diff --git a/.vscode/settings.json b/.vscode/settings.json
index f8b04f126..f103538b7 100644
--- a/.vscode/settings.json
+++ b/.vscode/settings.json
@@ -17,5 +17,8 @@
     "python.envFile": "${workspaceRoot}/.env",
     "python.analysis.stubPath": ".vscode",
     "jupyter.interactiveWindow.cellMarker.codeRegex": "^# COMMAND ----------|^# Databricks notebook source|^(#\\s*%%|#\\s*\\<codecell\\>|#\\s*In\\[\\d*?\\]|#\\s*In\\[ \\])",
-    "jupyter.interactiveWindow.cellMarker.default": "# COMMAND ----------"
+    "jupyter.interactiveWindow.cellMarker.default": "# COMMAND ----------",
+    "files.associations": {
+        "script": "shellscript"
+    }
 }
diff --git a/acceptance/bundle/exec/basic/output.txt b/acceptance/bundle/exec/basic/output.txt
index d45ebfb83..c1be99c9e 100644
--- a/acceptance/bundle/exec/basic/output.txt
+++ b/acceptance/bundle/exec/basic/output.txt
@@ -1,6 +1,6 @@
 
->>> errcode [CLI] bundle exec -- echo hello
-hello
-Error: Error waiting for command: exec: Wait was already called
+>>> [CLI] bundle exec -- echo hello, world
+hello, world
 
