diff --git a/docs/source/markdown/podman-systemd.unit.5.md b/docs/source/markdown/podman-systemd.unit.5.md
index 86e07d4352..110711c34d 100644
--- a/docs/source/markdown/podman-systemd.unit.5.md
+++ b/docs/source/markdown/podman-systemd.unit.5.md
@@ -467,6 +467,8 @@ If enabled, the container will have a fresh tmpfs mounted on `/tmp`.
 Mount a volume in the container. This is equivalent to the Podman `--volume` option, and
 generally has the form `[[SOURCE-VOLUME|HOST-DIR:]CONTAINER-DIR[:OPTIONS]]`.
 
+If `SOURCE-VOLUME` starts with `.`, Quadlet will resolve the path relative to the location of the unit file.
+
 As a special case, if `SOURCE-VOLUME` ends with `.volume`, a Podman named volume called
 `systemd-$name` will be used as the source, and the generated systemd service will contain
 a dependency on the `$name-volume.service`. Such a volume can be automatically be lazily
diff --git a/pkg/systemd/quadlet/quadlet.go b/pkg/systemd/quadlet/quadlet.go
index ecee2225e1..072d238b17 100644
--- a/pkg/systemd/quadlet/quadlet.go
+++ b/pkg/systemd/quadlet/quadlet.go
@@ -492,7 +492,11 @@ func ConvertContainer(container *parser.UnitFile, isUser bool) (*parser.UnitFile
 		}
 
 		if source != "" {
-			source = handleStorageSource(service, source)
+			var err error
+			source, err = handleStorageSource(container, service, source)
+			if err != nil {
+				return nil, err
+			}
 		}
 
 		podman.add("-v")
@@ -564,10 +568,14 @@ func ConvertContainer(container *parser.UnitFile, isUser bool) (*parser.UnitFile
 		}
 		if paramType, ok := paramsMap["type"]; ok {
 			if paramType == "volume" || paramType == "bind" {
+				var err error
 				if paramSource, ok := paramsMap["source"]; ok {
-					paramsMap["source"] = handleStorageSource(service, paramSource)
+					paramsMap["source"], err = handleStorageSource(container, service, paramSource)
 				} else if paramSource, ok = paramsMap["src"]; ok {
-					paramsMap["src"] = handleStorageSource(service, paramSource)
+					paramsMap["src"], err = handleStorageSource(container, service, paramSource)
+				}
+				if err != nil {
+					return nil, err
 				}
 			}
 		}
@@ -1047,10 +1055,17 @@ func handleLogDriver(unitFile *parser.UnitFile, groupName string, podman *Podman
 	podman.add("--log-driver", logDriver)
 }
 
-func handleStorageSource(unitFile *parser.UnitFile, source string) string {
+func handleStorageSource(quadletUnitFile, serviceUnitFile *parser.UnitFile, source string) (string, error) {
+	if source[0] == '.' {
+		var err error
+		source, err = getAbsolutePath(quadletUnitFile, source)
+		if err != nil {
+			return "", err
+		}
+	}
 	if source[0] == '/' {
 		// Absolute path
-		unitFile.Add(UnitGroup, "RequiresMountsFor", source)
+		serviceUnitFile.Add(UnitGroup, "RequiresMountsFor", source)
 	} else if strings.HasSuffix(source, ".volume") {
 		// the podman volume name is systemd-$name
 		volumeName := replaceExtension(source, "", "systemd-", "")
@@ -1060,11 +1075,11 @@ func handleStorageSource(unitFile *parser.UnitFile, source string) string {
 
 		source = volumeName
 
-		unitFile.Add(UnitGroup, "Requires", volumeServiceName)
-		unitFile.Add(UnitGroup, "After", volumeServiceName)
+		serviceUnitFile.Add(UnitGroup, "Requires", volumeServiceName)
+		serviceUnitFile.Add(UnitGroup, "After", volumeServiceName)
 	}
 
