diff --git a/bundle/bundle.go b/bundle/bundle.go
index 032d98abc8..8b5ff976d0 100644
--- a/bundle/bundle.go
+++ b/bundle/bundle.go
@@ -39,6 +39,14 @@ type Bundle struct {
 	// Exclusively use this field for filesystem operations.
 	BundleRoot vfs.Path
 
+	// SyncRoot is a virtual filesystem path to the root directory of the files that are synchronized to the workspace.
+	// It can be an ancestor to [BundleRoot], but not a descendant; that is, [SyncRoot] must contain [BundleRoot].
+	SyncRoot vfs.Path
+
+	// SyncRootPath is the local path to the root directory of files that are synchronized to the workspace.
+	// It is equal to `SyncRoot.Native()` and included as dedicated field for convenient access.
+	SyncRootPath string
+
 	Config config.Root
 
 	// Metadata about the bundle deployment. This is the interface Databricks services
diff --git a/bundle/bundle_read_only.go b/bundle/bundle_read_only.go
index 59084f2ace..74b9d94dea 100644
--- a/bundle/bundle_read_only.go
+++ b/bundle/bundle_read_only.go
@@ -28,6 +28,10 @@ func (r ReadOnlyBundle) BundleRoot() vfs.Path {
 	return r.b.BundleRoot
 }
 
+func (r ReadOnlyBundle) SyncRoot() vfs.Path {
+	return r.b.SyncRoot
+}
+
 func (r ReadOnlyBundle) WorkspaceClient() *databricks.WorkspaceClient {
 	return r.b.WorkspaceClient()
 }
diff --git a/bundle/config/mutator/configure_wsfs.go b/bundle/config/mutator/configure_wsfs.go
index c7b764f000..1d1bec5824 100644
--- a/bundle/config/mutator/configure_wsfs.go
+++ b/bundle/config/mutator/configure_wsfs.go
@@ -24,7 +24,7 @@ func (m *configureWSFS) Name() string {
 }
 
 func (m *configureWSFS) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
-	root := b.BundleRoot.Native()
+	root := b.SyncRoot.Native()
 
 	// The bundle root must be located in /Workspace/
 	if !strings.HasPrefix(root, "/Workspace/") {
@@ -45,6 +45,6 @@ func (m *configureWSFS) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagno
 		return diag.FromErr(err)
 	}
 
-	b.BundleRoot = p
+	b.SyncRoot = p
 	return nil
 }
diff --git a/bundle/config/mutator/rewrite_sync_paths.go b/bundle/config/mutator/rewrite_sync_paths.go
index cfdc55f367..888714abeb 100644
--- a/bundle/config/mutator/rewrite_sync_paths.go
+++ b/bundle/config/mutator/rewrite_sync_paths.go
@@ -45,6 +45,10 @@ func (m *rewriteSyncPaths) makeRelativeTo(root string) dyn.MapFunc {
 func (m *rewriteSyncPaths) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
 	err := b.Config.Mutate(func(v dyn.Value) (dyn.Value, error) {
 		return dyn.Map(v, "sync", func(_ dyn.Path, v dyn.Value) (nv dyn.Value, err error) {
+			v, err = dyn.Map(v, "paths", dyn.Foreach(m.makeRelativeTo(b.RootPath)))
+			if err != nil {
+				return dyn.InvalidValue, err
+			}
 			v, err = dyn.Map(v, "include", dyn.Foreach(m.makeRelativeTo(b.RootPath)))
 			if err != nil {
 				return dyn.InvalidValue, err
diff --git a/bundle/config/mutator/rewrite_sync_paths_test.go b/bundle/config/mutator/rewrite_sync_paths_test.go
index 56ada19e67..fa7f124b79 100644
--- a/bundle/config/mutator/rewrite_sync_paths_test.go
+++ b/bundle/config/mutator/rewrite_sync_paths_test.go
@@ -17,6 +17,10 @@ func TestRewriteSyncPathsRelative(t *testing.T) {
 		RootPath: ".",
 		Config: config.Root{
 			Sync: config.Sync{
+				Paths: []string{
+					".",
+					"../common",
+				},
 				Include: []string{
 					"foo",
 					"bar",
@@ -29,6 +33,8 @@ func TestRewriteSyncPathsRelative(t *testing.T) {
 		},
 	}
 
+	bundletest.SetLocation(b, "sync.paths[0]", "./databricks.yml")
+	bundletest.SetLocation(b, "sync.paths[1]", "./databricks.yml")
 	bundletest.SetLocation(b, "sync.include[0]", "./file.yml")
 	bundletest.SetLocation(b, "sync.include[1]", "./a/file.yml")
 	bundletest.SetLocation(b, "sync.exclude[0]", "./a/b/file.yml")
@@ -37,6 +43,8 @@ func TestRewriteSyncPathsRelative(t *testing.T) {
 	diags := bundle.Apply(context.Background(), b, mutator.RewriteSyncPaths())
 	assert.NoError(t, diags.Error())
 
+	assert.Equal(t, filepath.Clean("."), b.Config.Sync.Paths[0])
+	assert.Equal(t, filepath.Clean("../common"), b.Config.Sync.Paths[1])
 	assert.Equal(t, filepath.Clean("foo"), b.Config.Sync.Include[0])
 	assert.Equal(t, filepath.Clean("a/bar"), b.Config.Sync.Include[1])
 	assert.Equal(t, filepath.Clean("a/b/baz"), b.Config.Sync.Exclude[0])
@@ -48,6 +56,10 @@ func TestRewriteSyncPathsAbsolute(t *testing.T) {
 		RootPath: "/tmp/dir",
 		Config: config.Root{
 			Sync: config.Sync{
+				Paths: []string{
+					".",
+					"../common",
+				},
 				Include: []string{
 					"foo",
 					"bar",
@@ -60,6 +72,8 @@ func TestRewriteSyncPathsAbsolute(t *testing.T) {
 		},
 	}
 
+	bundletest.SetLocation(b, "sync.paths[0]", "/tmp/dir/databricks.yml")
+	bundletest.SetLocation(b, "sync.paths[1]", "/tmp/dir/databricks.yml")
 	bundletest.SetLocation(b, "sync.include[0]", "/tmp/dir/file.yml")
 	bundletest.SetLocation(b, "sync.include[1]", "/tmp/dir/a/file.yml")
 	bundletest.SetLocation(b, "sync.exclude[0]", "/tmp/dir/a/b/file.yml")
@@ -68,6 +82,8 @@ func TestRewriteSyncPathsAbsolute(t *testing.T) {
 	diags := bundle.Apply(context.Background(), b, mutator.RewriteSyncPaths())
 	assert.NoError(t, diags.Error())
 
