diff --git a/TestInit.pm b/TestInit.pm
index bded831..3dff3b5 100644
--- a/TestInit.pm
+++ b/TestInit.pm
@@ -68,7 +68,7 @@ sub import {
 	} elsif ($_ eq 'T') {
 	    $chdir = '..'
 		unless -f 't/TEST' && -f 'MANIFEST' && -d 'lib' && -d 'ext';
-	    @INC = 'lib';
+	    @INC = qw/ lib . /;
 	    $setopt = 1;
 	} elsif ($_ eq 'DOT') {
             $add_dot = 1;
diff --git a/t/run/switches.t b/t/run/switches.t
index b61be56..9375adb 100644
--- a/t/run/switches.t
+++ b/t/run/switches.t
@@ -204,7 +204,7 @@ SWTESTPM
     );
     is( $r, "<$package><foo>", '-M with import parameter' );
     $r = runperl(
-	switches    => [ "-m$package" ],
+	switches    => [ "-I.", "-m$package" ],
 	prog	    => '1',
     );