diff --git a/pkgs/clan-cli/clan_lib/clan/create.py b/pkgs/clan-cli/clan_lib/clan/create.py
index 48c192565..4f636b263 100644
--- a/pkgs/clan-cli/clan_lib/clan/create.py
+++ b/pkgs/clan-cli/clan_lib/clan/create.py
@@ -84,7 +84,7 @@ def create_clan(opts: CreateOptions) -> None:
         # _postprocess_flake_hook must be private to avoid leaking it to the public API
         post_process=opts._postprocess_flake_hook,  # noqa: SLF001
     ) as _clan_dir:
-        flake = Flake(str(opts.dest))
+        flake = Flake(str(Path(opts.dest).absolute()))
 
         if opts.setup_git:
             run(git_command(dest, "init"))
diff --git a/pkgs/clan-cli/clan_lib/clan/create_test.py b/pkgs/clan-cli/clan_lib/clan/test_create.py
similarity index 86%
rename from pkgs/clan-cli/clan_lib/clan/create_test.py
rename to pkgs/clan-cli/clan_lib/clan/test_create.py
index 9855a9ee0..ec501b224 100644
--- a/pkgs/clan-cli/clan_lib/clan/create_test.py
+++ b/pkgs/clan-cli/clan_lib/clan/test_create.py
@@ -38,6 +38,29 @@ def test_create_simple(tmp_path: Path, offline_flake_hook: Any) -> None:
     assert "instances" in inventory
 
 
+@pytest.mark.with_core
+def test_can_handle_path_without_slash(
+    tmp_path: Path,
+    offline_flake_hook: Any,
+    monkeypatch: pytest.MonkeyPatch,
+) -> None:
+    """
+    Tests for a regression, where it broke when the path is a single word like `foo`.
+    The flake identifier was interpreted as an external flake.
+    """
+    monkeypatch.chdir(tmp_path)
+    dest = Path("test_clan")
+
+    opts = CreateOptions(
+        dest=dest, template="default", _postprocess_flake_hook=offline_flake_hook
+    )
+
+    create_clan(opts)
+
+    assert dest.exists()
+    assert dest.is_dir()
+
+
 @pytest.mark.with_core
 def test_create_with_name(tmp_path: Path, offline_flake_hook: Any) -> None:
     """