+	assert.Equal(t, filepath.Clean("."), b.Config.Sync.Paths[0])
+	assert.Equal(t, filepath.Clean("../common"), b.Config.Sync.Paths[1])
 	assert.Equal(t, filepath.Clean("foo"), b.Config.Sync.Include[0])
 	assert.Equal(t, filepath.Clean("a/bar"), b.Config.Sync.Include[1])
 	assert.Equal(t, filepath.Clean("a/b/baz"), b.Config.Sync.Exclude[0])
diff --git a/bundle/config/mutator/sync_default_path.go b/bundle/config/mutator/sync_default_path.go
new file mode 100644
index 0000000000..8e14ce202c
--- /dev/null
+++ b/bundle/config/mutator/sync_default_path.go
@@ -0,0 +1,48 @@
+package mutator
+
+import (
+	"context"
+
+	"github.com/databricks/cli/bundle"
+	"github.com/databricks/cli/libs/diag"
+	"github.com/databricks/cli/libs/dyn"
+)
+
+type syncDefaultPath struct{}
+
+// SyncDefaultPath configures the default sync path to be equal to the bundle root.
+func SyncDefaultPath() bundle.Mutator {
+	return &syncDefaultPath{}
+}
+
+func (m *syncDefaultPath) Name() string {
+	return "SyncDefaultPath"
+}
+
+func (m *syncDefaultPath) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
+	isset := false
+	err := b.Config.Mutate(func(v dyn.Value) (dyn.Value, error) {
+		pv, _ := dyn.Get(v, "sync.paths")
+
+		// If the sync paths field is already set, do nothing.
+		// We know it is set if its value is either a nil or a sequence (empty or not).
+		switch pv.Kind() {
+		case dyn.KindNil, dyn.KindSequence:
+			isset = true
+		}
+
+		return v, nil
+	})
+	if err != nil {
+		return diag.FromErr(err)
+	}
+
+	// If the sync paths field is already set, do nothing.
+	if isset {
+		return nil
+	}
+
+	// Set the sync paths to the default value.
+	b.Config.Sync.Paths = []string{"."}
+	return nil
+}
diff --git a/bundle/config/mutator/sync_default_path_test.go b/bundle/config/mutator/sync_default_path_test.go
new file mode 100644
index 0000000000..a37e913d23
--- /dev/null
+++ b/bundle/config/mutator/sync_default_path_test.go
@@ -0,0 +1,82 @@
+package mutator_test
+
+import (
+	"context"
+	"testing"
+
+	"github.com/databricks/cli/bundle"
+	"github.com/databricks/cli/bundle/config"
+	"github.com/databricks/cli/bundle/config/mutator"
+	"github.com/databricks/cli/libs/diag"
+	"github.com/databricks/cli/libs/dyn"
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+)
+
+func TestSyncDefaultPath_DefaultIfUnset(t *testing.T) {
+	b := &bundle.Bundle{
+		RootPath: "/tmp/some/dir",
+		Config:   config.Root{},
+	}
+
+	ctx := context.Background()
+	diags := bundle.Apply(ctx, b, mutator.SyncDefaultPath())
+	require.NoError(t, diags.Error())
+	assert.Equal(t, []string{"."}, b.Config.Sync.Paths)
+}
+
+func TestSyncDefaultPath_SkipIfSet(t *testing.T) {
+	tcases := []struct {
+		name   string
+		paths  dyn.Value
+		expect []string
+	}{
+		{
+			name:   "nil",
+			paths:  dyn.V(nil),
+			expect: nil,
+		},
+		{
+			name:   "empty sequence",
+			paths:  dyn.V([]dyn.Value{}),
+			expect: []string{},
+		},
+		{
+			name:   "non-empty sequence",
+			paths:  dyn.V([]dyn.Value{dyn.V("something")}),
+			expect: []string{"something"},
+		},
+	}
+
+	for _, tcase := range tcases {
+		t.Run(tcase.name, func(t *testing.T) {
+			b := &bundle.Bundle{
+				RootPath: "/tmp/some/dir",
+				Config:   config.Root{},
+			}
+
+			diags := bundle.ApplyFunc(context.Background(), b, func(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
+				err := b.Config.Mutate(func(v dyn.Value) (dyn.Value, error) {
+					v, err := dyn.Set(v, "sync", dyn.V(dyn.NewMapping()))
+					if err != nil {
+						return dyn.InvalidValue, err
+					}
+					v, err = dyn.Set(v, "sync.paths", tcase.paths)
+					if err != nil {
+						return dyn.InvalidValue, err
+					}
+					return v, nil
+				})
+				return diag.FromErr(err)
+			})
+			require.NoError(t, diags.Error())
+
+			ctx := context.Background()
+			diags = bundle.Apply(ctx, b, mutator.SyncDefaultPath())
+			require.NoError(t, diags.Error())
+
+			// If the sync paths field is already set, do nothing.
+			assert.Equal(t, tcase.expect, b.Config.Sync.Paths)
+		})
+	}
+}
diff --git a/bundle/config/mutator/sync_infer_root.go b/bundle/config/mutator/sync_infer_root.go
new file mode 100644
index 0000000000..012acf8001
--- /dev/null
+++ b/bundle/config/mutator/sync_infer_root.go
@@ -0,0 +1,120 @@
+package mutator
+
+import (
+	"context"
+	"fmt"
+	"path/filepath"
+
+	"github.com/databricks/cli/bundle"
+	"github.com/databricks/cli/libs/diag"
+	"github.com/databricks/cli/libs/dyn"
+	"github.com/databricks/cli/libs/vfs"
+)
+
+type syncInferRoot struct{}
+
+// SyncInferRoot is a mutator that infers the root path of all files to synchronize by looking at the
+// paths in the sync configuration. The sync root may be different from the bundle root
+// when the user intends to synchronize files outside the bundle root.
+//
+// The sync root can be equivalent to or an ancestor of the bundle root, but not a descendant.
+// That is, the sync root must contain the bundle root.
+//
+// This mutator requires all sync-related paths and patterns to be relative to the bundle root path.
+// This is done by the [RewriteSyncPaths] mutator, which must run before this mutator.
+func SyncInferRoot() bundle.Mutator {
+	return &syncInferRoot{}
+}
+
+func (m *syncInferRoot) Name() string {
+	return "SyncInferRoot"
+}
+
+// computeRoot finds the innermost path that contains the specified path.
+// It traverses up the root path until it finds the innermost path.
+// If the path does not exist, it returns an empty string.
+//
+// See "sync_infer_root_internal_test.go" for examples.
+func (m *syncInferRoot) computeRoot(path string, root string) string {
+	for !filepath.IsLocal(path) {
+		// Break if we have reached the root of the filesystem.
+		dir := filepath.Dir(root)
+		if dir == root {
+			return ""
+		}
+
+		// Update the sync path as we navigate up the directory tree.
+		path = filepath.Join(filepath.Base(root), path)
+
+		// Move up the directory tree.
+		root = dir
+	}
+
+	return filepath.Clean(root)
+}
+
+func (m *syncInferRoot) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
+	var diags diag.Diagnostics
+
+	// Use the bundle root path as the starting point for inferring the sync root path.
+	bundleRootPath := filepath.Clean(b.RootPath)
+
+	// Infer the sync root path by looking at each one of the sync paths.
+	// Every sync path must be a descendant of the final sync root path.
+	syncRootPath := bundleRootPath
+	for _, path := range b.Config.Sync.Paths {
+		computedPath := m.computeRoot(path, bundleRootPath)
+		if computedPath == "" {
+			continue
+		}
+
+		// Update sync root path if the computed root path is an ancestor of the current sync root path.
+		if len(computedPath) < len(syncRootPath) {
+			syncRootPath = computedPath
+		}
+	}
+
+	// The new sync root path can only be an ancestor of the previous root path.
+	// Compute the relative path from the sync root to the bundle root.
+	rel, err := filepath.Rel(syncRootPath, bundleRootPath)
+	if err != nil {
+		return diag.FromErr(err)
+	}
+
+	// If during computation of the sync root path we hit the root of the filesystem,
+	// then one or more of the sync paths are outside the filesystem.
+	// Check if this happened by verifying that none of the paths escape the root
+	// when joined with the sync root path.
+	for i, path := range b.Config.Sync.Paths {
+		if filepath.IsLocal(filepath.Join(rel, path)) {
+			continue
+		}
+
+		diags = append(diags, diag.Diagnostic{
+			Severity:  diag.Error,
+			Summary:   fmt.Sprintf("invalid sync path %q", path),
+			Locations: b.Config.GetLocations(fmt.Sprintf("sync.paths[%d]", i)),
+			Paths:     []dyn.Path{dyn.NewPath(dyn.Key("sync"), dyn.Key("paths"), dyn.Index(i))},
+		})
+	}
+
+	if diags.HasError() {
+		return diags
+	}
+
+	// Update all paths in the sync configuration to be relative to the sync root.
+	for i, p := range b.Config.Sync.Paths {
+		b.Config.Sync.Paths[i] = filepath.Join(rel, p)
+	}
+	for i, p := range b.Config.Sync.Include {
+		b.Config.Sync.Include[i] = filepath.Join(rel, p)
+	}
+	for i, p := range b.Config.Sync.Exclude {
