diff --git a/cargo/private/cargo_build_script.bzl b/cargo/private/cargo_build_script.bzl
index c23108851a..c903b38228 100644
--- a/cargo/private/cargo_build_script.bzl
+++ b/cargo/private/cargo_build_script.bzl
@@ -449,7 +449,7 @@ def _cargo_build_script_impl(ctx):
     # Pull in env vars which may be required for the cc_toolchain to work (e.g. on OSX, the SDK version).
     # We hope that the linker env is sufficient for the whole cc_toolchain.
     cc_toolchain, feature_configuration = find_cc_toolchain(ctx)
-    linker, _, link_args, linker_env = get_linker_and_args(ctx, "bin", toolchain, cc_toolchain, feature_configuration, None)
+    linker, _, _, link_args, linker_env = get_linker_and_args(ctx, "bin", toolchain, cc_toolchain, feature_configuration, None)
     env.update(**linker_env)
     env["LD"] = linker
     env["LDFLAGS"] = " ".join(_pwd_flags(link_args))
@@ -577,7 +577,7 @@ def _cargo_build_script_impl(ctx):
     args = ctx.actions.args()
     args.add(script, format = "--script=%s")
     args.add(links, format = "--links=%s")
-    args.add(out_dir.path, format = "--out_dir=%s")
+    args.add_all([out_dir], format_each = "--out_dir=%s", expand_directories = False)
     args.add(env_out, format = "--env_out=%s")
     args.add(flags_out, format = "--flags_out=%s")
     args.add(link_flags, format = "--link_flags=%s")
@@ -649,6 +649,7 @@ def _cargo_build_script_impl(ctx):
         mnemonic = "CargoBuildScriptRun",
         progress_message = "Running Cargo build script {}".format(pkg_name),
         env = env,
+        execution_requirements = {"supports-path-mapping": "1"},
         toolchain = None,
         use_default_shell_env = use_default_shell_env,
     )
diff --git a/extensions/bindgen/private/bindgen.bzl b/extensions/bindgen/private/bindgen.bzl
index a79ed4bfda..8a50d6b192 100644
--- a/extensions/bindgen/private/bindgen.bzl
+++ b/extensions/bindgen/private/bindgen.bzl
@@ -369,7 +369,7 @@ def _rust_bindgen_impl(ctx):
     for define in ctx.attr.cc_lib[CcInfo].compilation_context.defines.to_list():
         args.add("-D" + define)
 
-    _, _, _, linker_env = get_linker_and_args(ctx, "bin", rust_toolchain, cc_toolchain, feature_configuration, None)
+    _, _, _, _, linker_env = get_linker_and_args(ctx, "bin", rust_toolchain, cc_toolchain, feature_configuration, None)
     env.update(**linker_env)
 
     # Set the dynamic linker search path so that clang uses the libstdcxx from the toolchain.
diff --git a/rust/private/rustc.bzl b/rust/private/rustc.bzl
index 34e19bd4d1..57e402159d 100644
--- a/rust/private/rustc.bzl
+++ b/rust/private/rustc.bzl
@@ -53,6 +53,14 @@ load(
     "relativize",
 )
 
+def _file_dirname(file):
+    """Returns the dirname of a file.
+
+    Used as a ``map_each`` callback so that Bazel can apply path mapping
+    (``--experimental_output_paths=strip``) to the resulting string.
+    """
+    return file.dirname
+
 # This feature is disabled unless one of the dependencies is a cc_library.
 # Authors of C++ toolchains can place linker flags that should only be applied
 # when linking with C objects in a feature with this name, or require this
@@ -419,6 +427,7 @@ def get_linker_and_args(ctx, crate_type, toolchain, cc_toolchain, feature_config
     Returns:
         tuple: A tuple of the following items:
             - (str): The tool path for given action.
+            - (File or None): The linker File object for path mapping, or None when the cc_toolchain provides the linker.
             - (bool): Whether or not the linker is a direct driver (e.g. `ld`) vs a wrapper (e.g. `gcc`).
             - (sequence): A flattened command line flags for given action.
             - (dict): Environment variables to be set for given action.
@@ -426,6 +435,7 @@ def get_linker_and_args(ctx, crate_type, toolchain, cc_toolchain, feature_config
     user_link_flags = get_cc_user_link_flags(ctx)
 
     ld = None
+    ld_file = None  # File object for path mapping, when available
     ld_is_direct_driver = False
     link_args = []
     link_env = {}
@@ -473,7 +483,8 @@ def get_linker_and_args(ctx, crate_type, toolchain, cc_toolchain, feature_config
         ld_is_direct_driver = False
 
     if not ld or toolchain.linker_preference == "rust":
-        ld = toolchain.linker.path
+        ld_file = toolchain.linker
+        ld = ld_file.path
         ld_is_direct_driver = toolchain.linker_type == "direct"
 
