diff --git a/README.md b/README.md
index 0ef99272..9e54ae65 100644
--- a/README.md
+++ b/README.md
@@ -42,17 +42,22 @@ Only `*.php` file is loaded, not the `*.php.old` one. This way you can **be sure
 vendor/bin/vendor-patches generate
 ```
 
-This tool will generate **patch files for all files created this** way in `/patches` directory:
+This tool will generate **patch files for all vendor files modified this way**.
+
+By default, they will be created in the `patches` subdirectory of your repository,
+but you can override this using the environment variable `VENDOR_PATCHES_OUTPUT_PATH`.
+If its value is an absolute path, it must describe a path within the repository.
+If a relative path, it will be relative to the repository root.
 
 ```bash
-/patches/nette-di-di-extensions-injectextension.php.patch
+patches/nette-di-di-extensions-injectextension.php.patch
 ```
 
-The patch path is based on original file path, so **the patch name is always unique**.
+Each patch file name is based on the original file path, so **it is always unique**.
 
 <br>
 
-Also, it will add configuration for `cweagans/composer-patches` to your `composer.json`:
+Also, `generate` will add configuration for `cweagans/composer-patches` to your `composer.json`:
 
 ```json
 {
diff --git a/src/Command/GenerateCommand.php b/src/Command/GenerateCommand.php
index 6ce2739f..5abf69c3 100644
--- a/src/Command/GenerateCommand.php
+++ b/src/Command/GenerateCommand.php
@@ -12,6 +12,7 @@
 use Symplify\VendorPatches\Composer\ComposerPatchesConfigurationUpdater;
 use Symplify\VendorPatches\Console\GenerateCommandReporter;
 use Symplify\VendorPatches\Differ\PatchDiffer;
+use Symplify\VendorPatches\FileSystem\PathResolver;
 use Symplify\VendorPatches\Finder\OldToNewFilesFinder;
 use Symplify\VendorPatches\PatchFileFactory;
 use Symplify\VendorPatches\VendorDirProvider;
@@ -77,7 +78,7 @@ protected function execute(InputInterface $input, OutputInterface $output): int
 
         if ($composerExtraPatches !== []) {
             $this->composerPatchesConfigurationUpdater->updateComposerJsonAndPrint(
-                getcwd() . '/composer.json',
+                PathResolver::getProjectRootPath() . 'composer.json',
                 $composerExtraPatches
             );
         }
@@ -94,7 +95,7 @@ protected function execute(InputInterface $input, OutputInterface $output): int
 
     private function resolveProjectVendorDirectory(): string
     {
-        $projectVendorDirectory = getcwd() . '/vendor';
+        $projectVendorDirectory = PathResolver::getProjectRootPath() . 'vendor';
         if (file_exists($projectVendorDirectory)) {
             return $projectVendorDirectory;
         }
diff --git a/src/FileSystem/PathResolver.php b/src/FileSystem/PathResolver.php
index 4a202f19..caf108ce 100644
--- a/src/FileSystem/PathResolver.php
+++ b/src/FileSystem/PathResolver.php
@@ -16,6 +16,16 @@ final class PathResolver
      */
     private const VENDOR_PACKAGE_DIRECTORY_REGEX = '#^(?<vendor_package_directory>.*?vendor\/(\w|\.|\-)+\/(\w|\.|\-)+)\/#si';
 
+    public static function getAbsoluteRootPath(): string
+    {
+        return getenv('SystemDrive', true) . DIRECTORY_SEPARATOR;
+    }
+
+    public static function getProjectRootPath(): string
+    {
+        return getcwd() . DIRECTORY_SEPARATOR;
+    }
+
     public static function resolveVendorDirectory(string $filePath): string
     {
         $match = Strings::match($filePath, self::VENDOR_PACKAGE_DIRECTORY_REGEX);
diff --git a/src/PatchFileFactory.php b/src/PatchFileFactory.php
index 301c80c4..9193857c 100644
--- a/src/PatchFileFactory.php
+++ b/src/PatchFileFactory.php
@@ -13,6 +13,10 @@
  */
 final class PatchFileFactory
 {
+    public const DEFAULT_OUTPUT_PATH = 'patches';
+
+    public const OUTPUT_PATH_ENV_VAR = 'VENDOR_PATCHES_OUTPUT_PATH';
+
     public function createPatchFilePath(OldAndNewFile $oldAndNewFile, string $vendorDirectory): string
     {
         $inVendorRelativeFilePath = PathResolver::getRelativeFilePathFromDirectory(
@@ -21,8 +25,26 @@ public function createPatchFilePath(OldAndNewFile $oldAndNewFile, string $vendor
         );
 
         $relativeFilePathWithoutSuffix = Strings::lower($inVendorRelativeFilePath);
-        $pathFileName = Strings::webalize($relativeFilePathWithoutSuffix) . '.patch';
+        $patchFileName = Strings::webalize($relativeFilePathWithoutSuffix) . '.patch';
+
+        return $this->getOutputPathRelativeToProjectRoot() . DIRECTORY_SEPARATOR . $patchFileName;
+    }
+
+    private function getOutputPathRelativeToProjectRoot(): string
+    {
+        $outputPath = getenv(self::OUTPUT_PATH_ENV_VAR);
+
+        if ($outputPath) {
+            if (!str_starts_with($outputPath, PathResolver::getAbsoluteRootPath())) {
+                return $outputPath;
+            }
+
+            $projectRootPath = PathResolver::getProjectRootPath();
+            if (str_starts_with($outputPath, $projectRootPath)) {
+                return PathResolver::getRelativeFilePathFromDirectory($outputPath, $projectRootPath);
+            }
+        }
 
