diff --git a/lib/ansible/plugins/action/__init__.py b/lib/ansible/plugins/action/__init__.py
index 65964dc955..b4f71b17a9 100644
--- a/lib/ansible/plugins/action/__init__.py
+++ b/lib/ansible/plugins/action/__init__.py
@@ -718,7 +718,14 @@ class ActionBase(with_metaclass(ABCMeta, object)):
                 cmd = executable + ' -c ' + pipes.quote(cmd)
 
         display.debug("_low_level_execute_command(): executing: %s" % (cmd,))
-        rc, stdout, stderr = self._connection.exec_command(cmd, in_data=in_data, sudoable=sudoable)
+
+        # Change directory to basedir of task for command execution
+        cwd = os.getcwd()
+        os.chdir(self._loader.get_basedir())
+        try:
+            rc, stdout, stderr = self._connection.exec_command(cmd, in_data=in_data, sudoable=sudoable)
+        finally:
+            os.chdir(cwd)
 
         # stdout and stderr may be either a file-like or a bytes object.
         # Convert either one to a text type
diff --git a/lib/ansible/plugins/connection/local.py b/lib/ansible/plugins/connection/local.py
index c66218b882..0c7bb5ccb7 100644
--- a/lib/ansible/plugins/connection/local.py
+++ b/lib/ansible/plugins/connection/local.py
@@ -69,7 +69,6 @@ class Connection(ConnectionBase):
         executable = C.DEFAULT_EXECUTABLE.split()[0] if C.DEFAULT_EXECUTABLE else None
 
         display.vvv(u"EXEC {0}".format(cmd), host=self._play_context.remote_addr)
-        # FIXME: cwd= needs to be set to the basedir of the playbook
         display.debug("opening command with Popen()")
 
         if isinstance(cmd, (text_type, binary_type)):
diff --git a/test/units/plugins/action/test_action.py b/test/units/plugins/action/test_action.py
index 44358cf22d..8a634bf604 100644
--- a/test/units/plugins/action/test_action.py
+++ b/test/units/plugins/action/test_action.py
@@ -607,8 +607,10 @@ class TestActionBase(unittest.TestCase):
         self.assertRaises(AnsibleError, action_base._execute_module)
 
     def test_action_base_sudo_only_if_user_differs(self):
+        fake_loader = MagicMock()
+        fake_loader.get_basedir.return_value = os.getcwd()
         play_context = PlayContext()
-        action_base = DerivedActionBase(None, None, play_context, None, None, None)
+        action_base = DerivedActionBase(None, None, play_context, fake_loader, None, None)
         action_base._connection = MagicMock(exec_command=MagicMock(return_value=(0, '', '')))
         action_base._connection._shell = MagicMock(append_command=MagicMock(return_value=('JOINED CMD')))