diff --git a/CHANGELOG.md b/CHANGELOG.md
index d4d8d83cdff..a4aa0bd0d64 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -78,6 +78,7 @@ Looking for changes that affect our C API? See the [C API Changelog](lib/c-api/C
 - [#2157](https://github.com/wasmerio/wasmer/pull/2157) Simplify the code behind `WasmPtr`
 
 ### Fixed
+- [#2397](https://github.com/wasmerio/wasmer/pull/2397) Fix WASI rename temporary file issue.
 - [#2391](https://github.com/wasmerio/wasmer/pull/2391) Fix Singlepass emit bug, [#2347](https://github.com/wasmerio/wasmer/issues/2347) and [#2159](https://github.com/wasmerio/wasmer/issues/2159)
 - [#2327](https://github.com/wasmerio/wasmer/pull/2327) Fix memory leak preventing internal instance memory from being freed when a WasmerEnv contained an exported extern (e.g. Memory, etc.).
 - [#2247](https://github.com/wasmerio/wasmer/pull/2247) Internal WasiFS logic updated to be closer to what WASI libc does when finding a preopened fd for a path.
diff --git a/lib/wasi/src/syscalls/mod.rs b/lib/wasi/src/syscalls/mod.rs
index 58413a6933c..5071aa273da 100644
--- a/lib/wasi/src/syscalls/mod.rs
+++ b/lib/wasi/src/syscalls/mod.rs
@@ -2068,7 +2068,7 @@ pub fn path_rename(
                 return __WASI_EEXIST;
             }
             let mut out_path = path.clone();
-            out_path.push(target_path);
+            out_path.push(std::path::Path::new(&target_entry_name));
             out_path
         }
         Kind::Root { .. } => return __WASI_ENOTCAPABLE,
diff --git a/tests/wasi-wast/wasi/snapshot1/path_rename.wasm b/tests/wasi-wast/wasi/snapshot1/path_rename.wasm
index 9d5c5377ecf..2b99f365993 100755
Binary files a/tests/wasi-wast/wasi/snapshot1/path_rename.wasm and b/tests/wasi-wast/wasi/snapshot1/path_rename.wasm differ
diff --git a/tests/wasi-wast/wasi/snapshot1/path_rename.wast b/tests/wasi-wast/wasi/snapshot1/path_rename.wast
index 37462eedb39..10e6178eef0 100644
--- a/tests/wasi-wast/wasi/snapshot1/path_rename.wast
+++ b/tests/wasi-wast/wasi/snapshot1/path_rename.wast
@@ -3,5 +3,5 @@
 (wasi_test "path_rename.wasm"
   (temp_dirs "temp")
   (assert_return (i64.const 0))
-  (assert_stdout "The original file does not still exist!\nFound item: path_renamed_file.txt\n柴犬\n")
+  (assert_stdout "The original file does not still exist!\nFound item: path_renamed_file.txt\n柴犬\nrun_with_sub_dir: The original file does not still exist!\nrun_with_different_sub_dirs: The original file does not still exist!\n")
 )
diff --git a/tests/wasi-wast/wasi/tests/path_rename.rs b/tests/wasi-wast/wasi/tests/path_rename.rs
index 266990c655f..28ea0dea1be 100644
--- a/tests/wasi-wast/wasi/tests/path_rename.rs
+++ b/tests/wasi-wast/wasi/tests/path_rename.rs
@@ -5,7 +5,7 @@ use std::fs;
 use std::io::{Read, Write};
 use std::path::PathBuf;
 
-fn main() {
+fn run_with_toplevel_dir() {
     #[cfg(not(target_os = "wasi"))]
     let mut base = PathBuf::from("test_fs");
     #[cfg(target_os = "wasi")]
@@ -73,3 +73,95 @@ fn main() {
     println!("{}", test_str);
     std::fs::remove_file(file_to_rename_to).unwrap();
 }
+
+fn run_with_sub_dir() {
+    #[cfg(not(target_os = "wasi"))]
+    let base = PathBuf::from("test_fs");
+    #[cfg(target_os = "wasi")]
+    let mut base = PathBuf::from("temp");
+
+    //make a sub-directory
+    fs::create_dir(base.join("sub"));
+
+    let file_to_create = base.join("sub/path_rename_file.txt");
+    let file_to_rename_to = base.join("sub/path_renamed_file.txt");
+
