diff --git a/src/index.js b/src/index.js
index af9eb78..23edabe 100644
--- a/src/index.js
+++ b/src/index.js
@@ -12,20 +12,15 @@ export default function loader(content) {
 
   const context = options.context || this.rootContext || (this.options && this.options.context);
 
-  let url = loaderUtils.interpolateName(this, options.name, {
+  const url = loaderUtils.interpolateName(this, options.name, {
     context,
     content,
     regExp: options.regExp,
   });
 
-  let outputPath = '';
-
-  if (options.outputPath) {
-    // support functions as outputPath to generate them dynamically
-    outputPath = (
-      typeof options.outputPath === 'function' ? options.outputPath(url) : options.outputPath
-    );
-  }
+  let outputPath = (
+    typeof options.outputPath === 'function' ? options.outputPath(url) : path.join(options.outputPath || '', url)
+  );
 
   if (options.useRelativePath) {
     const filePath = this.resourcePath;
@@ -41,19 +36,17 @@ export default function loader(content) {
     } else {
       outputPath = relativePath + url;
     }
-
-    url = relativePath + url;
-  } else {
-    outputPath += url;
   }
 
-  let publicPath = `__webpack_public_path__ + ${JSON.stringify(url)}`;
+  let publicPath = null;
 
   if (options.publicPath !== undefined) {
     // support functions as publicPath to generate them dynamically
     publicPath = JSON.stringify(
       typeof options.publicPath === 'function' ? options.publicPath(url) : options.publicPath + url,
     );
+  } else {
+    publicPath = `__webpack_public_path__ + ${JSON.stringify(outputPath)}`;
   }
 
   if (options.emitFile === undefined || options.emitFile) {
diff --git a/test/fixtures/fixture-nested.js b/test/fixtures/fixture-nested.js
new file mode 100644
index 0000000..bd8db2f
--- /dev/null
+++ b/test/fixtures/fixture-nested.js
@@ -0,0 +1,4 @@
+/* eslint-disable */
+import png from './nested/file.png';
+
+export default png;
diff --git a/test/fixtures/nested/file.png b/test/fixtures/nested/file.png
new file mode 100644
index 0000000..02d7a6b
Binary files /dev/null and b/test/fixtures/nested/file.png differ
diff --git a/test/options/__snapshots__/outputPath.test.js.snap b/test/options/__snapshots__/outputPath.test.js.snap
index fe81dd6..23b27e8 100644
--- a/test/options/__snapshots__/outputPath.test.js.snap
+++ b/test/options/__snapshots__/outputPath.test.js.snap
@@ -3,25 +3,34 @@
 exports[`Options outputPath {Function} 1`] = `
 Object {
   "assets": Array [
-    "output_path/9c87cbf3ba33126ffd25ae7f2f6bbafb.png9c87cbf3ba33126ffd25ae7f2f6bbafb.png",
+    "output_path_func/9c87cbf3ba33126ffd25ae7f2f6bbafb.png",
   ],
-  "source": "module.exports = __webpack_public_path__ + \\"9c87cbf3ba33126ffd25ae7f2f6bbafb.png\\";",
+  "source": "module.exports = __webpack_public_path__ + \\"output_path_func/9c87cbf3ba33126ffd25ae7f2f6bbafb.png\\";",
+}
+`;
+
+exports[`Options outputPath {Function} with \`options.name\` 1`] = `
+Object {
+  "assets": Array [
+    "output_path_func/file.png",
+  ],
+  "source": "module.exports = __webpack_public_path__ + \\"output_path_func/file.png\\";",
 }
 `;
 
 exports[`Options outputPath {Function} with \`publicPath\` {Function} 1`] = `
 Object {
   "assets": Array [
-    "output_path/9c87cbf3ba33126ffd25ae7f2f6bbafb.png9c87cbf3ba33126ffd25ae7f2f6bbafb.png",
+    "output_path_func/9c87cbf3ba33126ffd25ae7f2f6bbafb.png",
   ],
-  "source": "module.exports = \\"public_path/9c87cbf3ba33126ffd25ae7f2f6bbafb.png\\";",
+  "source": "module.exports = \\"public_path_func/9c87cbf3ba33126ffd25ae7f2f6bbafb.png\\";",
 }
 `;
 
