diff --git a/fig/cli/command.py b/fig/cli/command.py
index 3b7a3b965..d546c8154 100644
--- a/fig/cli/command.py
+++ b/fig/cli/command.py
@@ -23,7 +23,7 @@ class Command(DocoptCommand):
     base_dir = '.'
 
     def __init__(self):
-        self.yaml_path = os.environ.get('FIG_FILE', None)
+        self._yaml_path = os.environ.get('FIG_FILE', None)
         self.explicit_project_name = None
 
     def dispatch(self, *args, **kwargs):
@@ -56,10 +56,7 @@ class Command(DocoptCommand):
     @cached_property
     def project(self):
         try:
-            yaml_path = self.yaml_path
-            if yaml_path is None:
-                yaml_path = self.check_yaml_filename()
-            config = yaml.safe_load(open(yaml_path))
+            config = yaml.safe_load(open(self.yaml_path))
         except IOError as e:
             if e.errno == errno.ENOENT:
                 raise errors.FigFileNotFound(os.path.basename(e.filename))
@@ -72,7 +69,7 @@ class Command(DocoptCommand):
 
     @cached_property
     def project_name(self):
-        project = os.path.basename(os.getcwd())
+        project = os.path.basename(os.path.dirname(self.yaml_path))
         if self.explicit_project_name is not None:
             project = self.explicit_project_name
         project = re.sub(r'[^a-zA-Z0-9]', '', project)
@@ -84,8 +81,11 @@ class Command(DocoptCommand):
     def formatter(self):
         return Formatter()
 
-    def check_yaml_filename(self):
-        if os.path.exists(os.path.join(self.base_dir, 'fig.yaml')):
+    @cached_property
+    def yaml_path(self):
+        if self._yaml_path is not None:
+            return self._yaml_path
+        elif os.path.exists(os.path.join(self.base_dir, 'fig.yaml')):
 
             log.warning("Fig just read the file 'fig.yaml' on startup, rather than 'fig.yml'")
             log.warning("Please be aware that fig.yml the expected extension in most cases, and using .yaml can cause compatibility issues in future")
@@ -93,3 +93,7 @@ class Command(DocoptCommand):
             return os.path.join(self.base_dir, 'fig.yaml')
         else:
             return os.path.join(self.base_dir, 'fig.yml')
+
+    @yaml_path.setter
+    def yaml_path(self, value):
+        self._yaml_path = value
diff --git a/tests/integration/cli_test.py b/tests/integration/cli_test.py
index ecfee0f9c..dad4d505b 100644
--- a/tests/integration/cli_test.py
+++ b/tests/integration/cli_test.py
@@ -22,7 +22,7 @@ class CLITestCase(DockerClientTestCase):
     def test_ps(self, mock_stdout):
         self.command.project.get_service('simple').create_container()
         self.command.dispatch(['ps'], None)
-        self.assertIn('fig_simple_1', mock_stdout.getvalue())
+        self.assertIn('simplefigfile_simple_1', mock_stdout.getvalue())
 
     @patch('sys.stdout', new_callable=StringIO)
     def test_ps_default_figfile(self, mock_stdout):
@@ -31,9 +31,9 @@ class CLITestCase(DockerClientTestCase):
         self.command.dispatch(['ps'], None)
 
         output = mock_stdout.getvalue()
-        self.assertIn('fig_simple_1', output)
-        self.assertIn('fig_another_1', output)
-        self.assertNotIn('fig_yetanother_1', output)
+        self.assertIn('multiplefigfiles_simple_1', output)
+        self.assertIn('multiplefigfiles_another_1', output)
+        self.assertNotIn('multiplefigfiles_yetanother_1', output)
 
     @patch('sys.stdout', new_callable=StringIO)
     def test_ps_alternate_figfile(self, mock_stdout):
@@ -42,9 +42,9 @@ class CLITestCase(DockerClientTestCase):
         self.command.dispatch(['-f', 'fig2.yml', 'ps'], None)
 
         output = mock_stdout.getvalue()
-        self.assertNotIn('fig_simple_1', output)
-        self.assertNotIn('fig_another_1', output)
-        self.assertIn('fig_yetanother_1', output)
+        self.assertNotIn('multiplefigfiles_simple_1', output)
+        self.assertNotIn('multiplefigfiles_another_1', output)
+        self.assertIn('multiplefigfiles_yetanother_1', output)
 
     def test_up(self):
         self.command.dispatch(['up', '-d'], None)
diff --git a/tests/unit/cli_test.py b/tests/unit/cli_test.py
index a3f138048..bced969b5 100644
--- a/tests/unit/cli_test.py
+++ b/tests/unit/cli_test.py
@@ -5,6 +5,11 @@ from fig.cli.main import TopLevelCommand
 from fig.packages.six import StringIO
 
 class CLITestCase(unittest.TestCase):
+    def test_project_name_defaults_to_dirname(self):
+        command = TopLevelCommand()
+        command.base_dir = 'tests/fixtures/simple-figfile'
+        self.assertEquals('simplefigfile', command.project_name)
+
     def test_yaml_filename_check(self):
         command = TopLevelCommand()
         command.base_dir = 'tests/fixtures/longer-filename-figfile'