+		b.Config.Sync.Exclude[i] = filepath.Join(rel, p)
+	}
+
+	// Configure the sync root path.
+	b.SyncRoot = vfs.MustNew(syncRootPath)
+	b.SyncRootPath = syncRootPath
+	return nil
+}
diff --git a/bundle/config/mutator/sync_infer_root_internal_test.go b/bundle/config/mutator/sync_infer_root_internal_test.go
new file mode 100644
index 0000000000..9ab9c88f46
--- /dev/null
+++ b/bundle/config/mutator/sync_infer_root_internal_test.go
@@ -0,0 +1,72 @@
+package mutator
+
+import (
+	"path/filepath"
+	"testing"
+
+	"github.com/stretchr/testify/assert"
+)
+
+func TestSyncInferRootInternal_ComputeRoot(t *testing.T) {
+	s := syncInferRoot{}
+
+	tcases := []struct {
+		path string
+		root string
+		out  string
+	}{
+		{
+			// Test that "." doesn't change the root.
+			path: ".",
+			root: "/tmp/some/dir",
+			out:  "/tmp/some/dir",
+		},
+		{
+			// Test that a subdirectory doesn't change the root.
+			path: "sub",
+			root: "/tmp/some/dir",
+			out:  "/tmp/some/dir",
+		},
+		{
+			// Test that a parent directory changes the root.
+			path: "../common",
+			root: "/tmp/some/dir",
+			out:  "/tmp/some",
+		},
+		{
+			// Test that a deeply nested parent directory changes the root.
+			path: "../../../../../../common",
+			root: "/tmp/some/dir/that/is/very/deeply/nested",
+			out:  "/tmp/some",
+		},
+		{
+			// Test that a parent directory changes the root at the filesystem root boundary.
+			path: "../common",
+			root: "/tmp",
+			out:  "/",
+		},
+		{
+			// Test that an invalid parent directory doesn't change the root and returns an empty string.
+			path: "../common",
+			root: "/",
+			out:  "",
+		},
+		{
+			// Test that the returned path is cleaned even if the root doesn't change.
+			path: "sub",
+			root: "/tmp/some/../dir",
+			out:  "/tmp/dir",
+		},
+		{
+			// Test that a relative root path also works.
+			path: "../common",
+			root: "foo/bar",
+			out:  "foo",
+		},
+	}
+
+	for _, tc := range tcases {
+		out := s.computeRoot(tc.path, tc.root)
+		assert.Equal(t, tc.out, filepath.ToSlash(out))
+	}
+}
diff --git a/bundle/config/mutator/sync_infer_root_test.go b/bundle/config/mutator/sync_infer_root_test.go
new file mode 100644
index 0000000000..383e56769e
--- /dev/null
+++ b/bundle/config/mutator/sync_infer_root_test.go
@@ -0,0 +1,198 @@
+package mutator_test
+
+import (
+	"context"
+	"path/filepath"
+	"testing"
+
+	"github.com/databricks/cli/bundle"
+	"github.com/databricks/cli/bundle/config"
+	"github.com/databricks/cli/bundle/config/mutator"
+	"github.com/databricks/cli/bundle/internal/bundletest"
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+)
+
+func TestSyncInferRoot_NominalAbsolute(t *testing.T) {
+	b := &bundle.Bundle{
+		RootPath: "/tmp/some/dir",
+		Config: config.Root{
+			Sync: config.Sync{
+				Paths: []string{
+					".",
+				},
+				Include: []string{
+					"foo",
+					"bar",
+				},
+				Exclude: []string{
+					"baz",
+					"qux",
+				},
+			},
+		},
+	}
+
+	ctx := context.Background()
+	diags := bundle.Apply(ctx, b, mutator.SyncInferRoot())
+	assert.NoError(t, diags.Error())
+	assert.Equal(t, filepath.FromSlash("/tmp/some/dir"), b.SyncRootPath)
+
+	// Check that the paths are unchanged.
+	assert.Equal(t, []string{"."}, b.Config.Sync.Paths)
+	assert.Equal(t, []string{"foo", "bar"}, b.Config.Sync.Include)
+	assert.Equal(t, []string{"baz", "qux"}, b.Config.Sync.Exclude)
+}
+
+func TestSyncInferRoot_NominalRelative(t *testing.T) {
+	b := &bundle.Bundle{
+		RootPath: "./some/dir",
+		Config: config.Root{
+			Sync: config.Sync{
+				Paths: []string{
+					".",
+				},
+				Include: []string{
+					"foo",
+					"bar",
+				},
+				Exclude: []string{
+					"baz",
+					"qux",
+				},
+			},
+		},
+	}
+
+	ctx := context.Background()
+	diags := bundle.Apply(ctx, b, mutator.SyncInferRoot())
+	assert.NoError(t, diags.Error())
+	assert.Equal(t, filepath.FromSlash("some/dir"), b.SyncRootPath)
+
+	// Check that the paths are unchanged.
+	assert.Equal(t, []string{"."}, b.Config.Sync.Paths)
+	assert.Equal(t, []string{"foo", "bar"}, b.Config.Sync.Include)
+	assert.Equal(t, []string{"baz", "qux"}, b.Config.Sync.Exclude)
+}
+
+func TestSyncInferRoot_ParentDirectory(t *testing.T) {
+	b := &bundle.Bundle{
+		RootPath: "/tmp/some/dir",
+		Config: config.Root{
+			Sync: config.Sync{
+				Paths: []string{
+					"../common",
+				},
+				Include: []string{
+					"foo",
+					"bar",
+				},
+				Exclude: []string{
+					"baz",
+					"qux",
+				},
+			},
+		},
+	}
+
+	ctx := context.Background()
+	diags := bundle.Apply(ctx, b, mutator.SyncInferRoot())
+	assert.NoError(t, diags.Error())
+	assert.Equal(t, filepath.FromSlash("/tmp/some"), b.SyncRootPath)
+
+	// Check that the paths are updated.
+	assert.Equal(t, []string{"common"}, b.Config.Sync.Paths)
+	assert.Equal(t, []string{filepath.FromSlash("dir/foo"), filepath.FromSlash("dir/bar")}, b.Config.Sync.Include)
+	assert.Equal(t, []string{filepath.FromSlash("dir/baz"), filepath.FromSlash("dir/qux")}, b.Config.Sync.Exclude)
+}
+
+func TestSyncInferRoot_ManyParentDirectories(t *testing.T) {
+	b := &bundle.Bundle{
+		RootPath: "/tmp/some/dir/that/is/very/deeply/nested",
+		Config: config.Root{
+			Sync: config.Sync{
+				Paths: []string{
+					"../../../../../../common",
+				},
+				Include: []string{
+					"foo",
+					"bar",
+				},
+				Exclude: []string{
+					"baz",
+					"qux",
+				},
+			},
+		},
+	}
+
+	ctx := context.Background()
+	diags := bundle.Apply(ctx, b, mutator.SyncInferRoot())
+	assert.NoError(t, diags.Error())
+	assert.Equal(t, filepath.FromSlash("/tmp/some"), b.SyncRootPath)
+
+	// Check that the paths are updated.
+	assert.Equal(t, []string{"common"}, b.Config.Sync.Paths)
+	assert.Equal(t, []string{
+		filepath.FromSlash("dir/that/is/very/deeply/nested/foo"),
+		filepath.FromSlash("dir/that/is/very/deeply/nested/bar"),
+	}, b.Config.Sync.Include)
+	assert.Equal(t, []string{
+		filepath.FromSlash("dir/that/is/very/deeply/nested/baz"),
+		filepath.FromSlash("dir/that/is/very/deeply/nested/qux"),
+	}, b.Config.Sync.Exclude)
+}
+
+func TestSyncInferRoot_MultiplePaths(t *testing.T) {
+	b := &bundle.Bundle{
+		RootPath: "/tmp/some/bundle/root",
+		Config: config.Root{
+			Sync: config.Sync{
+				Paths: []string{
+					"./foo",
+					"../common",
+					"./bar",
+					"../../baz",
+				},
+			},
+		},
+	}
+
+	ctx := context.Background()
+	diags := bundle.Apply(ctx, b, mutator.SyncInferRoot())
+	assert.NoError(t, diags.Error())
+	assert.Equal(t, filepath.FromSlash("/tmp/some"), b.SyncRootPath)
+
+	// Check that the paths are updated.
+	assert.Equal(t, filepath.FromSlash("bundle/root/foo"), b.Config.Sync.Paths[0])
+	assert.Equal(t, filepath.FromSlash("bundle/common"), b.Config.Sync.Paths[1])
+	assert.Equal(t, filepath.FromSlash("bundle/root/bar"), b.Config.Sync.Paths[2])
+	assert.Equal(t, filepath.FromSlash("baz"), b.Config.Sync.Paths[3])
+}
+
+func TestSyncInferRoot_Error(t *testing.T) {
+	b := &bundle.Bundle{
+		RootPath: "/tmp/some/dir",
+		Config: config.Root{
+			Sync: config.Sync{
+				Paths: []string{
+					"../../../../error",
+					"../../../thisworks",
+					"../../../../../error",
+				},
+			},
+		},
+	}
+
+	bundletest.SetLocation(b, "sync.paths", "databricks.yml")
+
+	ctx := context.Background()
+	diags := bundle.Apply(ctx, b, mutator.SyncInferRoot())
+	require.Len(t, diags, 2)
+	assert.Equal(t, `invalid sync path "../../../../error"`, diags[0].Summary)
+	assert.Equal(t, "databricks.yml:0:0", diags[0].Locations[0].String())
+	assert.Equal(t, "sync.paths[0]", diags[0].Paths[0].String())
+	assert.Equal(t, `invalid sync path "../../../../../error"`, diags[1].Summary)
+	assert.Equal(t, "databricks.yml:0:0", diags[1].Locations[0].String())
+	assert.Equal(t, "sync.paths[2]", diags[1].Paths[0].String())
+}
diff --git a/bundle/config/mutator/trampoline.go b/bundle/config/mutator/trampoline.go
index dde9a299eb..dcca501493 100644
--- a/bundle/config/mutator/trampoline.go
+++ b/bundle/config/mutator/trampoline.go
@@ -82,7 +82,7 @@ func (m *trampoline) generateNotebookWrapper(ctx context.Context, b *bundle.Bund
 		return err
 	}
 
