diff --git a/.changesets/use-dir-pwd-for-capistrano-3-current-directory.md b/.changesets/use-dir-pwd-for-capistrano-3-current-directory.md
new file mode 100644
index 000000000..62161afd9
--- /dev/null
+++ b/.changesets/use-dir-pwd-for-capistrano-3-current-directory.md
@@ -0,0 +1,6 @@
+---
+bump: "patch"
+type: "fix"
+---
+
+Use `Dir.pwd` to determine the current directory in the Capistrano 3 integration. It previously relied on `ENV["pwd"]` which returned `nil` in some scenarios.
diff --git a/lib/appsignal/integrations/capistrano/appsignal.cap b/lib/appsignal/integrations/capistrano/appsignal.cap
index 750d3f1d8..0337928a8 100644
--- a/lib/appsignal/integrations/capistrano/appsignal.cap
+++ b/lib/appsignal/integrations/capistrano/appsignal.cap
@@ -5,7 +5,7 @@ namespace :appsignal do
     revision = fetch(:appsignal_revision, fetch(:current_revision))
 
     appsignal_config = Appsignal::Config.new(
-      ENV["PWD"],
+      Dir.pwd,
       appsignal_env,
       {},
       Logger.new(StringIO.new)
diff --git a/spec/lib/appsignal/capistrano3_spec.rb b/spec/lib/appsignal/capistrano3_spec.rb
index 55157f29b..f17e0854d 100644
--- a/spec/lib/appsignal/capistrano3_spec.rb
+++ b/spec/lib/appsignal/capistrano3_spec.rb
@@ -42,7 +42,11 @@ def run
     describe "appsignal:deploy task" do
       before do
         ENV["USER"] = "batman"
-        ENV["PWD"] = project_fixture_path
+      end
+      around do |example|
+        Dir.chdir project_fixture_path do
+          example.run
+        end
       end
 
       context "config" do