diff --git a/test/functional/test_framework/cdefs.py b/test/functional/test_framework/cdefs.py
--- a/test/functional/test_framework/cdefs.py
+++ b/test/functional/test_framework/cdefs.py
@@ -36,7 +36,7 @@
     mainmod = sys.modules['__main__']
     mainmod_path = getattr(mainmod, '__file__', '')
     if mainmod_path and mainmod_path.endswith('.py'):
-        maybe_top = mainmod_path
+        maybe_top = os.path.realpath(mainmod_path)
         while maybe_top != '/':
             maybe_top = os.path.abspath(os.path.dirname(maybe_top))
             if contains_src(maybe_top):
diff --git a/test/functional/test_runner.py b/test/functional/test_runner.py
--- a/test/functional/test_runner.py
+++ b/test/functional/test_runner.py
@@ -140,6 +140,12 @@
     config.read_file(open(configfile))
 
     src_dir = config["environment"]["SRCDIR"]
+    if 'SRCDIR' in os.environ:
+        src_dir = os.environ['SRCDIR']
+    else:
+        # Setup SRCDIR env since subprocesses can't find it properly without the env.
+        os.environ['SRCDIR'] = src_dir
+
     build_dir = config["environment"]["BUILDDIR"]
     tests_dir = os.path.join(src_dir, 'test', 'functional')
 
@@ -406,7 +412,8 @@
                 update_queue.task_done()
             except Empty as e:
                 if not on_ci():
-                    print("Running jobs: {}".format(", ".join(running_jobs)), end="\r")
+                    print("Running jobs: {}".format(
+                        ", ".join(running_jobs)), end="\r")
                     sys.stdout.flush()
                     printed_status = True