diff --git a/src/inject.coffee b/src/inject.coffee
index 8bc80f9..ca1bed2 100644
--- a/src/inject.coffee
+++ b/src/inject.coffee
@@ -78,6 +78,7 @@ requireRegex = /(?:^|[^\w\$_.\(])require\s*\(\s*("[^"\\]*(?:\\.[^"\\]*)*"|'[^'\\
 defineStaticRequireRegex = /^[\r\n\s]*define\(\s*("\S+",|'\S+',|\s*)\s*\[([^\]]*)\],\s*(function\s*\(|{).+/
 requireGreedyCapture = /require.*/
 commentRegex = /(\/\*([\s\S]*?)\*\/|([^:]|^)\/\/(.*)$)/mg
+relativePathRegex = /^(.\/|..\/).*/
 
 ###
 CommonJS wrappers for a header and footer
@@ -748,7 +749,15 @@ downloadTree = (tree, callback) ->
   moduleId = tree.getValue()
 
   # apply the ruleset for this module if we haven't yet
-  applyRules(moduleId) if db.module.getRulesApplied() is false
+  if db.module.getRulesApplied() is false
+    if relativePathRegex.test(moduleId)
+      # handle relative path
+      relativePath = userConfig.moduleRoot
+      if tree.getParent() and tree.getParent().getValue()
+        relativePath = db.module.getPath(tree.getParent().getValue())
+      applyRules(moduleId, true, relativePath)
+    else
+      applyRules(moduleId, true)
 
   # the callback every module has when it has been loaded
   onDownloadComplete = (moduleId, file) ->
@@ -867,7 +876,7 @@ analyzeFile = (moduleId, tree) ->
   db.module.setRequires(moduleId, safeRequires)
   db.module.setCircular(moduleId, hasCircular)
 
-applyRules = (moduleId, save) ->
+applyRules = (moduleId, save, relativePath) ->
   ###
   ## applyRules(moduleId) ##
   _internal_ normalize the path based on the module collection or any functions
@@ -891,9 +900,13 @@ applyRules = (moduleId, save) ->
     if typeof(userConfig.moduleRoot) is "undefined" then throw new Error("Module Root must be defined")
     else if typeof(userConfig.moduleRoot) is "string" then workingPath = "#{userConfig.moduleRoot}#{workingPath}"
     else if typeof(userConfig.moduleRoot) is "function" then workingPath = userConfig.moduleRoot(workingPath)
+
+  if typeof(relativePath) is "string"
+    workingPath = basedir(relativePath) + moduleId
+
   if !fileSuffix.test(workingPath) then workingPath = "#{workingPath}.js"
 
-  if save is undefined
+  if save is true
     db.module.setPath(moduleId, workingPath)
     db.module.setPointcuts(moduleId, pointcuts)
     db.module.setRulesApplied(moduleId, true)
@@ -1030,6 +1043,11 @@ createModule = (id, uri, exports) ->
     return module["exports"]
   return module
 
+basedir = (path) ->
+  if path.lastIndexOf("/") isnt -1
+    path = path.substring(0, path.lastIndexOf("/") + 1)
+  return path
+
 ###
 Main Payloads: require, require.ensure, etc
 ###
diff --git a/tests/amd/amd.js b/tests/amd/amd.js
index c4fdb09..b6f373e 100644
--- a/tests/amd/amd.js
+++ b/tests/amd/amd.js
@@ -56,12 +56,14 @@ asyncTest("Anon - circular", 6, function() {
   });
 });
 
