diff --git a/cli/exec/exec.go b/cli/exec/exec.go
index cfe8f7ff0..35b60fbac 100644
--- a/cli/exec/exec.go
+++ b/cli/exec/exec.go
@@ -36,9 +36,9 @@ import (
 	"go.woodpecker-ci.org/woodpecker/v3/cli/lint"
 	"go.woodpecker-ci.org/woodpecker/v3/pipeline"
 	"go.woodpecker-ci.org/woodpecker/v3/pipeline/backend"
-	"go.woodpecker-ci.org/woodpecker/v3/pipeline/backend/docker"
-	"go.woodpecker-ci.org/woodpecker/v3/pipeline/backend/kubernetes"
-	"go.woodpecker-ci.org/woodpecker/v3/pipeline/backend/local"
+	backend_docker "go.woodpecker-ci.org/woodpecker/v3/pipeline/backend/docker"
+	backend_kubernetes "go.woodpecker-ci.org/woodpecker/v3/pipeline/backend/kubernetes"
+	backend_local "go.woodpecker-ci.org/woodpecker/v3/pipeline/backend/local"
 	backend_types "go.woodpecker-ci.org/woodpecker/v3/pipeline/backend/types"
 	"go.woodpecker-ci.org/woodpecker/v3/pipeline/frontend/metadata"
 	"go.woodpecker-ci.org/woodpecker/v3/pipeline/frontend/yaml"
@@ -56,13 +56,13 @@ var Command = &cli.Command{
 	Usage:     "execute a local pipeline",
 	ArgsUsage: "[path/to/.woodpecker.yaml]",
 	Action:    run,
-	Flags:     utils.MergeSlices(flags, docker.Flags, kubernetes.Flags, local.Flags),
+	Flags:     utils.MergeSlices(flags, backend_docker.Flags, backend_kubernetes.Flags, backend_local.Flags),
 }
 
 var backends = []backend_types.Backend{
-	kubernetes.New(),
-	docker.New(),
-	local.New(),
+	backend_kubernetes.New(),
+	backend_docker.New(),
+	backend_local.New(),
 }
 
 func run(ctx context.Context, c *cli.Command) error {
@@ -77,7 +77,7 @@ func execDir(ctx context.Context, c *cli.Command, dir string) error {
 	} else {
 		repoPath, _ = filepath.Abs(filepath.Dir(dir))
 	}
-	if runtime.GOOS == "windows" {
+	if runtime.GOOS == "windows" && c.String("backend-engine") != "local" {
 		repoPath = convertPathForWindows(repoPath)
 	}
 
@@ -118,7 +118,7 @@ func execFile(ctx context.Context, c *cli.Command, file string) error {
 	} else {
 		repoPath, _ = filepath.Abs(filepath.Dir(file))
 	}
-	if runtime.GOOS == "windows" {
+	if runtime.GOOS == "windows" && c.String("backend-engine") != "local" {
 		repoPath = convertPathForWindows(repoPath)
 	}
 	return runExec(ctx, c, file, repoPath, true)
@@ -130,6 +130,11 @@ func runExec(ctx context.Context, c *cli.Command, file, repoPath string, singleE
 		return err
 	}
 
+	// if we use the local backend we should signal to run at $repoPath
+	if c.String("backend-engine") == "local" {
+		backend_local.CLIWorkaroundExecAtDir = repoPath
+	}
+
 	axes, err := matrix.ParseString(string(dat))
 	if err != nil {
 		return fmt.Errorf("parse matrix fail")
diff --git a/pipeline/backend/local/local.go b/pipeline/backend/local/local.go
index 5514889e8..9a8716e4b 100644
--- a/pipeline/backend/local/local.go
+++ b/pipeline/backend/local/local.go
@@ -52,6 +52,8 @@ type local struct {
 	os, arch        string
 }
 
+var CLIWorkaroundExecAtDir string // To handle edge case for running local backend via cli exec
+
 // New returns a new local Backend.
 func New() types.Backend {
 	return &local{
@@ -100,17 +102,34 @@ func (e *local) SetupWorkflow(_ context.Context, _ *types.Config, taskUUID strin
 	}
 
 	state := &workflowState{
-		baseDir:      baseDir,
-		workspaceDir: filepath.Join(baseDir, "workspace"),
-		homeDir:      filepath.Join(baseDir, "home"),
+		baseDir: baseDir,
+		homeDir: filepath.Join(baseDir, "home"),
 	}
+	e.workflows.Store(taskUUID, state)
 
 	if err := os.Mkdir(state.homeDir, 0o700); err != nil {
 		return err
 	}
 
-	if err := os.Mkdir(state.workspaceDir, 0o700); err != nil {
-		return err
+	// normal workspace setup case
+	if CLIWorkaroundExecAtDir == "" {
+		state.workspaceDir = filepath.Join(baseDir, "workspace")
+		if err := os.Mkdir(state.workspaceDir, 0o700); err != nil {
+			return err
+		}
+	} else
+	// setup workspace via internal flag signaled from cli exec to a specific dir
+	{
+		state.workspaceDir = CLIWorkaroundExecAtDir
+		if stat, err := os.Stat(CLIWorkaroundExecAtDir); os.IsNotExist(err) {
+			log.Debug().Msgf("create workspace directory '%s' set by internal flag", CLIWorkaroundExecAtDir)
+			if err := os.Mkdir(state.workspaceDir, 0o700); err != nil {
+				return err
+			}
+		} else if !stat.IsDir() {
+			//nolint:forbidigo
+			log.Fatal().Msg("This should never happen! internalExecDir was set to an non directory path!")
+		}
 	}
 
 	e.workflows.Store(taskUUID, state)