diff --git a/commands/cli/parse.go b/commands/cli/parse.go
index 25afa1f62b1..3bb9f8c145e 100644
--- a/commands/cli/parse.go
+++ b/commands/cli/parse.go
@@ -401,6 +401,10 @@ func appendFile(fpath string, argDef *cmds.Argument, recursive, hidden bool) (fi
 		if err != nil {
 			return nil, err
 		}
+		cwd, err = filepath.EvalSymlinks(cwd)
+		if err != nil {
+			return nil, err
+		}
 		fpath = cwd
 	}
 
diff --git a/test/sharness/t0040-add-and-cat.sh b/test/sharness/t0040-add-and-cat.sh
index 92f001762eb..fb6f6e7a0f4 100755
--- a/test/sharness/t0040-add-and-cat.sh
+++ b/test/sharness/t0040-add-and-cat.sh
@@ -189,6 +189,18 @@ test_add_named_pipe() {
     '
 }
 
+test_add_pwd_is_symlink() {
+    test_expect_success "ipfs add -r adds directory content when ./ is symlink" '
+      mkdir hellodir &&
+      echo "World" > hellodir/world &&
+      ln -s hellodir hellolink &&
+      ( cd hellolink &&
+        ipfs add -r . > ../actual ) &&
+      grep "added Qma9CyFdG5ffrZCcYSin2uAETygB25cswVwEYYzwfQuhTe" actual &&
+      rm -r hellodir
+    '
+}
+
 test_launch_ipfs_daemon_and_mount
 
 test_expect_success "'ipfs add --help' succeeds" '
@@ -354,6 +366,8 @@ test_add_cat_expensive
 
 test_add_named_pipe " Post http://$API_ADDR/api/v0/add?encoding=json&progress=true&r=true&stream-channels=true:"
 
+test_add_pwd_is_symlink
+
 test_kill_ipfs_daemon
 
 # should work offline
@@ -371,6 +385,8 @@ test_expect_success "ipfs cat file fails" '
 
 test_add_named_pipe ""
 
+test_add_pwd_is_symlink
+
 # Test daemon in offline mode
 test_launch_ipfs_daemon --offline