diff --git a/CHANGES.md b/CHANGES.md
index 39db0fb95b8..17659522fd1 100644
--- a/CHANGES.md
+++ b/CHANGES.md
@@ -40,6 +40,8 @@
 <!-- Changes to how Black can be configured -->
 
 - Black now uses the presence of debug f-strings to detect target version. (#3215)
+- Fix misdetection of project root and verbose logging of sources in cases involving
+  `--stdin-filename` (#3216)
 
 ### Documentation
 
diff --git a/src/black/__init__.py b/src/black/__init__.py
index b8a9d031896..a0c1ad4b416 100644
--- a/src/black/__init__.py
+++ b/src/black/__init__.py
@@ -469,7 +469,9 @@ def main(  # noqa: C901
         out(main.get_usage(ctx) + "\n\nOne of 'SRC' or 'code' is required.")
         ctx.exit(1)
 
-    root, method = find_project_root(src) if code is None else (None, None)
+    root, method = (
+        find_project_root(src, stdin_filename) if code is None else (None, None)
+    )
     ctx.obj["root"] = root
 
     if verbose:
@@ -480,7 +482,9 @@ def main(  # noqa: C901
             )
 
             normalized = [
-                (normalize_path_maybe_ignore(Path(source), root), source)
+                (source, source)
+                if source == "-"
+                else (normalize_path_maybe_ignore(Path(source), root), source)
                 for source in src
             ]
             srcs_string = ", ".join(
diff --git a/src/black/files.py b/src/black/files.py
index 17515d52b57..d51c1bc7a90 100644
--- a/src/black/files.py
+++ b/src/black/files.py
@@ -39,7 +39,9 @@
 
 
 @lru_cache()
-def find_project_root(srcs: Sequence[str]) -> Tuple[Path, str]:
+def find_project_root(
+    srcs: Sequence[str], stdin_filename: Optional[str] = None
+) -> Tuple[Path, str]:
     """Return a directory containing .git, .hg, or pyproject.toml.
 
     That directory will be a common parent of all files and directories
@@ -52,6 +54,8 @@ def find_project_root(srcs: Sequence[str]) -> Tuple[Path, str]:
     the second element as a string describing the method by which the
     project root was discovered.
     """
+    if stdin_filename is not None:
+        srcs = tuple(stdin_filename if s == "-" else s for s in srcs)
     if not srcs:
         srcs = [str(Path.cwd().resolve())]
 
diff --git a/tests/test_black.py b/tests/test_black.py
index 81e7a9a7d0d..c76b3faddf5 100644
--- a/tests/test_black.py
+++ b/tests/test_black.py
@@ -1396,6 +1396,12 @@ def test_find_project_root(self) -> None:
                 (src_dir.resolve(), "pyproject.toml"),
             )
 
+            with change_directory(test_dir):
+                self.assertEqual(
+                    black.find_project_root(("-",), stdin_filename="../src/a.py"),
+                    (src_dir.resolve(), "pyproject.toml"),
+                )
+
     @patch(
         "black.files.find_user_pyproject_toml",
     )