-	internalDirRel, err := filepath.Rel(b.RootPath, internalDir)
+	internalDirRel, err := filepath.Rel(b.SyncRootPath, internalDir)
 	if err != nil {
 		return err
 	}
diff --git a/bundle/config/mutator/trampoline_test.go b/bundle/config/mutator/trampoline_test.go
index de395c1659..08d3c82208 100644
--- a/bundle/config/mutator/trampoline_test.go
+++ b/bundle/config/mutator/trampoline_test.go
@@ -56,8 +56,12 @@ func TestGenerateTrampoline(t *testing.T) {
 	}
 
 	b := &bundle.Bundle{
-		RootPath: tmpDir,
+		RootPath:     filepath.Join(tmpDir, "parent", "my_bundle"),
+		SyncRootPath: filepath.Join(tmpDir, "parent"),
 		Config: config.Root{
+			Workspace: config.Workspace{
+				FilePath: "/Workspace/files",
+			},
 			Bundle: config.Bundle{
 				Target: "development",
 			},
@@ -89,6 +93,6 @@ func TestGenerateTrampoline(t *testing.T) {
 	require.Equal(t, "Hello from Trampoline", string(bytes))
 
 	task := b.Config.Resources.Jobs["test"].Tasks[0]
-	require.Equal(t, task.NotebookTask.NotebookPath, ".databricks/bundle/development/.internal/notebook_test_to_trampoline")
+	require.Equal(t, "/Workspace/files/my_bundle/.databricks/bundle/development/.internal/notebook_test_to_trampoline", task.NotebookTask.NotebookPath)
 	require.Nil(t, task.PythonWheelTask)
 }
diff --git a/bundle/config/mutator/translate_paths.go b/bundle/config/mutator/translate_paths.go
index 28f7d3d30b..5f22570e7f 100644
--- a/bundle/config/mutator/translate_paths.go
+++ b/bundle/config/mutator/translate_paths.go
@@ -93,14 +93,14 @@ func (t *translateContext) rewritePath(
 		return nil
 	}
 
