Could not locate Gemfile

I solved similar problem just by backing out of the project directory, then cd back into the project directory and bundle install.

You do not have Gemfile in a directory where you run that command. Gemfile is a file containing your gem settings for a current program.

Make sure you are in the project directory before running bundle install. For example, after running rails new myproject, you will want to cd myproject before running bundle install.

I had the same problem and got it solved by using a different directory.

bash-4.2$ bundle install
Could not locate Gemfile
bash-4.2$ pwd
/home/amit/redmine/redmine-2.2.2-0/apps/redmine
bash-4.2$ cd htdocs/
bash-4.2$ ls
app  config db   extra  Gemfile   lib  plugins  Rakefile     script  tmp
bin  config.ru  doc  files  Gemfile.lock  log  public   README.rdoc  test    vendor
bash-4.2$ cd plugins/
bash-4.2$ bundle install
Using rake (0.9.2.2) 
Using i18n (0.6.0) 
Using multi_json (1.3.6) 
Using activesupport (3.2.11) 
Using builder (3.0.0) 
Using activemodel (3.2.11) 
Using erubis (2.7.0) 
Using journey (1.0.4) 
Using rack (1.4.1) 
Using rack-cache (1.2) 
Using rack-test (0.6.1) 
Using hike (1.2.1) 
Using tilt (1.3.3) 
Using sprockets (2.2.1) 
Using actionpack (3.2.11) 
Using mime-types (1.19) 
Using polyglot (0.3.3) 
Using treetop (1.4.10) 
Using mail (2.4.4) 
Using actionmailer (3.2.11) 
Using arel (3.0.2) 
Using tzinfo (0.3.33) 
Using activerecord (3.2.11) 
Using activeresource (3.2.11) 
Using coderay (1.0.6) 
Using rack-ssl (1.3.2) 
Using json (1.7.5) 
Using rdoc (3.12) 
Using thor (0.15.4) 
Using railties (3.2.11) 
Using jquery-rails (2.0.3) 
Using mysql2 (0.3.11) 
Using net-ldap (0.3.1) 
Using ruby-openid (2.1.8) 
Using rack-openid (1.3.1) 
Using bundler (1.2.3) 
Using rails (3.2.11) 
Using rmagick (2.13.1) 
Your bundle i