diff --git a/projects/packages/test-environment/src/class-test-environment.php b/projects/packages/test-environment/src/class-test-environment.php
index 159e5769a5d84..1de31f4db07dd 100644
--- a/projects/packages/test-environment/src/class-test-environment.php
+++ b/projects/packages/test-environment/src/class-test-environment.php
@@ -24,13 +24,29 @@ class Test_Environment {
 	 */
 	public static function init() {
 		if ( ! defined( 'WORDBLESS_RUNNING' ) ) {
-			// Look for wordbless in tools/php-test-env first
+			// Try the simple path first (works for symlinked/development case)
 			$test_env_vendor = dirname( __DIR__, 4 ) . '/tools/php-test-env/vendor/autoload.php';
+			if ( ! file_exists( $test_env_vendor ) ) {
+				// If simple path fails, search for monorepo root
+				$dir      = __DIR__;
+				$prev_dir = null;
+				while ( $dir !== $prev_dir ) {
+					if ( file_exists( $dir . '/tools/php-test-env' ) ) {
+						break;
+					}
+					$prev_dir = $dir;
+					$dir      = dirname( $dir );
+				}
+
+				if ( ! file_exists( $dir . '/tools/php-test-env' ) ) {
+					throw new \RuntimeException( 'Could not locate monorepo root directory' );
+				}
+
+				$test_env_vendor = $dir . '/tools/php-test-env/vendor/autoload.php';
+			}
+
 			if ( file_exists( $test_env_vendor ) ) {
 				require_once $test_env_vendor;
-			} else {
-				// Fallback to local vendor if test-env isn't available
-				require_once dirname( __DIR__ ) . '/vendor/autoload.php';
 			}
 
 			try {