diff --git a/.gitignore b/.gitignore
index 5d1402e4..66610a23 100644
--- a/.gitignore
+++ b/.gitignore
@@ -6,8 +6,8 @@ target/
 /crates/wasmtime-test
 /test.js
 /shared
-example/package-lock.json
-example/hello.component.wasm
+examples/hello-world/guest/package-lock.json
+examples/hello-world/guest/hello.component.wasm
 /build-debug
 /build-release
 /build-release-weval
diff --git a/EXAMPLE.md b/EXAMPLE.md
index 0f40b3ef..d1a95411 100644
--- a/EXAMPLE.md
+++ b/EXAMPLE.md
@@ -44,9 +44,9 @@ node componentize.mjs
 
 ### Running the Component in Wasmtime
 
-Set up the [Cargo.toml as in the example directory](example/Cargo.toml).
+Set up the [Cargo.toml as in the example directory](examples/hello-world/host/Cargo.toml).
 
-Set up [`src/main.rs`](example/src/main.rs) as in the example directory.
+Set up [`src/main.rs`](examples/hello-world/host/src/main.rs) as in the example directory.
 
 Building and running the binary should print the result:
 
diff --git a/examples/hello-world/guest/hello.component.wasm b/examples/hello-world/guest/hello.component.wasm
deleted file mode 100644
index 9bf27ec6..00000000
Binary files a/examples/hello-world/guest/hello.component.wasm and /dev/null differ
diff --git a/examples/hello-world/test.sh b/examples/hello-world/test.sh
index f87cd828..7d2d4f9a 100755
--- a/examples/hello-world/test.sh
+++ b/examples/hello-world/test.sh
@@ -7,13 +7,13 @@ export TEST_BINARY_PATH=$(realpath host)/target/release/wasmtime-test
 # Build the JS component if not present
 echo -e "[info] expecting component WASM at [$COMPONENT_WASM_PATH]...";
 if [ ! -f "$COMPONENT_WASM_PATH" ]; then
-    cd guest && npm install && npm build
+    cd guest && npm install && npm run build && cd ..
 fi
 
 # Build the Rust embedding test binary if not present
-echo -e "[info] expecting test binary at [$COMPONENT_WASM_PATH]...";
+echo -e "[info] expecting test binary at [$TEST_BINARY_PATH]...";
 if [ ! -f "$TEST_BINARY_PATH" ]; then
-    cd host && cargo build --release
+    cd host && cargo build --release && cd ..
 fi
 
 # Run the test binary, capturing the output