diff --git a/lua/elixir/utils.lua b/lua/elixir/utils.lua
index bfa43954..90a6bb83 100644
--- a/lua/elixir/utils.lua
+++ b/lua/elixir/utils.lua
@@ -16,20 +16,10 @@ function M.root_dir(fname)
     fname = vim.fn.getcwd()
   end
 
-  local child_or_root_path =
-    vim.fs.dirname(vim.fs.find({ "mix.exs", ".git" }, { upward = true, path = fname })[1])
-  local maybe_umbrella_path =
-    vim.fs.dirname(vim.fs.find({ "mix.exs" }, { upward = true, path = child_or_root_path })[1])
+  local matches = vim.fs.find({ "mix.exs" }, { upward = true, limit = 2, path = fname })
+  local child_or_root_path, maybe_umbrella_path = unpack(matches)
 
-  if maybe_umbrella_path then
-    if not vim.startswith(child_or_root_path, Path:joinpath(maybe_umbrella_path, "apps"):absolute()) then
-      maybe_umbrella_path = nil
-    end
-  end
-
-  local path = maybe_umbrella_path or child_or_root_path or vim.loop.os_homedir()
-
-  return path
+  return vim.fs.dirname(maybe_umbrella_path or child_or_root_path)
 end
 
 return M
diff --git a/tests/fixtures/project_a/lib/module.ex b/tests/fixtures/project_a/lib/module.ex
new file mode 100644
index 00000000..e3e27993
--- /dev/null
+++ b/tests/fixtures/project_a/lib/module.ex
@@ -0,0 +1,3 @@
+defmodule ProjectA.Module do
+
+end
diff --git a/tests/fixtures/project_a/mix.exs b/tests/fixtures/project_a/mix.exs
new file mode 100644
index 00000000..7bc0c368
--- /dev/null
+++ b/tests/fixtures/project_a/mix.exs
@@ -0,0 +1,4 @@
+defmodule ProjectA.MixProject do
+
+end
+
diff --git a/tests/fixtures/project_b/apps/app_a/lib/module.ex b/tests/fixtures/project_b/apps/app_a/lib/module.ex
new file mode 100644
index 00000000..c683d2d9
--- /dev/null
+++ b/tests/fixtures/project_b/apps/app_a/lib/module.ex
@@ -0,0 +1,3 @@
+defmodule AppA.Module do
+
+end
diff --git a/tests/fixtures/project_b/apps/app_a/mix.exs b/tests/fixtures/project_b/apps/app_a/mix.exs
new file mode 100644
index 00000000..35d9ed61
--- /dev/null
+++ b/tests/fixtures/project_b/apps/app_a/mix.exs
@@ -0,0 +1,4 @@
+defmodule AppA.MixProject do
+
+end
+
diff --git a/tests/fixtures/project_b/mix.exs b/tests/fixtures/project_b/mix.exs
new file mode 100644
index 00000000..7055246f
--- /dev/null
+++ b/tests/fixtures/project_b/mix.exs
@@ -0,0 +1,4 @@
+defmodule ProjectB.MixProject do
+
+end
+
diff --git a/tests/utils_spec.lua b/tests/utils_spec.lua
new file mode 100644
index 00000000..3b8da7aa
--- /dev/null
+++ b/tests/utils_spec.lua
@@ -0,0 +1,44 @@
+local root_dir = vim.fn.getcwd()
+local utils = require("elixir.utils")
+
+describe("utils", function()
+
+  after_each(function()
+    vim.api.nvim_command("cd " .. root_dir)
+  end)
+
+  describe("root_dir", function()
+
+    it("finds elixir project root dir without a filename", function()
+
+      local project_dir = root_dir .. "/tests/fixtures/project_a"
+
+      vim.api.nvim_command("cd " .. project_dir)
+      local result = utils.root_dir()
+
+      assert.are.equal(project_dir, result)
+    end)
+
+    it("finds elixir project root dir", function()
+      local project_dir = root_dir .. "/tests/fixtures/project_a"
+      local result = utils.root_dir(project_dir .. "/lib/module.ex")
+
+      assert.are.equal(project_dir, result)
+    end)
+
+    it("finds elixir umbrella project root dir", function()
+      local project_dir = root_dir .. "/tests/fixtures/project_b"
+      local result = utils.root_dir(project_dir .. "/apps/app_a/lib/module.ex")
+
+      assert.are.equal(project_dir, result)
+    end)
+
+    it("returns nil if no elixir project root dir is found", function()
+      local result = utils.root_dir()
+
+      assert.are.equal(nil, result)
+    end)
+
+  end)
+end)
+