diff --git a/.changeset/six-spoons-change.md b/.changeset/six-spoons-change.md
new file mode 100644
index 00000000..77ec2798
--- /dev/null
+++ b/.changeset/six-spoons-change.md
@@ -0,0 +1,5 @@
+---
+'playroom': patch
+---
+
+Fix `playroom build` by making favicon path relative to webpack config
diff --git a/lib/makeWebpackConfig.js b/lib/makeWebpackConfig.js
index 0843f0e5..62615b1c 100644
--- a/lib/makeWebpackConfig.js
+++ b/lib/makeWebpackConfig.js
@@ -167,7 +167,7 @@ module.exports = async (playroomConfig, options) => {
         chunksSortMode: 'none',
         chunks: ['index'],
         filename: 'index.html',
-        favicon: 'images/favicon.png',
+        favicon: path.join(__dirname, '../images/favicon.png'),
         base: playroomConfig.baseUrl,
       }),
       new HtmlWebpackPlugin({