diff --git a/lib/coffee-script/cake.js b/lib/coffee-script/cake.js
index f781bbe2..4b19da6f 100644
--- a/lib/coffee-script/cake.js
+++ b/lib/coffee-script/cake.js
@@ -1,5 +1,5 @@
 (function() {
-  var CoffeeScript, fs, helpers, missingTask, oparse, options, optparse, path, printTasks, switches, tasks;
+  var CoffeeScript, findCakefilePathSync, fs, helpers, missingTask, oparse, options, optparse, path, printTasks, switches, tasks;
   fs = require('fs');
   path = require('path');
   helpers = require('./helpers');
@@ -30,24 +30,22 @@
     }
   });
   exports.run = function() {
-    return path.exists('Cakefile', function(exists) {
-      var arg, args, _i, _len, _ref, _results;
-      if (!exists) throw new Error("Cakefile not found in " + (process.cwd()));
-      args = process.argv.slice(2);
-      CoffeeScript.run(fs.readFileSync('Cakefile').toString(), {
-        filename: 'Cakefile'
-      });
-      oparse = new optparse.OptionParser(switches);
-      if (!args.length) return printTasks();
-      options = oparse.parse(args);
-      _ref = options.arguments;
-      _results = [];
-      for (_i = 0, _len = _ref.length; _i < _len; _i++) {
-        arg = _ref[_i];
-        _results.push(invoke(arg));
-      }
-      return _results;
+    var arg, args, _i, _len, _ref, _results;
+    process.chdir(findCakefilePathSync(fs.realpathSync('.')));
+    args = process.argv.slice(2);
+    CoffeeScript.run(fs.readFileSync('Cakefile').toString(), {
+      filename: 'Cakefile'
     });
+    oparse = new optparse.OptionParser(switches);
+    if (!args.length) return printTasks();
+    options = oparse.parse(args);
+    _ref = options.arguments;
+    _results = [];
+    for (_i = 0, _len = _ref.length; _i < _len; _i++) {
+      arg = _ref[_i];
+      _results.push(invoke(arg));
+    }
+    return _results;
   };
   printTasks = function() {
     var desc, name, spaces, task;
@@ -65,4 +63,11 @@
     console.log("No such task: \"" + task + "\"");
     return process.exit(1);
   };
+  findCakefilePathSync = function(curPath) {
+    var parent;
+    if (path.existsSync(path.join(curPath, 'Cakefile'))) return curPath;
+    parent = path.normalize(path.join(curPath, '..'));
+    if (parent !== curPath) return findCakefilePathSync(parent);
+    throw new Error("Cakefile not found in " + (process.cwd()));
+  };
 }).call(this);
diff --git a/src/cake.coffee b/src/cake.coffee
index 34c1b168..9fc31b86 100644
--- a/src/cake.coffee
+++ b/src/cake.coffee
@@ -44,7 +44,7 @@ helpers.extend global,
 # asynchrony may cause tasks to execute in a different order than you'd expect.
 # If no tasks are passed, print the help screen.
 exports.run = ->
-  process.chdir findCakefilePathSync(fs.realpathSync '.')
+  process.chdir cakefileDirectory fs.realpathSync '.'
   args = process.argv.slice 2
   CoffeeScript.run fs.readFileSync('Cakefile').toString(), filename: 'Cakefile'
   oparse = new optparse.OptionParser switches
@@ -67,10 +67,10 @@ missingTask = (task) ->
   console.log "No such task: \"#{task}\""
   process.exit 1
 
-# Search in current and parent directories for Cakefile
-findCakefilePathSync = (curPath) ->
-  return curPath if path.existsSync path.join(curPath, 'Cakefile')
-  parent = path.normalize path.join(curPath, '..')
-  return findCakefilePathSync parent unless parent == curPath
-  # None found
-  throw new Error("Cakefile not found in #{process.cwd()}")
+# When `cake` is invoked, search in the current and all parent directories 
+# to find the relevant Cakefile.
+cakefileDirectory = (dir) ->
+  return dir if path.existsSync path.join dir, 'Cakefile'
+  parent = path.normalize path.join dir, '..'
+  return cakefileDirectory parent unless parent is dir
+  throw new Error "Cakefile not found in #{process.cwd()}"