diff --git a/src/cargo/core/workspace.rs b/src/cargo/core/workspace.rs
index bdf06d60757..390972366b0 100644
--- a/src/cargo/core/workspace.rs
+++ b/src/cargo/core/workspace.rs
@@ -1129,16 +1129,22 @@ impl<'gctx> Workspace<'gctx> {
         let current_dir = self.current_manifest.parent().unwrap();
         let root_pkg = self.packages.get(root);
 
-        // FIXME: Make this more generic by using a relative path resolver between member and root.
-        let members_msg = match current_dir.strip_prefix(root_dir) {
-            Ok(rel) => format!(
+        // Use pathdiff to handle finding the relative path between the current package
+        // and the workspace root. This usually does a good job of handling `..` and
+        // other weird things.
+        // Normalize paths first to ensure `../` components are resolved if possible,
+        // which helps `diff_paths` find the most direct relative path.
+        let current_dir = paths::normalize_path(current_dir);
+        let root_dir = paths::normalize_path(root_dir);
+        let members_msg = match pathdiff::diff_paths(&current_dir, &root_dir) {
+            Some(rel) => format!(
                 "this may be fixable by adding `{}` to the \
                      `workspace.members` array of the manifest \
                      located at: {}",
                 rel.display(),
                 root.display()
             ),
-            Err(_) => format!(
+            None => format!(
                 "this may be fixable by adding a member to \
                      the `workspace.members` array of the \
                      manifest located at: {}",
diff --git a/tests/testsuite/workspaces.rs b/tests/testsuite/workspaces.rs
index 0f8ab785baf..4b87aacd026 100644
--- a/tests/testsuite/workspaces.rs
+++ b/tests/testsuite/workspaces.rs
@@ -2755,3 +2755,126 @@ fn fix_only_check_manifest_path_member() {
 "#]])
         .run();
 }
+
+#[cargo_test]
+fn error_if_member_is_outside_root() {
+    // This test ensures that if a member is physically outside the workspace root,
+    // we get a helpful error message.
+    //
+    // Setup:
+    // root/Cargo.toml     (workspace, members = [])
+    // member/Cargo.toml   (package, workspace = "../root")
+
+    let _root = project()
+        .at("root")
+        .file(
+            "Cargo.toml",
+            r#"
+                [package]
+                name = "root"
+                version = "0.1.0"
+                edition = "2015"
+
+                [workspace]
+                members = []
+            "#,
+        )
+        .file("src/main.rs", "fn main() {}")
+        .build();
+
+    let member = project()
+        .at("member")
+        .file(
+            "Cargo.toml",
+            r#"
+                [package]
+                name = "member"
+                version = "0.1.0"
+                edition = "2015"
+                workspace = "../root"
+            "#,
+        )
+        .file("src/main.rs", "fn main() {}")
+        .build();
+
+    // The error message should reflect that these paths are unrelated (Old Behavior)
+    member.cargo("build")
+        .with_status(101)
+        .with_stderr_data(str![[r#"
+[ERROR] current package believes it's in a workspace when it's not:
+current:   [ROOT]/member/Cargo.toml
+workspace: [ROOT]/root/Cargo.toml
+
+this may be fixable by adding `../member` to the `workspace.members` array of the manifest located at: [ROOT]/root/Cargo.toml
+Alternatively, to keep it out of the workspace, add the package to the `workspace.exclude` array, or add an empty `[workspace]` table to the package's manifest.
+
+"#]])
+        .run();
+}
+
+#[cargo_test]
+fn error_if_manifest_path_is_relative() {
+    // This test simulates running cargo usage with a relative --manifest-path
+    // that includes `..` to verify normalization and suggestions.
+    //
+    // Directory structure:
+    // root/Cargo.toml
+    // root/subdir/
+    // outside/Cargo.toml  (workspace = "../root")
+
+    let root = project()
+        .at("root")
+        .file(
+            "Cargo.toml",
+            r#"
+                [package]
+                name = "root"
+                version = "0.1.0"
+                edition = "2015"
+
+                [workspace]
+                members = []
+            "#,
+        )
+        .file("src/main.rs", "fn main() {}")
+        .file("subdir/file", "")
+        .build();
+
+    let _outside = project()
+        .at("outside")
+        .file(
+            "Cargo.toml",
+            r#"
+                [package]
+                name = "outside"
+                version = "0.1.0"
+                edition = "2015"
+                workspace = "../root"
+            "#,
+        )
+        .file("src/main.rs", "fn main() {}")
+        .build();
+
+    // Run from `root/subdir` pointing to `../../outside/Cargo.toml`
+    // The workspace root is at `root`.
+    // The package is at `outside`.
+    // Relative path from root to outside is `../outside`.
+
+    // We execute inside `root`, but targeting the outside package.
+    root.cargo("build")
+        .cwd(root.root().join("subdir"))
+        .arg("-v")
+        .arg("--manifest-path")
+        .arg("../../outside/Cargo.toml")
+        .with_status(101)
+        .with_stderr_data(str![[r#"
+[ERROR] current package believes it's in a workspace when it's not:
+current:   [ROOT]/outside/Cargo.toml
+workspace: [ROOT]/root/Cargo.toml
+
+this may be fixable by adding `../outside` to the `workspace.members` array of the manifest located at: [ROOT]/root/Cargo.toml
+Alternatively, to keep it out of the workspace, add the package to the `workspace.exclude` array, or add an empty `[workspace]` table to the package's manifest.
+
+"#]])
+        .run();
+}