diff --git a/t/test-lib-functions.sh b/t/test-lib-functions.sh
index 61cfe9b2ae..9884fd72e7 100644
--- a/t/test-lib-functions.sh
+++ b/t/test-lib-functions.sh
@@ -797,7 +797,8 @@ test_create_repo () {
 	mkdir -p "$repo"
 	(
 		cd "$repo" || error "Cannot setup test environment"
-		"$GIT_EXEC_PATH/git$X" init "--template=$GIT_BUILD_DIR/templates/blt/" >&3 2>&4 ||
+		"${GIT_TEST_INSTALLED:-$GIT_EXEC_PATH}/git$X" init \
+			"--template=$GIT_BUILD_DIR/templates/blt/" >&3 2>&4 ||
 		error "cannot run git init -- have you built things yet?"
 		mv .git/hooks .git/hooks-disabled
 	) || exit