-	// Local path must be contained in the bundle root.
+	// Local path must be contained in the sync root.
 	// If it isn't, it won't be synchronized into the workspace.
-	localRelPath, err := filepath.Rel(t.b.RootPath, localPath)
+	localRelPath, err := filepath.Rel(t.b.SyncRootPath, localPath)
 	if err != nil {
 		return err
 	}
 	if strings.HasPrefix(localRelPath, "..") {
-		return fmt.Errorf("path %s is not contained in bundle root path", localPath)
+		return fmt.Errorf("path %s is not contained in sync root path", localPath)
 	}
 
 	// Prefix remote path with its remote root path.
@@ -118,7 +118,7 @@ func (t *translateContext) rewritePath(
 }
 
 func (t *translateContext) translateNotebookPath(literal, localFullPath, localRelPath, remotePath string) (string, error) {
-	nb, _, err := notebook.DetectWithFS(t.b.BundleRoot, filepath.ToSlash(localRelPath))
+	nb, _, err := notebook.DetectWithFS(t.b.SyncRoot, filepath.ToSlash(localRelPath))
 	if errors.Is(err, fs.ErrNotExist) {
 		return "", fmt.Errorf("notebook %s not found", literal)
 	}
@@ -134,7 +134,7 @@ func (t *translateContext) translateNotebookPath(literal, localFullPath, localRe
 }
 
 func (t *translateContext) translateFilePath(literal, localFullPath, localRelPath, remotePath string) (string, error) {
-	nb, _, err := notebook.DetectWithFS(t.b.BundleRoot, filepath.ToSlash(localRelPath))
+	nb, _, err := notebook.DetectWithFS(t.b.SyncRoot, filepath.ToSlash(localRelPath))
 	if errors.Is(err, fs.ErrNotExist) {
 		return "", fmt.Errorf("file %s not found", literal)
 	}
@@ -148,7 +148,7 @@ func (t *translateContext) translateFilePath(literal, localFullPath, localRelPat
 }
 
 func (t *translateContext) translateDirectoryPath(literal, localFullPath, localRelPath, remotePath string) (string, error) {
-	info, err := t.b.BundleRoot.Stat(filepath.ToSlash(localRelPath))
+	info, err := t.b.SyncRoot.Stat(filepath.ToSlash(localRelPath))
 	if err != nil {
 		return "", err
 	}
diff --git a/bundle/config/mutator/translate_paths_test.go b/bundle/config/mutator/translate_paths_test.go
index fd64593be4..50fcd3b07b 100644
--- a/bundle/config/mutator/translate_paths_test.go
+++ b/bundle/config/mutator/translate_paths_test.go
@@ -41,8 +41,8 @@ func touchEmptyFile(t *testing.T, path string) {
 func TestTranslatePathsSkippedWithGitSource(t *testing.T) {
 	dir := t.TempDir()
 	b := &bundle.Bundle{
-		RootPath:   dir,
-		BundleRoot: vfs.MustNew(dir),
+		SyncRootPath: dir,
+		SyncRoot:     vfs.MustNew(dir),
 		Config: config.Root{
 			Workspace: config.Workspace{
 				FilePath: "/bundle",
@@ -113,8 +113,8 @@ func TestTranslatePaths(t *testing.T) {
 	touchEmptyFile(t, filepath.Join(dir, "requirements.txt"))
 
 	b := &bundle.Bundle{
-		RootPath:   dir,
-		BundleRoot: vfs.MustNew(dir),
+		SyncRootPath: dir,
+		SyncRoot:     vfs.MustNew(dir),
 		Config: config.Root{
 			Workspace: config.Workspace{
 				FilePath: "/bundle",
@@ -289,8 +289,8 @@ func TestTranslatePathsInSubdirectories(t *testing.T) {
 	touchEmptyFile(t, filepath.Join(dir, "job", "my_dbt_project", "dbt_project.yml"))
 
 	b := &bundle.Bundle{
-		RootPath:   dir,
-		BundleRoot: vfs.MustNew(dir),
+		SyncRootPath: dir,
+		SyncRoot:     vfs.MustNew(dir),
 		Config: config.Root{
 			Workspace: config.Workspace{
 				FilePath: "/bundle",
@@ -380,12 +380,12 @@ func TestTranslatePathsInSubdirectories(t *testing.T) {
 	)
 }
 
-func TestTranslatePathsOutsideBundleRoot(t *testing.T) {
+func TestTranslatePathsOutsideSyncRoot(t *testing.T) {
 	dir := t.TempDir()
 
 	b := &bundle.Bundle{
-		RootPath:   dir,
-		BundleRoot: vfs.MustNew(dir),
+		SyncRootPath: dir,
+		SyncRoot:     vfs.MustNew(dir),
 		Config: config.Root{
 			Workspace: config.Workspace{
 				FilePath: "/bundle",
@@ -411,15 +411,15 @@ func TestTranslatePathsOutsideBundleRoot(t *testing.T) {
 	bundletest.SetLocation(b, ".", filepath.Join(dir, "../resource.yml"))
 
 	diags := bundle.Apply(context.Background(), b, mutator.TranslatePaths())
-	assert.ErrorContains(t, diags.Error(), "is not contained in bundle root")
+	assert.ErrorContains(t, diags.Error(), "is not contained in sync root path")
 }
 
 func TestJobNotebookDoesNotExistError(t *testing.T) {
 	dir := t.TempDir()
 
 	b := &bundle.Bundle{
-		RootPath:   dir,
-		BundleRoot: vfs.MustNew(dir),
+		SyncRootPath: dir,
+		SyncRoot:     vfs.MustNew(dir),
 		Config: config.Root{
 			Resources: config.Resources{
 				Jobs: map[string]*resources.Job{
@@ -449,8 +449,8 @@ func TestJobFileDoesNotExistError(t *testing.T) {
 	dir := t.TempDir()
 
 	b := &bundle.Bundle{
-		RootPath:   dir,
-		BundleRoot: vfs.MustNew(dir),
+		SyncRootPath: dir,
+		SyncRoot:     vfs.MustNew(dir),
 		Config: config.Root{
 			Resources: config.Resources{
 				Jobs: map[string]*resources.Job{
@@ -480,8 +480,8 @@ func TestPipelineNotebookDoesNotExistError(t *testing.T) {
 	dir := t.TempDir()
 
 	b := &bundle.Bundle{
-		RootPath:   dir,
-		BundleRoot: vfs.MustNew(dir),
+		SyncRootPath: dir,
+		SyncRoot:     vfs.MustNew(dir),
 		Config: config.Root{
 			Resources: config.Resources{
 				Pipelines: map[string]*resources.Pipeline{
@@ -511,8 +511,8 @@ func TestPipelineFileDoesNotExistError(t *testing.T) {
 	dir := t.TempDir()
 
 	b := &bundle.Bundle{
-		RootPath:   dir,
-		BundleRoot: vfs.MustNew(dir),
+		SyncRootPath: dir,
+		SyncRoot:     vfs.MustNew(dir),
 		Config: config.Root{
 			Resources: config.Resources{
 				Pipelines: map[string]*resources.Pipeline{
@@ -543,8 +543,8 @@ func TestJobSparkPythonTaskWithNotebookSourceError(t *testing.T) {
 	touchNotebookFile(t, filepath.Join(dir, "my_notebook.py"))
 
