diff --git a/src/ape/managers/project.py b/src/ape/managers/project.py
index 0a665d12e1..c7270aaed7 100644
--- a/src/ape/managers/project.py
+++ b/src/ape/managers/project.py
@@ -2569,7 +2569,7 @@ def clean(self):
         self.sources._path_cache = None
         self._clear_cached_config()
 
-    def chdir(self, path: Path) -> "LocalProject":
+    def chdir(self, path: Path):
         """
         Change the local project to the new path.
 
@@ -2583,9 +2583,24 @@ def chdir(self, path: Path) -> "LocalProject":
             return  # Already there!
 
         os.chdir(path)
-        new_local_project = LocalProject(path)
-        ManagerAccessMixin.local_project._cache = new_local_project
-        return new_local_project
+
+        # Clear cached properties.
+        for prop in (
+            "path",
+            "_deduced_contracts_folder",
+            "project_api",
+            "contracts",
+            "interfaces_folder",
+            "sources",
+        ):
+            self.__dict__.pop(prop, None)
+
+        # Re-initialize
+        self._session_source_change_check = set()
+        self._config_override = {}
+        self._base_path = Path(path).resolve()
+        self.manifest_path = self._base_path / ".build" / "__local__.json"
+        self._manifest = self.load_manifest()
 
     def reload_config(self):
         """
diff --git a/tests/functional/test_project.py b/tests/functional/test_project.py
index 9dc31a7db4..1b794d87c4 100644
--- a/tests/functional/test_project.py
+++ b/tests/functional/test_project.py
@@ -1053,3 +1053,14 @@ def test_instance_map(self, project, vyper_contract_instance, mock_sepolia):
                 return
 
         assert False, "Failed to find expected URI"
+
+
+def test_chdir(project):
+    original_path = project.path
+    with create_tempdir() as new_path:
+        project.chdir(new_path)
+        assert project.path == new_path
+
+    # Undo.
+    project.chdir(original_path)
+    assert project.path == original_path