diff --git a/example/chromeOnlyConf.js b/example/chromeOnlyConf.js
index 6b2bab582..5c59c56a5 100644
--- a/example/chromeOnlyConf.js
+++ b/example/chromeOnlyConf.js
@@ -2,7 +2,7 @@
 exports.config = {
   // Do not start a Selenium Standalone sever - only run this using chrome.
   chromeOnly: true,
-  chromeDriver: './selenium/chromedriver',
+  chromeDriver: '../selenium/chromedriver',
 
   // Capabilities to be passed to the webdriver instance.
   capabilities: {
diff --git a/lib/cli.js b/lib/cli.js
index 9890f3954..2fe52ba07 100644
--- a/lib/cli.js
+++ b/lib/cli.js
@@ -42,10 +42,6 @@ var argv = require('optimist').
     }).
     argv;
 
-
-var configPath;
-
-
 var printVersion = function () {
   util.puts('Version ' + JSON.parse(
       fs.readFileSync(__dirname + '/../package.json', 'utf8')).version);
@@ -56,18 +52,25 @@ if (argv.version) {
   printVersion();
 }
 
+// Any file names should be resolved relative to the current working directory.
 if (argv.specs) {
   argv.specs = argv.specs.split(',');
   argv.specs.forEach(function(spec, index, arr) {
     arr[index] = path.resolve(process.cwd(), spec);
   });
 }
+['seleniumServerJar', 'chromeDriver', 'onPrepare'].forEach(function(name) {
+  if (argv[name]) {
+    argv[name] = path.resolve(process.cwd(), argv[name]);
+  }
+});
 
 var configFilename = argv._[0];
 if (configFilename) {
-  configPath = path.resolve(process.cwd(), configFilename);
-  runner.addConfig(require(configPath).config);
-  runner.addConfig({specFileBase: path.dirname(configPath)})
+  var configPath = path.resolve(process.cwd(), configFilename);
+  config = require(configPath).config;
+  config.configDir = path.dirname(configPath);
+  runner.addConfig(config);
 }
 
 runner.addConfig(argv);
diff --git a/lib/runner.js b/lib/runner.js
index b9c187d8d..32e97e600 100644
--- a/lib/runner.js
+++ b/lib/runner.js
@@ -17,7 +17,7 @@ var sauceAccount;
 
 // Default configuration.
 var config = {
-  specFileBase: './',
+  configDir: './',
   seleniumServerJar: null,
   seleniumArgs: [],
   seleniumPort: null,
@@ -60,6 +60,15 @@ var merge = function(into, from) {
  * @param {Object} additionalConfig
  */
 var addConfig = function(additionalConfig) {
+  // All filepaths should be kept relative to the current config location.
+  // This will not affect absolute paths.
+  ['seleniumServerJar', 'chromeDriver', 'onPrepare'].forEach(function(name) {
+    if (additionalConfig[name] && additionalConfig.configDir &&
+        typeof additionalConfig[name] == 'string') {
+      additionalConfig[name] =
+          path.resolve(additionalConfig.configDir, additionalConfig[name]);
+    }
+  })
   merge(config, additionalConfig);
 };
 
@@ -183,12 +192,12 @@ var runJasmineTests = function() {
   }
   var resolvedSpecs = [];
   for (var i = 0; i < specs.length; ++i) {
-    var matches = glob.sync(specs[i], {cwd: config.specFileBase});
+    var matches = glob.sync(specs[i], {cwd: config.configDir});
     if (!matches.length) {
       util.puts('Warning: pattern ' + specs[i] + ' did not match any files.');
     }
     for (var j = 0; j < matches.length; ++j) {
-      resolvedSpecs.push(path.resolve(config.specFileBase, matches[j]));
+      resolvedSpecs.push(path.resolve(config.configDir, matches[j]));
     }
   }
   if (!resolvedSpecs.length) {
@@ -245,7 +254,7 @@ var runJasmineTests = function() {
         if (typeof config.onPrepare == 'function') {
           config.onPrepare();
         } else if (typeof config.onPrepare == 'string') {
-          require(path.resolve(config.specFileBase, config.onPrepare));
+          require(path.resolve(config.configDir, config.onPrepare));
         } else {
           throw 'config.onPrepare must be a string or function';
         }
diff --git a/referenceConf.js b/referenceConf.js
index 0109610a7..4b2d4d3de 100644
--- a/referenceConf.js
+++ b/referenceConf.js
@@ -14,7 +14,8 @@ exports.config = {
   // and chromeDriver will be used directly (from the location specified in
   // chromeDriver)
 