 	b := &bundle.Bundle{
-		RootPath:   dir,
-		BundleRoot: vfs.MustNew(dir),
+		SyncRootPath: dir,
+		SyncRoot:     vfs.MustNew(dir),
 		Config: config.Root{
 			Workspace: config.Workspace{
 				FilePath: "/bundle",
@@ -578,8 +578,8 @@ func TestJobNotebookTaskWithFileSourceError(t *testing.T) {
 	touchEmptyFile(t, filepath.Join(dir, "my_file.py"))
 
 	b := &bundle.Bundle{
-		RootPath:   dir,
-		BundleRoot: vfs.MustNew(dir),
+		SyncRootPath: dir,
+		SyncRoot:     vfs.MustNew(dir),
 		Config: config.Root{
 			Workspace: config.Workspace{
 				FilePath: "/bundle",
@@ -613,8 +613,8 @@ func TestPipelineNotebookLibraryWithFileSourceError(t *testing.T) {
 	touchEmptyFile(t, filepath.Join(dir, "my_file.py"))
 
 	b := &bundle.Bundle{
-		RootPath:   dir,
-		BundleRoot: vfs.MustNew(dir),
+		SyncRootPath: dir,
+		SyncRoot:     vfs.MustNew(dir),
 		Config: config.Root{
 			Workspace: config.Workspace{
 				FilePath: "/bundle",
@@ -648,8 +648,8 @@ func TestPipelineFileLibraryWithNotebookSourceError(t *testing.T) {
 	touchNotebookFile(t, filepath.Join(dir, "my_notebook.py"))
 
 	b := &bundle.Bundle{
-		RootPath:   dir,
-		BundleRoot: vfs.MustNew(dir),
+		SyncRootPath: dir,
+		SyncRoot:     vfs.MustNew(dir),
 		Config: config.Root{
 			Workspace: config.Workspace{
 				FilePath: "/bundle",
@@ -684,8 +684,8 @@ func TestTranslatePathJobEnvironments(t *testing.T) {
 	touchEmptyFile(t, filepath.Join(dir, "env2.py"))
 
 	b := &bundle.Bundle{
-		RootPath:   dir,
-		BundleRoot: vfs.MustNew(dir),
+		SyncRootPath: dir,
+		SyncRoot:     vfs.MustNew(dir),
 		Config: config.Root{
 			Resources: config.Resources{
 				Jobs: map[string]*resources.Job{
@@ -724,8 +724,8 @@ func TestTranslatePathJobEnvironments(t *testing.T) {
 func TestTranslatePathWithComplexVariables(t *testing.T) {
 	dir := t.TempDir()
 	b := &bundle.Bundle{
-		RootPath:   dir,
-		BundleRoot: vfs.MustNew(dir),
+		SyncRootPath: dir,
+		SyncRoot:     vfs.MustNew(dir),
 		Config: config.Root{
 			Variables: map[string]*variable.Variable{
 				"cluster_libraries": {
diff --git a/bundle/config/sync.go b/bundle/config/sync.go
index 0580e4c4ff..377b1333ed 100644
--- a/bundle/config/sync.go
+++ b/bundle/config/sync.go
@@ -1,6 +1,10 @@
 package config
 
 type Sync struct {
+	// Paths contains a list of paths to synchronize relative to the bundle root path.
+	// If not configured, this defaults to synchronizing everything in the bundle root path (i.e. `.`).
+	Paths []string `json:"paths,omitempty"`
+
 	// Include contains a list of globs evaluated relative to the bundle root path
 	// to explicitly include files that were excluded by the user's gitignore.
 	Include []string `json:"include,omitempty"`
diff --git a/bundle/deploy/files/sync.go b/bundle/deploy/files/sync.go
index dc45053f9c..347ed30793 100644
--- a/bundle/deploy/files/sync.go
+++ b/bundle/deploy/files/sync.go
@@ -28,8 +28,8 @@ func GetSyncOptions(ctx context.Context, rb bundle.ReadOnlyBundle) (*sync.SyncOp
 	}
 
 	opts := &sync.SyncOptions{
-		LocalRoot: rb.BundleRoot(),
-		Paths:     []string{"."},
+		LocalRoot: rb.SyncRoot(),
+		Paths:     rb.Config().Sync.Paths,
 		Include:   includes,
 		Exclude:   rb.Config().Sync.Exclude,
 
diff --git a/bundle/deploy/state_pull.go b/bundle/deploy/state_pull.go
index 24ed9d360e..5e301a6f35 100644
--- a/bundle/deploy/state_pull.go
+++ b/bundle/deploy/state_pull.go
@@ -85,7 +85,7 @@ func (s *statePull) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostic
 	}
 
 	log.Infof(ctx, "Creating new snapshot")
-	snapshot, err := sync.NewSnapshot(state.Files.ToSlice(b.BundleRoot), opts)
+	snapshot, err := sync.NewSnapshot(state.Files.ToSlice(b.SyncRoot), opts)
 	if err != nil {
 		return diag.FromErr(err)
 	}
diff --git a/bundle/deploy/state_pull_test.go b/bundle/deploy/state_pull_test.go
index 38f0b40213..f75193065a 100644
--- a/bundle/deploy/state_pull_test.go
+++ b/bundle/deploy/state_pull_test.go
@@ -64,6 +64,10 @@ func testStatePull(t *testing.T, opts statePullOpts) {
 	b := &bundle.Bundle{
 		RootPath:   tmpDir,
 		BundleRoot: vfs.MustNew(tmpDir),
+
+		SyncRootPath: tmpDir,
+		SyncRoot:     vfs.MustNew(tmpDir),
+
 		Config: config.Root{
 			Bundle: config.Bundle{
 				Target: "default",
@@ -81,11 +85,11 @@ func testStatePull(t *testing.T, opts statePullOpts) {
 	ctx := context.Background()
 
 	for _, file := range opts.localFiles {
-		testutil.Touch(t, b.RootPath, "bar", file)
+		testutil.Touch(t, b.SyncRootPath, "bar", file)
 	}
 
 	for _, file := range opts.localNotebooks {
-		testutil.TouchNotebook(t, b.RootPath, "bar", file)
+		testutil.TouchNotebook(t, b.SyncRootPath, "bar", file)
 	}
 
 	if opts.withExistingSnapshot {
diff --git a/bundle/phases/initialize.go b/bundle/phases/initialize.go
index 7a1081ded6..8039a4f131 100644
--- a/bundle/phases/initialize.go
+++ b/bundle/phases/initialize.go
@@ -21,7 +21,18 @@ func Initialize() bundle.Mutator {
 		"initialize",
 		[]bundle.Mutator{
 			validate.AllResourcesHaveValues(),
+
+			// Update all path fields in the sync block to be relative to the bundle root path.
 			mutator.RewriteSyncPaths(),
+
+			// Configure the default sync path to equal the bundle root if not explicitly configured.
+			// By default, this means all files in the bundle root directory are synchronized.
+			mutator.SyncDefaultPath(),
+
+			// Figure out if the sync root path is identical or an ancestor of the bundle root path.
+			// If it is an ancestor, this updates all paths to be relative to the sync root path.
+			mutator.SyncInferRoot(),
+
 			mutator.MergeJobClusters(),
 			mutator.MergeJobParameters(),
 			mutator.MergeJobTasks(),
diff --git a/bundle/python/conditional_transform_test.go b/bundle/python/conditional_transform_test.go
index 677970d70a..1d397f7a7f 100644
--- a/bundle/python/conditional_transform_test.go
+++ b/bundle/python/conditional_transform_test.go
@@ -2,7 +2,6 @@ package python
 
 import (
 	"context"
-	"path"
 	"path/filepath"
 	"testing"
 
