diff --git a/packages/nextjs/package.json b/packages/nextjs/package.json
index ca8f31877def..22f903048d47 100644
--- a/packages/nextjs/package.json
+++ b/packages/nextjs/package.json
@@ -55,10 +55,11 @@
     "test": "run-s test:unit test:integration",
     "test:watch": "jest --watch",
     "test:unit": "jest",
-    "test:integration": "run-s test:integration:build test:integration:server test:integration:client",
-    "test:integration:build": "cd test/integration && yarn && yarn build && cd ../..",
-    "test:integration:server": "node test/integration/test/server.js --silent",
-    "test:integration:client": "node test/integration/test/client.js --silent",
+    "test:integration": "run-s test:integration:clean test:integration:build test:integration:server test:integration:client",
+    "test:integration:clean": "cd test/integration && rimraf node_modules .next .env.local",
+    "test:integration:build": "cd test/integration && yarn && yarn build",
+    "test:integration:server": "cd test/integration && node test/server.js --silent",
+    "test:integration:client": "cd test/integration && node test/client.js --silent",
     "pack": "npm pack",
     "vercel:branch": "source vercel/set-up-branch-for-test-app-use.sh",
     "vercel:project": "source vercel/make-project-use-current-branch.sh"
diff --git a/packages/nextjs/src/utils/config.ts b/packages/nextjs/src/utils/config.ts
index 0cc240facd34..5c5234b92ff6 100644
--- a/packages/nextjs/src/utils/config.ts
+++ b/packages/nextjs/src/utils/config.ts
@@ -7,7 +7,7 @@ import * as path from 'path';
 
 const SENTRY_CLIENT_CONFIG_FILE = './sentry.client.config.js';
 const SENTRY_SERVER_CONFIG_FILE = './sentry.server.config.js';
-// this is where the transpiled/bundled version of `USER_SERVER_CONFIG_FILE` will end up
+// this is where the transpiled/bundled version of `SENTRY_SERVER_CONFIG_FILE` will end up
 export const SERVER_SDK_INIT_PATH = 'sentry/initServerSDK.js';
 
 // eslint-disable-next-line @typescript-eslint/no-explicit-any
@@ -21,7 +21,7 @@ type WebpackConfig = {
   devtool: string;
   plugins: PlainObject[];
   entry: EntryProperty;
-  output: { path: string };
+  output: { filename: string; path: string };
   target: string;
   context: string;
 };
@@ -156,9 +156,13 @@ export function withSentryConfig(
     // if we're building server code, store the webpack output path as an env variable, so we know where to look for the
     // webpack-processed version of `sentry.server.config.js` when we need it
     if (config.target === 'node') {
-      const serverSDKInitOutputPath = path.join(config.output.path, SERVER_SDK_INIT_PATH);
+      const outputLocation = path.dirname(path.join(config.output.path, config.output.filename));
+      const serverSDKInitOutputPath = path.join(outputLocation, SERVER_SDK_INIT_PATH);
       const projectDir = config.context;
-      setRuntimeEnvVars(projectDir, { SENTRY_SERVER_INIT_PATH: serverSDKInitOutputPath });
+      setRuntimeEnvVars(projectDir, {
+        // ex: .next/server/sentry/initServerSdk.js
+        SENTRY_SERVER_INIT_PATH: path.relative(projectDir, serverSDKInitOutputPath),
+      });
     }
 
     let newConfig = config;
diff --git a/packages/nextjs/src/utils/instrumentServer.ts b/packages/nextjs/src/utils/instrumentServer.ts
index a591147b3b82..0125b3a49240 100644
--- a/packages/nextjs/src/utils/instrumentServer.ts
+++ b/packages/nextjs/src/utils/instrumentServer.ts
@@ -5,6 +5,7 @@ import { fill, isString, logger, stripUrlQueryAndFragment } from '@sentry/utils'
 import * as domain from 'domain';
 import * as http from 'http';
 import { default as createNextServer } from 'next';
+import * as path from 'path';
 import * as querystring from 'querystring';
 import * as url from 'url';
 
@@ -114,11 +115,13 @@ function makeWrappedHandlerGetter(origHandlerGetter: HandlerGetter): WrappedHand
       try {
         // `SENTRY_SERVER_INIT_PATH` is set at build time, and points to a webpack-processed version of the user's
         // `sentry.server.config.js`. Requiring it starts the SDK.
-        require(process.env.SENTRY_SERVER_INIT_PATH as string);
+        require(path.resolve(process.env.SENTRY_SERVER_INIT_PATH as string));
       } catch (err) {
         // Log the error but don't bail - we still want the wrapping to happen, in case the user is doing something weird
-        // and manually calling `Sentry.init()` somewhere else.
-        logger.error(`[Sentry] Could not initialize SDK. Received error:\n${err}`);
+        // and manually calling `Sentry.init()` somewhere else. We log to console instead of using logger from utils
+        // because Sentry is not initialized.
+        // eslint-disable-next-line no-console
+        console.error(`[Sentry] Could not initialize SDK. Received error:\n${err}`);
       }
 
       // stash this in the closure so that `makeWrappedReqHandler` can use it