diff --git a/cosmos/cache.py b/cosmos/cache.py
index 3c2086c7a..cb2345f92 100644
--- a/cosmos/cache.py
+++ b/cosmos/cache.py
@@ -3,6 +3,7 @@
 import shutil
 from pathlib import Path
 
+import msgpack
 from airflow.models.dag import DAG
 from airflow.utils.task_group import TaskGroup
 
@@ -121,4 +122,18 @@ def _copy_partial_parse_to_project(partial_parse_filepath: Path, project_path: P
     source_manifest_filepath = partial_parse_filepath.parent / DBT_MANIFEST_FILE_NAME
     target_manifest_filepath = target_partial_parse_file.parent / DBT_MANIFEST_FILE_NAME
     shutil.copy(str(partial_parse_filepath), str(target_partial_parse_file))
+
+    # Update root_path in partial parse file to point to the target project directory. This is necessary because in some
+    # earlier versions of dbt (e.g. 1.5.4), the root_path was hardcoded to a stale directory and is not updated to the
+    # needed target directory. This seems to have been resolved in later versions of dbt, but we still need to handle
+    # this for compatibility with older versions.
+    with target_partial_parse_file.open("rb") as f:
+        data = msgpack.unpack(f)
+    for node in data["nodes"].values():
+        if node.get("root_path"):
+            node["root_path"] = str(project_path)
+    with target_partial_parse_file.open("wb") as f:
+        packed = msgpack.packb(data)
+        f.write(packed)
+
     shutil.copy(str(source_manifest_filepath), str(target_manifest_filepath))
diff --git a/pyproject.toml b/pyproject.toml
index 5f0e5ee0e..4d5a220c8 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -141,16 +141,17 @@ matrix.airflow.dependencies = [
 
 [tool.hatch.envs.tests.scripts]
 freeze = "pip freeze"
-type-check = "mypy cosmos"
 test = 'sh scripts/test/unit.sh'
 test-cov = 'sh scripts/test/unit-cov.sh'
-test-integration-setup = 'sh scripts/test/integration-setup.sh'
 test-integration = 'sh scripts/test/integration.sh'
+test-integration-dbt-1-5-4 = 'sh scripts/test/integration-dbt-1-5-4.sh'
 test-integration-expensive = 'sh scripts/test/integration-expensive.sh'
-test-integration-sqlite-setup = 'sh scripts/test/integration-sqlite-setup.sh'
+test-integration-setup = 'sh scripts/test/integration-setup.sh'
 test-integration-sqlite = 'sh scripts/test/integration-sqlite.sh'
-test-performance-setup = 'sh scripts/test/performance-setup.sh'
+test-integration-sqlite-setup = 'sh scripts/test/integration-sqlite-setup.sh'
 test-performance = 'sh scripts/test/performance.sh'
+test-performance-setup = 'sh scripts/test/performance-setup.sh'
+type-check = "mypy cosmos"
 
 [tool.pytest.ini_options]
 filterwarnings = ["ignore::DeprecationWarning"]
diff --git a/scripts/test/integration-dbt-1-5-4.sh b/scripts/test/integration-dbt-1-5-4.sh
new file mode 100644
index 000000000..04597bd18
--- /dev/null
+++ b/scripts/test/integration-dbt-1-5-4.sh
@@ -0,0 +1,10 @@
+pip uninstall dbt-adapters dbt-common dbt-core dbt-extractor dbt-postgres dbt-semantic-interfaces -y
+pip install dbt-postgres==1.5.4
+pytest -vv \
+    --cov=cosmos \
+    --cov-report=term-missing \
+    --cov-report=xml \
+    --durations=0 \
+    -m integration  \
+    --ignore=tests/perf \
+    -k 'basic_cosmos_task_group'