diff --git a/src/Runner.Worker/ExecutionContext.cs b/src/Runner.Worker/ExecutionContext.cs
index 3a7912959..1aad95c9c 100644
--- a/src/Runner.Worker/ExecutionContext.cs
+++ b/src/Runner.Worker/ExecutionContext.cs
@@ -98,7 +98,7 @@ namespace GitHub.Runner.Worker
         // others
         void ForceTaskComplete();
         void RegisterPostJobStep(IStep step);
-        IStep CreateCompositeStep(string scopeName, IActionRunner step, DictionaryContextData inputsData, Dictionary<string, string> envData, string actionDirectory);
+        IStep CreateCompositeStep(string scopeName, IActionRunner step, DictionaryContextData inputsData, Dictionary<string, string> envData);
     }
 
     public sealed class ExecutionContext : RunnerService, IExecutionContext
@@ -258,8 +258,7 @@ namespace GitHub.Runner.Worker
             string scopeName,
             IActionRunner step,
             DictionaryContextData inputsData,
-            Dictionary<string, string> envData,
-            string actionDirectory)
+            Dictionary<string, string> envData)
         {
             step.ExecutionContext = Root.CreateChild(_record.Id, step.DisplayName, _record.Id.ToString("N"), scopeName, step.Action.ContextName, logger: _logger, insideComposite: true, cancellationTokenSource: CancellationTokenSource.CreateLinkedTokenSource(_cancellationTokenSource.Token));
             step.ExecutionContext.ExpressionValues["inputs"] = inputsData;
@@ -277,9 +276,6 @@ namespace GitHub.Runner.Worker
             }
             step.ExecutionContext.ExpressionValues["env"] = envContext;
 
-            // Set GITHUB_ACTION_PATH for each step
-            step.ExecutionContext.SetGitHubContext("action_path", actionDirectory);
-
             return step;
         }
 
diff --git a/src/Runner.Worker/Handlers/CompositeActionHandler.cs b/src/Runner.Worker/Handlers/CompositeActionHandler.cs
index 3ad296e19..e24aa0d62 100644
--- a/src/Runner.Worker/Handlers/CompositeActionHandler.cs
+++ b/src/Runner.Worker/Handlers/CompositeActionHandler.cs
@@ -56,6 +56,9 @@ namespace GitHub.Runner.Worker.Handlers
                 childScopeName = $"__{Guid.NewGuid()}";
             }
 
+            // Add GITHUB_ACTION_PATH
+            ExecutionContext.SetGitHubContext("action_path", ActionDirectory);
+
             foreach (Pipelines.ActionStep actionStep in actionSteps)
             {
                 var actionRunner = HostContext.CreateService<IActionRunner>();
@@ -63,7 +66,7 @@ namespace GitHub.Runner.Worker.Handlers
                 actionRunner.Stage = stage;
                 actionRunner.Condition = actionStep.Condition;
 
-                var step = ExecutionContext.CreateCompositeStep(childScopeName, actionRunner, inputsData, Environment, ActionDirectory);
+                var step = ExecutionContext.CreateCompositeStep(childScopeName, actionRunner, inputsData, Environment);
                 compositeSteps.Add(step);
             }
 
@@ -85,6 +88,9 @@ namespace GitHub.Runner.Worker.Handlers
                 ExecutionContext.Error(ex);
                 ExecutionContext.Result = TaskResult.Failed;
             }
+
+            // Remove GITHUB_ACTION_PATH
+            ExecutionContext.SetGitHubContext("action_path", "");
         }
 
         private void ProcessCompositeActionOutputs()