diff --git a/tests/test-locate b/tests/test-locate
--- a/tests/test-locate
+++ b/tests/test-locate
@@ -5,6 +5,8 @@ cd t
 hg init
 echo 0 > a
 echo 0 > b
+mkdir t
+echo 0 > t/x
 hg ci -A -m m -d "1000000 0"
 touch nottracked
 hg locate a
@@ -18,3 +20,7 @@ hg locate
 hg locate -r 0 a
 hg locate -r 0 NONEXISTENT
 hg locate -r 0
+echo % -I/-X with relative path should work
+cd t
+hg locate
+hg locate -I ../t