diff --git a/docs/cli.md b/docs/cli.md
index e494902bfec..18e09ff5bf7 100644
--- a/docs/cli.md
+++ b/docs/cli.md
@@ -29,6 +29,7 @@ then `--help` combined with any of those can give you more information.
 * `--no-interaction (-n)`: Do not ask any interactive question.
 * `--no-plugins`: Disables plugins.
 * `--no-cache`: Disables Poetry source caches.
+* `--directory=DIRECTORY (-C)`: The working directory for the Poetry command (defaults to the current working directory). All command-line arguments will be resolved relative to the given directory.
 * `--project=PROJECT (-P)`: Specify another path as the project root. All command-line arguments will be resolved relative to the current working directory.
 
 
diff --git a/src/poetry/console/application.py b/src/poetry/console/application.py
index d4c77fd2d3d..adbdeb72247 100644
--- a/src/poetry/console/application.py
+++ b/src/poetry/console/application.py
@@ -1,6 +1,8 @@
 from __future__ import annotations
 
+import contextlib
 import logging
+import os
 import re
 
 from contextlib import suppress
@@ -25,6 +27,7 @@
 
 if TYPE_CHECKING:
     from collections.abc import Callable
+    from collections.abc import Iterator
 
     from cleo.events.event import Event
     from cleo.io.inputs.argv_input import ArgvInput
@@ -48,6 +51,17 @@ def _load() -> Command:
     return _load
 
 
+@contextlib.contextmanager
+def switch_working_directory(path: Path) -> Iterator[Path]:
+    original_cwd = Path.cwd()
+    os.chdir(path)
+
+    try:
+        yield path
+    finally:
+        os.chdir(original_cwd)
+
+
 COMMANDS = [
     "about",
     "add",
@@ -111,6 +125,63 @@ def __init__(self) -> None:
         command_loader = CommandLoader({name: load_command(name) for name in COMMANDS})
         self.set_command_loader(command_loader)
 
+    @property
+    def _default_definition(self) -> Definition:
+        from cleo.io.inputs.option import Option
+
+        definition = super()._default_definition
+
+        definition.add_option(
+            Option("--no-plugins", flag=True, description="Disables plugins.")
+        )
+
+        definition.add_option(
+            Option(
+                "--no-cache", flag=True, description="Disables Poetry source caches."
+            )
+        )
+
+        definition.add_option(
+            Option(
+                "--project",
+                "-P",
+                flag=False,
+                description=(
+                    "Specify another path as the project root."
+                    " All command-line arguments will be resolved relative to the current working directory."
+                ),
+            )
+        )
+
+        definition.add_option(
+            Option(
+                "--directory",
+                "-C",
+                flag=False,
+                description=(
+                    "The working directory for the Poetry command (defaults to the"
+                    " current working directory). All command-line arguments will be"
+                    " resolved relative to the given directory."
+                ),
+            )
+        )
+
+        return definition
+
+    @cached_property
+    def _project_directory(self) -> Path:
+        if self._io and self._io.input.option("project"):
+            return Path(self._io.input.option("project")).absolute()
+
+        return self._working_directory
+
+    @cached_property
+    def _working_directory(self) -> Path:
+        if self._io and self._io.input.option("directory"):
+            return Path(self._io.input.option("directory")).absolute()
+
+        return Path.cwd()
+
     @property
     def poetry(self) -> Poetry:
         from poetry.factory import Factory
@@ -119,7 +190,7 @@ def poetry(self) -> Poetry:
             return self._poetry
 
         self._poetry = Factory().create_poetry(
-            cwd=self._directory,
+            cwd=self._project_directory,
             io=self._io,
             disable_plugins=self._disable_plugins,
             disable_cache=self._disable_cache,
@@ -172,7 +243,9 @@ def _run(self, io: IO) -> int:
 
         self._load_plugins(io)
 
-        exit_code: int = super()._run(io)
+        with switch_working_directory(self._working_directory):
+            exit_code: int = super()._run(io)
+
         return exit_code
 
     def _configure_io(self, io: IO) -> None:
@@ -335,49 +408,13 @@ def _load_plugins(self, io: IO | None = None) -> None:
             from poetry.plugins.application_plugin import ApplicationPlugin
             from poetry.plugins.plugin_manager import PluginManager
 
-            PluginManager.add_project_plugin_path(self._directory)
+            PluginManager.add_project_plugin_path(self._project_directory)
             manager = PluginManager(ApplicationPlugin.group)
             manager.load_plugins()
             manager.activate(self)
 
         self._plugins_loaded = True
 
-    @property
-    def _default_definition(self) -> Definition:
-        from cleo.io.inputs.option import Option
-
-        definition = super()._default_definition
-
-        definition.add_option(
-            Option("--no-plugins", flag=True, description="Disables plugins.")
-        )
-
-        definition.add_option(
-            Option(
-                "--no-cache", flag=True, description="Disables Poetry source caches."
-            )
-        )
-
-        definition.add_option(
-            Option(
-                "--project",
-                "-P",
-                flag=False,
-                description=(
-                    "Specify another path as the project root."
-                    " All command-line arguments will be resolved relative to the current working directory."
-                ),
-            )
-        )
-
-        return definition
-
-    @cached_property
-    def _directory(self) -> Path:
-        if self._io and self._io.input.option("project"):
-            return Path(self._io.input.option("project")).absolute()
-        return Path.cwd()
-
 
 def main() -> int:
     exit_code: int = Application().run()