diff --git a/crates/cargo-util/src/paths.rs b/crates/cargo-util/src/paths.rs
index 69df7a2096c7..2724412dfdb3 100644
--- a/crates/cargo-util/src/paths.rs
+++ b/crates/cargo-util/src/paths.rs
@@ -368,10 +368,10 @@ pub struct PathAncestors<'a> {
 
 impl<'a> PathAncestors<'a> {
     fn new(path: &'a Path, stop_root_at: Option<&Path>) -> PathAncestors<'a> {
-        let stop_at = env::var("__CARGO_TEST_ROOT")
-            .ok()
-            .map(PathBuf::from)
-            .or_else(|| stop_root_at.map(|p| p.to_path_buf()));
+        let stop_at = stop_root_at
+            .map(|p| p.to_path_buf())
+            .or_else(|| env::var("__CARGO_TEST_ROOT").ok().map(PathBuf::from));
+
         PathAncestors {
             current: Some(path),
             //HACK: avoid reading `~/.cargo/config` when testing Cargo itself.
diff --git a/src/bin/cargo/commands/install.rs b/src/bin/cargo/commands/install.rs
index 790bfd2d7bce..354e6d8caf7e 100644
--- a/src/bin/cargo/commands/install.rs
+++ b/src/bin/cargo/commands/install.rs
@@ -90,7 +90,7 @@ pub fn exec(config: &mut Config, args: &ArgMatches) -> CliResult {
     if let Some(path) = &path {
         config.reload_rooted_at(path)?;
     } else {
-        // TODO: Consider calling set_search_stop_path(home).
+        config.set_search_stop_path(config.home().clone().into_path_unlocked());
         config.reload_rooted_at(config.home().clone().into_path_unlocked())?;
     }
 
diff --git a/src/bin/cargo/commands/uninstall.rs b/src/bin/cargo/commands/uninstall.rs
index e58634933834..95505bde5929 100644
--- a/src/bin/cargo/commands/uninstall.rs
+++ b/src/bin/cargo/commands/uninstall.rs
@@ -15,6 +15,7 @@ pub fn cli() -> Command {
 
 pub fn exec(config: &mut Config, args: &ArgMatches) -> CliResult {
     // Ignore local configuration, same as `cargo install` does
+    config.set_search_stop_path(config.home().clone().into_path_unlocked());
     config.reload_rooted_at(config.home().clone().into_path_unlocked())?;
 
     let root = args.get_one::<String>("root").map(String::as_str);
diff --git a/src/cargo/util/config/mod.rs b/src/cargo/util/config/mod.rs
index b5c781efddd0..dd64f6b4110f 100644
--- a/src/cargo/util/config/mod.rs
+++ b/src/cargo/util/config/mod.rs
@@ -532,9 +532,7 @@ impl Config {
     /// Sets the path where ancestor config file searching will stop. The
     /// given path is included, but its ancestors are not.
     pub fn set_search_stop_path<P: Into<PathBuf>>(&mut self, path: P) {
-        let path = path.into();
-        debug_assert!(self.cwd.starts_with(&path));
-        self.search_stop_path = Some(path);
+        self.search_stop_path = Some(path.into());
     }
 
     /// Reloads on-disk configuration values, starting at the given path and
diff --git a/tests/testsuite/directory.rs b/tests/testsuite/directory.rs
index 0e28de03942b..97c35cd6084b 100644
--- a/tests/testsuite/directory.rs
+++ b/tests/testsuite/directory.rs
@@ -8,22 +8,25 @@ use serde::Serialize;
 
 use cargo_test_support::cargo_process;
 use cargo_test_support::git;
+use cargo_test_support::install::cargo_home;
 use cargo_test_support::paths;
 use cargo_test_support::registry::{cksum, Package};
 use cargo_test_support::{basic_manifest, project, t, ProjectBuilder};
 
 fn setup() {
-    let root = paths::root();
-    t!(fs::create_dir(&root.join(".cargo")));
+    t!(fs::create_dir_all(cargo_home()));
     t!(fs::write(
-        root.join(".cargo/config"),
-        r#"
+        cargo_home().join("config"),
+        &format!(
+            "
             [source.crates-io]
             replace-with = 'my-awesome-local-registry'
 
             [source.my-awesome-local-registry]
-            directory = 'index'
-        "#
+            directory = '{}/index'
+        ",
+            paths::root().display(),
+        )
     ));
 }
 
diff --git a/tests/testsuite/install.rs b/tests/testsuite/install.rs
index d3713a481616..51b528077e2c 100644
--- a/tests/testsuite/install.rs
+++ b/tests/testsuite/install.rs
@@ -407,6 +407,12 @@ fn install_location_precedence() {
     assert_has_installed_exe(&t1, "foo");
     assert_has_not_installed_exe(&t2, "foo");
 
+    cargo_process("uninstall foo --root")
+        .arg(&t1)
+        .env("CARGO_INSTALL_ROOT", &t2)
+        .run();
+    assert_has_not_installed_exe(&t1, "foo");
+
     println!("install CARGO_INSTALL_ROOT");
 
     cargo_process("install foo")
@@ -415,18 +421,22 @@ fn install_location_precedence() {
     assert_has_installed_exe(&t2, "foo");
     assert_has_not_installed_exe(&t3, "foo");
 
-    println!("install install.root");
-
-    cargo_process("install foo").run();
-    assert_has_installed_exe(&t3, "foo");
-    assert_has_not_installed_exe(&t4, "foo");
-
-    fs::remove_file(root.join(".cargo/config")).unwrap();
+    cargo_process("uninstall foo")
+        .env("CARGO_INSTALL_ROOT", &t2)
+        .run();
+    assert_has_not_installed_exe(&t2, "foo");
 
-    println!("install cargo home");
+    // The `install.root` config value in `root/.cargo/config` is ignored by
+    // `cargo install` and `cargo uninstall`, because they only consider the
+    // global configuration file `$CARGO_HOME/config`.
+    println!("install install.root");
 
     cargo_process("install foo").run();
     assert_has_installed_exe(&t4, "foo");
+    assert_has_not_installed_exe(&t3, "foo");
+
+    cargo_process("uninstall foo").run();
+    assert_has_not_installed_exe(&t4, "foo");
 }
 
 #[cargo_test]