diff --git a/packages/pluginutils/src/createFilter.ts b/packages/pluginutils/src/createFilter.ts
index 86f9d3be5..c5d506fc5 100755
--- a/packages/pluginutils/src/createFilter.ts
+++ b/packages/pluginutils/src/createFilter.ts
@@ -26,19 +26,33 @@ function getMatcherString(id: string, resolutionBase: string | false | null | un
 const createFilter: CreateFilter = function createFilter(include?, exclude?, options?) {
   const resolutionBase = options && options.resolve;
 
-  const getMatcher = (id: string | RegExp) =>
-    id instanceof RegExp
-      ? id
-      : {
-          test: (what: string) => {
-            // this refactor is a tad overly verbose but makes for easy debugging
-            const pattern = getMatcherString(id, resolutionBase);
-            const fn = pm(pattern, { dot: true });
-            const result = fn(what);
-
-            return result;
-          }
-        };
+  const getMatcher = (id: string | RegExp) => {
+    if (id instanceof RegExp) {
+      return id;
+    }
+
+    // Compiling a pattern costs far more than matching against it, so only recompile when the cwd it resolves against changes
+    const compile = () => pm(getMatcherString(id, resolutionBase), { dot: true });
+
+    // These patterns never resolve against the cwd, so there is no need to read or track it
+    if (resolutionBase === false || isAbsolute(id) || id.startsWith('**')) {
+      return { test: compile() };
+    }
+
+    let compiledCwd = process.cwd();
+    let fn = compile();
+
+    return {
+      test: (what: string) => {
+        const cwd = process.cwd();
+        if (cwd !== compiledCwd) {
+          compiledCwd = cwd;
+          fn = compile();
+        }
+        return fn(what);
+      }
+    };
+  };
 
   const includeMatchers = ensureArray(include).map(getMatcher);
   const excludeMatchers = ensureArray(exclude).map(getMatcher);
diff --git a/packages/pluginutils/test/createFilter.ts b/packages/pluginutils/test/createFilter.ts
index fbbb27f23..72f77dfc1 100755
--- a/packages/pluginutils/test/createFilter.ts
+++ b/packages/pluginutils/test/createFilter.ts
@@ -2,10 +2,64 @@ import { resolve as rawResolve } from 'path';
 
 import { createFilter, normalizePath } from '../';
 
+const picomatchCalls = vi.hoisted(() => {
+  return { count: 0 };
+});
+
+vi.mock('picomatch', async (importOriginal) => {
+  const actual = await importOriginal<{ default: (...args: unknown[]) => unknown }>();
+  const countingPicomatch = Object.assign((...args: unknown[]) => {
+    picomatchCalls.count += 1;
+    return actual.default(...args);
+  }, actual.default);
+  return { ...actual, default: countingPicomatch };
+});
+
 const resolve = (...parts: string[]) => normalizePath(rawResolve(...parts));
 
 beforeEach(() => process.chdir(__dirname));
 
+test('compiles each pattern once when the filter is created, not on every call', () => {
+  picomatchCalls.count = 0;
+  const filter = createFilter(['a/**', 'b/**'], ['a/excluded/**']);
+  expect(picomatchCalls.count).toBe(3);
+
+  expect(filter(resolve('a/file.js'))).toBeTruthy();
+  expect(filter(resolve('a/excluded/file.js'))).toBeFalsy();
+  expect(filter(resolve('b/file.js'))).toBeTruthy();
+  expect(filter(resolve('c/file.js'))).toBeFalsy();
+  expect(picomatchCalls.count).toBe(3);
+});
+
+test.sequential('resolves relative patterns against the cwd at call time', () => {
+  picomatchCalls.count = 0;
+  const filter = createFilter(['*.ts']);
+  const fileInOriginalCwd = resolve('main.ts');
+  expect(filter(fileInOriginalCwd)).toBeTruthy();
+
+  process.chdir(resolve(__dirname, 'fixtures'));
+  expect(filter(resolve('main.ts'))).toBeTruthy();
+  expect(filter(fileInOriginalCwd)).toBeFalsy();
+  expect(picomatchCalls.count).toBe(2);
+});
+
+test.sequential('does not read the cwd for patterns that do not resolve against it', () => {
+  const unresolved = createFilter(['*.ts'], null, { resolve: false });
+  const absolute = createFilter([resolve('*.ts')]);
+  const globstar = createFilter(['**/*.ts']);
+
+  const cwdSpy = vi.spyOn(process, 'cwd').mockImplementation(() => {
+    throw new Error('ENOENT');
+  });
+  try {
+    expect(unresolved('main.ts')).toBeTruthy();
+    expect(absolute(resolve(__dirname, 'main.ts'))).toBeTruthy();
+    expect(globstar('/any/where/main.ts')).toBeTruthy();
+  } finally {
+    cwdSpy.mockRestore();
+  }
+});
+
 test('includes by default ', () => {
   const filter = createFilter();
   expect(filter(resolve('x'))).toBeTruthy();