diff --git a/tests/__tests__/rel-config-paths.spec.ts b/tests/__tests__/rel-config-paths.spec.ts
new file mode 100644
index 0000000000..eba5218699
--- /dev/null
+++ b/tests/__tests__/rel-config-paths.spec.ts
@@ -0,0 +1,24 @@
+import runJest from '../__helpers__/runJest';
+
+describe('Use jest config from config dir', () => {
+  it('Should run all tests resolving tsconfig extends', () => {
+    const result = runJest('../rel-config-paths', [
+      '--no-cache',
+      '--config=./config/jest.config.js',
+    ]);
+
+    expect(result.status).toBe(0);
+  });
+
+  it('Should fail resolving tsconfig with wrong relative path', () => {
+    const result = runJest('../rel-config-paths', [
+      '--no-cache',
+      '--config=./config/jest.config.invalid.js',
+    ]);
+
+    expect(result.status).toBe(1);
+    expect(result.stderr).toContain(
+      'Unable to find tsconfig file given "./tsconfig.test.json"',
+    );
+  });
+});
diff --git a/tests/rel-config-paths/config/jest.config.invalid.js b/tests/rel-config-paths/config/jest.config.invalid.js
new file mode 100644
index 0000000000..4f0b49dfe3
--- /dev/null
+++ b/tests/rel-config-paths/config/jest.config.invalid.js
@@ -0,0 +1,14 @@
+module.exports = {
+  errorOnDeprecated: true,
+  globals: {
+    'ts-jest': {
+      tsConfigFile: './tsconfig.test.json',
+    },
+  },
+  moduleFileExtensions: ['js', 'jsx', 'json', 'ts', 'tsx'],
+  rootDir: '../',
+  testMatch: ['<rootDir>/custom-test-dir/**/*.ts'],
+  transform: {
+    '^.+\\.tsx?$': 'ts-jest',
+  },
+};
diff --git a/tests/rel-config-paths/config/jest.config.js b/tests/rel-config-paths/config/jest.config.js
new file mode 100644
index 0000000000..790e32b891
--- /dev/null
+++ b/tests/rel-config-paths/config/jest.config.js
@@ -0,0 +1,14 @@
+module.exports = {
+  errorOnDeprecated: true,
+  globals: {
+    'ts-jest': {
+      tsConfigFile: '<rootDir>/config/tsconfig.test.json',
+    },
+  },
+  moduleFileExtensions: ['js', 'jsx', 'json', 'ts', 'tsx'],
+  rootDir: '../',
+  testMatch: ['<rootDir>/custom-test-dir/**/*.ts'],
+  transform: {
+    '^.+\\.tsx?$': 'ts-jest',
+  },
+};
diff --git a/tests/rel-config-paths/config/tsconfig.base.json b/tests/rel-config-paths/config/tsconfig.base.json
new file mode 100644
index 0000000000..3a7fb4da10
--- /dev/null
+++ b/tests/rel-config-paths/config/tsconfig.base.json
@@ -0,0 +1,6 @@
+{
+  "compilerOptions": {
+    "baseUrl": "../",
+    "outDir": "../dist"
+  }
+}
diff --git a/tests/rel-config-paths/config/tsconfig.test.json b/tests/rel-config-paths/config/tsconfig.test.json
new file mode 100644
index 0000000000..8000a52a3a
--- /dev/null
+++ b/tests/rel-config-paths/config/tsconfig.test.json
@@ -0,0 +1,6 @@
+{
+  "extends": "./tsconfig.base.json",
+  "include": [
+    "../custom-test-dir"
+  ]
+}
diff --git a/tests/rel-config-paths/custom-test-dir/test.ts b/tests/rel-config-paths/custom-test-dir/test.ts
new file mode 100644
index 0000000000..e1db5bd814
--- /dev/null
+++ b/tests/rel-config-paths/custom-test-dir/test.ts
@@ -0,0 +1,9 @@
+declare var jest, describe, it, expect;
+
+import { hi } from '../src';
+
+describe('hi', () => {
+  it('should say hi', () => {
+    expect(hi()).toBe('HI!');
+  });
+});
diff --git a/tests/rel-config-paths/package.json b/tests/rel-config-paths/package.json
new file mode 100644
index 0000000000..0967ef424b
--- /dev/null
+++ b/tests/rel-config-paths/package.json
@@ -0,0 +1 @@
+{}
diff --git a/tests/rel-config-paths/src/index.ts b/tests/rel-config-paths/src/index.ts
new file mode 100644
index 0000000000..56966913e9
--- /dev/null
+++ b/tests/rel-config-paths/src/index.ts
@@ -0,0 +1,3 @@
+export function hi() {
+  return 'HI!';
+}