-        return 'patches' . DIRECTORY_SEPARATOR . $pathFileName;
+        return self::DEFAULT_OUTPUT_PATH;
     }
 }
diff --git a/src/VendorDirProvider.php b/src/VendorDirProvider.php
index 54d2beb6..1fa81355 100644
--- a/src/VendorDirProvider.php
+++ b/src/VendorDirProvider.php
@@ -6,20 +6,21 @@
 
 use Composer\Autoload\ClassLoader;
 use ReflectionClass;
+use Symplify\VendorPatches\FileSystem\PathResolver;
 use Webmozart\Assert\Assert;
 
 final class VendorDirProvider
 {
     public static function provide(): string
     {
-        $rootFolder = getenv('SystemDrive', true) . DIRECTORY_SEPARATOR;
+        $absoluteRootPath = PathResolver::getAbsoluteRootPath();
 
         $path = __DIR__;
-        while (! \str_ends_with($path, 'vendor') && $path !== $rootFolder) {
+        while (! \str_ends_with($path, 'vendor') && $path !== $absoluteRootPath) {
             $path = dirname($path);
         }
 
-        if ($path !== $rootFolder) {
+        if ($path !== $absoluteRootPath) {
             return $path;
         }
 
diff --git a/tests/PatchFileFactory/PatchFileFactoryTest.php b/tests/PatchFileFactory/PatchFileFactoryTest.php
index e4e0a692..5bd8de9d 100644
--- a/tests/PatchFileFactory/PatchFileFactoryTest.php
+++ b/tests/PatchFileFactory/PatchFileFactoryTest.php
@@ -10,17 +10,57 @@
 
 final class PatchFileFactoryTest extends AbstractTestCase
 {
-    public function test(): void
+    private const FIXTURE_PATH = __DIR__ . DIRECTORY_SEPARATOR . 'Fixture';
+
+    private const NESTED_OUTPUT_PATH = 'path' . DIRECTORY_SEPARATOR . 'to' . DIRECTORY_SEPARATOR . 'patches';
+
+    public function testDefaultOutputPath(): void
+    {
+        $patchFilePath = $this->makePatchFilePath();
+        $expectedPath = PatchFileFactory::DEFAULT_OUTPUT_PATH . DIRECTORY_SEPARATOR . 'some-new-file-php.patch';
+
+        $this->assertSame($expectedPath, $patchFilePath);
+    }
+
+    public function testRelativeEnvironmentOutputPath(): void
+    {
+        $relativeOutputPath = self::NESTED_OUTPUT_PATH;
+        $patchFilePath = $this->makePatchFilePathWithEnvironmentOutputPath($relativeOutputPath);
+        $expectedPath = self::NESTED_OUTPUT_PATH . DIRECTORY_SEPARATOR . 'some-new-file-php.patch';
+
+        $this->assertSame($expectedPath, $patchFilePath);
+    }
+
+    public function testAbsoluteEnvironmentOutputPath(): void
+    {
+        $absoluteOutputPath = dirname(__FILE__, 3) . DIRECTORY_SEPARATOR . self::NESTED_OUTPUT_PATH;
+        $patchFilePath = $this->makePatchFilePathWithEnvironmentOutputPath($absoluteOutputPath);
+        $expectedPath = self::NESTED_OUTPUT_PATH . DIRECTORY_SEPARATOR . 'some-new-file-php.patch';
+
+        $this->assertSame($expectedPath, $patchFilePath);
+    }
+
+    private function makePatchFilePath(): string
     {
         $patchFileFactory = $this->make(PatchFileFactory::class);
 
         $oldAndNewFile = new OldAndNewFile(
-            __DIR__ . '/Fixture/some_old_file.php',
-            __DIR__ . '/Fixture/some_new_file.php',
+            self::FIXTURE_PATH . DIRECTORY_SEPARATOR . 'some_old_file.php',
+            self::FIXTURE_PATH . DIRECTORY_SEPARATOR . 'some_new_file.php',
             'package/name'
         );
 
-        $pathFilePath = $patchFileFactory->createPatchFilePath($oldAndNewFile, __DIR__ . '/Fixture');
-        $this->assertSame('patches/some-new-file-php.patch', $pathFilePath);
+        return $patchFileFactory->createPatchFilePath($oldAndNewFile, self::FIXTURE_PATH);
+    }
+
+    private function makePatchFilePathWithEnvironmentOutputPath(string $environmentOutputPath): string
+    {
+        putenv(PatchFileFactory::OUTPUT_PATH_ENV_VAR . '=' . $environmentOutputPath);
+
+        $patchFilePath = $this->makePatchFilePath();
+
+        putenv(PatchFileFactory::OUTPUT_PATH_ENV_VAR); // Unset
+
+        return $patchFilePath;
     }
 }