diff --git a/src/core/kernel/init/CxbxKrnl.cpp b/src/core/kernel/init/CxbxKrnl.cpp
index 382437d4b..d412cd806 100644
--- a/src/core/kernel/init/CxbxKrnl.cpp
+++ b/src/core/kernel/init/CxbxKrnl.cpp
@@ -1448,9 +1448,6 @@ __declspec(noreturn) void CxbxKrnlInit
 		if (CxbxTitleDeviceDriveIndex == -1 || lastFind != std::string::npos) {
 #endif
 			CxbxCreateSymbolicLink(DriveD, relative_path);
-			// Arrange that the Xbe path can reside outside the partitions, and put it to g_hCurDir :
-			EmuNtSymbolicLinkObject* xbePathSymbolicLinkObject = FindNtSymbolicLinkObjectByDriveLetter(CxbxAutoMountDriveLetter);
-			g_hCurDir = xbePathSymbolicLinkObject->RootDirectoryHandle;
 		}
 	}
 
diff --git a/src/core/kernel/support/EmuFile.cpp b/src/core/kernel/support/EmuFile.cpp
index 358168265..caff3b2ec 100644
--- a/src/core/kernel/support/EmuFile.cpp
+++ b/src/core/kernel/support/EmuFile.cpp
@@ -715,8 +715,12 @@ xbox::ntstatus_xt CxbxCreateSymbolicLink(std::string SymbolicLinkName, std::stri
 	SymbolicLinkObject = new EmuNtSymbolicLinkObject();
 	result = SymbolicLinkObject->Init(SymbolicLinkName, FullPath);
 
-	if (result != xbox::status_success)
+	if (result != xbox::status_success) {
 		SymbolicLinkObject->NtClose();
+	}
+	else if (SymbolicLinkObject->DriveLetter == CxbxAutoMountDriveLetter) {
+		g_hCurDir = SymbolicLinkObject->RootDirectoryHandle;
+	}
 
 	return result;
 }
@@ -807,6 +811,9 @@ NTSTATUS EmuNtSymbolicLinkObject::Init(std::string aSymbolicLinkName, std::strin
 	if (DriveLetter >= 'A' && DriveLetter <= 'Z') {
 		NtSymbolicLinkObjects[DriveLetter - 'A'] = NULL;
 		NtDll::NtClose(RootDirectoryHandle);
+		if (DriveLetter == CxbxAutoMountDriveLetter) {
+			g_hCurDir = NULL;
+		}
 	}
 }