@@ -18,11 +17,15 @@ func TestNoTransformByDefault(t *testing.T) {
 	tmpDir := t.TempDir()
 
 	b := &bundle.Bundle{
-		RootPath: tmpDir,
+		RootPath:     filepath.Join(tmpDir, "parent", "my_bundle"),
+		SyncRootPath: filepath.Join(tmpDir, "parent"),
 		Config: config.Root{
 			Bundle: config.Bundle{
 				Target: "development",
 			},
+			Workspace: config.Workspace{
+				FilePath: "/Workspace/files",
+			},
 			Resources: config.Resources{
 				Jobs: map[string]*resources.Job{
 					"job1": {
@@ -63,11 +66,15 @@ func TestTransformWithExperimentalSettingSetToTrue(t *testing.T) {
 	tmpDir := t.TempDir()
 
 	b := &bundle.Bundle{
-		RootPath: tmpDir,
+		RootPath:     filepath.Join(tmpDir, "parent", "my_bundle"),
+		SyncRootPath: filepath.Join(tmpDir, "parent"),
 		Config: config.Root{
 			Bundle: config.Bundle{
 				Target: "development",
 			},
+			Workspace: config.Workspace{
+				FilePath: "/Workspace/files",
+			},
 			Resources: config.Resources{
 				Jobs: map[string]*resources.Job{
 					"job1": {
@@ -102,14 +109,7 @@ func TestTransformWithExperimentalSettingSetToTrue(t *testing.T) {
 	task := b.Config.Resources.Jobs["job1"].Tasks[0]
 	require.Nil(t, task.PythonWheelTask)
 	require.NotNil(t, task.NotebookTask)
-
-	dir, err := b.InternalDir(context.Background())
-	require.NoError(t, err)
-
-	internalDirRel, err := filepath.Rel(b.RootPath, dir)
-	require.NoError(t, err)
-
-	require.Equal(t, path.Join(filepath.ToSlash(internalDirRel), "notebook_job1_key1"), task.NotebookTask.NotebookPath)
+	require.Equal(t, "/Workspace/files/my_bundle/.databricks/bundle/development/.internal/notebook_job1_key1", task.NotebookTask.NotebookPath)
 
 	require.Len(t, task.Libraries, 1)
 	require.Equal(t, "/Workspace/Users/test@test.com/bundle/dist/test.jar", task.Libraries[0].Jar)
diff --git a/bundle/tests/loader.go b/bundle/tests/loader.go
index 848132a13b..5c48d81cb9 100644
--- a/bundle/tests/loader.go
+++ b/bundle/tests/loader.go
@@ -40,6 +40,8 @@ func loadTargetWithDiags(path, env string) (*bundle.Bundle, diag.Diagnostics) {
 	diags := bundle.Apply(ctx, b, bundle.Seq(
 		phases.LoadNamedTarget(env),
 		mutator.RewriteSyncPaths(),
+		mutator.SyncDefaultPath(),
+		mutator.SyncInferRoot(),
 		mutator.MergeJobClusters(),
 		mutator.MergeJobParameters(),
 		mutator.MergeJobTasks(),
diff --git a/bundle/tests/sync/paths/databricks.yml b/bundle/tests/sync/paths/databricks.yml
new file mode 100644
index 0000000000..9ef6fa032a
--- /dev/null
+++ b/bundle/tests/sync/paths/databricks.yml
@@ -0,0 +1,20 @@
+bundle:
+  name: sync_paths
+
+workspace:
+  host: https://acme.cloud.databricks.com/
+
+sync:
+  paths:
+    - src
+
+targets:
+  development:
+    sync:
+      paths:
+        - development
+
+  staging:
+    sync:
+      paths:
+        - staging
diff --git a/bundle/tests/sync/paths_no_root/databricks.yml b/bundle/tests/sync/paths_no_root/databricks.yml
new file mode 100644
index 0000000000..df15b12b65
--- /dev/null
+++ b/bundle/tests/sync/paths_no_root/databricks.yml
@@ -0,0 +1,26 @@
+bundle:
+  name: sync_paths
+
+workspace:
+  host: https://acme.cloud.databricks.com/
+
+targets:
+  development:
+    sync:
+      paths:
+        - development
+
+  staging:
+    sync:
+      paths:
+        - staging
+
+  undefined: ~
+
+  nil:
+    sync:
+      paths: ~
+
+  empty:
+    sync:
+      paths: []
diff --git a/bundle/tests/sync/shared_code/bundle/databricks.yml b/bundle/tests/sync/shared_code/bundle/databricks.yml
new file mode 100644
index 0000000000..738b6170cb
--- /dev/null
+++ b/bundle/tests/sync/shared_code/bundle/databricks.yml
@@ -0,0 +1,10 @@
+bundle:
+  name: shared_code
+
+workspace:
+  host: https://acme.cloud.databricks.com/
+
+sync:
+  paths:
+    - "../common"
+    - "."
diff --git a/bundle/tests/sync/shared_code/common/library.txt b/bundle/tests/sync/shared_code/common/library.txt
new file mode 100644
index 0000000000..83b3238433
--- /dev/null
+++ b/bundle/tests/sync/shared_code/common/library.txt
@@ -0,0 +1 @@
+Placeholder for files to be deployed as part of multiple bundles.
diff --git a/bundle/tests/sync_test.go b/bundle/tests/sync_test.go
index d08e889c34..15644b67e6 100644
--- a/bundle/tests/sync_test.go
+++ b/bundle/tests/sync_test.go
@@ -12,14 +12,20 @@ func TestSyncOverride(t *testing.T) {
 	var b *bundle.Bundle
 
 	b = loadTarget(t, "./sync/override", "development")
+	assert.Equal(t, filepath.FromSlash("sync/override"), b.SyncRootPath)
+	assert.Equal(t, []string{"."}, b.Config.Sync.Paths)
 	assert.ElementsMatch(t, []string{filepath.FromSlash("src/*"), filepath.FromSlash("tests/*")}, b.Config.Sync.Include)
 	assert.ElementsMatch(t, []string{filepath.FromSlash("dist")}, b.Config.Sync.Exclude)
 
 	b = loadTarget(t, "./sync/override", "staging")
+	assert.Equal(t, filepath.FromSlash("sync/override"), b.SyncRootPath)
+	assert.Equal(t, []string{"."}, b.Config.Sync.Paths)
 	assert.ElementsMatch(t, []string{filepath.FromSlash("src/*"), filepath.FromSlash("fixtures/*")}, b.Config.Sync.Include)
 	assert.ElementsMatch(t, []string{}, b.Config.Sync.Exclude)
 
