@@ -48,16 +48,13 @@ export class BaseSdkCommands implements IAmDisposable {
 			return;
 
 		const containingWorkspace = vs.workspace.getWorkspaceFolder(vs.Uri.file(folderToRunCommandIn));
-		if (!containingWorkspace) {
-			this.logger.error(`Failed to get workspace folder for ${folderToRunCommandIn}`);
-			throw new Error(`Failed to get workspace folder for ${folderToRunCommandIn}`);
-		}
-		const containingWorkspacePath = fsPath(containingWorkspace.uri);
+		const containingWorkspacePath = containingWorkspace ? fsPath(containingWorkspace.uri) : undefined;
 
 		// Display the relative path from the workspace root to the folder we're running, or if they're
 		// the same then the folder name we're running in.
-		const shortPath = path.relative(containingWorkspacePath, folderToRunCommandIn)
-			|| path.basename(folderToRunCommandIn);
+		const shortPath = containingWorkspacePath
+			? path.relative(containingWorkspacePath, folderToRunCommandIn) || path.basename(folderToRunCommandIn)
+			: path.basename(folderToRunCommandIn);
 
 		return handler(folderToRunCommandIn, args, shortPath, alwaysShowOutput);
 	}
 
@@ -6,6 +6,8 @@ import { isWithinWorkspace } from "./utils";
 export const UPGRADE_TO_WORKSPACE_FOLDERS = "Mark Projects as Workspace Folders";
 
 export function locateBestProjectRoot(folder: string, allowOutsideWorkspace = false): string | undefined {
+	// TODO(dantup): Review places where allowOutsideWorkspace is effectively false, because opening sub-folders
+	//  of Pub Workspaces is probably not uncommon.
 	if (!folder)
 		return undefined;
 
 
@@ -18,7 +18,7 @@ export async function getFolderToRunCommandIn(logger: Logger, placeHolder: strin
 		if (editor)
 			file = fsPath(editor.document.uri);
 	}
-	const folder = file && locateBestProjectRoot(file);
+	const folder = file && locateBestProjectRoot(file, !!selection);
 
 	if (folder)
 		return folder;
Original file line number	Diff line number	Diff line change
`@@ -18,7 +18,7 @@ export async function getFolderToRunCommandIn(logger: Logger, placeHolder: strin`
`18`	`18`	`if (editor)`
`19`	`19`	`file = fsPath(editor.document.uri);`
`20`	`20`	`}`
`21`		`- const folder = file && locateBestProjectRoot(file);`
	`21`	`+ const folder = file && locateBestProjectRoot(file, !!selection);`
`22`	`22`
`23`	`23`	`if (folder)`
`24`	`24`	`return folder;`