diff --git a/Cargo.lock b/Cargo.lock
index 13bcc7cae..ca2fa0fe4 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -496,6 +496,12 @@ version = "0.11.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "1435fa1053d8b2fbbe9be7e97eca7f33d37b28409959813daefc1446a14247f1"
 
+[[package]]
+name = "dunce"
+version = "1.0.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "453440c271cf5577fd2a40e4942540cb7d0d2f85e27c8d07dd0023c925a67541"
+
 [[package]]
 name = "easy-parallel"
 version = "3.2.0"
@@ -1605,6 +1611,7 @@ dependencies = [
  "clap",
  "clap_complete",
  "directories-next",
+ "dunce",
  "gethostname",
  "git2",
  "indexmap",
diff --git a/Cargo.toml b/Cargo.toml
index 0bbbeb477..e17b51fd5 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -33,6 +33,7 @@ chrono = "0.4.19"
 clap = { version = "3.1.0", features = ["derive", "cargo", "unicode"] }
 clap_complete = "3.1.0"
 directories-next = "2.0.0"
+dunce = "1.0.2"
 gethostname = "0.2.2"
 git2 = { version = "0.13.25", default-features = false }
 indexmap = { version = "1.8.0", features = ["serde"] }
diff --git a/clippy.toml b/clippy.toml
index 394d9b4c1..4715dab30 100644
--- a/clippy.toml
+++ b/clippy.toml
@@ -3,4 +3,6 @@ disallowed-methods = [
   "std::process::Command::new",
   # Setting environment variables can cause issues with non-rust code
   "std::env::set_var",
+  # use `dunce` to avoid UNC/verbatim paths, where possible
+  "std::fs::canonicalize",
 ]
diff --git a/src/context.rs b/src/context.rs
index d09100669..952b48a12 100644
--- a/src/context.rs
+++ b/src/context.rs
@@ -137,9 +137,9 @@ impl<'a> Context<'a> {
         }
 
         // Canonicalize the current path to resolve symlinks, etc.
-        // NOTE: On Windows this converts the path to extended-path syntax.
+        // NOTE: On Windows this may convert the path to extended-path syntax.
         let current_dir = Context::expand_tilde(path);
-        let current_dir = current_dir.canonicalize().unwrap_or(current_dir);
+        let current_dir = dunce::canonicalize(&current_dir).unwrap_or(current_dir);
         let logical_dir = logical_path;
 
         let root_config = config
@@ -734,10 +734,8 @@ mod tests {
 
         assert_ne!(context.current_dir, context.logical_dir);
 
-        let expected_current_dir = path_actual
-            .join("yyy")
-            .canonicalize()
-            .expect("canonicalize");
+        let expected_current_dir =
+            dunce::canonicalize(path_actual.join("yyy")).expect("canonicalize");
         assert_eq!(expected_current_dir, context.current_dir);
 
         let expected_logical_dir = test_path;
@@ -787,4 +785,21 @@ mod tests {
         let expected_logical_dir = test_path;
         assert_eq!(expected_logical_dir, context.logical_dir);
     }
+
+    #[cfg(windows)]
+    #[test]
+    fn strip_extended_path_prefix() {
+        let test_path = Path::new(r"\\?\C:\").to_path_buf();
+        let context = Context::new_with_shell_and_path(
+            Properties::default(),
+            Shell::Unknown,
+            Target::Main,
+            test_path.clone(),
+            test_path,
+        );
+
+        let expected_path = Path::new(r"C:\");
+
+        assert_eq!(&context.current_dir, expected_path);
+    }
 }
diff --git a/src/modules/directory.rs b/src/modules/directory.rs
index 50cbfe4ea..ddbe8588b 100644
--- a/src/modules/directory.rs
+++ b/src/modules/directory.rs
@@ -364,8 +364,8 @@ mod tests {
         fs::create_dir_all(&src_dir)?;
         init_repo(&repo_dir)?;
 
-        let src_variations = [src_dir.clone(), src_dir.canonicalize().unwrap()];
-        let repo_variations = [repo_dir.clone(), repo_dir.canonicalize().unwrap()];
+        let src_variations = [src_dir.clone(), dunce::canonicalize(src_dir).unwrap()];
+        let repo_variations = [repo_dir.clone(), dunce::canonicalize(repo_dir).unwrap()];
         for src_dir in &src_variations {
             for repo_dir in &repo_variations {
                 let output = contract_repo_path(src_dir, repo_dir);
@@ -1590,7 +1590,7 @@ mod tests {
     #[test]
     #[cfg(windows)]
     fn windows_trims_extended_unc_path_prefix() {
-        // Under Windows, path canonicalization returns UNC paths using extended-path prefixes `\\?\UNC\`
+        // Under Windows, path canonicalization may return UNC paths using extended-path prefixes `\\?\UNC\`
         // We expect this prefix to be trimmed before being rendered.
         let unc_path = Path::new(r"\\?\UNC\server\share\a\b\c");
 
diff --git a/src/modules/pulumi.rs b/src/modules/pulumi.rs
index fdd6dd5fc..7329008d0 100644
--- a/src/modules/pulumi.rs
+++ b/src/modules/pulumi.rs
@@ -270,7 +270,7 @@ mod tests {
     fn render_valid_paths() -> io::Result<()> {
         use io::Write;
         let dir = tempfile::tempdir()?;
-        let root = std::fs::canonicalize(dir.path())?;
+        let root = dunce::canonicalize(dir.path())?;
         let mut yaml = File::create(root.join("Pulumi.yml"))?;
         yaml.write_all("name: starship\nruntime: nodejs\ndescription: A thing\n".as_bytes())?;
         yaml.sync_all()?;
@@ -337,7 +337,7 @@ mod tests {
     fn partial_login() -> io::Result<()> {
         use io::Write;
         let dir = tempfile::tempdir()?;
-        let root = std::fs::canonicalize(dir.path())?;
+        let root = dunce::canonicalize(dir.path())?;
         let mut yaml = File::create(root.join("Pulumi.yml"))?;
         yaml.write_all("name: starship\nruntime: nodejs\ndescription: A thing\n".as_bytes())?;
         yaml.sync_all()?;