diff --git a/pkg/transformer/kubernetes/kubernetes.go b/pkg/transformer/kubernetes/kubernetes.go
index e10627ae..15bc2c62 100644
--- a/pkg/transformer/kubernetes/kubernetes.go
+++ b/pkg/transformer/kubernetes/kubernetes.go
@@ -660,13 +660,13 @@ func (k *Kubernetes) Transform(komposeObject kobject.KomposeObject, opt kobject.
 				return nil, err
 			}
 
-			// Build the container!
+			// Build the image!
 			err = transformer.BuildDockerImage(service, name, composeFileDir)
 			if err != nil {
 				return nil, errors.Wrapf(err, "Unable to build Docker image for service %v", name)
 			}
 
-			// Push the built container to the repo!
+			// Push the built image to the repo!
 			err = transformer.PushDockerImage(service, name)
 			if err != nil {
 				return nil, errors.Wrapf(err, "Unable to push Docker image for service %v", name)
diff --git a/pkg/transformer/utils.go b/pkg/transformer/utils.go
index 98e5e8cb..228698fd 100644
--- a/pkg/transformer/utils.go
+++ b/pkg/transformer/utils.go
@@ -209,16 +209,15 @@ func GetComposeFileDir(inputFiles []string) (string, error) {
 
 //BuildDockerImage builds docker image
 func BuildDockerImage(service kobject.ServiceConfig, name string, relativePath string) error {
-
-	// First, let's figure out the relative path of the Dockerfile!
-	// else, we error out.
-	if _, err := os.Stat(service.Build); err != nil {
+	// Get the appropriate image source and name
+	imagePath := path.Join(relativePath, path.Base(service.Build))
+	if !path.IsAbs(service.Build) {
+		imagePath = path.Join(relativePath, service.Build)
+	}
+	if _, err := os.Stat(imagePath); err != nil {
 		return errors.Wrapf(err, "%s is not a valid path for building image %s. Check if this dir exists.", service.Build, name)
 	}
 
-	// Get the appropriate image source and name
-	// use path.Base to get the last element of the relative build path
-	imagePath := path.Join(relativePath, path.Base(service.Build))
 	imageName := name
 	if service.Image != "" {
 		imageName = service.Image
diff --git a/script/test_in_openshift/compose-files/buildconfig-relative-dirs/docker/docker-compose-build-image.yml b/script/test_in_openshift/compose-files/buildconfig-relative-dirs/docker/docker-compose-build-image.yml
new file mode 100644
index 00000000..efb4f71a
--- /dev/null
+++ b/script/test_in_openshift/compose-files/buildconfig-relative-dirs/docker/docker-compose-build-image.yml
@@ -0,0 +1,24 @@
+version: '3'
+
+services:
+  backend-server:
+    image: "172.30.1.1:5000/myproject/test-image"
+    build:
+      context: ../server
+      dockerfile: Dockerfile
+    env_file:
+      - ../docker_env.list
+    ports:
+      - 5000:4000
+
+  front-end:
+    image: "172.30.1.1:5000/myproject/test-image"
+    build:
+      context: ../web
+      dockerfile: Dockerfile
+    env_file:
+      - ../docker_env.list
+    ports:
+      - 8080:8080
+    depends_on:
+      - backend-server
diff --git a/script/test_in_openshift/compose-files/buildconfig-relative-dirs/docker_env.list b/script/test_in_openshift/compose-files/buildconfig-relative-dirs/docker_env.list
new file mode 100644
index 00000000..15c36f50
--- /dev/null
+++ b/script/test_in_openshift/compose-files/buildconfig-relative-dirs/docker_env.list
@@ -0,0 +1 @@
+FOO=BAR
\ No newline at end of file
diff --git a/script/test_in_openshift/compose-files/buildconfig-relative-dirs/server/Dockerfile b/script/test_in_openshift/compose-files/buildconfig-relative-dirs/server/Dockerfile
new file mode 100644
index 00000000..393b5b75
--- /dev/null
+++ b/script/test_in_openshift/compose-files/buildconfig-relative-dirs/server/Dockerfile
@@ -0,0 +1,3 @@
+FROM busybox:1.26.2
+
+RUN touch /test
diff --git a/script/test_in_openshift/compose-files/buildconfig-relative-dirs/web/Dockerfile b/script/test_in_openshift/compose-files/buildconfig-relative-dirs/web/Dockerfile
new file mode 100644
index 00000000..393b5b75
--- /dev/null
+++ b/script/test_in_openshift/compose-files/buildconfig-relative-dirs/web/Dockerfile
@@ -0,0 +1,3 @@
+FROM busybox:1.26.2
+
+RUN touch /test
diff --git a/script/test_in_openshift/tests/build.sh b/script/test_in_openshift/tests/build.sh
index 01cdf2ae..ad98ebb7 100755
--- a/script/test_in_openshift/tests/build.sh
+++ b/script/test_in_openshift/tests/build.sh
@@ -24,3 +24,7 @@ convert::print_msg "Running tests for build+push"
 docker_compose_file="${KOMPOSE_ROOT}/script/test_in_openshift/compose-files/buildconfig/docker-compose-build-image.yml"
 convert::kompose_up $docker_compose_file
 convert::kompose_down $docker_compose_file
+
+docker_compose_file="${KOMPOSE_ROOT}/script/test_in_openshift/compose-files/buildconfig-relative-dirs/docker/docker-compose-build-image.yml"
+convert::kompose_up $docker_compose_file
+convert::kompose_down $docker_compose_file