diff --git a/src/cli/handlers/project.ts b/src/cli/handlers/project.ts
index 2b0a8d8ada2..a7bf9ee2abe 100644
--- a/src/cli/handlers/project.ts
+++ b/src/cli/handlers/project.ts
@@ -10,7 +10,7 @@ import type {
   ProjectHostSetupUpdateArgs,
   ProjectHostSetupUpdateResult
 } from '../../shared/project-types'
-import type { ExecutionHostId } from '../../shared/execution-host'
+import { getSshTargetIdForExecutionHost, type ExecutionHostId } from '../../shared/execution-host'
 import type { RepoKind } from '../../shared/repo-types'
 import type { CommandHandler, HandlerContext } from '../dispatch'
 import {
@@ -111,10 +111,14 @@ export const PROJECT_HANDLERS: Record<string, CommandHandler> = {
   },
   'project setup-existing-folder': async ({ flags, client, cwd, json }) => {
     const rawPath = getRequiredStringFlag(flags, 'path')
+    const hostId = getRequiredHostId(flags)
+    // An SSH host's filesystem is not the CLI's, so resolving a relative path against the client
+    // cwd would register a path that names the wrong machine.
+    const pathIsOffClient = client.isRemote || getSshTargetIdForExecutionHost(hostId) !== null
     const args: ProjectHostSetupExistingFolderArgs = {
       projectId: getRequiredStringFlag(flags, 'project'),
-      hostId: getRequiredHostId(flags),
-      path: resolveRepoPathArgument(rawPath, cwd, client.isRemote, 'Remote project setup'),
+      hostId,
+      path: resolveRepoPathArgument(rawPath, cwd, pathIsOffClient, 'Remote project setup'),
       kind: getOptionalRepoKind(flags),
       displayName: getOptionalStringFlag(flags, 'display-name')
     }
diff --git a/src/cli/index-project-setup.test.ts b/src/cli/index-project-setup.test.ts
index 068c246ba7c..f104e45c39a 100644
--- a/src/cli/index-project-setup.test.ts
+++ b/src/cli/index-project-setup.test.ts
@@ -481,6 +481,37 @@ describe('orca cli worktree awareness', () => {
     process.exitCode = priorExitCode
   })
 
+  it('rejects SSH project setup relative paths, which name the client filesystem', async () => {
+    // A local CLI reaching an `ssh:*` host is still off-client: resolving `./orca` against the
+    // CLI cwd would register a path that exists on the wrong machine.
+    const logSpy = vi.spyOn(console, 'log').mockImplementation(() => {})
+    const errSpy = vi.spyOn(console, 'error').mockImplementation(() => {})
+    const priorExitCode = process.exitCode
+
+    await main(
+      [
+        'project',
+        'setup-existing-folder',
+        '--project',
+        'github:stablyai/orca',
+        '--host',
+        'ssh:openclaw',
+        '--path',
+        './orca',
+        '--json'
+      ],
+      '/tmp/repo'
+    )
+
+    expect(callMock).not.toHaveBeenCalled()
+    expect([...logSpy.mock.calls, ...errSpy.mock.calls].flat().join('\n')).toContain(
+      'Remote project setup requires --path to be an absolute path on the remote server.'
+    )
+    expect(process.exitCode).toBe(1)
+
+    process.exitCode = priorExitCode
+  })
+
   it('rejects remote repo.add relative paths instead of resolving against client cwd', async () => {
     const logSpy = vi.spyOn(console, 'log').mockImplementation(() => {})
     const errSpy = vi.spyOn(console, 'error').mockImplementation(() => {})