diff --git a/bin/cake b/bin/cake
index 70b9aa0d..5694676a 100755
--- a/bin/cake
+++ b/bin/cake
@@ -2,6 +2,17 @@
 
 var path = require('path');
 var fs   = require('fs');
-var lib  = path.join(path.dirname(fs.realpathSync(__filename)), '../lib');
 
-require(lib + '/coffeescript/cake').run();
+var potentialPaths = [
+  path.join(process.cwd(), 'node_modules/coffeescript/lib/coffeescript'),
+  path.join(process.cwd(), 'node_modules/coffeescript/lib/coffee-script'),
+  path.join(process.cwd(), 'node_modules/coffee-script/lib/coffee-script'),
+  path.join(__dirname, '../lib/coffeescript')
+];
+
+for (var i = 0, len = potentialPaths.length; i < len; i++) {
+  if (fs.existsSync(potentialPaths[i])) {
+    require(potentialPaths[i] + '/cake').run();
+    break;
+  }
+}
diff --git a/bin/coffee b/bin/coffee
index c84782ac..9d8468bc 100755
--- a/bin/coffee
+++ b/bin/coffee
@@ -2,6 +2,17 @@
 
 var path = require('path');
 var fs   = require('fs');
-var lib  = path.join(path.dirname(fs.realpathSync(__filename)), '../lib');
 
-require(lib + '/coffeescript/command').run();
+var potentialPaths = [
+  path.join(process.cwd(), 'node_modules/coffeescript/lib/coffeescript'),
+  path.join(process.cwd(), 'node_modules/coffeescript/lib/coffee-script'),
+  path.join(process.cwd(), 'node_modules/coffee-script/lib/coffee-script'),
+  path.join(__dirname, '../lib/coffeescript')
+];
+
+for (var i = 0, len = potentialPaths.length; i < len; i++) {
+  if (fs.existsSync(potentialPaths[i])) {
+    require(potentialPaths[i] + '/command').run();
+    break;
+  }
+}
diff --git a/package.json b/package.json
index d52205f4..79f0aa3a 100644
--- a/package.json
+++ b/package.json
@@ -27,7 +27,6 @@
     "register.js",
     "repl.js"
   ],
-  "preferGlobal": true,
   "scripts": {
     "test": "node ./bin/cake test",
     "test-harmony": "node --harmony ./bin/cake test"