diff --git a/lib/bundler/dsl.rb b/lib/bundler/dsl.rb
index 1460b9f52f..7b342c594a 100644
--- a/lib/bundler/dsl.rb
+++ b/lib/bundler/dsl.rb
@@ -46,7 +46,7 @@ module Bundler
       @gemfile = expanded_gemfile_path
       @gemfiles << expanded_gemfile_path
       contents ||= Bundler.read_file(@gemfile.to_s)
-      instance_eval(contents, gemfile.to_s, 1)
+      instance_eval(contents, @gemfile.to_s, 1)
     rescue Exception => e # rubocop:disable Lint/RescueException
       message = "There was an error " \
         "#{e.is_a?(GemfileEvalError) ? "evaluating" : "parsing"} " \
diff --git a/spec/bundler/bundler/dsl_spec.rb b/spec/bundler/bundler/dsl_spec.rb
index 99a8c3ad67..e2e17bd357 100644
--- a/spec/bundler/bundler/dsl_spec.rb
+++ b/spec/bundler/bundler/dsl_spec.rb
@@ -134,6 +134,17 @@ RSpec.describe Bundler::Dsl do
       expect { subject.eval_gemfile("Gemfile") }.
         to raise_error(Bundler::GemfileError, /There was an error evaluating `Gemfile`: ruby_version must match the :engine_version for MRI/)
     end
+
+    it "populates __dir__ and __FILE__ correctly" do
+      abs_path = source_root.join("../fragment.rb").to_s
+      expect(Bundler).to receive(:read_file).with(abs_path).and_return(<<~RUBY)
+        @fragment_dir = __dir__
+        @fragment_file = __FILE__
+      RUBY
+      subject.eval_gemfile("../fragment.rb")
+      expect(subject.instance_variable_get(:@fragment_dir)).to eq(source_root.dirname.to_s)
+      expect(subject.instance_variable_get(:@fragment_file)).to eq(abs_path)
+    end
   end
 
   describe "#gem" do