diff --git a/go.mod b/go.mod
index d1577c7c..42a11883 100644
--- a/go.mod
+++ b/go.mod
@@ -32,6 +32,7 @@ require (
 	go.yaml.in/yaml/v3 v3.0.4
 	golang.org/x/sync v0.18.0
 	golang.org/x/term v0.37.0
+	gopkg.in/yaml.v3 v3.0.1
 	helm.sh/helm/v3 v3.19.2
 	helm.sh/helm/v4 v4.0.1
 	k8s.io/apimachinery v0.34.2
@@ -323,7 +324,6 @@ require (
 	gopkg.in/gookit/color.v1 v1.1.6 // indirect
 	gopkg.in/inf.v0 v0.9.1 // indirect
 	gopkg.in/yaml.v2 v2.4.0 // indirect
-	gopkg.in/yaml.v3 v3.0.1 // indirect
 	k8s.io/api v0.34.2 // indirect
 	k8s.io/apiextensions-apiserver v0.34.1 // indirect
 	k8s.io/apiserver v0.34.1 // indirect
diff --git a/pkg/state/envvals_loader.go b/pkg/state/envvals_loader.go
index 78bf9a0b..4c3b5823 100644
--- a/pkg/state/envvals_loader.go
+++ b/pkg/state/envvals_loader.go
@@ -139,9 +139,15 @@ func (ld *EnvironmentValuesLoader) renderInBasePath(value any, r tmpl.TextRender
 		return nil, fmt.Errorf("failed to get current working directory: %v", err)
 	}
 
+	// If basePath is "." or already the current directory, no need to change
+	basePath := ld.storage.basePath
+	if basePath == "." || basePath == cwd {
+		return ld.renderTemplateExpressions(value, r)
+	}
+
 	// Change to basePath for rendering using the filesystem abstraction
-	if err := ld.fs.Chdir(ld.storage.basePath); err != nil {
-		return nil, fmt.Errorf("failed to change to base directory %q: %v", ld.storage.basePath, err)
+	if err := ld.fs.Chdir(basePath); err != nil {
+		return nil, fmt.Errorf("failed to change to base directory %q: %v", basePath, err)
 	}
 
 	// Ensure we change back to the original directory