diff --git a/capnpc/src/lib.rs b/capnpc/src/lib.rs
index 2a388029a..f2973179e 100644
--- a/capnpc/src/lib.rs
+++ b/capnpc/src/lib.rs
@@ -324,17 +324,7 @@ impl CompilerCommand {
 #[test]
 #[cfg_attr(miri, ignore)]
 fn compiler_command_new_no_out_dir() {
+    std::env::remove_var("OUT_DIR");
     let error = CompilerCommand::new().run().unwrap_err().description;
     assert!(error.starts_with("Could not access `OUT_DIR` environment variable"));
 }
-
-#[test]
-#[cfg_attr(miri, ignore)]
-fn compiler_command_with_output_path_no_out_dir() {
-    let error = CompilerCommand::new()
-        .output_path("foo")
-        .run()
-        .unwrap_err()
-        .description;
-    assert!(error.starts_with("Error while trying to execute `capnp compile`"));
-}
diff --git a/capnpc/test/build.rs b/capnpc/test/build.rs
index 290b114e0..be0672b97 100644
--- a/capnpc/test/build.rs
+++ b/capnpc/test/build.rs
@@ -22,4 +22,15 @@ fn main() {
         ])
         .run()
         .expect("compiling schema");
+
+    let mut output_path =
+        std::path::PathBuf::from(std::env::var("OUT_DIR").expect("OUT_DIR env var is not set"));
+
+    // `capnp compile` will create this directory
+    output_path.push("inner-output-path");
+    capnpc::CompilerCommand::new()
+        .file("test-output-path.capnp")
+        .output_path(output_path)
+        .run()
+        .expect("compiling schema")
 }
diff --git a/capnpc/test/test-output-path.capnp b/capnpc/test/test-output-path.capnp
new file mode 100644
index 000000000..f88075c5b
--- /dev/null
+++ b/capnpc/test/test-output-path.capnp
@@ -0,0 +1,9 @@
+# Schema to use to test `CompilerCommand::output_path()`.
+
+@0xbc9d501a1b13e0e9;
+
+struct Foo {}
+
+struct Bar {
+    foo @0 : Foo;
+}
diff --git a/capnpc/test/test.rs b/capnpc/test/test.rs
index 1eeae226d..236eddcc8 100644
--- a/capnpc/test/test.rs
+++ b/capnpc/test/test.rs
@@ -71,6 +71,13 @@ pub mod test_in_src_prefix_dir_capnp {
     include!(concat!(env!("OUT_DIR"), "/test_in_src_prefix_dir_capnp.rs"));
 }
 
+pub mod test_output_path_capnp {
+    include!(concat!(
+        env!("OUT_DIR"),
+        "/inner-output-path/test_output_path_capnp.rs"
+    ));
+}
+
 #[cfg(test)]
 mod test_util;