 	b = loadTarget(t, "./sync/override", "prod")
+	assert.Equal(t, filepath.FromSlash("sync/override"), b.SyncRootPath)
+	assert.Equal(t, []string{"."}, b.Config.Sync.Paths)
 	assert.ElementsMatch(t, []string{filepath.FromSlash("src/*")}, b.Config.Sync.Include)
 	assert.ElementsMatch(t, []string{}, b.Config.Sync.Exclude)
 }
@@ -28,14 +34,20 @@ func TestSyncOverrideNoRootSync(t *testing.T) {
 	var b *bundle.Bundle
 
 	b = loadTarget(t, "./sync/override_no_root", "development")
+	assert.Equal(t, filepath.FromSlash("sync/override_no_root"), b.SyncRootPath)
+	assert.Equal(t, []string{"."}, b.Config.Sync.Paths)
 	assert.ElementsMatch(t, []string{filepath.FromSlash("tests/*")}, b.Config.Sync.Include)
 	assert.ElementsMatch(t, []string{filepath.FromSlash("dist")}, b.Config.Sync.Exclude)
 
 	b = loadTarget(t, "./sync/override_no_root", "staging")
+	assert.Equal(t, filepath.FromSlash("sync/override_no_root"), b.SyncRootPath)
+	assert.Equal(t, []string{"."}, b.Config.Sync.Paths)
 	assert.ElementsMatch(t, []string{filepath.FromSlash("fixtures/*")}, b.Config.Sync.Include)
 	assert.ElementsMatch(t, []string{}, b.Config.Sync.Exclude)
 
 	b = loadTarget(t, "./sync/override_no_root", "prod")
+	assert.Equal(t, filepath.FromSlash("sync/override_no_root"), b.SyncRootPath)
+	assert.Equal(t, []string{"."}, b.Config.Sync.Paths)
 	assert.ElementsMatch(t, []string{}, b.Config.Sync.Include)
 	assert.ElementsMatch(t, []string{}, b.Config.Sync.Exclude)
 }
@@ -44,10 +56,14 @@ func TestSyncNil(t *testing.T) {
 	var b *bundle.Bundle
 
 	b = loadTarget(t, "./sync/nil", "development")
+	assert.Equal(t, filepath.FromSlash("sync/nil"), b.SyncRootPath)
+	assert.Equal(t, []string{"."}, b.Config.Sync.Paths)
 	assert.Nil(t, b.Config.Sync.Include)
 	assert.Nil(t, b.Config.Sync.Exclude)
 
 	b = loadTarget(t, "./sync/nil", "staging")
+	assert.Equal(t, filepath.FromSlash("sync/nil"), b.SyncRootPath)
+	assert.Equal(t, []string{"."}, b.Config.Sync.Paths)
 	assert.ElementsMatch(t, []string{filepath.FromSlash("tests/*")}, b.Config.Sync.Include)
 	assert.ElementsMatch(t, []string{filepath.FromSlash("dist")}, b.Config.Sync.Exclude)
 }
@@ -56,10 +72,59 @@ func TestSyncNilRoot(t *testing.T) {
 	var b *bundle.Bundle
 
 	b = loadTarget(t, "./sync/nil_root", "development")
+	assert.Equal(t, filepath.FromSlash("sync/nil_root"), b.SyncRootPath)
+	assert.Equal(t, []string{"."}, b.Config.Sync.Paths)
 	assert.Nil(t, b.Config.Sync.Include)
 	assert.Nil(t, b.Config.Sync.Exclude)
 
 	b = loadTarget(t, "./sync/nil_root", "staging")
+	assert.Equal(t, filepath.FromSlash("sync/nil_root"), b.SyncRootPath)
+	assert.Equal(t, []string{"."}, b.Config.Sync.Paths)
 	assert.ElementsMatch(t, []string{filepath.FromSlash("tests/*")}, b.Config.Sync.Include)
 	assert.ElementsMatch(t, []string{filepath.FromSlash("dist")}, b.Config.Sync.Exclude)
 }
+
+func TestSyncPaths(t *testing.T) {
+	var b *bundle.Bundle
+
+	b = loadTarget(t, "./sync/paths", "development")
+	assert.Equal(t, filepath.FromSlash("sync/paths"), b.SyncRootPath)
+	assert.Equal(t, []string{"src", "development"}, b.Config.Sync.Paths)
+
+	b = loadTarget(t, "./sync/paths", "staging")
+	assert.Equal(t, filepath.FromSlash("sync/paths"), b.SyncRootPath)
+	assert.Equal(t, []string{"src", "staging"}, b.Config.Sync.Paths)
+}
+
+func TestSyncPathsNoRoot(t *testing.T) {
+	var b *bundle.Bundle
+
+	b = loadTarget(t, "./sync/paths_no_root", "development")
+	assert.Equal(t, filepath.FromSlash("sync/paths_no_root"), b.SyncRootPath)
+	assert.ElementsMatch(t, []string{"development"}, b.Config.Sync.Paths)
+
+	b = loadTarget(t, "./sync/paths_no_root", "staging")
+	assert.Equal(t, filepath.FromSlash("sync/paths_no_root"), b.SyncRootPath)
+	assert.ElementsMatch(t, []string{"staging"}, b.Config.Sync.Paths)
+
+	// If not set at all, it defaults to "."
+	b = loadTarget(t, "./sync/paths_no_root", "undefined")
+	assert.Equal(t, filepath.FromSlash("sync/paths_no_root"), b.SyncRootPath)
+	assert.Equal(t, []string{"."}, b.Config.Sync.Paths)
+
+	// If set to nil, it won't sync anything.
+	b = loadTarget(t, "./sync/paths_no_root", "nil")
+	assert.Equal(t, filepath.FromSlash("sync/paths_no_root"), b.SyncRootPath)
+	assert.Len(t, b.Config.Sync.Paths, 0)
+
+	// If set to an empty sequence, it won't sync anything.
+	b = loadTarget(t, "./sync/paths_no_root", "empty")
+	assert.Equal(t, filepath.FromSlash("sync/paths_no_root"), b.SyncRootPath)
+	assert.Len(t, b.Config.Sync.Paths, 0)
+}
+
+func TestSyncSharedCode(t *testing.T) {
+	b := loadTarget(t, "./sync/shared_code/bundle", "default")
+	assert.Equal(t, filepath.FromSlash("sync/shared_code"), b.SyncRootPath)
+	assert.ElementsMatch(t, []string{"common", "bundle"}, b.Config.Sync.Paths)
+}
diff --git a/cmd/sync/sync_test.go b/cmd/sync/sync_test.go
index 0d0c573852..bd03eec910 100644
--- a/cmd/sync/sync_test.go
+++ b/cmd/sync/sync_test.go
@@ -17,8 +17,10 @@ import (
 func TestSyncOptionsFromBundle(t *testing.T) {
 	tempDir := t.TempDir()
 	b := &bundle.Bundle{
-		RootPath:   tempDir,
-		BundleRoot: vfs.MustNew(tempDir),
+		RootPath:     tempDir,
+		BundleRoot:   vfs.MustNew(tempDir),
+		SyncRootPath: tempDir,
+		SyncRoot:     vfs.MustNew(tempDir),
 		Config: config.Root{
 			Bundle: config.Bundle{
 				Target: "default",