diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index b915d91..5091e3b 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -455,3 +455,29 @@ jobs:
       -
         name: Print envs
         run: env|sort
+
+  bake-cwd:
+    runs-on: ubuntu-latest
+    steps:
+      -
+        name: Checkout
+        uses: actions/checkout@v4
+      -
+        name: Set up Docker Buildx
+        uses: docker/setup-buildx-action@v3
+        with:
+          version: latest
+      -
+        name: Docker meta
+        id: docker_meta
+        uses: ./
+      -
+        name: Build
+        uses: docker/bake-action@v4
+        with:
+          files: |
+            ./test/docker-bake.hcl
+            ${{ steps.docker_meta.outputs.bake-file-tags }}
+            ${{ steps.docker_meta.outputs.bake-file-labels }}
+          targets: |
+            release
diff --git a/src/main.ts b/src/main.ts
index a1324ec..90ecc98 100644
--- a/src/main.ts
+++ b/src/main.ts
@@ -94,17 +94,22 @@ actionsToolkit.run(
       setOutput('json', JSON.stringify(jsonOutput));
     });
 
+    // Specifying local and remote bake files is supported since Buildx 0.12.0.
+    // Set cwd:// prefix for local bake files to avoid ambiguity with remote
+    // https://github.com/docker/buildx/pull/1838
+    const bakeFileCwdPrefix = (await toolkit.buildx.versionSatisfies('>=0.12.0').catch(() => false)) ? 'cwd://' : '';
+
     // Bake files
     for (const kind of ['tags', 'labels', 'annotations:' + annotationsLevels]) {
       const outputName = kind.split(':')[0];
       const bakeFile: string = meta.getBakeFile(kind);
       await core.group(`Bake file definition (${outputName})`, async () => {
         core.info(fs.readFileSync(bakeFile, 'utf8'));
-        setOutput(`bake-file-${outputName}`, bakeFile);
+        setOutput(`bake-file-${outputName}`, `${bakeFileCwdPrefix}${bakeFile}`);
       });
     }
 
     // Bake file with tags and labels
-    setOutput(`bake-file`, meta.getBakeFileTagsLabels());
+    setOutput(`bake-file`, `${bakeFileCwdPrefix}${meta.getBakeFileTagsLabels()}`);
   }
 );