diff --git a/cmake/FindPytest.cmake b/cmake/FindPytest.cmake
index c40b723..74249d8 100644
--- a/cmake/FindPytest.cmake
+++ b/cmake/FindPytest.cmake
@@ -166,7 +166,7 @@ if (Pytest_FOUND AND NOT TARGET Pytest::Pytest)
             set(_WORKING_DIRECTORY ${CMAKE_CURRENT_SOURCE_DIR})
         endif()
 
-        get_filename_component(_WORKING_DIRECTORY "${_WORKING_DIRECTORY}" REALPATH)
+        get_filename_component(_WORKING_DIRECTORY "${_WORKING_DIRECTORY}" ABSOLUTE)
 
         # Override option by environment variable if available.
         if (DEFINED ENV{BUNDLE_PYTHON_TESTS})
diff --git a/cmake/PytestAddTests.cmake b/cmake/PytestAddTests.cmake
index 9b2487f..0e4c79f 100644
--- a/cmake/PytestAddTests.cmake
+++ b/cmake/PytestAddTests.cmake
@@ -103,9 +103,14 @@ if(CMAKE_SCRIPT_MODE_FILE)
             set(ENV{PYTEST_CMAKE_DLL_DIRECTORIES} "${DLL_DIRECTORIES}")
         endif()
 
+        # Collect from the resolved path, as Pytest resolves symbolic links in
+        # the invocation directory but not in 'rootdir'.
+        # https://github.com/pytest-dev/pytest/issues/12291
+        get_filename_component(_collect_directory "${WORKING_DIRECTORY}" REALPATH)
+
         set(_command
             "${PYTEST_EXECUTABLE}" --collect-only -q
-            "--rootdir=${WORKING_DIRECTORY}"
+            "--rootdir=${_collect_directory}"
             ${DLL_PLUGIN_ARGS}
             ${DISCOVERY_EXTRA_ARGS}
         )
@@ -120,7 +125,7 @@ if(CMAKE_SCRIPT_MODE_FILE)
             OUTPUT_VARIABLE _output_lines
             ERROR_VARIABLE _output_lines
             OUTPUT_STRIP_TRAILING_WHITESPACE
-            WORKING_DIRECTORY ${WORKING_DIRECTORY}
+            WORKING_DIRECTORY ${_collect_directory}
         )
 
         # Check for errors during test collection.
diff --git a/doc/release/release_notes.rst b/doc/release/release_notes.rst
index 65eeece..ed14cb3 100644
--- a/doc/release/release_notes.rst
+++ b/doc/release/release_notes.rst
@@ -4,6 +4,17 @@
 Release Notes
 *************
 
+.. release:: Upcoming
+
+    .. change:: fixed
+
+        Updated the :func:`pytest_discover_tests` function to keep symbolic
+        links in the ``WORKING_DIRECTORY`` value, so that tests run from the
+        path given instead of the resolved one. Previously, a build tree
+        configured through a symbolic link could not run its tests once the
+        link targeted another location. Test collection still uses the
+        resolved path, as introduced in version 0.5.2.
+
 .. release:: 1.6.1
     :date: 2026-09-28
 
diff --git a/test/05-properties/CMakeLists.txt b/test/05-properties/CMakeLists.txt
index 9ffd7c1..2a49327 100644
--- a/test/05-properties/CMakeLists.txt
+++ b/test/05-properties/CMakeLists.txt
@@ -16,7 +16,7 @@ add_test(NAME TestProperties.Validate.Timeout
     -D "TEST_PREFIX=TestProperties.Timeout"
     -D "TEST_PROPERTY=TIMEOUT"
     -D "EXPECTED_VALUE=120.0"
-    -P ${CMAKE_CURRENT_LIST_DIR}/check_test_property.cmake
+    -P ${CMAKE_CURRENT_LIST_DIR}/../utils/check_test_property.cmake
 )
 
