diff --git a/app/helpers/gitlab_markdown_helper.rb b/app/helpers/gitlab_markdown_helper.rb
index 0210bea..b34f703 100644
--- a/app/helpers/gitlab_markdown_helper.rb
+++ b/app/helpers/gitlab_markdown_helper.rb
@@ -129,11 +129,18 @@ module GitlabMarkdownHelper
   # Covering a special case, when the link is referencing file in the same directory eg:
   # If we are at doc/api/README.md and the README.md contains relative links like [Users](users.md)
   # this takes the request path(doc/api/README.md), and replaces the README.md with users.md so the path looks like doc/api/users.md
+  # If we are at doc/api and the README.md shown in below the tree view
+  # this takes the rquest path(doc/api) and adds users.md so the path looks like doc/api/users.md
   def build_nested_path(path, request_path)
     return path unless request_path
-    base = request_path.split("/")
-    base.pop
-    (base + [path]).join("/")
+    if local_path(request_path) == "tree"
+      base = request_path.split("/").push(path)
+      base.join("/")
+    else
+      base = request_path.split("/")
+      base.pop
+      base.push(path).join("/")
+    end
   end
 
   def file_exists?(path)
diff --git a/features/project/source/markdown_render.feature b/features/project/source/markdown_render.feature
index a7a9cee..8b4b89e 100644
--- a/features/project/source/markdown_render.feature
+++ b/features/project/source/markdown_render.feature
@@ -72,4 +72,9 @@ Feature: Project markdown render
   Scenario: I visit the help page with markdown
     Given I visit to the help page
     And I select a page with markdown
-    Then I should see a help page with markdown
\ No newline at end of file
+    Then I should see a help page with markdown
+
+  Scenario: Tree view should have correct links in README
+    Given I go directory which contains README file
+    And I click on a relative link in README
+    Then I should see the correct markdown
diff --git a/features/steps/project/project_markdown_render.rb b/features/steps/project/project_markdown_render.rb
index 951c831..95d73c9 100644
--- a/features/steps/project/project_markdown_render.rb
+++ b/features/steps/project/project_markdown_render.rb
@@ -162,4 +162,18 @@ class Spinach::Features::ProjectMarkdownRender < Spinach::FeatureSteps
   Then 'I should see a help page with markdown' do
     page.should have_content "GitLab provides some specific rake tasks to enable special features or perform maintenance tasks"
   end
-end 
\ No newline at end of file
+
+  Given 'I go directory which contains README file' do
+    visit project_tree_path(@project, "master/doc/api")
+    current_path.should == project_tree_path(@project, "master/doc/api")
+  end
+
+  And 'I click on a relative link in README' do
+    click_link "Users"
+  end
+
+  Then 'I should see the correct markdown' do
+    current_path.should == project_blob_path(@project, "master/doc/api/users.md")
+    page.should have_content "List users"
+  end
+end
--
libgit2 0.21.2