diff --git a/maven-embedder/src/main/java/org/apache/maven/cli/MavenCli.java b/maven-embedder/src/main/java/org/apache/maven/cli/MavenCli.java
index 84a04c53fe..fd650f0d36 100644
--- a/maven-embedder/src/main/java/org/apache/maven/cli/MavenCli.java
+++ b/maven-embedder/src/main/java/org/apache/maven/cli/MavenCli.java
@@ -1338,7 +1338,7 @@ private Object getLocation( Source source, File defaultLocation )
         return defaultLocation;
     }
 
-    private MavenExecutionRequest populateRequest( CliRequest cliRequest )
+    protected MavenExecutionRequest populateRequest( CliRequest cliRequest )
     {
         return populateRequest( cliRequest, cliRequest.request );
     }
@@ -1389,7 +1389,11 @@ private MavenExecutionRequest populateRequest( CliRequest cliRequest, MavenExecu
         request.addActiveProfiles( profileActivation.activeProfiles );
         request.addInactiveProfiles( profileActivation.inactiveProfiles );
 
-        request.setLocalRepositoryPath( determineLocalRepositoryPath( request ) );
+        final String localRepositoryPath = determineLocalRepositoryPath( request );
+        if ( localRepositoryPath != null )
+        {
+            request.setLocalRepositoryPath( localRepositoryPath );
+        }
 
         //
         // Builder, concurrency and parallelism
@@ -1428,10 +1432,13 @@ private MavenExecutionRequest populateRequest( CliRequest cliRequest, MavenExecu
 
     private String determineLocalRepositoryPath( final MavenExecutionRequest request )
     {
-        return request.getUserProperties().getProperty(
-                MavenCli.LOCAL_REPO_PROPERTY,
-                request.getSystemProperties().getProperty( MavenCli.LOCAL_REPO_PROPERTY ) // null if not found
-        );
+        String userDefinedLocalRepo = request.getUserProperties().getProperty( MavenCli.LOCAL_REPO_PROPERTY );
+        if ( userDefinedLocalRepo != null )
+        {
+            return userDefinedLocalRepo;
+        }
+
+        return request.getSystemProperties().getProperty( MavenCli.LOCAL_REPO_PROPERTY );
     }
 
     private File determinePom( final CommandLine commandLine, final String workingDirectory, final File baseDirectory )
diff --git a/maven-embedder/src/test/java/org/apache/maven/cli/MavenCliTest.java b/maven-embedder/src/test/java/org/apache/maven/cli/MavenCliTest.java
index 8c8752796b..e60ee9d175 100644
--- a/maven-embedder/src/test/java/org/apache/maven/cli/MavenCliTest.java
+++ b/maven-embedder/src/test/java/org/apache/maven/cli/MavenCliTest.java
@@ -22,6 +22,9 @@
 import static java.util.Arrays.asList;
 import static org.apache.maven.cli.MavenCli.determineProfileActivation;
 import static org.apache.maven.cli.MavenCli.determineProjectActivation;
+import static org.hamcrest.CoreMatchers.is;
+import static org.hamcrest.CoreMatchers.nullValue;
+import static org.hamcrest.CoreMatchers.notNullValue;
 import static org.hamcrest.MatcherAssert.assertThat;
 import static org.junit.Assert.assertEquals;
 import static org.junit.Assert.assertFalse;
@@ -29,8 +32,6 @@
 import static org.junit.Assert.fail;
 import static org.junit.Assume.assumeTrue;
 import static org.mockito.ArgumentMatchers.any;
-import static org.hamcrest.CoreMatchers.is;
-import static org.hamcrest.CoreMatchers.nullValue;
 import static org.hamcrest.collection.IsIterableContainingInOrder.contains;
 import static org.mockito.Mockito.inOrder;
 import static org.mockito.Mockito.mock;
@@ -47,6 +48,7 @@
 import org.apache.commons.cli.ParseException;
 import org.apache.maven.Maven;
 import org.apache.maven.eventspy.internal.EventSpyDispatcher;
+import org.apache.maven.execution.MavenExecutionRequest;
 import org.apache.maven.project.MavenProject;
 import org.apache.maven.shared.utils.logging.MessageUtils;
 import org.apache.maven.toolchain.building.ToolchainsBuildingRequest;
@@ -55,6 +57,7 @@
 import org.codehaus.plexus.PlexusContainer;
 import org.eclipse.sisu.plexus.PlexusBeanModule;
 import org.junit.After;
+import org.junit.Assert;
 import org.junit.Before;
 import org.junit.Test;
 import org.mockito.InOrder;
@@ -433,6 +436,36 @@ public void resumeFromSelectorContainsGroupIdWhenArtifactIdIsNotUnique()
         assertThat( selector, is( "group-a:module" ) );
     }
 
+    @Test
+    public void verifyLocalRepositoryPath()
+    {
+        MavenCli cli = new MavenCli();
+        CliRequest request = new CliRequest( new String[] { }, null );
+        request.commandLine = new CommandLine.Builder().build();
+        MavenExecutionRequest executionRequest;
+
+        // Use default
+        executionRequest = cli.populateRequest( request );
+        assertThat( executionRequest.getLocalRepositoryPath(),
+                is( nullValue() ) );
+
+        // System-properties override default
+        request.getSystemProperties().setProperty( MavenCli.LOCAL_REPO_PROPERTY, "." + File.separatorChar + "custom1" );
+        executionRequest = cli.populateRequest( request );
+        assertThat( executionRequest.getLocalRepositoryPath(),
+                is( notNullValue() ) );
+        assertThat( executionRequest.getLocalRepositoryPath().toString(),
+                is( "." + File.separatorChar + "custom1" ) );
+
+        // User-properties override system properties
+        request.getUserProperties().setProperty( MavenCli.LOCAL_REPO_PROPERTY, "." + File.separatorChar + "custom2" );
+        executionRequest = cli.populateRequest( request );
+        assertThat( executionRequest.getLocalRepositoryPath(),
+                is( notNullValue() ) );
+        assertThat( executionRequest.getLocalRepositoryPath().toString(),
+                is( "." + File.separatorChar + "custom2" ) );
+    }
+
     private MavenProject createMavenProject( String groupId, String artifactId )
     {
         MavenProject project = new MavenProject();