-asyncTest("Anon - relativeModuleId", 2, function() {
+asyncTest("Anon - relativeModuleId", 4, function() {
   require.setModuleRoot("http://localhost:4000/tests/amd/includes/spec/anon");
   require.addRule("array", {path:"impl/array"});
   require(["require", "array"], function(require, array) {
     equal("impl/array", array.name);
-    equal("util", array.utilName);
+    equal("util", array.utilNameUl);
+    equal("impl/util", array.utilNameCl);
+    equal("../util", array.utilNameUUl);
     start();
   });
 });
diff --git a/tests/amd/includes/spec/anon/impl/array.js b/tests/amd/includes/spec/anon/impl/array.js
index 8a5d357..0e92d52 100644
--- a/tests/amd/includes/spec/anon/impl/array.js
+++ b/tests/amd/includes/spec/anon/impl/array.js
@@ -1,6 +1,8 @@
-define(['./util'], function (util) {
+define(['../util', './util', '../../util'], function (util_ul, util_cl, util_uul) {
     return {
         name: 'impl/array',
-        utilName: util.name
+        utilNameUl: util_ul.name,
+        utilNameCl: util_cl.name,
+        utilNameUUl: util_uul.name
     };
 });
diff --git a/tests/amd/includes/spec/util.js b/tests/amd/includes/spec/util.js
new file mode 100644
index 0000000..88ad2fa
--- /dev/null
+++ b/tests/amd/includes/spec/util.js
@@ -0,0 +1,3 @@
+define({
+    name: '../util'
+});
diff --git a/tests/modules-1.1.1/includes/spec/divide-minus_one.js b/tests/modules-1.1.1/includes/spec/divide-minus_one.js
new file mode 100644
index 0000000..93d9fcb
--- /dev/null
+++ b/tests/modules-1.1.1/includes/spec/divide-minus_one.js
@@ -0,0 +1 @@
+exports.divide = function(val) { return val/2 - 1; };
\ No newline at end of file
diff --git a/tests/modules-1.1.1/includes/spec/identifiers/relative-three/divide-plus_one.js b/tests/modules-1.1.1/includes/spec/identifiers/relative-three/divide-plus_one.js
new file mode 100644
index 0000000..9233015
--- /dev/null
+++ b/tests/modules-1.1.1/includes/spec/identifiers/relative-three/divide-plus_one.js
@@ -0,0 +1 @@
+exports.divide = function(val) { return val/2 + 1; };
\ No newline at end of file
diff --git a/tests/modules-1.1.1/includes/spec/identifiers/relative-three/relative-three.js b/tests/modules-1.1.1/includes/spec/identifiers/relative-three/relative-three.js
new file mode 100644
index 0000000..3152d61
--- /dev/null
+++ b/tests/modules-1.1.1/includes/spec/identifiers/relative-three/relative-three.js
@@ -0,0 +1,3 @@
+exports.divide = require("../divide").divide;
+exports.divide_plus_one = require("./divide-plus_one").divide;
+exports.divide_minus_one = require("../../divide-minus_one").divide;
diff --git a/tests/modules-1.1.1/includes/spec/identifiers/terms.js b/tests/modules-1.1.1/includes/spec/identifiers/terms.js
index f509769..3a2f23e 100644
--- a/tests/modules-1.1.1/includes/spec/identifiers/terms.js
+++ b/tests/modules-1.1.1/includes/spec/identifiers/terms.js
@@ -7,7 +7,12 @@ var bar = require('../relative-two');
 equal(bar.divide(10), 5, "relative path '..' test pass");
 
 var boo = require("./relative-one");
-equal(boo.divide(4), 2, "relative path '.' test pass")
+equal(boo.divide(4), 2, "relative path '.' test pass");
+
+var boo = require("relative-three/relative-three");
+equal(boo.divide(4), 2, "relative path '.' test pass");
+equal(boo.divide_plus_one(10), 6, "relative path '.' test pass");
+equal(boo.divide_minus_one(10), 4, "relative path '.' test pass");
 
 try {
   var qux = require("invalid$module");
diff --git a/tests/modules-1.1.1/modules-1.1.1.js b/tests/modules-1.1.1/modules-1.1.1.js
index b3b8912..2b4d1c4 100644
--- a/tests/modules-1.1.1/modules-1.1.1.js
+++ b/tests/modules-1.1.1/modules-1.1.1.js
@@ -34,7 +34,7 @@ asyncTest("Compliance", 13, function() {
   require.run("compliance");
 });
 
-asyncTest("Compliance - Module Identifiers", 5, function() {
+asyncTest("Compliance - Module Identifiers", 8, function() {
   require.setModuleRoot("http://localhost:4000/tests/modules-1.1.1/includes/spec/identifiers");
   require.run("terms");
 });