diff --git a/CHANGELOG.md b/CHANGELOG.md
index 85af3d8..a0047f2 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,9 @@
 # Changelog
 
+## 0.0.1+3
+
+- Find SDK properly when invoked from inside SDK tests.
+
 ## 0.0.1+2
 
 - Support an executable in a symlinked directory.
diff --git a/lib/cli_util.dart b/lib/cli_util.dart
index aff2c67..6533e9f 100644
--- a/lib/cli_util.dart
+++ b/lib/cli_util.dart
@@ -33,7 +33,14 @@
   }
 
   // Look relative to the dart executable.
-  Directory sdkDirectory = new File(Platform.executable).parent.parent;
+  File platformExecutable = new File(Platform.executable);
+  Directory sdkDirectory = platformExecutable.parent.parent;
+  if (_isSdkDir(sdkDirectory)) return sdkDirectory;
+
+  // Handle the case where Platform.executable is a sibling of the SDK directory
+  // (this happens during internal testing).
+  sdkDirectory =
+      new Directory(p.join(platformExecutable.parent.path, 'dart-sdk'));
   if (_isSdkDir(sdkDirectory)) return sdkDirectory;
 
   // Try and locate the VM using 'which'.
diff --git a/pubspec.yaml b/pubspec.yaml
index c27866d..560d428 100644
--- a/pubspec.yaml
+++ b/pubspec.yaml
@@ -1,5 +1,5 @@
 name: cli_util
-version: 0.0.1+2
+version: 0.0.1+3
 author: Dart Team <misc@dartlang.org>
 description: A library to help in building Dart command-line apps.
 homepage: https://github.com/dart-lang/cli_util