         # When using rust-lld directly, we still need library search paths from cc_toolchain
@@ -539,7 +550,7 @@ def get_linker_and_args(ctx, crate_type, toolchain, cc_toolchain, feature_config
             for element in link_env["LIB"].split(";")
         ])
 
-    return ld, ld_is_direct_driver, link_args, link_env
+    return ld, ld_file, ld_is_direct_driver, link_args, link_env
 
 def _symlink_for_ambiguous_lib(actions, toolchain, crate_info, lib):
     """Constructs a disambiguating symlink for a library dependency.
@@ -727,7 +738,7 @@ def collect_inputs(
     Returns:
         tuple: A tuple: A tuple of the following items:
             - (list): A list of all build info `OUT_DIR` File objects
-            - (str): The `OUT_DIR` of the current build info
+            - (File): The `OUT_DIR` tree artifact of the current build info, or None
             - (File): An optional path to a generated environment file from a `cargo_build_script` target
             - (depset[File]): All direct and transitive build flag files from the current build info
             - (list[File]): Linkstamp outputs
@@ -999,8 +1010,16 @@ def construct_arguments(
     components = "${{pwd}}/{}/{}".format(ctx.label.workspace_root, ctx.label.package).split("/")
     env["CARGO_MANIFEST_DIR"] = "/".join([c for c in components if c])
 
+    # Pass OUT_DIR via --set-env so it goes through Bazel's path mapping
+    # (--experimental_output_paths=strip).  The env dict is NOT path-mapped;
+    # only Args objects are.  out_dir is a tree artifact (directory File).
     if out_dir != None:
-        env["OUT_DIR"] = "${pwd}/" + out_dir
+        process_wrapper_flags.add_all(
+            [out_dir],
+            before_each = "--set-env",
+            format_each = "OUT_DIR=${pwd}/%s",
+            expand_directories = False,
+        )
 
     # Arguments for launching rustc from the process wrapper
     rustc_path = ctx.actions.args()
@@ -1047,9 +1066,9 @@ def construct_arguments(
         # Configure process_wrapper to terminate rustc when metadata are emitted
         process_wrapper_flags.add("--rustc-quit-on-rmeta", "true")
         if crate_info.rustc_rmeta_output:
-            process_wrapper_flags.add("--output-file", crate_info.rustc_rmeta_output.path)
+            process_wrapper_flags.add("--output-file", crate_info.rustc_rmeta_output)
     elif crate_info.rustc_output:
-        process_wrapper_flags.add("--output-file", crate_info.rustc_output.path)
+        process_wrapper_flags.add("--output-file", crate_info.rustc_output)
 
     rustc_flags.add(error_format, format = "--error-format=%s")
 
@@ -1065,7 +1084,7 @@ def construct_arguments(
         rustc_flags.add(output_hash, format = "--codegen=extra-filename=-%s")
 
     if output_dir:
-        rustc_flags.add(output_dir, format = "--out-dir=%s")
+        rustc_flags.add_all([crate_info.output], map_each = _file_dirname, format_each = "--out-dir=%s")
 
     compilation_mode = get_compilation_mode_opts(ctx, toolchain)
     rustc_flags.add(compilation_mode.opt_level, format = "--codegen=opt-level=%s")
@@ -1094,8 +1113,9 @@ def construct_arguments(
     if linker_script:
         rustc_flags.add(linker_script, format = "--codegen=link-arg=-T%s")
 
-    # Tell Rustc where to find the standard library (or libcore)
-    rustc_flags.add_all(toolchain.rust_std_paths, before_each = "-L", format_each = "%s")
+    # Tell Rustc where to find the standard library (or libcore).
+    # Use map_each for path mapping (--experimental_output_paths=strip).
+    rustc_flags.add_all(toolchain.rust_std_paths, map_each = _file_dirname, before_each = "-L", uniquify = True)
     rustc_flags.add_all(rust_flags, map_each = map_flag)
 
     # Gather data path from crate_info since it is inherited from real crate for rust_doc and rust_test
@@ -1122,7 +1142,7 @@ def construct_arguments(
             else:
                 rpaths = depset()
 
-            ld, ld_is_direct_driver, link_args, link_env = get_linker_and_args(
+            ld, ld_file, ld_is_direct_driver, link_args, link_env = get_linker_and_args(
                 ctx,
                 crate_info.type,
                 toolchain,
@@ -1133,7 +1153,7 @@ def construct_arguments(
             )
 
             env.update(link_env)
-            rustc_flags.add(ld, format = "--codegen=linker=%s")
+            rustc_flags.add(ld_file if ld_file else ld, format = "--codegen=linker=%s")
 
