diff --git a/cli.js b/cli.js
index 30941d41d..09b56aa9f 100755
--- a/cli.js
+++ b/cli.js
@@ -17,6 +17,7 @@ if (debug.enabled) {
 	require('time-require');
 }
 
+var path = require('path');
 var updateNotifier = require('update-notifier');
 var figures = require('figures');
 var arrify = require('arrify');
@@ -93,12 +94,14 @@ if (cli.flags.init) {
 	return;
 }
 
-var additionalPaths = [];
+var nodePaths;
 if (process.env.NODE_PATH) {
-	var osSplitChar = process.platform === 'win32' ? ';' : ':';
-	process.env.NODE_PATH.split(osSplitChar).forEach(function (additionalPath) {
-		additionalPaths.push(path.resolve(opts.projectRoot, additionalPath));
-	});
+    var osSplitChar = process.platform === 'win32' ? ';' : ':';
+    nodePaths = process.env.NODE_PATH.split(osSplitChar).map(function (p) {
+        return path.resolve(process.cwd(), p)
+    });
+} else {
+    nodePaths = []
 }
 
 var api = new Api(cli.input.length ? cli.input : arrify(conf.files), {
@@ -106,7 +109,7 @@ var api = new Api(cli.input.length ? cli.input : arrify(conf.files), {
 	serial: cli.flags.serial,
 	require: arrify(cli.flags.require),
 	cacheEnabled: cli.flags.cache !== false,
-	additionalPaths: additionalPaths
+	nodePaths: nodePaths
 });
 
 var logger = new Logger();
diff --git a/lib/fork.js b/lib/fork.js
index 0a4e830fb..b9bc5cfaf 100644
--- a/lib/fork.js
+++ b/lib/fork.js
@@ -13,8 +13,7 @@ module.exports = function (file, opts) {
 		tty: process.stdout.isTTY ? {
 			columns: process.stdout.columns,
 			rows: process.stdout.rows
-		} : false,
-		additionalPaths: opts.additionalPaths
+		} : false
 	}, opts);
 
 	var ps = childProcess.fork(path.join(__dirname, 'test-worker.js'), [JSON.stringify(opts)], {
diff --git a/lib/test-worker.js b/lib/test-worker.js
index 45f4199ec..0b10e5596 100644
--- a/lib/test-worker.js
+++ b/lib/test-worker.js
@@ -86,10 +86,8 @@ var oldNodeModulesPaths = module.constructor._nodeModulePaths;
 module.constructor._nodeModulePaths = function () {
 	var ret = oldNodeModulesPaths.apply(this, arguments);
 	ret.push(nodeModulesDir);
-	if (opts.additionalPaths && opts.additionalPaths.length > 0) {
-		opts.additionalPaths.forEach(function (additionalPath) {
-			ret.push(additionalPath);
-		});
+	if (opts.nodePaths && opts.nodePaths.length > 0) {
+		ret = ret.concat(opts.nodePaths);
 	}
 	return ret;
 };
diff --git a/test/cli.js b/test/cli.js
index cadb0ad7b..3d786220a 100644
--- a/test/cli.js
+++ b/test/cli.js
@@ -15,7 +15,10 @@ function execCli(args, dirname, cb) {
 		dirname = path.join(__dirname, dirname);
 	}
 
-	var env = {};
+	var env = {
+		// This probably should be set only for the corresponding test
+		NODE_PATH: 'node-paths/modules'
+	};
 
 	if (process.env.AVA_APPVEYOR) {
 		env.AVA_APPVEYOR = 1;
@@ -110,3 +113,10 @@ test('pkg-conf: cli takes precedence', function (t) {
 		t.end();
 	});
 });
+
+test('handles NODE_PATH', function (t) {
+	execCli('fixture/node-paths.js', function (err) {
+		t.notOk(err);
+		t.end();
+	});
+});
diff --git a/test/fixture/node-paths.js b/test/fixture/node-paths.js
new file mode 100644
index 000000000..743625818
--- /dev/null
+++ b/test/fixture/node-paths.js
@@ -0,0 +1,7 @@
+import test from '../../';
+
+import foo from 'nested/foo';
+
+test('relative require', t => {
+	t.is(foo(), 'bar');
+});
diff --git a/test/fixture/node-paths/modules/nested/foo.js b/test/fixture/node-paths/modules/nested/foo.js
new file mode 100644
index 000000000..1723f5abd
--- /dev/null
+++ b/test/fixture/node-paths/modules/nested/foo.js
@@ -0,0 +1,3 @@
+module.exports = function() {
+	return 'bar';
+}