diff --git a/lib/bundler/cli/install.rb b/lib/bundler/cli/install.rb
index 85f702bc64..c3400c3959 100644
--- a/lib/bundler/cli/install.rb
+++ b/lib/bundler/cli/install.rb
@@ -165,9 +165,6 @@ module Bundler
 
     def normalize_settings
       Bundler.settings.set_command_option :path, nil if options[:system]
-      Bundler.settings.temporary(:path_relative_to_cwd => false) do
-        Bundler.settings.set_command_option :path, "vendor/bundle" if Bundler.settings[:deployment] && Bundler.settings[:path].nil?
-      end
       Bundler.settings.set_command_option_if_given :path, options[:path]
       Bundler.settings.temporary(:path_relative_to_cwd => false) do
         Bundler.settings.set_command_option :path, "bundle" if options["standalone"] && Bundler.settings[:path].nil?
diff --git a/lib/bundler/settings.rb b/lib/bundler/settings.rb
index 1ced590b6f..72728fb20f 100644
--- a/lib/bundler/settings.rb
+++ b/lib/bundler/settings.rb
@@ -219,6 +219,7 @@ module Bundler
     def path
       configs.each do |_level, settings|
         path = value_for("path", settings)
+        path = "vendor/bundle" if value_for("deployment", settings) && path.nil?
         path_system = value_for("path.system", settings)
         disabled_shared_gems = value_for("disable_shared_gems", settings)
         next if path.nil? && path_system.nil? && disabled_shared_gems.nil?
diff --git a/lib/bundler/version.rb b/lib/bundler/version.rb
index a7ccc9c201..a7d32cb0a1 100644
--- a/lib/bundler/version.rb
+++ b/lib/bundler/version.rb
@@ -1,7 +1,7 @@
 # frozen_string_literal: false
 
 module Bundler
-  VERSION = "2.3.2".freeze
+  VERSION = "2.3.3".freeze
 
   def self.bundler_major_version
     @bundler_major_version ||= VERSION.split(".").first.to_i
diff --git a/lib/rubygems.rb b/lib/rubygems.rb
index ddadd0f797..e24580c5b8 100644
--- a/lib/rubygems.rb
+++ b/lib/rubygems.rb
@@ -8,7 +8,7 @@
 require 'rbconfig'
 
 module Gem
-  VERSION = "3.3.2".freeze
+  VERSION = "3.3.3".freeze
 end
 
 # Must be first since it unloads the prelude from 1.9.2
diff --git a/spec/bundler/runtime/self_management_spec.rb b/spec/bundler/runtime/self_management_spec.rb
index def9361d0f..7746a6ffa9 100644
--- a/spec/bundler/runtime/self_management_spec.rb
+++ b/spec/bundler/runtime/self_management_spec.rb
@@ -45,6 +45,29 @@ RSpec.describe "Self management", :rubygems => ">= 3.3.0.dev" do
       bundle "config set --local path vendor/bundle"
       bundle "install", :env => { "BUNDLER_SPEC_GEM_SOURCES" => file_uri_for(gem_repo2).to_s }
       expect(out).to include("Bundler #{Bundler::VERSION} is running, but your lockfile was generated with #{next_minor}. Installing Bundler #{next_minor} and restarting using that version.")
+      expect(vendored_gems("gems/bundler-#{next_minor}")).to exist
+
+      # It does not uninstall the locked bundler
+      bundle "clean"
+      expect(out).to be_empty
+
+      # App now uses locked version
+      bundle "-v"
+      expect(out).to end_with(next_minor[0] == "2" ? "Bundler version #{next_minor}" : next_minor)
+
+      # Subsequent installs use the locked version without reinstalling
+      bundle "install --verbose"
+      expect(out).to include("Using bundler #{next_minor}")
+      expect(out).not_to include("Bundler #{Bundler::VERSION} is running, but your lockfile was generated with #{next_minor}. Installing Bundler #{next_minor} and restarting using that version.")
+    end
+
+    it "installs locked version when using deployment option and uses it" do
+      lockfile_bundled_with(next_minor)
+
+      bundle "config set --local deployment true"
+      bundle "install", :env => { "BUNDLER_SPEC_GEM_SOURCES" => file_uri_for(gem_repo2).to_s }
+      expect(out).to include("Bundler #{Bundler::VERSION} is running, but your lockfile was generated with #{next_minor}. Installing Bundler #{next_minor} and restarting using that version.")
+      expect(vendored_gems("gems/bundler-#{next_minor}")).to exist
 
       # It does not uninstall the locked bundler
       bundle "clean"
diff --git a/tool/bundler/rubocop_gems.rb.lock b/tool/bundler/rubocop_gems.rb.lock
index 93e22b74ef..8c74c71d7d 100644
--- a/tool/bundler/rubocop_gems.rb.lock
+++ b/tool/bundler/rubocop_gems.rb.lock
@@ -60,4 +60,4 @@ DEPENDENCIES
   test-unit
 
 BUNDLED WITH
-   2.3.2
+   2.3.3
diff --git a/tool/bundler/standard_gems.rb.lock b/tool/bundler/standard_gems.rb.lock
index 497e19af7a..4201bfd7a0 100644
--- a/tool/bundler/standard_gems.rb.lock
+++ b/tool/bundler/standard_gems.rb.lock
@@ -66,4 +66,4 @@ DEPENDENCIES
   test-unit
 
 BUNDLED WITH
-   2.3.2
+   2.3.3
diff --git a/tool/bundler/test_gems.rb.lock b/tool/bundler/test_gems.rb.lock
index 66efd03518..8a06010025 100644
--- a/tool/bundler/test_gems.rb.lock
+++ b/tool/bundler/test_gems.rb.lock
@@ -41,4 +41,4 @@ DEPENDENCIES
   webrick (= 1.7.0)
 
 BUNDLED WITH
-   2.3.2
+   2.3.3