             # Split link args into individual "--codegen=link-arg=" flags to handle nested spaces.
             # Additional context: https://github.com/rust-lang/rust/pull/36574
@@ -1524,6 +1544,7 @@ def rustc_compile_action(
             ),
             toolchain = "@rules_rust//rust:toolchain_type",
             resource_set = get_rustc_resource_set(toolchain),
+            execution_requirements = {"supports-path-mapping": "1"},
         )
         if args_metadata:
             ctx.actions.run(
@@ -1541,6 +1562,7 @@ def rustc_compile_action(
                     "" if len(srcs) == 1 else "s",
                 ),
                 toolchain = "@rules_rust//rust:toolchain_type",
+                execution_requirements = {"supports-path-mapping": "1"},
             )
     elif hasattr(ctx.executable, "_bootstrap_process_wrapper"):
         # Run without process_wrapper
@@ -1562,6 +1584,7 @@ def rustc_compile_action(
             ),
             toolchain = "@rules_rust//rust:toolchain_type",
             resource_set = get_rustc_resource_set(toolchain),
+            execution_requirements = {"supports-path-mapping": "1"},
         )
     else:
         fail("No process wrapper was defined for {}".format(ctx.label))
@@ -2021,7 +2044,7 @@ def _process_build_scripts(
     # We include the direct dep build_info because crates which use cargo build scripts may need to e.g. include_str! a generated file.
     if build_info:
         if build_info.out_dir:
-            out_dir = build_info.out_dir.path
+            out_dir = build_info.out_dir
             direct_inputs.append(build_info.out_dir)
         build_env_file = build_info.rustc_env
         if build_info.flags:
diff --git a/rust/toolchain.bzl b/rust/toolchain.bzl
index f59f7ac853..9f904e8a5b 100644
--- a/rust/toolchain.bzl
+++ b/rust/toolchain.bzl
@@ -593,7 +593,7 @@ def _rust_toolchain_impl(ctx):
         make_variables = make_variable_info,
         rust_doc = sysroot.rustdoc,
         rust_std = sysroot.rust_std,
-        rust_std_paths = depset([file.dirname for file in sysroot.rust_std.to_list()]),
+        rust_std_paths = sysroot.rust_std,
         rustc = sysroot.rustc,
         rustc_lib = sysroot.rustc_lib,
         rustfmt = sysroot.rustfmt,
diff --git a/util/process_wrapper/options.rs b/util/process_wrapper/options.rs
index 2f252cadc7..0c04e1770d 100644
--- a/util/process_wrapper/options.rs
+++ b/util/process_wrapper/options.rs
@@ -66,6 +66,7 @@ pub(crate) fn options() -> Result<Options, OptionError> {
     let mut output_file = None;
     let mut rustc_quit_on_rmeta_raw = None;
     let mut rustc_output_format_raw = None;
+    let mut set_env_raw = None;
     let mut flags = Flags::new();
     let mut require_explicit_unstable_features = None;
     flags.define_repeated_flag("--subst", "", &mut subst_mapping_raw);
@@ -121,6 +122,15 @@ pub(crate) fn options() -> Result<Options, OptionError> {
          other -Zallow-features= is present in the rustc flags.",
         &mut require_explicit_unstable_features,
     );
+    flags.define_repeated_flag(
+        "--set-env",
+        "Set a child environment variable from a KEY=VALUE pair. \
+         Unlike the action env dict, values passed here go through \
+         Bazel's path mapping (--experimental_output_paths=strip) \
+         because they are conveyed via Args objects. \
+         The ${pwd} substitution is applied to values.",
+        &mut set_env_raw,
+    );
 
     let mut child_args = match flags
         .parse(env::args().collect())
@@ -157,7 +167,15 @@ pub(crate) fn options() -> Result<Options, OptionError> {
         stable_status_file_raw.map_or_else(Vec::new, |s| read_stamp_status_to_array(s).unwrap());
     let volatile_stamp_mappings =
         volatile_status_file_raw.map_or_else(Vec::new, |s| read_stamp_status_to_array(s).unwrap());
-    let environment_file_block = env_from_files(env_file_raw.unwrap_or_default())?;
+    let mut environment_file_block = env_from_files(env_file_raw.unwrap_or_default())?;
+    // Merge --set-env KEY=VALUE pairs into the environment block.
+    // These arrive via Args objects and are path-mapped by Bazel.
+    for kv in set_env_raw.unwrap_or_default() {
+        let (key, val) = kv.split_once('=').ok_or_else(|| {
+            OptionError::Generic(format!("--set-env requires KEY=VALUE, got '{kv}'"))
+        })?;
+        environment_file_block.insert(key.to_owned(), val.to_owned());
+    }
     let mut file_arguments = args_from_file(arg_file_raw.unwrap_or_default())?;
     // Process --copy-output
     let copy_output = copy_output_raw