diff --git a/change_log.txt b/change_log.txt
index fa60f14b..5a53f817 100644
--- a/change_log.txt
+++ b/change_log.txt
@@ -1,6 +1,7 @@
 ===== Smarty 3.1 trunk  =====
 20.09.2011
 - bugfix removed debug echo output while compiling template inheritance
+- bugfix relative paths in $template_dir broke relative path resolving in {include "../foo.tpl"}
 
 19.09.2011
 - bugfix regression in Smarty_CacheReource_KeyValueStore introduced by r4261
diff --git a/libs/sysplugins/smarty_resource.php b/libs/sysplugins/smarty_resource.php
index 852939e3..04fae95d 100644
--- a/libs/sysplugins/smarty_resource.php
+++ b/libs/sysplugins/smarty_resource.php
@@ -159,6 +159,11 @@ abstract class Smarty_Resource {
             }
             $file = dirname($_template->parent->source->filepath) . DS . $file;
             $_file_exact_match = true;
+            if (!preg_match('/^([\/\\\\]|[a-zA-Z]:[\/\\\\])/', $file)) {
+                // the path gained from the parent template is relative to the current working directory
+                // as expansions (like include_path) have already been done
+                $file = getcwd() . DS . $file;
+            }
         } elseif ($_file_is_dotted) {
             throw new SmartyException("Template '{$file}' may not start with ../ or ./'");
         }