diff --git a/CHANGELOG.md b/CHANGELOG.md
index f84df19..9c422d0 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,8 @@
 # Changelog
 
+## Release 1.28.0
+* Add support for composer's `vendor-dir` setting when building autoloader based on composer.json and custom vendor directory location
+
 ## Release 1.27.2
 * Fix/Avoid deprecation notices in PHP 8.2
 
diff --git a/composer/bin/phpab b/composer/bin/phpab
index 617aa38..0f931c4 100755
--- a/composer/bin/phpab
+++ b/composer/bin/phpab
@@ -59,5 +59,5 @@ foreach ($files as $file) {
 require __DIR__ . '/../../src/autoload.php';
 
 $factory = new \TheSeer\Autoload\Factory();
-$factory->getCLI()->run();
+$factory->getCLI()->run($_SERVER);
 exit(0);
diff --git a/phpab.php b/phpab.php
index 35a5aad..2e2bdbd 100755
--- a/phpab.php
+++ b/phpab.php
@@ -51,5 +51,5 @@
 require __DIR__ . '/src/autoload.php';
 
 $factory = new \TheSeer\Autoload\Factory();
-$factory->getCLI()->run();
+$factory->getCLI()->run($_SERVER);
 exit(0);
diff --git a/src/CLI.php b/src/CLI.php
index f043876..343b2e7 100644
--- a/src/CLI.php
+++ b/src/CLI.php
@@ -73,7 +73,7 @@ public function __construct(Factory $factory) {
          *
          * @return void
          */
-        public function run() {
+        public function run(array $env) {
 
             try {
 
@@ -93,7 +93,7 @@ public function run() {
                     exit(CLI::RC_OK);
                 }
 
-                $config = $this->configure($input);
+                $config = $this->configure($env, $input);
                 $this->factory->setConfig($config);
                 if (!$config->isQuietMode()) {
                     $this->showVersion();
@@ -140,7 +140,7 @@ public function run() {
          *
          * @return \TheSeer\Autoload\Config
          */
-        private function configure(\ezcConsoleInput $input) {
+        private function configure(array $env, \ezcConsoleInput $input) {
             $config = new Config($input->getArguments());
             if ($input->getOption('quiet')->value) {
                 $config->setQuietMode(TRUE);
@@ -262,6 +262,14 @@ private function configure(\ezcConsoleInput $input) {
                 $config->setTrusting(FALSE);
             }
 
+            if (isset($env['HOME'])) {
+                $config->setHomeDirectory($env['HOME']);
+            } elseif (isset($env['HOMEDRIVE']) && isset($env['HOMEPATH'])) {
+                $config->setHomeDirectory($env['HOMEDRIVE'] . $env['HOMEPATH']);
+            } else {
+                $config->setHomeDirectory('/');
+            }
+
             return $config;
         }
 
diff --git a/src/ComposerIterator.php b/src/ComposerIterator.php
index d543500..5975c3d 100644
--- a/src/ComposerIterator.php
+++ b/src/ComposerIterator.php
@@ -12,7 +12,7 @@ class ComposerIterator implements \Iterator {
 
         private $pos = 0;
 
-        public function __construct(\SplFileInfo $composerFile) {
+        public function __construct(\SplFileInfo $composerFile, $homeDirectory) {
             if (!$composerFile->isFile() || !$composerFile->isReadable()) {
                 throw new ComposerIteratorException(
                     sprintf('Composer file "%s" not found or not readable', $composerFile->getPathname()),
@@ -21,12 +21,22 @@ public function __construct(\SplFileInfo $composerFile) {
             }
             $composerDir = dirname($composerFile->getRealPath());
             $composerData = json_decode(file_get_contents($composerFile->getRealPath()), true);
+
+            $vendorDir = $composerDir . '/vendor';
+            if (isset($composerData['config']['vendor-dir'])) {
+                $vendorDir = preg_replace(
+                    '/($HOME|~)/',
+                     $homeDirectory,
+                     $composerData['config']['vendor-dir']
+                );
+            }
+
             if (isset($composerData['require'])) {
                 foreach($composerData['require'] as $require => $version) {
                     if ($require === 'php' || strpos($require, 'ext-') === 0) {
                         continue;
                     }
-                    $this->processRequire($composerDir, $require);
+                    $this->processRequire($vendorDir, $require);
                 }
             }
             if (isset($composerData['autoload'])) {
@@ -66,7 +76,8 @@ private function processRequire($basedir, $require) {
             }
             $this->seen[$require] = true;
 
-            $requireDir = $basedir . '/vendor/' . $require;
+            $requireDir = $basedir . '/' . $require;
+
             $jsonFile = $this->findComposerJson($requireDir);
             if ($jsonFile === null) {
                 return;
@@ -168,7 +179,6 @@ public function valid() {
         public function rewind() {
             $this->pos = 0;
         }
-
     }
 
     class ComposerIteratorException extends \Exception {
diff --git a/src/Config.php b/src/Config.php
index c0b41cb..61d935b 100644
--- a/src/Config.php
+++ b/src/Config.php
@@ -73,6 +73,8 @@ class Config {
         private $prepend = false;
         private $exceptions = true;
 
+        private $homeDirectory = '';
+
         public function __construct(Array $directories) {
             $this->directories = $directories;
             $this->php = (PHP_OS === 'WIN' ? 'C:\php\php.exe' : '/usr/bin/php');
@@ -82,6 +84,14 @@ public function setBaseDirectory($baseDirectory) {
             $this->baseDirectory = $baseDirectory;
         }
 
+        public function setHomeDirectory($homeDir) {
+            $this->homeDirectory = $homeDir;
+        }
+
+        public function getHomeDirectory(): string {
+            return $this->homeDirectory;
+        }
+
         public function getBaseDirectory() {
             if ($this->baseDirectory !== NULL) {
                 return realpath($this->baseDirectory);
@@ -391,7 +401,7 @@ public function getDirectories() {
             $list = array();
             foreach($this->directories as $dir) {
                 if (is_file($dir) && basename($dir) == 'composer.json') {
-                    foreach(new ComposerIterator(new \SplFileInfo($dir)) as $d) {
+                    foreach(new ComposerIterator(new \SplFileInfo($dir), $this->getHomeDirectory()) as $d) {
                         $list[] = $d;
                     }
                 } else {
diff --git a/tests/ComposerIteratorTest.php b/tests/ComposerIteratorTest.php
index deee126..c9728a3 100644
--- a/tests/ComposerIteratorTest.php
+++ b/tests/ComposerIteratorTest.php
@@ -6,7 +6,7 @@
 class ComposerIteratorTest extends TestCase {
 
     public function testRecursionIsHandledProperly() {
-        $iterator = new ComposerIterator(new \SplFileInfo(__DIR__ . '/_data/recursion/composer.json'));
+        $iterator = new ComposerIterator(new \SplFileInfo(__DIR__ . '/_data/recursion/composer.json'), array());
         $expected = array(
             __DIR__ . '/_data/recursion/vendor/foo/bar',
             __DIR__ . '/_data/recursion/vendor/bar/foo'
@@ -17,7 +17,7 @@ public function testRecursionIsHandledProperly() {
     }
 
     public function testPSR14ArrayIsSupported() {
-        $iterator = new ComposerIterator(new \SplFileInfo(__DIR__ . '/_data/composer-array-issue-98/composer.json'));
+        $iterator = new ComposerIterator(new \SplFileInfo(__DIR__ . '/_data/composer-array-issue-98/composer.json'), array());
         $expected = array(
             __DIR__ . '/_data/composer-array-issue-98/../src',
             __DIR__ . '/_data/composer-array-issue-98/modules',