diff --git a/MODULE.bazel b/MODULE.bazel
index 0199434..bbb81a7 100644
--- a/MODULE.bazel
+++ b/MODULE.bazel
@@ -1,6 +1,6 @@
 module(
     name = "rules_mayhem",
-    version = "0.8.7",
+    version = "0.8.8",
 )
 
 bazel_dep(name = "bazel_skylib", version = "1.9.0")
diff --git a/MODULE.bazel.lock b/MODULE.bazel.lock
index e4164e3..e1f282c 100644
--- a/MODULE.bazel.lock
+++ b/MODULE.bazel.lock
@@ -192,7 +192,7 @@
     "//mayhem:extensions.bzl%rules_mayhem_extension": {
       "general": {
         "bzlTransitiveDigest": "SUFcWZq0Nc0sjSX728mHdDz01rb3+thUWiQBxjMbYsA=",
-        "usagesDigest": "rrpQRkerDYioRqTE9+dhc3hb9COdGQVTTq1fgQ07pZk=",
+        "usagesDigest": "Oe8goIySCz0esqxbJE2IWDiez9LcX7Lz3532P77zhgE=",
         "recordedInputs": [
           "REPO_MAPPING:,bazel_tools bazel_tools",
           "REPO_MAPPING:,rules_mayhem ",
diff --git a/README.md b/README.md
index c00364f..9103d00 100644
--- a/README.md
+++ b/README.md
@@ -8,7 +8,7 @@ You can add the following snippet:
 
 ```
 ## MODULE.bazel
-bazel_dep(name = "rules_mayhem", version = "0.8.7")
+bazel_dep(name = "rules_mayhem", version = "0.8.8")
 
 rules_mayhem_extension = use_extension("@rules_mayhem//mayhem:extensions.bzl", "rules_mayhem_extension")
 use_repo(rules_mayhem_extension, "bazel_skylib", "mayhem_cli_linux", "mayhem_cli_windows", "platforms", "yq_cli_linux", "yq_cli_windows")
@@ -21,8 +21,8 @@ load("@bazel_tools//tools/build_defs/repo:http.bzl", "http_archive")
 http_archive(
     name = "rules_mayhem",
     strip_prefix = "rules_mayhem",
-    urls = ["https://github.com/ForAllSecure/rules_mayhem/releases/download/0.8.7/rules_mayhem-0.8.7.tar.gz"],
-    sha256 = "4279b38113f223c1ab32cd1e393be59ad0295ad3f5ea2f017f4333c1f95e8fe6",
+    urls = ["https://github.com/ForAllSecure/rules_mayhem/releases/download/0.8.8/rules_mayhem-0.8.8.tar.gz"],
+    sha256 = "f5fbe3d4178f91d31153e1fd47224ffe8609ab81026a5f83c31ad9d40b867c65",
 )
 
 load("@rules_mayhem//mayhem:repositories.bzl", "rules_mayhem_repositories")
diff --git a/mayhem/mayhem.bzl b/mayhem/mayhem.bzl
index 5972444..9b67306 100644
--- a/mayhem/mayhem.bzl
+++ b/mayhem/mayhem.bzl
@@ -110,6 +110,8 @@ def _mayhem_run_impl(ctx):
             run_args.append(ctx.attr.verbosity)
     run_args.append("run")
 
+    package_basename = ""
+    target_path = ""
     if ctx.file.mayhemfile:
         mayhemfile_path = ctx.file.mayhemfile.short_path
         run_args.append(".")
@@ -117,10 +119,8 @@ def _mayhem_run_impl(ctx):
         run_args.append(mayhemfile_path)
         runfiles = runfiles.merge(ctx.runfiles(files=[ctx.file.mayhemfile]))
     elif ctx.file.target_path:
-        mayhemfile_path = ctx.file.target_path.short_path + "/Mayhemfile"
-        run_args.append(ctx.file.target_path.short_path)
-        run_args.append("-f")
-        run_args.append(mayhemfile_path)
+        package_basename = ctx.file.target_path.basename
+        target_path = str(ctx.file.target_path.short_path)
         runfiles = runfiles.merge(ctx.runfiles(files=[ctx.file.target_path]))
     elif ctx.attr.image:
         run_args.append(ctx.attr.image)
@@ -252,27 +252,47 @@ import subprocess
 import sys
 import os
 
+runfiles_enabled = os.path.exists("{mayhem_cli}")
+
 def resolve_runfile_mayhem_cli_path(mayhem_cli_short_path):
-    # Bazel sets the RUNFILES_MANIFEST_FILE environment variable on Windows
-    # which we can use to resolve the path to the mayhem CLI in the case that
-    # runfiles/symlinks are not available
 
-    manifest_path = os.environ.get("RUNFILES_MANIFEST_FILE")
-    if manifest_path and os.name == "nt":
+    if runfiles_enabled:
+        # Runfiles are enabled, so no need to resolve the path manually
+        return mayhem_cli_short_path
+
+    manifest_path = None
+    work_dir = os.path.dirname(os.path.abspath(__file__))
+    print("Looking for manifest file in runfiles directory: " + work_dir)
+    for file in os.listdir(work_dir):
+        if file.endswith(".runfiles_manifest"):
+            manifest_path = os.path.join(work_dir, file)
+            print("Found manifest file: " + manifest_path)
+            break
+
+    if manifest_path:
         with open(manifest_path, "r") as manifest_file:
             for line in manifest_file:
                 key, value = line.strip().split(" ", 1)
                 if "mayhem" in key.lower() and "cli" in key.lower():
                     return value
-    
-    # If the manifest file is not set or the mayhem CLI is not found in the manifest,
-    # fall back to the original path
-    return mayhem_cli_short_path
+
+    raise FileNotFoundError("Could not find mayhem CLI in runfiles manifest")
 
 mayhem_cli = resolve_runfile_mayhem_cli_path("{mayhem_cli}")
 run_args = {run_args}
 wait_args = {wait_args}
 
+if "{package_basename}":
+    if runfiles_enabled:
+        package_dir = "{target_path}"
+    else:
+        package_dir = os.path.join(os.path.dirname(os.path.abspath(__file__)), "{package_basename}")
+
+    package_index = run_args.index("run")
+    run_args.insert(package_index + 1, package_dir)
+    run_args.insert(package_index + 2, "-f")
+    run_args.insert(package_index + 3, os.path.join(package_dir, "Mayhemfile"))
+
 # Mayhem run
 run_result = subprocess.run([mayhem_cli] + run_args, capture_output=True, text=True)
 print("Run created: " + str(run_result.stdout))
@@ -301,6 +321,9 @@ if wait_args:
         sys.exit(show_result.returncode)
 """.format(
         mayhem_cli=ctx.executable._mayhem_cli.short_path,
+        target_name=ctx.label.name,
+        target_path=target_path,
+        package_basename=package_basename,
         run_args=run_args,
         wait_args=wait_args,
     )