diff --git a/lib/bundler/cli/install.rb b/lib/bundler/cli/install.rb
index 1601fc6a98..851ae9b840 100644
--- a/lib/bundler/cli/install.rb
+++ b/lib/bundler/cli/install.rb
@@ -148,7 +148,7 @@ module Bundler
       Bundler.settings.set_command_option :path, nil if options[:system]
       Bundler.settings.set_command_option_if_given :path, options[:path]
 
-      if options["standalone"] && Bundler.settings[:path].nil?
+      if options["standalone"] && Bundler.settings[:path].nil? && !options["local"]
         Bundler.settings.temporary(:path_relative_to_cwd => false) do
           Bundler.settings.set_command_option :path, "bundle"
         end
diff --git a/lib/bundler/installer/standalone.rb b/lib/bundler/installer/standalone.rb
index 248b677233..2756626f8a 100644
--- a/lib/bundler/installer/standalone.rb
+++ b/lib/bundler/installer/standalone.rb
@@ -47,7 +47,7 @@ module Bundler
     end
 
     def bundler_path
-      Bundler.root.join(Bundler.settings[:path], "bundler")
+      Bundler.root.join(Bundler.settings[:path].to_s, "bundler")
     end
 
     def gem_path(path, spec)
diff --git a/spec/bundler/install/gems/standalone_spec.rb b/spec/bundler/install/gems/standalone_spec.rb
index a5302877c1..238006c02b 100644
--- a/spec/bundler/install/gems/standalone_spec.rb
+++ b/spec/bundler/install/gems/standalone_spec.rb
@@ -461,3 +461,31 @@ RSpec.describe "bundle install --standalone run in a subdirectory" do
 
   include_examples("bundle install --standalone")
 end
+
+RSpec.describe "bundle install --standalone --local" do
+  before do
+    gemfile <<-G
+      source "#{file_uri_for(gem_repo1)}"
+      gem "rack"
+    G
+
+    system_gems "rack-1.0.0", :path => default_bundle_path
+  end
+
+  it "generates script pointing to system gems" do
+    bundle "install --standalone --local --verbose"
+
+    expect(out).to include("Using rack 1.0.0")
+
+    load_error_ruby <<-RUBY, "spec"
+      require "./bundler/setup"
+
+      require "rack"
+      puts RACK
+      require "spec"
+    RUBY
+
+    expect(out).to eq("1.0.0")
+    expect(err).to eq("ZOMG LOAD ERROR")
+  end
+end