diff --git a/lib/kamal/cli/main.rb b/lib/kamal/cli/main.rb
index 6daa1c65..1cc9d98e 100644
--- a/lib/kamal/cli/main.rb
+++ b/lib/kamal/cli/main.rb
@@ -186,7 +186,7 @@ class Kamal::Cli::Main < Kamal::Cli::Base
       env_path          = ".env"
     end
 
-    if File.exist?(env_template_path)
+    if Pathname.new(File.expand_path(env_template_path)).exist?
       File.write(env_path, ERB.new(File.read(env_template_path), trim_mode: "-").result, perm: 0600)
 
       unless options[:skip_push]
diff --git a/test/cli/main_test.rb b/test/cli/main_test.rb
index 8f897ca9..6c7c0f24 100644
--- a/test/cli/main_test.rb
+++ b/test/cli/main_test.rb
@@ -12,7 +12,7 @@ class CliMainTest < CliTestCase
 
     run_command("setup").tap do |output|
       assert_match /Ensure Docker is installed.../, output
-      assert_match /Push env files.../, output
+      assert_match /Evaluate and push env files.../, output
     end
   end
 
@@ -34,7 +34,7 @@ class CliMainTest < CliTestCase
 
     run_command("setup", "--skip_push").tap do |output|
       assert_match /Ensure Docker is installed.../, output
-      assert_match /Push env files.../, output
+      assert_match /Evaluate and push env files.../, output
       # deploy
       assert_match /Acquiring the deploy lock/, output
       assert_match /Log into image registry/, output
@@ -429,6 +429,7 @@ class CliMainTest < CliTestCase
   end
 
   test "envify" do
+    Pathname.any_instance.expects(:exist?).returns(true).times(3)
     File.expects(:read).with(".env.erb").returns("HELLO=<%= 'world' %>")
     File.expects(:write).with(".env", "HELLO=world", perm: 0600)