diff --git a/lib/next_ls.ex b/lib/next_ls.ex
index 9d2931fb..f4fb6030 100644
--- a/lib/next_ls.ex
+++ b/lib/next_ls.ex
@@ -79,7 +79,7 @@ defmodule NextLS do
     runtime_task_supervisor = Keyword.fetch!(args, :runtime_task_supervisor)
     dynamic_supervisor = Keyword.fetch!(args, :dynamic_supervisor)
     bundle_base = Keyword.get(args, :bundle_base, Path.expand("~/.cache/elixir-tools/nextls"))
-    mixhome = Keyword.get(args, :mix_home, Path.expand("~/.mix"))
+    mix_home = Keyword.get(args, :mix_home)
 
     registry = Keyword.fetch!(args, :registry)
 
@@ -89,12 +89,13 @@ defmodule NextLS do
     cache = Keyword.fetch!(args, :cache)
     {:ok, logger} = DynamicSupervisor.start_child(dynamic_supervisor, {NextLS.Logger, lsp: lsp})
 
-    NextLS.Runtime.BundledElixir.install(bundle_base, logger, mix_home: mixhome)
+    NextLS.Runtime.BundledElixir.install(bundle_base, logger, mix_home: mix_home)
 
     {:ok,
      assign(lsp,
        auto_update: Keyword.get(args, :auto_update, false),
        bundle_base: bundle_base,
+       mix_home: mix_home,
        exit_code: 1,
        documents: %{},
        refresh_refs: %{},
@@ -904,6 +905,7 @@ defmodule NextLS do
              uri: uri,
              mix_env: lsp.assigns.init_opts.mix_env,
              mix_target: lsp.assigns.init_opts.mix_target,
+             mix_home: lsp.assigns.mix_home,
              elixir_bin_path: elixir_bin_path,
              on_initialized: fn status ->
                if status == :ready do
@@ -1026,6 +1028,7 @@ defmodule NextLS do
               uri: uri,
               mix_env: lsp.assigns.init_opts.mix_env,
               mix_target: lsp.assigns.init_opts.mix_target,
+              mix_home: lsp.assigns.mix_home,
               on_initialized: fn status ->
                 if status == :ready do
                   Progress.stop(lsp, token, "NextLS runtime for folder #{name} has initialized!")
diff --git a/lib/next_ls/runtime.ex b/lib/next_ls/runtime.ex
index e4714d7a..b8b5f1f7 100644
--- a/lib/next_ls/runtime.ex
+++ b/lib/next_ls/runtime.ex
@@ -111,6 +111,7 @@ defmodule NextLS.Runtime do
     mix_env = Keyword.fetch!(opts, :mix_env)
     mix_target = Keyword.fetch!(opts, :mix_target)
     elixir_bin_path = Keyword.get(opts, :elixir_bin_path)
+    mix_home = Keyword.get(opts, :mix_home)
 
     elixir_exe = Path.join(elixir_bin_path, "elixir")
 
@@ -145,6 +146,7 @@ defmodule NextLS.Runtime do
         {~c"MIX_ENV", ~c"#{mix_env}"},
         {~c"MIX_TARGET", ~c"#{mix_target}"},
         {~c"MIX_BUILD_ROOT", ~c".elixir-tools/_build"},
+        {~c"MIX_HOME", ~c"#{mix_home}"},
         {~c"ROOTDIR", false},
         {~c"BINDIR", false},
         {~c"RELEASE_ROOT", false},
diff --git a/lib/next_ls/runtime/bundled_elixir.ex b/lib/next_ls/runtime/bundled_elixir.ex
index 6e864bf9..16edd0fa 100644
--- a/lib/next_ls/runtime/bundled_elixir.ex
+++ b/lib/next_ls/runtime/bundled_elixir.ex
@@ -21,7 +21,8 @@ defmodule NextLS.Runtime.BundledElixir do
   end
 
   def install(base, logger, opts \\ []) do
-    mixhome = Keyword.get(opts, :mix_home, Path.expand("~/.mix"))
+    basedir = path(base)
+    mixhome = Keyword.get(opts, :mix_home) || Path.join(basedir, ".mix")
     binpath = binpath(base)
 
     unless File.exists?(binpath) do
diff --git a/test/next_ls/autocomplete_test.exs b/test/next_ls/autocomplete_test.exs
index 54dd20ed..290cc9cc 100644
--- a/test/next_ls/autocomplete_test.exs
+++ b/test/next_ls/autocomplete_test.exs
@@ -73,6 +73,7 @@ defmodule NextLS.AutocompleteTest do
          db: :some_db,
          mix_env: "dev",
          mix_target: "host",
+         mix_home: Path.join(cwd, ".mix"),
          registry: __MODULE__.Registry}
       )
 
diff --git a/test/next_ls/runtime_test.exs b/test/next_ls/runtime_test.exs
index ff3e3d6f..3de28f2c 100644
--- a/test/next_ls/runtime_test.exs
+++ b/test/next_ls/runtime_test.exs
@@ -65,6 +65,7 @@ defmodule NextLs.RuntimeTest do
            db: :some_db,
            mix_env: "dev",
            mix_target: "host",
+           mix_home: Path.join(cwd, ".mix"),
            registry: RuntimeTest.Registry}
         )
 
@@ -95,6 +96,7 @@ defmodule NextLs.RuntimeTest do
            db: :some_db,
            mix_env: "dev",
            mix_target: "host",
+           mix_home: Path.join(cwd, ".mix"),
            registry: RuntimeTest.Registry}
         )
 
@@ -126,6 +128,7 @@ defmodule NextLs.RuntimeTest do
            db: :some_db,
            mix_env: "dev",
            mix_target: "host",
+           mix_home: Path.join(cwd, ".mix"),
            registry: RuntimeTest.Registry}
         )
 
@@ -190,6 +193,7 @@ defmodule NextLs.RuntimeTest do
            db: :some_db,
            mix_env: "dev",
            mix_target: "host",
+           mix_home: Path.join(cwd, ".mix"),
            registry: RuntimeTest.Registry}
         )