--- a/contrib/zsh_completion
+++ b/contrib/zsh_completion
@@ -178,6 +178,7 @@ typeset -A _hg_cmd_globals
 }
 
 _hg_status() {
+  [[ -d $PREFIX ]] || PREFIX=$PREFIX:h
   status_files=(${(ps:\0:)"$(_hg_cmd status -0n$1 ./$PREFIX 2>/dev/null)"})
 }