-	return source
+	return source, nil
 }
 
 func handleHealth(unitFile *parser.UnitFile, groupName string, podman *PodmanCmdline) {
diff --git a/test/e2e/quadlet/mount.container b/test/e2e/quadlet/mount.container
index 097f27e071..dae7be9f2c 100644
--- a/test/e2e/quadlet/mount.container
+++ b/test/e2e/quadlet/mount.container
@@ -18,3 +18,5 @@ Mount=type=tmpfs,tmpfs-size=512M,destination=/path/in/container
 Mount=type=image,source=fedora,destination=/fedora-image,rw=true
 ## assert-podman-args-key-val "--mount" "," "type=devpts,destination=/dev/pts"
 Mount=type=devpts,destination=/dev/pts
+## assert-podman-args-key-val-regex "--mount" "," "type=bind,source=.*/podman_test.*/quadlet/path/on/host,destination=/path/in/container"
+Mount=type=bind,source=./path/on/host,destination=/path/in/container
diff --git a/test/e2e/quadlet/volume.container b/test/e2e/quadlet/volume.container
index dc1acdc14e..6484a9ff0e 100644
--- a/test/e2e/quadlet/volume.container
+++ b/test/e2e/quadlet/volume.container
@@ -1,5 +1,6 @@
 ## assert-podman-args -v /host/dir:/container/volume
 ## assert-podman-args -v /host/dir2:/container/volume2:Z
+## assert-podman-args-regex -v .*/podman_test.*/quadlet/host/dir3:/container/volume3
 ## assert-podman-args -v named:/container/named
 ## assert-podman-args -v systemd-quadlet:/container/quadlet localhost/imagename
 
@@ -7,6 +8,7 @@
 Image=localhost/imagename
 Volume=/host/dir:/container/volume
 Volume=/host/dir2:/container/volume2:Z
+Volume=./host/dir3:/container/volume3
 Volume=/container/empty
 Volume=named:/container/named
 Volume=quadlet.volume:/container/quadlet
diff --git a/test/e2e/quadlet_test.go b/test/e2e/quadlet_test.go
index ddccbcfce4..52da0079a9 100644
--- a/test/e2e/quadlet_test.go
+++ b/test/e2e/quadlet_test.go
@@ -187,7 +187,24 @@ func keyValueStringToMap(keyValueString, separator string) map[string]string {
 	return keyValMap
 }
 
-func (t *quadletTestcase) assertPodmanArgsKeyVal(args []string, unit *parser.UnitFile, key string) bool {
+func keyValMapEqualRegex(expectedKeyValMap, actualKeyValMap map[string]string) bool {
+	if len(expectedKeyValMap) != len(actualKeyValMap) {
+		return false
+	}
+	for key, expectedValue := range expectedKeyValMap {
+		actualValue, ok := actualKeyValMap[key]
+		if !ok {
+			return false
+		}
+		matched, err := regexp.MatchString(expectedValue, actualValue)
+		if err != nil || !matched {
+			return false
+		}
+	}
+	return true
+}
+
+func (t *quadletTestcase) assertPodmanArgsKeyVal(args []string, unit *parser.UnitFile, key string, allowRegex bool) bool {
 	podmanArgs, _ := unit.LookupLastArgs("Service", key)
 
 	expectedKeyValMap := keyValueStringToMap(args[2], args[1])
@@ -200,7 +217,11 @@ func (t *quadletTestcase) assertPodmanArgsKeyVal(args []string, unit *parser.Uni
 
 		argKeyLocation += subListLocation
 		actualKeyValMap := keyValueStringToMap(podmanArgs[argKeyLocation+1], args[1])
-		if reflect.DeepEqual(expectedKeyValMap, actualKeyValMap) {
+		if allowRegex {
+			if keyValMapEqualRegex(expectedKeyValMap, actualKeyValMap) {
+				return true
+			}
+		} else if reflect.DeepEqual(expectedKeyValMap, actualKeyValMap) {
 			return true
 		}
 
@@ -239,7 +260,11 @@ func (t *quadletTestcase) assertStartPodmanArgsRegex(args []string, unit *parser
 }
 
 func (t *quadletTestcase) assertStartPodmanArgsKeyVal(args []string, unit *parser.UnitFile) bool {
-	return t.assertPodmanArgsKeyVal(args, unit, "ExecStart")
+	return t.assertPodmanArgsKeyVal(args, unit, "ExecStart", false)
+}
+
+func (t *quadletTestcase) assertStartPodmanArgsKeyValRegex(args []string, unit *parser.UnitFile) bool {
+	return t.assertPodmanArgsKeyVal(args, unit, "ExecStart", true)
 }
 
 func (t *quadletTestcase) assertStartPodmanFinalArgs(args []string, unit *parser.UnitFile) bool {
@@ -309,6 +334,8 @@ func (t *quadletTestcase) doAssert(check []string, unit *parser.UnitFile, sessio
 		ok = t.assertStartPodmanArgsRegex(args, unit)
 	case "assert-podman-args-key-val":
 		ok = t.assertStartPodmanArgsKeyVal(args, unit)
+	case "assert-podman-args-key-val-regex":
+		ok = t.assertStartPodmanArgsKeyValRegex(args, unit)
 	case "assert-podman-final-args":
 		ok = t.assertStartPodmanFinalArgs(args, unit)
 	case "assert-podman-final-args-regex":