diff --git a/file-system/file-system.ts b/file-system/file-system.ts
index f9ebd41b6..f1f27fb60 100644
--- a/file-system/file-system.ts
+++ b/file-system/file-system.ts
@@ -442,10 +442,17 @@ export module knownFolders {
 
     export var currentApp = function (): Folder {
         if (!_app) {
-            var currentDir = __dirname;
-            var path = currentDir.substring(0, currentDir.indexOf("/tns_modules"));
+            const currentDir = __dirname;
+            const tnsModulesIndex = currentDir.indexOf("/tns_modules");
+
+            // Module not hosted in ~/tns_modules when bundled. Use current dir.
+            let appPath = currentDir;
+            if (tnsModulesIndex !== -1) {
+                // Strip part after tns_modules to obtain app root
+                appPath = currentDir.substring(0, tnsModulesIndex);
+            }
             _app = new Folder();
-            _app[pathProperty] = path;
+            _app[pathProperty] = appPath;
             _app[isKnownProperty] = true;
         }
 
@@ -465,4 +472,4 @@ export module path {
     }
 
     export var separator = getFileAccess().getPathSeparator();
-}
\ No newline at end of file
+}