diff --git a/pelican/generators.py b/pelican/generators.py
index 4e7562134..d7ebb0b0a 100644
--- a/pelican/generators.py
+++ b/pelican/generators.py
@@ -219,9 +219,10 @@ def generate_pages(self, writer):
     def generate_context(self):
         """change the context"""
 
+        article_path = os.path.join(self.path, self.settings['ARTICLE_DIR'])
         all_articles = []
         for f in self.get_files(
-                os.path.join(self.path, self.settings['ARTICLE_DIR']),
+                article_path,
                 exclude=self.settings['ARTICLE_EXCLUDES']):
             try:
                 content, metadata = read_file(f, settings=self.settings)
@@ -232,7 +233,7 @@ def generate_context(self):
             # if no category is set, use the name of the path as a category
             if 'category' not in metadata:
 
-                if os.path.dirname(f) == self.path:
+                if os.path.dirname(f) == article_path:
                     category = self.settings['DEFAULT_CATEGORY']
                 else:
                     category = os.path.basename(os.path.dirname(f))\
diff --git a/tests/content/TestCategory/article_with_category.rst b/tests/content/TestCategory/article_with_category.rst
new file mode 100644
index 000000000..7ed6e6d1e
--- /dev/null
+++ b/tests/content/TestCategory/article_with_category.rst
@@ -0,0 +1,6 @@
+This is an article with category !
+##################################
+
+:category: yeah
+
+This article should be in 'yeah' category.
diff --git a/tests/content/TestCategory/article_without_category.rst b/tests/content/TestCategory/article_without_category.rst
new file mode 100644
index 000000000..4bc5d78d2
--- /dev/null
+++ b/tests/content/TestCategory/article_without_category.rst
@@ -0,0 +1,4 @@
+This is an article without category !
+#####################################
+
+This article should be in 'TestCategory' category.
diff --git a/tests/content/article_without_category.rst b/tests/content/article_without_category.rst
new file mode 100644
index 000000000..ff47f6ef5
--- /dev/null
+++ b/tests/content/article_without_category.rst
@@ -0,0 +1,6 @@
+
+This is an article without category !
+#####################################
+
+This article should be in the DEFAULT_CATEGORY.
+
diff --git a/tests/test_generators.py b/tests/test_generators.py
index e30b0c989..45461cb74 100644
--- a/tests/test_generators.py
+++ b/tests/test_generators.py
@@ -1,11 +1,13 @@
 # -*- coding: utf-8 -*-
 
 from mock import MagicMock
+import os
 
 from pelican.generators import ArticlesGenerator
 from pelican.settings import _DEFAULT_CONFIG
 from .support import unittest
 
+CUR_DIR = os.path.dirname(__file__)
 
 class TestArticlesGenerator(unittest.TestCase):
 
@@ -13,7 +15,7 @@ def test_generate_feeds(self):
 
         generator = ArticlesGenerator(None, {'FEED': _DEFAULT_CONFIG['FEED']},
                                       None, _DEFAULT_CONFIG['THEME'], None,
-                                      None)
+                                      _DEFAULT_CONFIG['MARKUP'])
         writer = MagicMock()
         generator.generate_feeds(writer)
         writer.write_feed.assert_called_with([], None, 'feeds/all.atom.xml')
@@ -23,3 +25,24 @@ def test_generate_feeds(self):
         writer = MagicMock()
         generator.generate_feeds(writer)
         self.assertFalse(writer.write_feed.called)
+
+    def test_generate_context(self):
+
+        settings = _DEFAULT_CONFIG
+        settings['ARTICLE_DIR'] = 'content'
+        settings['DEFAULT_CATEGORY'] = 'Default'
+        generator = ArticlesGenerator(settings.copy(), settings, CUR_DIR,
+                                      _DEFAULT_CONFIG['THEME'], None,
+                                      _DEFAULT_CONFIG['MARKUP'])
+        generator.generate_context()
+        for article in generator.articles:
+            relfilepath = os.path.relpath(article.filename, CUR_DIR)
+            if relfilepath == os.path.join("TestCategory",
+                                           "article_with_category.rst"):
+                self.assertEquals(article.category.name, 'yeah')
+            elif relfilepath == os.path.join("TestCategory",
+                                             "article_without_category.rst"):
+                self.assertEquals(article.category.name, 'TestCategory')
+            elif relfilepath == "article_without_category.rst":
+                self.assertEquals(article.category.name, 'Default')
+