diff --git a/builder/context.go b/builder/context.go
index e0d9ad5d..bee79360 100644
--- a/builder/context.go
+++ b/builder/context.go
@@ -102,7 +102,9 @@ func (b *Builder) scrapeDependencies(ctx context.Context, volName string, stepWo
 		scannerImageName,
 		"scan",
 		"-f", dockerfile,
-		"--destination", outputDir,
+		// NOTE (bindu): unpacking a tar file including .git folder can hang if --destination is a relative path
+		// Use the absolute path to workaround the issue.
+		"--destination", path.Join(normalizeWorkDir(stepWorkDir), outputDir),
 		context,
 	}