diff --git a/api/routers/generation.py b/api/routers/generation.py
index 7ffcf239..936eb2c9 100644
--- a/api/routers/generation.py
+++ b/api/routers/generation.py
@@ -9,7 +9,11 @@
 from services.generators.base import smooth_progress, GenerationCancelled
 
 import re as _re
-from services.generator_registry import generator_registry, WORKSPACE_DIR
+# Import the module (not the name) so WORKSPACE_DIR is read at call time: the
+# settings endpoint rebinds it when the user relocates the workspace, and a
+# binding captured at import would keep writing output to the old directory.
+import services.generator_registry as registry
+from services.generator_registry import generator_registry
 from schemas.generation import JobStatus
 
 router = APIRouter(tags=["generation"])
@@ -164,7 +168,7 @@ def progress_cb(pct: int, step: str = "") -> None:
             return
 
         # Direct output to the collection subfolder
-        coll_dir = WORKSPACE_DIR / collection
+        coll_dir = registry.WORKSPACE_DIR / collection
         coll_dir.mkdir(parents=True, exist_ok=True)
         gen.outputs_dir = coll_dir
 
@@ -185,7 +189,7 @@ def progress_cb(pct: int, step: str = "") -> None:
         job.progress = 100
         _completed_at[job_id] = time.monotonic()
         try:
-            rel = output_path.relative_to(WORKSPACE_DIR)
+            rel = output_path.relative_to(registry.WORKSPACE_DIR)
             job.output_url = f"/workspace/{rel.as_posix()}"
         except ValueError:
             job.output_url = f"/workspace/{collection}/{output_path.name}"
diff --git a/api/tests/test_generation_router.py b/api/tests/test_generation_router.py
new file mode 100644
index 00000000..e6f77617
--- /dev/null
+++ b/api/tests/test_generation_router.py
@@ -0,0 +1,86 @@
+import asyncio
+import tempfile
+import threading
+import unittest
+from pathlib import Path
+
+import services.generator_registry as registry
+import routers.generation as generation
+from schemas.generation import JobStatus
+
+
+class _FakeGenerator:
+    """Writes its output into whatever directory generation assigns it."""
+
+    def __init__(self) -> None:
+        self.outputs_dir: Path | None = None
+
+    def generate(self, image_bytes, params, progress_cb, cancel_event=None) -> Path:
+        out = Path(self.outputs_dir) / "model.glb"
+        out.write_bytes(b"glb")
+        return out
+
+
+class _FakeRegistry:
+    def __init__(self, gen: _FakeGenerator) -> None:
+        self._gen = gen
+
+    def active_status(self) -> dict:
+        # Report loaded so _run_generation skips the download/load thread.
+        return {"loaded": True, "name": "fake", "downloaded": True}
+
+    def get_active(self) -> _FakeGenerator:
+        return self._gen
+
+
+class RunGenerationWorkspaceTests(unittest.TestCase):
+    """A generation started after the workspace path is relocated at runtime
+    (POST /settings/paths) must file its output under the *current* workspace,
+    not the one captured when the module was imported."""
+
+    def setUp(self) -> None:
+        self._prev_registry = generation.generator_registry
+        self._prev_ws = registry.WORKSPACE_DIR
+        self._tmp = tempfile.TemporaryDirectory()
+        # The user relocated the workspace: the registry global now points here.
+        registry.WORKSPACE_DIR = Path(self._tmp.name) / "new_workspace"
+        # Keep the test hermetic against the module's import-time binding: if the
+        # stale name still exists (before the fix) redirect it into the temp tree
+        # so the assertion — not a stray write to the real workspace — is what
+        # catches the bug.
+        self._had_stale = hasattr(generation, "WORKSPACE_DIR")
+        if self._had_stale:
+            generation.WORKSPACE_DIR = Path(self._tmp.name) / "old_workspace"
+
+    def tearDown(self) -> None:
+        generation.generator_registry = self._prev_registry
+        registry.WORKSPACE_DIR = self._prev_ws
+        if self._had_stale:
+            generation.WORKSPACE_DIR = self._prev_ws
+        for store in (
+            generation._jobs,
+            generation._cancel_events,
+            generation._cancelled,
+            generation._completed_at,
+        ):
+            store.clear()
+        self._tmp.cleanup()
+
+    def _run(self, collection: str) -> tuple[_FakeGenerator, JobStatus]:
+        gen = _FakeGenerator()
+        generation.generator_registry = _FakeRegistry(gen)
+        job_id = "job-test"
+        generation._jobs[job_id] = JobStatus(job_id=job_id, status="pending", progress=0)
+        generation._cancel_events[job_id] = threading.Event()
+        asyncio.run(generation._run_generation(job_id, b"img", {}, collection))
+        return gen, generation._jobs[job_id]
+
+    def test_output_lands_under_the_current_workspace(self) -> None:
+        gen, job = self._run("MyColl")
+        self.assertEqual(Path(gen.outputs_dir), registry.WORKSPACE_DIR / "MyColl")
+        self.assertEqual(job.status, "done")
+        self.assertEqual(job.output_url, "/workspace/MyColl/model.glb")
+
+
+if __name__ == "__main__":
+    unittest.main()