-Exit code: 1
+>>> [CLI] bundle exec -- pwd
+[TMPDIR]
diff --git a/acceptance/bundle/exec/basic/script b/acceptance/bundle/exec/basic/script
index c65cd19ea..48d20c1bd 100644
--- a/acceptance/bundle/exec/basic/script
+++ b/acceptance/bundle/exec/basic/script
@@ -1 +1,3 @@
-trace errcode $CLI bundle exec -- echo hello
+trace $CLI bundle exec -- echo "hello, world"
+
+trace $CLI bundle exec -- pwd
diff --git a/acceptance/bundle/exec/cwd/a/b/c/.gitkeep b/acceptance/bundle/exec/cwd/a/b/c/.gitkeep
new file mode 100644
index 000000000..e69de29bb
diff --git a/acceptance/bundle/exec/cwd/databricks.yml b/acceptance/bundle/exec/cwd/databricks.yml
new file mode 100644
index 000000000..432311dab
--- /dev/null
+++ b/acceptance/bundle/exec/cwd/databricks.yml
@@ -0,0 +1,2 @@
+bundle:
+  name: foobar
diff --git a/acceptance/bundle/exec/cwd/output.txt b/acceptance/bundle/exec/cwd/output.txt
new file mode 100644
index 000000000..e6496afab
--- /dev/null
+++ b/acceptance/bundle/exec/cwd/output.txt
@@ -0,0 +1,8 @@
+
+>>> cd a/b/c
+
+>>> pwd
+[TMPDIR]/a/b/c
+
+>>> [CLI] bundle exec -- pwd
+[TMPDIR]
diff --git a/acceptance/bundle/exec/cwd/script b/acceptance/bundle/exec/cwd/script
new file mode 100644
index 000000000..73a0966d3
--- /dev/null
+++ b/acceptance/bundle/exec/cwd/script
@@ -0,0 +1,6 @@
+trace cd a/b/c
+
+trace pwd
+
+# Scripts that bundle exec executes should run from the bundle root.
+trace $CLI bundle exec -- pwd
diff --git a/acceptance/bundle/exec/no-auth/databricks.yml b/acceptance/bundle/exec/no-auth/databricks.yml
new file mode 100644
index 000000000..432311dab
--- /dev/null
+++ b/acceptance/bundle/exec/no-auth/databricks.yml
@@ -0,0 +1,2 @@
+bundle:
+  name: foobar
diff --git a/acceptance/bundle/exec/no-auth/output.txt b/acceptance/bundle/exec/no-auth/output.txt
new file mode 100644
index 000000000..fce8e3f61
--- /dev/null
+++ b/acceptance/bundle/exec/no-auth/output.txt
@@ -0,0 +1,6 @@
+
+>>> [CLI] bundle exec -- echo hello
+hello
+
+>>> [CLI] bundle exec -- pwd
+[TMPDIR]
diff --git a/acceptance/bundle/exec/no-auth/script b/acceptance/bundle/exec/no-auth/script
new file mode 100644
index 000000000..93715d448
--- /dev/null
+++ b/acceptance/bundle/exec/no-auth/script
@@ -0,0 +1,8 @@
+export DATABRICKS_HOST=""
+export DATABRICKS_TOKEN=""
+
+# Confirm that bundle exec works for commands that do not require authentication,
+# even if authentication is not provided.
+trace $CLI bundle exec -- echo hello
+
+trace $CLI bundle exec -- pwd
diff --git a/acceptance/bundle/exec/no-bundle/output.txt b/acceptance/bundle/exec/no-bundle/output.txt
new file mode 100644
index 000000000..7030c5405
--- /dev/null
+++ b/acceptance/bundle/exec/no-bundle/output.txt
@@ -0,0 +1,5 @@
+
+>>> [CLI] bundle exec -- echo hello
+Error: unable to locate bundle root: databricks.yml not found
+
+Exit code: 1
diff --git a/acceptance/bundle/exec/no-bundle/script b/acceptance/bundle/exec/no-bundle/script
new file mode 100644
index 000000000..b872f65db
--- /dev/null
+++ b/acceptance/bundle/exec/no-bundle/script
@@ -0,0 +1 @@
+trace $CLI bundle exec -- echo hello
diff --git a/cmd/bundle/exec.go b/cmd/bundle/exec.go
index daeb0c4a2..64bc70da5 100644
--- a/cmd/bundle/exec.go
+++ b/cmd/bundle/exec.go
@@ -24,7 +24,13 @@ func newExecCommand() *cobra.Command {
 		Use:   "exec",
 		Short: "Execute a command using the same authentication context as the bundle",
 		Args:  cobra.MinimumNArgs(1),
-		Long: `Examples:
+		// TODO: format once we have all the documentation here.
+		// TODO: implement and pass the cwd environment variable. Maybe we can defer
+		// it until we have a scripts section.
+		Long: `
+Note: This command executes scripts
+
+Examples:
 1. databricks bundle exec -- echo hello
 2. databricks bundle exec -- /bin/bash -c "echo hello""
 3. databricks bundle exec -- uv run pytest"`,
@@ -36,7 +42,7 @@ func newExecCommand() *cobra.Command {
 			// Load the bundle configuration to get the authentication credentials
 			// set in the context.
 			// TODO: What happens when no bundle is configured?
-			_, diags := root.MustConfigureBundle(cmd)
+			b, diags := root.MustConfigureBundle(cmd)
 			if diags.HasError() {
 				return diags.Error()
 			}
@@ -44,7 +50,11 @@ func newExecCommand() *cobra.Command {
 			childCmd := exec.Command(args[0], args[1:]...)
 			childCmd.Env = auth.ProcessEnv(root.ConfigUsed(cmd.Context()))
 
-			// Create pipes for stdout and stderr
+			// Execute all scripts from the bundle root directory.
+			childCmd.Dir = b.BundleRootPath
+
+			// Create pipes for stdout and stderr.
+			// TODO: Test streaming of this? Is there a way?
 			stdout, err := childCmd.StdoutPipe()
 			if err != nil {
 				return fmt.Errorf("Error creating stdout pipe: %w", err)
@@ -87,8 +97,7 @@ func newExecCommand() *cobra.Command {
 			if exitErr, ok := err.(*exec.ExitError); ok {
 				return fmt.Errorf("Command exited with code: %d", exitErr.ExitCode())
 			}
-
-			if err := childCmd.Wait(); err != nil {
+			if err != nil {
 				return fmt.Errorf("Error waiting for command: %w", err)
 			}