diff --git a/package-tooling-image/build-packages.sh b/package-tooling-image/build-packages.sh
index 039af63..b281d0f 100755
--- a/package-tooling-image/build-packages.sh
+++ b/package-tooling-image/build-packages.sh
@@ -12,7 +12,11 @@ docker container stop registry && docker container rm -v registry || true
 echo "Starting local docker registry..."
 docker run -d -p 5001:5000 --name registry mirror.gcr.io/library/registry:2
 
-cd /workspace
+cd /workspace/${SRC_PATH}
+
+if [ ! -z "${SRC_PATH}" ]; then
+  git config --global --add safe.directory /workspace/${SRC_PATH}
+fi
 
 # Install needed Carvel binaries for building packages
 echo "Downloading carvel binaries..."
diff --git a/templates/Makefile b/templates/Makefile
index 0675297..c1c49f6 100644
--- a/templates/Makefile
+++ b/templates/Makefile
@@ -233,6 +233,7 @@ kbld-image-replace:
 	  -e KBLD_CONFIG_FILE_PATH=$(KBLD_CONFIG_FILE_PATH) \
 	  -e DEFAULT_IMAGE=$(DEFAULT_IMAGE) \
 	  -e NEW_IMAGE=$(IMAGE) \
+	  -e SRC_PATH=$(SRC_PATH) \
 	  -v /var/run/docker.sock:/var/run/docker.sock \
 	  -v $(PWD):/workspace \
 		$(PACKAGING_CONTAINER_IMAGE):$(VERSION)
@@ -247,6 +248,7 @@ package-bundle-generate:
 	  -e OCI_REGISTRY=$(OCI_REGISTRY) \
 	  -e PACKAGE_VERSION=$(PACKAGE_VERSION) \
 	  -e PACKAGE_SUB_VERSION=$(PACKAGE_SUB_VERSION) \
+	  -e SRC_PATH=$(SRC_PATH) \
 	  -v /var/run/docker.sock:/var/run/docker.sock \
 	  -v $(PWD):/workspace \
 		$(PACKAGING_CONTAINER_IMAGE):$(VERSION)
@@ -261,6 +263,7 @@ package-bundle-generate-all:
 	  -e OCI_REGISTRY=$(OCI_REGISTRY) \
 	  -e PACKAGE_VERSION=$(PACKAGE_VERSION) \
 	  -e PACKAGE_SUB_VERSION=$(PACKAGE_SUB_VERSION) \
+	  -e SRC_PATH=$(SRC_PATH) \
 	  -v /var/run/docker.sock:/var/run/docker.sock \
 	  -v $(PWD):/workspace \
 		$(PACKAGING_CONTAINER_IMAGE):$(VERSION)
@@ -277,6 +280,7 @@ package-bundle-push:
 	  -e REGISTRY_USERNAME=$(REGISTRY_USERNAME) \
 	  -e REGISTRY_PASSWORD=$(REGISTRY_PASSWORD) \
 	  -e REGISTRY_SERVER=$(REGISTRY_SERVER) \
+	  -e SRC_PATH=$(SRC_PATH) \
 	  -v /var/run/docker.sock:/var/run/docker.sock \
 	  -v $(PWD):/workspace \
 		$(PACKAGING_CONTAINER_IMAGE):$(VERSION)
@@ -293,6 +297,7 @@ package-bundle-push-all:
 	  -e REGISTRY_USERNAME=$(REGISTRY_USERNAME) \
 	  -e REGISTRY_PASSWORD=$(REGISTRY_PASSWORD) \
 	  -e REGISTRY_SERVER=$(REGISTRY_SERVER) \
+	  -e SRC_PATH=$(SRC_PATH) \
 	  -v /var/run/docker.sock:/var/run/docker.sock \
 	  -v $(PWD):/workspace \
 		$(PACKAGING_CONTAINER_IMAGE):$(VERSION)
@@ -307,6 +312,7 @@ repo-bundle-generate:
 	  -e REPO_BUNDLE_VERSION=$(REPO_BUNDLE_VERSION) \
 	  -e REPO_BUNDLE_SUB_VERSION=$(REPO_BUNDLE_SUB_VERSION) \
 	  -e PACKAGE_VALUES_FILE=$(PACKAGE_VALUES_FILE) \
+	  -e SRC_PATH=$(SRC_PATH) \
 	  -v /var/run/docker.sock:/var/run/docker.sock \
 	  -v $(PWD):/workspace \
 		$(PACKAGING_CONTAINER_IMAGE):$(VERSION)
@@ -323,6 +329,7 @@ repo-bundle-push:
 	  -e REGISTRY_USERNAME=$(REGISTRY_USERNAME) \
 	  -e REGISTRY_PASSWORD=$(REGISTRY_PASSWORD) \
 	  -e REGISTRY_SERVER=$(REGISTRY_SERVER) \
+	  -e SRC_PATH=$(SRC_PATH) \
 	  -v /var/run/docker.sock:/var/run/docker.sock \
 	  -v $(PWD):/workspace \
 		$(PACKAGING_CONTAINER_IMAGE):$(VERSION)
@@ -332,6 +339,7 @@ repo-bundle-push:
 package-vendir-sync:
 	@$(DOCKER) run \
 	  -e OPERATIONS=vendir_sync \
+	  -e SRC_PATH=$(SRC_PATH) \
 	  -v /var/run/docker.sock:/var/run/docker.sock \
 	  -v $(PWD):/workspace \
 		$(PACKAGING_CONTAINER_IMAGE):$(VERSION)