
-                const absRoot = join(action.basePath(), root)
+                const absRoot = join(action.sourcePath(), root)
                 const exists = await pathExists(absRoot)
 
                 if (!exists) {