contentlayerdev
diff --git a/packages/@contentlayer/core/src/markdown/mdx.ts b/packages/@contentlayer/core/src/markdown/mdx.ts
@@ -25,13 +25,18 @@ export const bundleMDX = ({
       if (mdxString.length === 0) {
         return ''
       }
-      const { rehypePlugins, remarkPlugins, cwd: cwd_, ...restOptions } = options ?? {}
+      const { rehypePlugins, remarkPlugins, resolveCwd, cwd: cwd_, ...restOptions } = options ?? {}
 
       const getCwdFromContentDirPath = () =>
         // TODO don't use `process.cwd()` but instead `HasCwd`
         path.isAbsolute(contentDirPath) ? contentDirPath : path.join(process.cwd(), contentDirPath)
-      const cwd = cwd_ ?? getCwdFromContentDirPath()
 
+      const getRelativeCwd = () => 
+        path.join(getCwdFromContentDirPath(), path.dirname(rawDocumentData.flattenedPath))
+
+      const getCwd = () =>
+        resolveCwd === 'contentDirPath' ? getCwdFromContentDirPath() : getRelativeCwd()
+
       const mdxOptions: BundleMDXOptions<any> = {
         mdxOptions: (opts) => {
           opts.rehypePlugins = [...(opts.rehypePlugins ?? []), ...(rehypePlugins ?? [])]
@@ -42,7 +47,8 @@ export const bundleMDX = ({
           ]
           return opts
         },
-        cwd,
+        // User-provided cwd trumps resolution
+        cwd: cwd_ ?? getCwd(),
         // NOTE `restOptions` should be spread at the end to allow for user overrides
         ...restOptions,
       }

diff --git a/packages/@contentlayer/core/src/plugin.ts b/packages/@contentlayer/core/src/plugin.ts
@@ -63,7 +63,15 @@ export type MDXOptions = {
    *
    * If you're providing `mdxOptions` then `rehypePlugins` and `remarkPlugins` will be ignored.
    */
-  mdxOptions?: MDXBundlerMDXOptions
+  mdxOptions?: MDXBundlerMDXOptions,
+  /**
+   * How we resolve the cwd passed to mdx-bundler when processing a file. If an explicit `cwd` 
+   * is provided this option will be ignored.
+   * - `relative` sets the cwd to the directory the file resides in.
+   * - `contentDirPath` sets the cwd to the contentDirPath. This was the default behavior up until v0.2.6.
+   * @default "relative"
+   */
+  resolveCwd?: 'relative' | 'contentDirPath';
 } & Omit<mdxBundler.BundleMDXOptions<any>, 'mdxOptions'>
 
 export type MDXBundlerMDXOptions = mdxBundler.BundleMDXOptions<any>['mdxOptions']

diff --git a/packages/integration-tests/package.json b/packages/integration-tests/package.json
@@ -7,6 +7,7 @@
   },
   "devDependencies": {
     "contentlayer": "workspace:*",
+    "remark-mdx-images": "^2.0.0",
     "typescript": "^4.7.4",
     "vite": "^2.9.8",
     "vitest": "^0.12.4"

diff --git a/packages/integration-tests/src/mdx/content/posts/image-a.png b/packages/integration-tests/src/mdx/content/posts/image-a.png
diff --git a/packages/integration-tests/src/mdx/content/posts/post-a.mdx b/packages/integration-tests/src/mdx/content/posts/post-a.mdx
@@ -0,0 +1,3 @@
+# Hello world
+
+![test](./image-a.png)
diff --git a/packages/integration-tests/src/mdx/contentDirPath/posts/image-b.png b/packages/integration-tests/src/mdx/contentDirPath/posts/image-b.png
diff --git a/packages/integration-tests/src/mdx/contentDirPath/posts/post-b.mdx b/packages/integration-tests/src/mdx/contentDirPath/posts/post-b.mdx
@@ -0,0 +1,3 @@
+# Hello world
+
+![test](./posts/image-b.png)
diff --git a/packages/integration-tests/src/mdx/index.test.ts b/packages/integration-tests/src/mdx/index.test.ts
@@ -0,0 +1,101 @@
+/* eslint-disable import/no-extraneous-dependencies */
+import * as core from 'contentlayer/core'
+import { defineDocumentType, makeSource } from 'contentlayer/source-files'
+import * as fs from 'node:fs/promises'
+import path from 'node:path'
+import { fileURLToPath } from 'node:url'
+import remarkMdxImages from 'remark-mdx-images'
+import { expect, test } from 'vitest'
+
+test('mdx - resolveCwd - contentDirPath', async () => {
+  const Post = defineDocumentType(() => ({
+    name: 'Post',
+    filePathPattern: 'posts/*.mdx',
+    contentType: 'mdx',
+    fields: {},
+  }))
+
+  const testDirPath = fileURLToPath(new URL('.', import.meta.url))
+  const testOutPath = `${testDirPath}/out`
+
+  await fs.rm(path.join(testDirPath, '.contentlayer'), { recursive: true, force: true })
+
+  process.env['INIT_CWD'] = testDirPath
+
+  const source = await makeSource({
+    contentDirPath: path.join(testDirPath, 'contentDirPath'),
+    documentTypes: [Post],
+    mdx: {
+      resolveCwd: 'contentDirPath',
+      remarkPlugins: [remarkMdxImages],
+      esbuildOptions: (options) => {
+        options.platform = 'node'
+        options.outdir = testOutPath
+        options.assetNames = `images/[name]-[hash]`
+        options.loader = {
+          ...options.loader,
+          '.png': 'file'
+        }
+        options.publicPath = '/'
+        options.write = true
+        return options
+      }
+    }
+  })
+
+  await core.runMain({ tracingServiceName: 'test', verbose: false })(
+    core.generateDotpkg({ config: { source, esbuildHash: 'STATIC_HASH' }, verbose: true }),
+  )
+
+  // Check that the bundled image has been generated
+  const statResult = await fs.stat(path.join(testOutPath, 'images/image-b-QQWYPTMT.png')).catch(() => false)
+
+  expect(statResult).not.toEqual(false);
+})
+
+
+test('mdx - resolveCwd - relative', async () => {
+  const Post = defineDocumentType(() => ({
+    name: 'Post',
+    filePathPattern: 'posts/*.mdx',
+    contentType: 'mdx',
+    fields: {},
+  }))
+
+  const testDirPath = fileURLToPath(new URL('.', import.meta.url))
+  const testOutPath = `${testDirPath}/out`
+
+  await fs.rm(path.join(testDirPath, '.contentlayer'), { recursive: true, force: true })
+
+  process.env['INIT_CWD'] = testDirPath
+
+  const source = await makeSource({
+    contentDirPath: path.join(testDirPath, 'content'),
+    documentTypes: [Post],
+    mdx: {
+      resolveCwd: 'relative',
+      remarkPlugins: [remarkMdxImages],
+      esbuildOptions: (options) => {
+        options.platform = 'node'
+        options.outdir = testOutPath
+        options.assetNames = `images/[name]-[hash]`
+        options.loader = {
+          ...options.loader,
+          '.png': 'file'
+        }
+        options.publicPath = '/'
+        options.write = true
+        return options
+      }
+    }
+  })
+
+  await core.runMain({ tracingServiceName: 'test', verbose: false })(
+    core.generateDotpkg({ config: { source, esbuildHash: 'STATIC_HASH' }, verbose: true }),
+  )
+
+  // Check that the bundled image has been generated
+  const statResult = await fs.stat(path.join(testOutPath, 'images/image-a-QQWYPTMT.png')).catch(() => false)
+
+  expect(statResult).not.toEqual(false);
+})