diff --git a/src/dotnet-svcutil/lib/src/Shared/Options/UpdateOptions.cs b/src/dotnet-svcutil/lib/src/Shared/Options/UpdateOptions.cs
index b1c5781515d..692f37de860 100644
--- a/src/dotnet-svcutil/lib/src/Shared/Options/UpdateOptions.cs
+++ b/src/dotnet-svcutil/lib/src/Shared/Options/UpdateOptions.cs
@@ -97,6 +97,16 @@ public void MakePathsRelativeTo(DirectoryInfo optionsFileDirectory)
                     this.Inputs[idx] = new Uri(relPath, UriKind.Relative);
                 }
             }
+
+            // Update references
+            for (int idx = 0; idx < this.References.Count; idx++)
+            {
+                var reference = this.References[idx];
+                if (reference.DependencyType == ProjectDependencyType.Project || reference.DependencyType == ProjectDependencyType.Binary)
+                {
+                    this.References[idx].ReferenceIdentity = PathHelper.GetRelativePath(reference.FullPath, optionsFileDirectory, out relPath) ? relPath : reference.FullPath;
+                }
+            }
         }
 
         public void ResolveFullPathsFrom(DirectoryInfo optionsFileDirectory)
@@ -116,6 +126,18 @@ public void ResolveFullPathsFrom(DirectoryInfo optionsFileDirectory)
                     this.Inputs[idx] = fileUri;
                 }
             }
+
+            // Update references full path
+            for (int idx = 0; idx < this.References.Count; idx++)
+            {
+                var reference = this.References[idx];
+                if (reference.DependencyType == ProjectDependencyType.Project || reference.DependencyType == ProjectDependencyType.Binary)
+                {
+                    string fullPath = Path.GetFullPath(Path.Combine(optionsFileDirectory.FullName, reference.ReferenceIdentity));
+                    this.References[idx].FullPath = fullPath;
+                    this.References[idx].ReferenceIdentity = fullPath;
+                }
+            }
         }
     }
 }
diff --git a/src/dotnet-svcutil/lib/src/Shared/ProjectDependency.cs b/src/dotnet-svcutil/lib/src/Shared/ProjectDependency.cs
index 8e392855b6f..4ba6b138400 100644
--- a/src/dotnet-svcutil/lib/src/Shared/ProjectDependency.cs
+++ b/src/dotnet-svcutil/lib/src/Shared/ProjectDependency.cs
@@ -43,7 +43,7 @@ internal class ProjectDependency : IComparable<ProjectDependency>
         /// <summary>
         /// Assembly full path.
         /// </summary>
-        public string FullPath { get; private set; }
+        public string FullPath { get; set; }
 
         /// <summary>
         /// Assembly name.
@@ -63,7 +63,7 @@ internal class ProjectDependency : IComparable<ProjectDependency>
         /// <summary>
         /// The package identity, used for describing the dependency passed to Svcutil.
         /// </summary>
-        public string ReferenceIdentity { get; private set; }
+        public string ReferenceIdentity { get; set; }
 
         #region instance contruction methods
         // this ctr is private to ensure the integrity of the data which can be done only by the provided static instance creation (FromXXX) methods.
@@ -153,7 +153,7 @@ private ProjectDependency(string filePath = "", string packageName = "", string
 
             this.ReferenceIdentity = this.DependencyType == ProjectDependencyType.Package || this.DependencyType == ProjectDependencyType.Tool || !string.IsNullOrWhiteSpace(packageName) ?
                 string.Format(CultureInfo.InvariantCulture, "{0}, {{{1}, {2}}}", this.AssemblyName, this.Name, this.Version) :
-                this.FullPath;
+                filePath;
 
             this.IsFramework = this.Name == NetCoreAppPackageID || this.Name == NetStandardLibraryPackageID;
         }
diff --git a/src/dotnet-svcutil/lib/tests/Baselines/MultiTargetTypeReuse/TypeReuseClient/ServiceReference/dotnet-svcutil.params.json b/src/dotnet-svcutil/lib/tests/Baselines/MultiTargetTypeReuse/TypeReuseClient/ServiceReference/dotnet-svcutil.params.json
index db493e18ee4..04374f6339f 100644
--- a/src/dotnet-svcutil/lib/tests/Baselines/MultiTargetTypeReuse/TypeReuseClient/ServiceReference/dotnet-svcutil.params.json
+++ b/src/dotnet-svcutil/lib/tests/Baselines/MultiTargetTypeReuse/TypeReuseClient/ServiceReference/dotnet-svcutil.params.json
@@ -10,7 +10,7 @@
     ],
     "outputFile": "Reference.cs",
     "references": [
-      "$TEMP$MultiTargetTypeReuse//TypeReuseClient//bin//Debug//net6.0//BinLib.dll"
+      "../bin/Debug/net6.0/BinLib.dll"
     ],
     "targetFramework": "N.N",
     "typeReuseMode": "All"