diff --git a/apps/daemon/src/server.ts b/apps/daemon/src/server.ts
index 646eab80e..b76a48cde 100644
--- a/apps/daemon/src/server.ts
+++ b/apps/daemon/src/server.ts
@@ -70,7 +70,8 @@ import {
 const __filename = fileURLToPath(import.meta.url);
 const __dirname = path.dirname(__filename);
 export function resolveProjectRoot(moduleDir: string): string {
-  const daemonDir = path.basename(moduleDir) === 'dist'
+  const base = path.basename(moduleDir);
+  const daemonDir = base === 'dist' || base === 'src'
     ? path.dirname(moduleDir)
     : moduleDir;
   return path.resolve(daemonDir, '../..');
diff --git a/apps/daemon/tests/server-paths.test.ts b/apps/daemon/tests/server-paths.test.ts
index 9559ec981..e43497861 100644
--- a/apps/daemon/tests/server-paths.test.ts
+++ b/apps/daemon/tests/server-paths.test.ts
@@ -14,4 +14,10 @@ describe('resolveProjectRoot', () => {
 
     expect(resolveProjectRoot(path.join(root, 'apps', 'daemon', 'dist'))).toBe(root);
   });
+
+  it('resolves the repository root from the daemon src directory (tsx entry)', () => {
+    const root = path.resolve(import.meta.dirname, '../../..');
+
+    expect(resolveProjectRoot(path.join(root, 'apps', 'daemon', 'src'))).toBe(root);
+  });
 });