diff --git a/lib/options-manager.js b/lib/options-manager.js
index a0470c62..874ec04f 100644
--- a/lib/options-manager.js
+++ b/lib/options-manager.js
@@ -414,7 +414,7 @@ const buildExtendsConfig = options => config => {
 	if (options.extends && options.extends.length > 0) {
 		const configs = options.extends.map(name => {
 			// Don't do anything if it's a filepath
-			if (existsSync(name)) {
+			if (existsSync(path.resolve(options.cwd || process.cwd(), name))) {
 				return name;
 			}
 
diff --git a/test/fixtures/config-files/extends-relative/.xo-config.json b/test/fixtures/config-files/extends-relative/.xo-config.json
new file mode 100644
index 00000000..29bc67f9
--- /dev/null
+++ b/test/fixtures/config-files/extends-relative/.xo-config.json
@@ -0,0 +1,3 @@
+{
+	"extends": "../../extends.js"
+}
diff --git a/test/fixtures/config-files/extends-relative/file.js b/test/fixtures/config-files/extends-relative/file.js
new file mode 100644
index 00000000..eb542496
--- /dev/null
+++ b/test/fixtures/config-files/extends-relative/file.js
@@ -0,0 +1,5 @@
+const object = {
+	a: 1
+};
+
+console.log(object.a);
diff --git a/test/lint-files.js b/test/lint-files.js
index f1b4e455..a2b6b5a2 100644
--- a/test/lint-files.js
+++ b/test/lint-files.js
@@ -318,3 +318,20 @@ test(configType, {type: '.xo-config.js', dir: 'xo-config_js'});
 test(configType, {type: '.xo-config.cjs', dir: 'xo-config_cjs'});
 test(configType, {type: '.xo-config.json', dir: 'xo-config_json'});
 test(configType, {type: '.xo-config', dir: 'xo-config'});
+
+test('load config file with relative extends from different cwd', async t => {
+	const directory = 'extends-relative';
+
+	const {results, rulesMeta} = await xo.lintFiles('**/*', {
+		cwd: path.resolve('fixtures', 'config-files', directory),
+	});
+
+	t.true(
+		hasRule(
+			results,
+			path.resolve('fixtures', 'config-files', directory, 'file.js'),
+			'comma-dangle',
+			rulesMeta,
+		),
+	);
+});
diff --git a/test/lint-text.js b/test/lint-text.js
index d5e6b32a..b04fb4fa 100644
--- a/test/lint-text.js
+++ b/test/lint-text.js
@@ -135,7 +135,7 @@ test('extends `react` support with `prettier` option', async t => {
 
 test('regression test for #71', async t => {
 	const {results} = await xo.lintText('const foo = { key: \'value\' };\nconsole.log(foo);\n', {
-		extends: path.join(__dirname, 'fixtures/extends.js'),
+		extends: './fixtures/extends.js',
 	});
 	t.is(results[0].errorCount, 0);
 });
diff --git a/test/options-manager.js b/test/options-manager.js
index e102b36f..057d78c8 100644
--- a/test/options-manager.js
+++ b/test/options-manager.js
@@ -416,12 +416,14 @@ test('buildConfig: extends', t => {
 		extends: [
 			'plugin:foo/bar',
 			'eslint-config-prettier',
+			'./fixtures/config-files/xo_config_js/xo.config.js',
 		],
 	});
 
-	t.deepEqual(config.baseConfig.extends.slice(-2), [
+	t.deepEqual(config.baseConfig.extends.slice(-3), [
 		'plugin:foo/bar',
 		path.resolve('../node_modules/eslint-config-prettier/index.js'),
+		'./fixtures/config-files/xo_config_js/xo.config.js',
 	]);
 });