+    {
+        let mut f = std::fs::OpenOptions::new()
+            .create_new(true)
+            .write(true)
+            .open(&file_to_create)
+            .unwrap();
+
+        let string = "Hello world";
+        let bytes: Vec<u8> = string.bytes().collect();
+        f.write_all(&bytes[..]).unwrap();
+    }
+
+    std::fs::rename(&file_to_create, &file_to_rename_to).unwrap();
+    let mut file = fs::File::open(&file_to_rename_to).expect("Could not open file");
+    if file_to_create.exists() {
+        println!("run_with_sub_dir: The original file still exists!");
+        return;
+    } else {
+        println!("run_with_sub_dir: The original file does not still exist!");
+    }
+
+    if !file_to_rename_to.exists() {
+        println!("run_with_sub_dir: The moved file does not exist!");
+        return;
+    }
+    fs::remove_dir_all(base.join("sub"));
+}
+
+fn run_with_different_sub_dirs() {
+    #[cfg(not(target_os = "wasi"))]
+    let base = PathBuf::from("test_fs");
+    #[cfg(target_os = "wasi")]
+    let mut base = PathBuf::from("temp");
+
+    //make sub-directories
+    fs::create_dir(base.join("a"));
+    fs::create_dir(base.join("a/b"));
+    fs::create_dir(base.join("c"));
+    fs::create_dir(base.join("c/d"));
+    fs::create_dir(base.join("c/d/e"));
+
+    let file_to_create = base.join("a/b/path_rename_file.txt");
+    let file_to_rename_to = base.join("c/d/e/path_renamed_file.txt");
+
+    {
+        let mut f = std::fs::OpenOptions::new()
+            .create_new(true)
+            .write(true)
+            .open(&file_to_create)
+            .unwrap();
+
+        let string = "Hello world";
+        let bytes: Vec<u8> = string.bytes().collect();
+        f.write_all(&bytes[..]).unwrap();
+    }
+
+    std::fs::rename(&file_to_create, &file_to_rename_to).unwrap();
+    let mut file = fs::File::open(&file_to_rename_to).expect("Could not open file");
+    if file_to_create.exists() {
+        println!("run_with_different_sub_dirs: The original file still exists!");
+        return;
+    } else {
+        println!("run_with_different_sub_dirs: The original file does not still exist!");
+    }
+
+    if !file_to_rename_to.exists() {
+        println!("run_with_different_sub_dirs: The moved file does not exist!");
+        return;
+    }
+
+    fs::remove_dir_all(base.join("a"));
+    fs::remove_dir_all(base.join("c"));
+}
+
+fn main() {
+    run_with_toplevel_dir();
+    run_with_sub_dir();
+    run_with_different_sub_dirs();
+}
diff --git a/tests/wasi-wast/wasi/unstable/path_rename.wasm b/tests/wasi-wast/wasi/unstable/path_rename.wasm
index 4642d31858a..5945204f8e1 100755
Binary files a/tests/wasi-wast/wasi/unstable/path_rename.wasm and b/tests/wasi-wast/wasi/unstable/path_rename.wasm differ
diff --git a/tests/wasi-wast/wasi/unstable/path_rename.wast b/tests/wasi-wast/wasi/unstable/path_rename.wast
index 37462eedb39..10e6178eef0 100644
--- a/tests/wasi-wast/wasi/unstable/path_rename.wast
+++ b/tests/wasi-wast/wasi/unstable/path_rename.wast
@@ -3,5 +3,5 @@
 (wasi_test "path_rename.wasm"
   (temp_dirs "temp")
   (assert_return (i64.const 0))
-  (assert_stdout "The original file does not still exist!\nFound item: path_renamed_file.txt\n柴犬\n")
+  (assert_stdout "The original file does not still exist!\nFound item: path_renamed_file.txt\n柴犬\nrun_with_sub_dir: The original file does not still exist!\nrun_with_different_sub_dirs: The original file does not still exist!\n")
 )