 exports[`Options outputPath {Function} with \`publicPath\` {String} 1`] = `
 Object {
   "assets": Array [
-    "output_path/9c87cbf3ba33126ffd25ae7f2f6bbafb.png9c87cbf3ba33126ffd25ae7f2f6bbafb.png",
+    "output_path_func/9c87cbf3ba33126ffd25ae7f2f6bbafb.png",
   ],
   "source": "module.exports = \\"public_path/9c87cbf3ba33126ffd25ae7f2f6bbafb.png\\";",
 }
@@ -32,7 +41,16 @@ Object {
   "assets": Array [
     "output_path/9c87cbf3ba33126ffd25ae7f2f6bbafb.png",
   ],
-  "source": "module.exports = __webpack_public_path__ + \\"9c87cbf3ba33126ffd25ae7f2f6bbafb.png\\";",
+  "source": "module.exports = __webpack_public_path__ + \\"output_path/9c87cbf3ba33126ffd25ae7f2f6bbafb.png\\";",
+}
+`;
+
+exports[`Options outputPath {String} with \`options.name\` 1`] = `
+Object {
+  "assets": Array [
+    "output_path/file.png",
+  ],
+  "source": "module.exports = __webpack_public_path__ + \\"output_path/file.png\\";",
 }
 `;
 
@@ -41,7 +59,7 @@ Object {
   "assets": Array [
     "output_path/9c87cbf3ba33126ffd25ae7f2f6bbafb.png",
   ],
-  "source": "module.exports = \\"public_path/9c87cbf3ba33126ffd25ae7f2f6bbafb.png\\";",
+  "source": "module.exports = \\"public_path_func/9c87cbf3ba33126ffd25ae7f2f6bbafb.png\\";",
 }
 `;
 
@@ -53,3 +71,21 @@ Object {
   "source": "module.exports = \\"public_path/9c87cbf3ba33126ffd25ae7f2f6bbafb.png\\";",
 }
 `;
+
+exports[`Options outputPath {String} with \`publicPath\` {String} without trailing slash 1`] = `
+Object {
+  "assets": Array [
+    "output_path/9c87cbf3ba33126ffd25ae7f2f6bbafb.png",
+  ],
+  "source": "module.exports = \\"public_path9c87cbf3ba33126ffd25ae7f2f6bbafb.png\\";",
+}
+`;
+
+exports[`Options outputPath {String} without trailing slash 1`] = `
+Object {
+  "assets": Array [
+    "output_path/9c87cbf3ba33126ffd25ae7f2f6bbafb.png",
+  ],
+  "source": "module.exports = __webpack_public_path__ + \\"output_path/9c87cbf3ba33126ffd25ae7f2f6bbafb.png\\";",
+}
+`;
diff --git a/test/options/__snapshots__/publicPath.test.js.snap b/test/options/__snapshots__/publicPath.test.js.snap
index d4fce73..55bbb1a 100644
--- a/test/options/__snapshots__/publicPath.test.js.snap
+++ b/test/options/__snapshots__/publicPath.test.js.snap
@@ -17,3 +17,12 @@ Object {
   "source": "module.exports = \\"public_path/9c87cbf3ba33126ffd25ae7f2f6bbafb.png\\";",
 }
 `;
+
+exports[`Options publicPath {String} without trailing slash 1`] = `
+Object {
+  "assets": Array [
+    "9c87cbf3ba33126ffd25ae7f2f6bbafb.png",
+  ],
+  "source": "module.exports = \\"public_path9c87cbf3ba33126ffd25ae7f2f6bbafb.png\\";",
+}
+`;
diff --git a/test/options/__snapshots__/useRelativePath.test.js.snap b/test/options/__snapshots__/useRelativePath.test.js.snap
index bd70c4f..afc3e3d 100644
--- a/test/options/__snapshots__/useRelativePath.test.js.snap
+++ b/test/options/__snapshots__/useRelativePath.test.js.snap
@@ -21,9 +21,9 @@ Object {
 exports[`Options useRelativePath \`true\` with absolute \`context\` 1`] = `
 Object {
   "assets": Array [
-    "../file-loader/test/fixtures/nested/9c87cbf3ba33126ffd25ae7f2f6bbafb.png",
+    "file-loader/test/fixtures/nested/9c87cbf3ba33126ffd25ae7f2f6bbafb.png",
   ],
-  "source": "module.exports = __webpack_public_path__ + \\"../file-loader/test/fixtures/nested/9c87cbf3ba33126ffd25ae7f2f6bbafb.png\\";",
+  "source": "module.exports = __webpack_public_path__ + \\"file-loader/test/fixtures/nested/9c87cbf3ba33126ffd25ae7f2f6bbafb.png\\";",
 }
 `;
 
diff --git a/test/options/outputPath.test.js b/test/options/outputPath.test.js
index 4d3db82..01602a2 100644
--- a/test/options/outputPath.test.js
+++ b/test/options/outputPath.test.js
@@ -21,13 +21,65 @@ describe('Options', () => {
       expect({ assets, source }).toMatchSnapshot();
     });
 