-  // The location of the selenium standalone server .jar file.
+  // The location of the selenium standalone server .jar file, relative
+  // to the location of this config.
   seleniumServerJar: './selenium/selenium-server-standalone-2.37.0.jar',
   // The port to start the selenium server on, or null if the server should
   // find its own unused port.
diff --git a/spec/altRootConf.js b/spec/altRootConf.js
index 92b02b8c2..4eac7d4ca 100644
--- a/spec/altRootConf.js
+++ b/spec/altRootConf.js
@@ -1,7 +1,7 @@
 // Tests for an Angular app where ng-app is not on the body.
 exports.config = {
-  seleniumServerJar: './selenium/selenium-server-standalone-2.35.0.jar',
-  chromeDriver: './selenium/chromedriver',
+  seleniumServerJar: '../selenium/selenium-server-standalone-2.37.0.jar',
+  chromeDriver: '../selenium/chromedriver',
 
   seleniumAddress: 'http://localhost:4444/wd/hub',
 
diff --git a/spec/basicConf.js b/spec/basicConf.js
index 09db2bc03..277d0bf64 100644
--- a/spec/basicConf.js
+++ b/spec/basicConf.js
@@ -1,7 +1,7 @@
 // The main suite of Protractor tests.
 exports.config = {
-  seleniumServerJar: './selenium/selenium-server-standalone-2.35.0.jar',
-  chromeDriver: './selenium/chromedriver',
+  seleniumServerJar: '../selenium/selenium-server-standalone-2.37.0.jar',
+  chromeDriver: '../selenium/chromedriver',
 
   seleniumAddress: 'http://localhost:4444/wd/hub',
 
diff --git a/spec/junitOutputConf.js b/spec/junitOutputConf.js
index b217d0cb5..a51ea9b3a 100644
--- a/spec/junitOutputConf.js
+++ b/spec/junitOutputConf.js
@@ -5,8 +5,8 @@ require('jasmine-reporters');
 
 // The main suite of Protractor tests.
 exports.config = {
-  seleniumServerJar: './selenium/selenium-server-standalone-2.35.0.jar',
-  chromeDriver: './selenium/chromedriver',
+  seleniumServerJar: '../selenium/selenium-server-standalone-2.35.0.jar',
+  chromeDriver: '../selenium/chromedriver',
 
   seleniumAddress: 'http://localhost:4444/wd/hub',
 
diff --git a/spec/onPrepareConf.js b/spec/onPrepareConf.js
index c3695c367..63acedf5f 100644
--- a/spec/onPrepareConf.js
+++ b/spec/onPrepareConf.js
@@ -1,7 +1,7 @@
 // The main suite of Protractor tests.
 exports.config = {
-  seleniumServerJar: './selenium/selenium-server-standalone-2.35.0.jar',
-  chromeDriver: './selenium/chromedriver',
+  seleniumServerJar: '../selenium/selenium-server-standalone-2.35.0.jar',
+  chromeDriver: '../selenium/chromedriver',
 
   seleniumAddress: 'http://localhost:4444/wd/hub',
 
diff --git a/spec/onPrepareStringConf.js b/spec/onPrepareStringConf.js
index 67b0e3760..d51f0497d 100644
--- a/spec/onPrepareStringConf.js
+++ b/spec/onPrepareStringConf.js
@@ -1,8 +1,8 @@
 // Configuration using a string in onPrepare to load a file with code to
 // execute once before tests.
 exports.config = {
-  seleniumServerJar: './selenium/selenium-server-standalone-2.35.0.jar',
-  chromeDriver: './selenium/chromedriver',
+  seleniumServerJar: '../selenium/selenium-server-standalone-2.35.0.jar',
+  chromeDriver: '../selenium/chromedriver',
 
   seleniumAddress: 'http://localhost:4444/wd/hub',