diff --git a/deno.json b/deno.json
index 93b4af5..8d49f00 100644
--- a/deno.json
+++ b/deno.json
@@ -1,7 +1,7 @@
 {
 	"name": "@andyburke/serverus",
 	"description": "A flexible HTTP server for mixed content. Throw static files, markdown, Typescript and (hopefully, eventually) more into a directory and serverus can serve it up a bit more like old-school CGI.",
-	"version": "0.7.0",
+	"version": "0.7.1",
 	"license": "MIT",
 	"exports": {
 		".": "./serverus.ts",
diff --git a/handlers/html.ts b/handlers/html.ts
index aeb545a..ebcf71e 100644
--- a/handlers/html.ts
+++ b/handlers/html.ts
@@ -25,7 +25,8 @@ async function load_html_with_ssi(html_file: string): Promise<string> {
 		async (_match, type, location, index): Promise<string | undefined> => {
 			switch (type) {
 				case 'file': {
-					const resolved = path.resolve(location);
+					const directory = path.dirname(html_file);
+					const resolved = path.resolve(path.join(directory, location));
 					if (!resolved.startsWith(Deno.cwd())) {
 						console.error(
 							`Cannot include files above the working directory (${Deno.cwd()}): ${location} ${html_file}:${index}`
diff --git a/tests/08_test_html_includes.test.ts b/tests/08_test_html_includes.test.ts
index ecbc3f7..a1e3a4f 100644
--- a/tests/08_test_html_includes.test.ts
+++ b/tests/08_test_html_includes.test.ts
@@ -17,7 +17,7 @@ Deno.test({
 			Deno.chdir('./tests/www');
 			test_server_info = await get_ephemeral_listen_server();
 
-			const response = await fetch(`http://${test_server_info.hostname}:${test_server_info.port}/`, {
+			const response = await fetch(`http://${test_server_info.hostname}:${test_server_info.port}/includes/index.html`, {
 				method: 'GET'
 			});
 
@@ -36,7 +36,7 @@ Deno.test({
 });
 
 Deno.test({
-	name: 'get html file (text/plain)',
+	name: 'get html file (text/plain) (also test automatic index.html)',
 	permissions: {
 		env: true,
 		read: true,
@@ -51,7 +51,7 @@ Deno.test({
 			Deno.chdir('./tests/www');
 			test_server_info = await get_ephemeral_listen_server();
 
-			const response = await fetch(`http://${test_server_info.hostname}:${test_server_info.port}/index.html`, {
+			const response = await fetch(`http://${test_server_info.hostname}:${test_server_info.port}/includes`, {
 				method: 'GET',
 				headers: {
 					'Accept': 'text/plain'
diff --git a/tests/www/index.html b/tests/www/includes/index.html
similarity index 100%
rename from tests/www/index.html
rename to tests/www/includes/index.html
diff --git a/tests/www/another_include.html b/tests/www/includes/subdir/another_include.html
similarity index 100%
rename from tests/www/another_include.html
rename to tests/www/includes/subdir/another_include.html
diff --git a/tests/www/includes/test_include.html b/tests/www/includes/test_include.html
new file mode 100644
index 0000000..c860e94
--- /dev/null
+++ b/tests/www/includes/test_include.html
@@ -0,0 +1,3 @@
+<div>Include #1</div>
+
+<!-- #include file="./subdir/another_include.html" -->
diff --git a/tests/www/yet_another_include.html b/tests/www/includes/yet_another_include.html
similarity index 100%
rename from tests/www/yet_another_include.html
rename to tests/www/includes/yet_another_include.html
diff --git a/tests/www/test_include.html b/tests/www/test_include.html
deleted file mode 100644
index 1218707..0000000
--- a/tests/www/test_include.html
+++ /dev/null
@@ -1,3 +0,0 @@
-<div>Include #1</div>
-
-<!-- #include file="./another_include.html" -->