+    test('{String} without trailing slash', async () => {
+      const config = {
+        loader: {
+          test: /(png|jpg|svg)/,
+          options: {
+            outputPath: 'output_path',
+          },
+        },
+      };
+
+      const stats = await webpack('fixture.js', config);
+      const { assets, source } = stats.toJson().modules[1];
+
+      expect({ assets, source }).toMatchSnapshot();
+    });
+
+    test('{String} with `options.name`', async () => {
+      const config = {
+        loader: {
+          test: /(png|jpg|svg)/,
+          options: {
+            name: '[path][name].[ext]',
+            outputPath: 'output_path/',
+          },
+        },
+      };
+
+      const stats = await webpack('fixture.js', config);
+      const { assets, source } = stats.toJson().modules[1];
+
+      expect({ assets, source }).toMatchSnapshot();
+    });
+
     test('{Function}', async () => {
       const config = {
         loader: {
           test: /(png|jpg|svg)/,
           options: {
             outputPath(url) {
-              return `output_path/${url}`;
+              return `output_path_func/${url}`;
+            },
+          },
+        },
+      };
+
+      const stats = await webpack('fixture.js', config);
+      const { assets, source } = stats.toJson().modules[1];
+
+      expect({ assets, source }).toMatchSnapshot();
+    });
+
+    test('{Function} with `options.name`', async () => {
+      const config = {
+        loader: {
+          test: /(png|jpg|svg)/,
+          options: {
+            name: '[name].[ext]',
+            outputPath(url) {
+              return `output_path_func/${url}`;
             },
           },
         },
@@ -56,6 +108,23 @@ describe('Options', () => {
       expect({ assets, source }).toMatchSnapshot();
     });
 
+    test('{String} with `publicPath` {String} without trailing slash', async () => {
+      const config = {
+        loader: {
+          test: /(png|jpg|svg)/,
+          options: {
+            outputPath: 'output_path',
+            publicPath: 'public_path',
+          },
+        },
+      };
+
+      const stats = await webpack('fixture.js', config);
+      const { assets, source } = stats.toJson().modules[1];
+
+      expect({ assets, source }).toMatchSnapshot();
+    });
+
     test('{Function} with `publicPath` {String}', async () => {
       const config = {
         loader: {
@@ -63,7 +132,7 @@ describe('Options', () => {
           options: {
             publicPath: 'public_path/',
             outputPath(url) {
-              return `output_path/${url}`;
+              return `output_path_func/${url}`;
             },
           },
         },
@@ -82,7 +151,7 @@ describe('Options', () => {
           options: {
             outputPath: 'output_path/',
             publicPath(url) {
-              return `public_path/${url}`;
+              return `public_path_func/${url}`;
             },
           },
         },
@@ -100,10 +169,10 @@ describe('Options', () => {
           test: /(png|jpg|svg)/,
           options: {
             outputPath(url) {
-              return `output_path/${url}`;
+              return `output_path_func/${url}`;
             },
             publicPath(url) {
-              return `public_path/${url}`;
+              return `public_path_func/${url}`;
             },
           },
         },
diff --git a/test/options/publicPath.test.js b/test/options/publicPath.test.js
index 8f574f3..e70d1f8 100644
--- a/test/options/publicPath.test.js
+++ b/test/options/publicPath.test.js
@@ -21,6 +21,22 @@ describe('Options', () => {
       expect({ assets, source }).toMatchSnapshot();
     });
 
+    test('{String} without trailing slash', async () => {
+      const config = {
+        loader: {
+          test: /(png|jpg|svg)/,
+          options: {
+            publicPath: 'public_path',
+          },
+        },
+      };
+
+      const stats = await webpack('fixture.js', config);
+      const { assets, source } = stats.toJson().modules[1];
+
+      expect({ assets, source }).toMatchSnapshot();
+    });
+
     test('{Function}', async () => {
       const config = {
         loader: {