diff --git a/app/helpers/gitlab_markdown_helper.rb b/app/helpers/gitlab_markdown_helper.rb
index 7039bdc..65b64ea 100644
--- a/app/helpers/gitlab_markdown_helper.rb
+++ b/app/helpers/gitlab_markdown_helper.rb
@@ -75,12 +75,12 @@ module GitlabMarkdownHelper
   def new_link(path_with_namespace, string, ref)
     [
       path_with_namespace,
-      path(string, ref),
+      path_with_ref(string, ref),
       string
     ].compact.join("/")
   end
 
-  def path(string, ref)
+  def path_with_ref(string, ref)
     if File.exists?(Rails.root.join(string))
       "#{local_path(string)}/#{correct_ref(ref)}"
     else
diff --git a/spec/helpers/gitlab_markdown_helper_spec.rb b/spec/helpers/gitlab_markdown_helper_spec.rb
index d49247a..a0bbc02 100644
--- a/spec/helpers/gitlab_markdown_helper_spec.rb
+++ b/spec/helpers/gitlab_markdown_helper_spec.rb
@@ -406,6 +406,30 @@ describe GitlabMarkdownHelper do
     it "should generate absolute urls for emoji" do
       markdown(":smile:").should include("src=\"#{url_to_image("emoji/smile")}")
     end
+
+    it "should handle relative urls for a file in master" do
+      actual = "[GitLab API doc](doc/api/README.md)\n"
+      expected = "<p><a href=\"/#{project.path_with_namespace}/blob/master/doc/api/README.md\">GitLab API doc</a></p>\n"
+      markdown(actual).should match(expected)
+    end
+
+    it "should handle relative urls for a directory in master" do
+      actual = "[GitLab API doc](doc/api)\n"
+      expected = "<p><a href=\"/#{project.path_with_namespace}/tree/master/doc/api\">GitLab API doc</a></p>\n"
+      markdown(actual).should match(expected)
+    end
+
+    it "should handle absolute urls" do
+      actual = "[GitLab](https://www.gitlab.com)\n"
+      expected = "<p><a href=\"https://www.gitlab.com\">GitLab</a></p>\n"
+      markdown(actual).should match(expected)
+    end
+
+    it "should handle wiki urls" do
+      actual = "[Link](test/link)\n"
+      expected = "<p><a href=\"/#{project.path_with_namespace}/wikis/test/link\">Link</a></p>\n"
+      markdown(actual).should match(expected)
+    end
   end
 
   describe "#render_wiki_content" do
--
libgit2 0.21.2