 pytest_discover_tests(
@@ -29,7 +29,7 @@ add_test(NAME TestProperties.Validate.Labels
     -D "TEST_PREFIX=TestProperties.Labels"
     -D "TEST_PROPERTY=LABELS"
     -D "EXPECTED_VALUE=[ \"bar\", \"foo\" ]"
-    -P ${CMAKE_CURRENT_LIST_DIR}/check_test_property.cmake
+    -P ${CMAKE_CURRENT_LIST_DIR}/../utils/check_test_property.cmake
 )
 
 pytest_discover_tests(
@@ -42,7 +42,7 @@ add_test(NAME TestProperties.Validate.Disabled
     -D "TEST_PREFIX=TestProperties.Disabled"
     -D "TEST_PROPERTY=DISABLED"
     -D "EXPECTED_VALUE=ON"
-    -P ${CMAKE_CURRENT_LIST_DIR}/check_test_property.cmake
+    -P ${CMAKE_CURRENT_LIST_DIR}/../utils/check_test_property.cmake
 )
 
 pytest_discover_tests(
@@ -55,5 +55,5 @@ add_test(NAME TestProperties.Validate.SkipReturnCode
     -D "TEST_PREFIX=TestProperties.SkipReturnCode"
     -D "TEST_PROPERTY=SKIP_RETURN_CODE"
     -D "EXPECTED_VALUE=77"
-    -P ${CMAKE_CURRENT_LIST_DIR}/check_test_property.cmake
+    -P ${CMAKE_CURRENT_LIST_DIR}/../utils/check_test_property.cmake
 )
diff --git a/test/07-working-directory/CMakeLists.txt b/test/07-working-directory/CMakeLists.txt
index f52b775..aac1465 100644
--- a/test/07-working-directory/CMakeLists.txt
+++ b/test/07-working-directory/CMakeLists.txt
@@ -16,3 +16,43 @@ pytest_discover_tests(
     WORKING_DIRECTORY subdir
     BUNDLE_TESTS
 )
+
+# Link to this directory, using a junction on Windows as it does not require
+# elevated privileges.
+set(_link "${CMAKE_CURRENT_BINARY_DIR}/link")
+if (NOT EXISTS "${_link}")
+    if (WIN32)
+        file(TO_NATIVE_PATH "${_link}" _native_link)
+        file(TO_NATIVE_PATH "${CMAKE_CURRENT_SOURCE_DIR}" _native_target)
+        execute_process(
+            COMMAND cmd /c mklink /J "${_native_link}" "${_native_target}"
+            OUTPUT_QUIET
+            COMMAND_ERROR_IS_FATAL ANY
+        )
+    else()
+        file(CREATE_LINK "${CMAKE_CURRENT_SOURCE_DIR}" "${_link}" SYMBOLIC)
+    endif()
+endif()
+
+# Tests should run from the linked path. Collection must still succeed, without
+# loading the conftest file from the parent of the resolved path.
+pytest_discover_tests(
+    TestWorkingDirectory.Link.Simple
+    WORKING_DIRECTORY "${_link}/subdir"
+)
+
+pytest_discover_tests(
+    TestWorkingDirectory.Link.Bundled
+    WORKING_DIRECTORY "${_link}/subdir"
+    BUNDLE_TESTS
+)
+
+foreach (_variant IN ITEMS Simple Bundled)
+    add_test(NAME TestWorkingDirectory.Validate.Link.${_variant}
+        COMMAND ${CMAKE_COMMAND}
+        -D "TEST_PREFIX=TestWorkingDirectory.Link.${_variant}"
+        -D "TEST_PROPERTY=WORKING_DIRECTORY"
+        -D "EXPECTED_VALUE=${_link}/subdir"
+        -P ${CMAKE_CURRENT_LIST_DIR}/../utils/check_test_property.cmake
+    )
+endforeach()
diff --git a/test/05-properties/check_test_property.cmake b/test/utils/check_test_property.cmake
similarity index 100%
rename from test/05-properties/check_test_property.cmake
rename to test/utils/check_test_property.cmake