diff --git a/vertx-lang/vertx-lang-java/src/main/java/org/vertx/java/deploy/impl/java/CompilingClassLoader.java b/vertx-lang/vertx-lang-java/src/main/java/org/vertx/java/deploy/impl/java/CompilingClassLoader.java
index aba462dddc3..d59effcb90e 100644
--- a/vertx-lang/vertx-lang-java/src/main/java/org/vertx/java/deploy/impl/java/CompilingClassLoader.java
+++ b/vertx-lang/vertx-lang-java/src/main/java/org/vertx/java/deploy/impl/java/CompilingClassLoader.java
@@ -20,6 +20,7 @@
 import org.vertx.java.core.logging.impl.LoggerFactory;
 
 import javax.tools.*;
+import java.net.URL;
 import javax.tools.JavaFileObject.Kind;
 import java.io.File;
 import java.util.Collections;
@@ -34,31 +35,28 @@ public class CompilingClassLoader extends ClassLoader {
 
   private static final Logger log = LoggerFactory.getLogger(CompilingClassLoader.class);
 
-  private final String className;
+  private final JavaSourceContext javaSourceContext;
   private final MemoryFileManager fileManager;
 
-  private static final String FILE_SEP = System.getProperty("file.separator");
-
   public CompilingClassLoader(ClassLoader loader, String sourceName) {
     super(loader);
-    String temp = sourceName.replace(FILE_SEP, ".");
-    this.className = temp.substring(0, sourceName.length() - Kind.SOURCE.extension.length());
-    File sourceFile = new File(sourceName).getAbsoluteFile();
+    URL resource = getResource(sourceName);
+    if(resource == null) {
+      throw new RuntimeException("Resource not found: " + sourceName);
+    }
+    File sourceFile = new File(resource.getFile());
     if (!sourceFile.canRead()) {
       throw new RuntimeException("File not found: " + sourceName);
     }
+
+    this.javaSourceContext = new JavaSourceContext(sourceFile);
+    
     try {
       DiagnosticCollector<JavaFileObject> diagnostics = new DiagnosticCollector<>();
       JavaCompiler javaCompiler = ToolProvider.getSystemJavaCompiler();
       StandardJavaFileManager standardFileManager = javaCompiler.getStandardFileManager(null, null, null);
 
-      File sourceRoot;
-      if (sourceName.contains(FILE_SEP)) {
-        sourceRoot = new File(".").getAbsoluteFile();
-      } else {
-        sourceRoot = sourceFile.getParentFile();
-      }
-      standardFileManager.setLocation(StandardLocation.SOURCE_PATH, Collections.singleton(sourceRoot));
+      standardFileManager.setLocation(StandardLocation.SOURCE_PATH, Collections.singleton(javaSourceContext.getSourceRoot()));
       fileManager = new MemoryFileManager(loader, standardFileManager);
       JavaFileObject javaFile = standardFileManager.getJavaFileForInput(StandardLocation.SOURCE_PATH, resolveMainClassName(), Kind.SOURCE);
       JavaCompiler.CompilationTask task = javaCompiler.getTask(null, fileManager, diagnostics, null, null, Collections.singleton(javaFile));
@@ -79,7 +77,7 @@ public CompilingClassLoader(ClassLoader loader, String sourceName) {
   }
 
   public String resolveMainClassName() {
-    return className;
+    return javaSourceContext.getClassName();
   }
 
   @Override
diff --git a/vertx-lang/vertx-lang-java/src/main/java/org/vertx/java/deploy/impl/java/JavaSourceContext.java b/vertx-lang/vertx-lang-java/src/main/java/org/vertx/java/deploy/impl/java/JavaSourceContext.java
new file mode 100644
index 00000000000..9730c0be704
--- /dev/null
+++ b/vertx-lang/vertx-lang-java/src/main/java/org/vertx/java/deploy/impl/java/JavaSourceContext.java
@@ -0,0 +1,98 @@
+/*
+ * Copyright 2013 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.vertx.java.deploy.impl.java;
+
+import org.vertx.java.core.logging.Logger;
+import org.vertx.java.core.logging.impl.LoggerFactory;
+
+import javax.tools.*;
+import java.util.List;
+import java.net.URL;
+import javax.tools.JavaFileObject.Kind;
+import java.io.*;
+import java.nio.file.Files;
+import java.nio.charset.StandardCharsets;
+import java.util.Collections;
+
+/**
+ *
+ * Resolves package name and source path based on a single Java source file.
+ *
+ * @author Janne Hietam&auml;ki
+ */
+public class JavaSourceContext {
+  private static final String FILE_SEP = System.getProperty("file.separator");
+  private final static String REMOVE_COMMENTS_REGEXP = "(?://.*)|(/\\*(?:.|[\\n\\r])*?\\*/)";
+	
+  private final String className;
+  private final File sourceRoot;
+  
+  public JavaSourceContext(File file) {
+	String packageName = parsePackage(file);
+	File rootDirectory = file.getParentFile();
+	if(packageName != null) {
+	  for(String token : packageName.split("\\.")) {
+		if(!token.equals(rootDirectory.getName())) {
+		  throw new RuntimeException("Package structure does not match directory structure: " + token + " != " + rootDirectory.getName());
+		}
+		rootDirectory = rootDirectory.getParentFile();		
+	  }	   
+	}
+	sourceRoot = rootDirectory;
+	
+	String fileName = file.getName();
+    String className = fileName.substring(0, fileName.length() - Kind.SOURCE.extension.length());
+    if(packageName != null) {
+    	className = packageName + "." + className;
+	}
+    this.className = className;
+  }
+  
+  public File getSourceRoot() {
+	return sourceRoot;
+  }
+  
+  public String getClassName() {
+	return className;
+  }
+  
+  /* 
+   * Parse package definition from a Java source file:
+   * First remove all comments, split file into lines, find first non-empty line
+   * Then, if the line starts with keyword "package", parse the package definition from it.
+   * 
+   */
+  private String parsePackage(File file) {
+    try {
+      String source = new String(Files.readAllBytes(file.toPath()), StandardCharsets.UTF_8);
+      source = source.replaceAll(REMOVE_COMMENTS_REGEXP, " ");
+      for(String line : source.split("\\r?\\n")) {
+	    line = line.trim();
+	    if(line.length() > 0) {
+	      int idx = line.indexOf("package ");
+	      if(idx != -1) {
+            return line.substring(line.indexOf(" ", idx), line.indexOf(";", idx)).trim();
+	      }
+	      return null; // Package definition must be on the first non-comment line
+	    }
+	  }
+	  return null;
+    } catch (IOException e) {
+      throw new RuntimeException(e);
+    }
+  }
+}
\ No newline at end of file