diff --git a/Makefile b/Makefile
index e9ffe1f40113..f7f505bc78f6 100644
--- a/Makefile
+++ b/Makefile
@@ -310,7 +310,7 @@ otel-from-tree:
 	# 2. Run `make otel-from-tree` (only need to run it once to remap go modules)
 	# 3. You can now build contrib and it will use your local otel core changes.
 	# 4. Before committing/pushing your contrib changes, undo by running `make otel-from-lib`.
-	$(MAKE) for-all CMD="$(GOCMD) mod edit -replace go.opentelemetry.io/collector=$(SRC_ROOT)/../opentelemetry-collector"
+	$(MAKE) for-all CMD="$(GOCMD) mod edit -replace go.opentelemetry.io/collector=$(SRC_PARENT_DIR)/opentelemetry-collector"
 
 .PHONY: otel-from-lib
 otel-from-lib:
diff --git a/Makefile.Common b/Makefile.Common
index ddb3194f9c9a..0d19f3c8e57e 100644
--- a/Makefile.Common
+++ b/Makefile.Common
@@ -20,6 +20,8 @@ endif
 
 # SRC_ROOT is the top of the source tree.
 SRC_ROOT := $(shell git rev-parse --show-toplevel)
+# SRC_PARENT_DIR is the absolute path of source tree's parent directory
+SRC_PARENT_DIR :=  $(shell dirname $(SRC_ROOT))
 
 # build tags required by any component should be defined as an independent variables and later added to GO_BUILD_TAGS below
 GO_BUILD_TAGS=""