diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
index d8c83ac..33154dd 100644
--- a/.github/workflows/test.yml
+++ b/.github/workflows/test.yml
@@ -29,6 +29,8 @@ jobs:
         run: __test__/verify-no-unstaged-changes.sh
 
   test:
+    env:
+      main_path: main_path_test
     strategy:
       matrix:
         runs-on: [ubuntu-latest, macos-latest, windows-latest]
@@ -62,6 +64,16 @@ jobs:
         shell: bash
         run: __test__/verify-clean.sh
 
+      # Use environment variable as path
+      - name: Environment path test
+        uses: ./
+        with:
+          ref: test-data/v2/basic
+          path: ${{ env.main_path }}
+      - name: Verify environment path test
+        shell: bash
+        run: __test__/verify-environment-path.sh
+
       # Side by side
       - name: Checkout side by side 1
         uses: ./
diff --git a/README.md b/README.md
index bfecf46..022c6b1 100644
--- a/README.md
+++ b/README.md
@@ -66,7 +66,7 @@ Please refer to the [release page](https://github.com/actions/checkout/releases/
     # Default: true
     persist-credentials: ''
 
-    # Relative path under $GITHUB_WORKSPACE to place the repository
+    # Relative or absolute path under $GITHUB_WORKSPACE to place the repository
     path: ''
 
     # Whether to execute `git clean -ffdx && git reset --hard HEAD` before fetching
@@ -208,6 +208,18 @@ Please refer to the [release page](https://github.com/actions/checkout/releases/
 ```
 > - If your secondary repository is private you will need to add the option noted in [Checkout multiple repos (private)](#Checkout-multiple-repos-private)
 
+## Checkout repo with a environment based path
+
+```yaml
+env:
+  main_path: ${{ github.workspace }}/main
+steps:
+- name: Checkout
+  uses: actions/checkout@v2
+  with:
+    path: ${{ env.main_path }}
+```
+
 ## Checkout multiple repos (nested)
 
 ```yaml
diff --git a/__test__/verify-environment-path.sh b/__test__/verify-environment-path.sh
new file mode 100755
index 0000000..bd64859
--- /dev/null
+++ b/__test__/verify-environment-path.sh
@@ -0,0 +1,6 @@
+#!/bin/bash
+
+if [ ! -f "./main_path_test/basic-file.txt" ]; then
+    echo "Expected file does not exist"
+    exit 1
+fi
diff --git a/action.yml b/action.yml
index 5aa90a7..e8c083e 100644
--- a/action.yml
+++ b/action.yml
@@ -49,7 +49,7 @@ inputs:
     description: 'Whether to configure the token or SSH key with the local git config'
     default: true
   path:
-    description: 'Relative path under $GITHUB_WORKSPACE to place the repository'
+    description: 'Relative or absolute path under $GITHUB_WORKSPACE to place the repository'
   clean:
     description: 'Whether to execute `git clean -ffdx && git reset --hard HEAD` before fetching'
     default: true
diff --git a/adrs/0153-checkout-v2.md b/adrs/0153-checkout-v2.md
index c331290..f2555f1 100644
--- a/adrs/0153-checkout-v2.md
+++ b/adrs/0153-checkout-v2.md
@@ -65,7 +65,7 @@ We want to take this opportunity to make behavioral changes, from v1. This docum
     description: 'Whether to configure the token or SSH key with the local git config'
     default: true
   path:
-    description: 'Relative path under $GITHUB_WORKSPACE to place the repository'
+    description: 'Relative or absolute path under $GITHUB_WORKSPACE to place the repository'
   clean:
     description: 'Whether to execute `git clean -ffdx && git reset --hard HEAD` before fetching'
     default: true