diff --git a/src/commands/hook.ts b/src/commands/hook.ts
index e3ee0ad0..d5699316 100644
--- a/src/commands/hook.ts
+++ b/src/commands/hook.ts
@@ -29,16 +29,16 @@ export default command({
 	parameters: ['<install/uninstall>'],
 }, (argv) => {
 	(async () => {
-		await assertGitRepo();
-
+		const gitRepoPath = await assertGitRepo();
 		const { installUninstall: mode } = argv._;
 
-		const hookExists = await fileExists(symlinkPath);
+		const absoltueSymlinkPath = path.join(gitRepoPath, symlinkPath);
+		const hookExists = await fileExists(absoltueSymlinkPath);
 		if (mode === 'install') {
 			if (hookExists) {
 				// If the symlink is broken, it will throw an error
 				// eslint-disable-next-line @typescript-eslint/no-empty-function
-				const realpath = await fs.realpath(symlinkPath).catch(() => {});
+				const realpath = await fs.realpath(absoltueSymlinkPath).catch(() => {});
 				if (realpath === hookPath) {
 					console.warn('The hook is already installed');
 					return;
@@ -46,16 +46,16 @@ export default command({
 				throw new KnownError(`A different ${hookName} hook seems to be installed. Please remove it before installing aicommits.`);
 			}
 
-			await fs.mkdir(path.dirname(symlinkPath), { recursive: true });
+			await fs.mkdir(path.dirname(absoltueSymlinkPath), { recursive: true });
 
 			if (isWindows) {
 				await fs.writeFile(
-					symlinkPath,
+					absoltueSymlinkPath,
 					windowsHook,
 				);
 			} else {
-				await fs.symlink(hookPath, symlinkPath, 'file');
-				await fs.chmod(symlinkPath, 0o755);
+				await fs.symlink(hookPath, absoltueSymlinkPath, 'file');
+				await fs.chmod(absoltueSymlinkPath, 0o755);
 			}
 			console.log(`${green('✔')} Hook installed`);
 			return;
@@ -68,20 +68,20 @@ export default command({
 			}
 
 			if (isWindows) {
-				const scriptContent = await fs.readFile(symlinkPath, 'utf8');
+				const scriptContent = await fs.readFile(absoltueSymlinkPath, 'utf8');
 				if (scriptContent !== windowsHook) {
 					console.warn('Hook is not installed');
 					return;
 				}
 			} else {
-				const realpath = await fs.realpath(symlinkPath);
+				const realpath = await fs.realpath(absoltueSymlinkPath);
 				if (realpath !== hookPath) {
 					console.warn('Hook is not installed');
 					return;
 				}
 			}
 
-			await fs.rm(symlinkPath);
+			await fs.rm(absoltueSymlinkPath);
 			console.log(`${green('✔')} Hook uninstalled`);
 			return;
 		}
diff --git a/src/utils/git.ts b/src/utils/git.ts
index b908546f..b2026aac 100644
--- a/src/utils/git.ts
+++ b/src/utils/git.ts
@@ -2,11 +2,13 @@ import { execa } from 'execa';
 import { KnownError } from './error.js';
 
 export const assertGitRepo = async () => {
-	const { stdout } = await execa('git', ['rev-parse', '--is-inside-work-tree'], { reject: false });
+	const { stdout, failed } = await execa('git', ['rev-parse', '--show-toplevel'], { reject: false });
 
-	if (stdout !== 'true') {
+	if (failed) {
 		throw new KnownError('The current directory must be a Git repository!');
 	}
+
+	return stdout;
 };
 
 const excludeFromDiff = (path: string) => `:(exclude)${path}`;
diff --git a/tests/specs/git-hook.ts b/tests/specs/git-hook.ts
index 004cb3a3..fa6b7f30 100644
--- a/tests/specs/git-hook.ts
+++ b/tests/specs/git-hook.ts
@@ -1,3 +1,4 @@
+import path from 'path';
 import { testSuite, expect } from 'manten';
 import {
 	assertOpenAiToken,
@@ -22,6 +23,25 @@ export default testSuite(({ describe }) => {
 			await fixture.rm();
 		});
 
+		test('installs from Git repo subdirectory', async () => {
+			const { fixture, aicommits } = await createFixture({
+				...files,
+				'some-dir': {
+					'file.txt': '',
+				},
+			});
+			await createGit(fixture.path);
+
+			const { stdout } = await aicommits(['hook', 'install'], {
+				cwd: path.join(fixture.path, 'some-dir'),
+			});
+			expect(stdout).toMatch('Hook installed');
+
+			expect(await fixture.exists('.git/hooks/prepare-commit-msg')).toBe(true);
+
+			await fixture.rm();
+		});
+
 		test('Commits', async () => {
 			const { fixture, aicommits } = await createFixture(files);
 			const git = await createGit(fixture.path);
diff --git a/tests/utils.ts b/tests/utils.ts
index 8bf3d1ab..77e190eb 100644
--- a/tests/utils.ts
+++ b/tests/utils.ts
@@ -19,8 +19,8 @@ const createAicommits = (fixture: FsFixture) => {
 		args?: string[],
 		options?: Options,
 	) => execaNode(aicommitsPath, args, {
-		...options,
 		cwd: fixture.path,
+		...options,
 		extendEnv: false,
 		env: {
 			...homeEnv,