diff --git a/README.md b/README.md
index dcd5e78a..a5b61e8d 100644
--- a/README.md
+++ b/README.md
@@ -254,6 +254,14 @@ Type: `Number`
 
 Default: The process mode.
 
+##### `options.relative`
+
+Whether or not the symlink should be relative or absolute.
+
+Type: `Boolean`
+
+Default: `false`.
+
 ##### other
 
 Any through2-related options are documented in [through2].
diff --git a/lib/symlink/index.js b/lib/symlink/index.js
index 94248ef8..e2b0f6fa 100644
--- a/lib/symlink/index.js
+++ b/lib/symlink/index.js
@@ -2,16 +2,34 @@
 
 var through2 = require('through2');
 var fs = require('graceful-fs');
+var path = require('path');
+var valueOrFunction = require('value-or-function');
+
 var prepareWrite = require('../prepare-write');
+var defaultValue = require('../default-value');
+
+var boolean = valueOrFunction.boolean;
 
 function symlink(outFolder, opt) {
+  if (!opt) {
+    opt = {};
+  }
+
   function linkFile(file, enc, cb) {
     var srcPath = file.path;
     var symType = (file.isDirectory() ? 'dir' : 'file');
+    var isRelative = defaultValue(false, boolean(opt.relative, file));
+
     prepareWrite(outFolder, file, opt, function(err) {
       if (err) {
         return cb(err);
       }
+
+      // This is done inside prepareWrite to use the adjusted file.base property
+      if (isRelative) {
+        srcPath = path.relative(file.base, srcPath);
+      }
+
       fs.symlink(srcPath, file.path, symType, function(err) {
         if (err && err.code !== 'EEXIST') {
           return cb(err);
diff --git a/test/symlink.js b/test/symlink.js
index 740bdd91..50ea5843 100644
--- a/test/symlink.js
+++ b/test/symlink.js
@@ -13,6 +13,7 @@ var del = require('del');
 
 var bufEqual = require('buffer-equal');
 var through = require('through2');
+var assign = require('object-assign');
 var File = require('vinyl');
 
 var should = require('should');
@@ -223,6 +224,46 @@ describe('symlink stream', function() {
     stream.end();
   });
 
+  it('should write buffer files to the right folder relatively', function(done) {
+    var inputPath = path.join(__dirname, './fixtures/test.coffee');
+    var inputBase = path.join(__dirname, './fixtures/');
+    var expectedPath = path.join(__dirname, './out-fixtures/test.coffee');
+    var expectedContents = fs.readFileSync(inputPath);
+    var expectedBase = path.join(__dirname, './out-fixtures');
+    var expectedMode = parseInt('677', 8)  & ~process.umask();
+
+    var expectedFile = new File({
+      base: inputBase,
+      cwd: __dirname,
+      path: inputPath,
+      contents: expectedContents,
+      stat: {
+        mode: expectedMode,
+      },
+    });
+
+    var buffered = [];
+
+    var onEnd = function() {
+      buffered.length.should.equal(1);
+      buffered[0].should.equal(expectedFile);
+      buffered[0].cwd.should.equal(__dirname, 'cwd should have changed');
+      buffered[0].base.should.equal(expectedBase, 'base should have changed');
+      buffered[0].path.should.equal(expectedPath, 'path should have changed');
+      fs.existsSync(expectedPath).should.equal(true);
+      bufEqual(fs.readFileSync(expectedPath), expectedContents).should.equal(true);
+      fs.readlinkSync(expectedPath).should.equal(path.join('..', 'fixtures', 'test.coffee'));
+      done();
+    };
+
+    var stream = vfs.symlink('./out-fixtures/', assign({ cwd: __dirname }, { relative: true }));
+
+    var bufferStream = through.obj(dataWrap(buffered.push.bind(buffered)), onEnd);
+    stream.pipe(bufferStream);
+    stream.write(expectedFile);
+    stream.end();
+  });
+
   it('should write streaming files to the right folder', function(done) {
     var inputPath = path.join(__dirname, './fixtures/test.coffee');
     var inputBase = path.join(__dirname, './fixtures/');
@@ -310,6 +351,48 @@ describe('symlink stream', function() {
     stream.end();
   });
 
+  it('should write directories to the right folder relatively', function(done) {
+    var inputPath = path.join(__dirname, './fixtures/wow');
+    var inputBase = path.join(__dirname, './fixtures/');
+    var expectedPath = path.join(__dirname, './out-fixtures/wow');
+    var expectedBase = path.join(__dirname, './out-fixtures');
+    var expectedMode = parseInt('677', 8) & ~process.umask();
+
+    var expectedFile = new File({
+      base: inputBase,
+      cwd: __dirname,
+      path: inputPath,
+      contents: null,
+      stat: {
+        isDirectory: function() {
+          return true;
+        },
+        mode: expectedMode,
+      },
+    });
+
+    var buffered = [];
+
+    var onEnd = function() {
+      buffered.length.should.equal(1);
+      buffered[0].should.equal(expectedFile);
+      buffered[0].cwd.should.equal(__dirname, 'cwd should have changed');
+      buffered[0].base.should.equal(expectedBase, 'base should have changed');
+      buffered[0].path.should.equal(expectedPath, 'path should have changed');
+      fs.readlinkSync(expectedPath).should.equal(path.join('..', 'fixtures', 'wow'));
+      fs.lstatSync(expectedPath).isDirectory().should.equal(false);
+      fs.statSync(expectedPath).isDirectory().should.equal(true);
+      done();
+    };
+
+    var stream = vfs.symlink('./out-fixtures/', assign({ cwd: __dirname }, { relative: true }));
+
+    var bufferStream = through.obj(dataWrap(buffered.push.bind(buffered)), onEnd);
+    stream.pipe(bufferStream);
+    stream.write(expectedFile);
+    stream.end();
+  });
+
   it('should use different modes for files and directories', function(done) {
     if (isWindows) {
       console.log('Changing the mode of a file is not supported by node.js in Windows.');