diff --git a/README.md b/README.md
index 856f961ae97..80d0a6c71e4 100644
--- a/README.md
+++ b/README.md
@@ -104,12 +104,12 @@ git checkout release-v2
 ```
 
 Next, add the following to your project's `settings.gradle` file, replacing
-`/absolute/path/to/exoplayer` with the absolute path to your local copy:
+`path/to/exoplayer` with the path to your local copy:
 
 ```gradle
-gradle.ext.exoplayerRoot = '/absolute/path/to/exoplayer'
+gradle.ext.exoplayerRoot = 'path/to/exoplayer'
 gradle.ext.exoplayerModulePrefix = 'exoplayer-'
-apply from: new File(gradle.ext.exoplayerRoot, 'core_settings.gradle')
+apply from: file("$gradle.ext.exoplayerRoot/core_settings.gradle")
 ```
 
 You should now see the ExoPlayer modules appear as part of your project. You can
diff --git a/RELEASENOTES.md b/RELEASENOTES.md
index dfedea3ffc1..a4a335b9818 100644
--- a/RELEASENOTES.md
+++ b/RELEASENOTES.md
@@ -2,6 +2,10 @@
 
 ### 2.14.0 (not yet released)
 
+*   Core Library:
+    *   Fix gradle config to allow specifying a relative path for
+        `exoplayerRoot` when [depending on ExoPlayer locally](README.md#locally)
+        ([#8927](https://github.com/google/ExoPlayer/issues/8927)).
 *   Extractors:
     *   Add support for MPEG-H 3D Audio in MP4 extractors
         ([#8860](https://github.com/google/ExoPlayer/pull/8860)).
diff --git a/core_settings.gradle b/core_settings.gradle
index c0c19abf80d..8d262c89dca 100644
--- a/core_settings.gradle
+++ b/core_settings.gradle
@@ -11,10 +11,9 @@
 // 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.
-def rootDir = gradle.ext.exoplayerRoot
+def rootDir = file(gradle.ext.exoplayerRoot)
 if (!gradle.ext.has('exoplayerSettingsDir')) {
-    gradle.ext.exoplayerSettingsDir =
-            new File(rootDir.toString()).getCanonicalPath()
+    gradle.ext.exoplayerSettingsDir = rootDir.getCanonicalPath()
 }
 def modulePrefix = ':'
 if (gradle.ext.has('exoplayerModulePrefix')) {