diff --git a/docs/reference/thunar-vfs/tmpl/thunar-vfs-util.sgml b/docs/reference/thunar-vfs/tmpl/thunar-vfs-util.sgml
index db19b15..43c2f34 100644
--- a/docs/reference/thunar-vfs/tmpl/thunar-vfs-util.sgml
+++ b/docs/reference/thunar-vfs/tmpl/thunar-vfs-util.sgml
@@ -32,6 +32,7 @@ Utility Functions
 </para>
 
 @filename: 
+@working_directory: 
 @error: 
 @Returns: 
 
diff --git a/thunar-vfs/thunar-vfs-util.c b/thunar-vfs/thunar-vfs-util.c
index 83177dd..24b9768 100644
--- a/thunar-vfs/thunar-vfs-util.c
+++ b/thunar-vfs/thunar-vfs-util.c
@@ -222,11 +222,13 @@ thunar_vfs_canonicalize_filename (const gchar *filename)
 
 /**
  * thunar_vfs_expand_filename:
- * @filename : a local filename.
- * @error    : return location for errors or %NULL.
+ * @filename          : a local filename.
+ * @working_directory : #ThunarVfsPath of the current directory.
+ * @error             : return location for errors or %NULL.
  *
  * Takes a user-typed @filename and expands a tilde at the
- * beginning of the @filename.
+ * beginning of the @filename. It also takes care of paths with
+ * . at the beginning.
  *
  * The caller is responsible to free the returned string using
  * g_free() when no longer needed.
@@ -234,13 +236,16 @@ thunar_vfs_canonicalize_filename (const gchar *filename)
  * Return value: the expanded @filename or %NULL on error.
  **/
 gchar*
-thunar_vfs_expand_filename (const gchar *filename,
-                            GError     **error)
+thunar_vfs_expand_filename (const gchar   *filename,
+                            ThunarVfsPath *working_directory,
+                            GError       **error)
 {
   struct passwd *passwd;
   const gchar   *replacement;
   const gchar   *remainder;
   const gchar   *slash;
+  gchar         *pwd;
+  gchar         *result;
   gchar         *username;
 
   g_return_val_if_fail (filename != NULL, NULL);
@@ -253,48 +258,76 @@ thunar_vfs_expand_filename (const gchar *filename,
     }
 
   /* check if we start with a '~' */
-  if (G_LIKELY (*filename != '~'))
-    return g_strdup (filename);
+  if (G_LIKELY (*filename == '~'))
+    {
+      /* examine the remainder of the filename */
+      remainder = filename + 1;
 
-  /* examine the remainder of the filename */
-  remainder = filename + 1;
+      /* if we have only the slash, then we want the home dir */
+      if (G_UNLIKELY (*remainder == '\0'))
+        return g_strdup (xfce_get_homedir ());
 
-  /* if we have only the slash, then we want the home dir */
-  if (G_UNLIKELY (*remainder == '\0'))
-    return g_strdup (xfce_get_homedir ());
+      /* lookup the slash */
+      for (slash = remainder; *slash != '\0' && *slash != G_DIR_SEPARATOR; ++slash)
+        ;
 
-  /* lookup the slash */
-  for (slash = remainder; *slash != '\0' && *slash != G_DIR_SEPARATOR; ++slash)
-    ;
+      /* check if a username was given after the '~' */
+      if (G_LIKELY (slash == remainder))
+        {
+          /* replace the tilde with the home dir */
+          replacement = xfce_get_homedir ();
+        }
+      else
+        {
+          /* lookup the pwd entry for the username */
+          username = g_strndup (remainder, slash - remainder);
+          passwd = getpwnam (username);
+          g_free (username);
 
-  /* check if a username was given after the '~' */
-  if (G_LIKELY (slash == remainder))
-    {
-      /* replace the tilde with the home dir */
-      replacement = xfce_get_homedir ();
+          /* check if we have a valid entry */
+          if (G_UNLIKELY (passwd == NULL))
+            {
+              username = g_strndup (remainder, slash - remainder);
+              g_set_error (error, G_FILE_ERROR, G_FILE_ERROR_INVAL, _("Unknown user \"%s\""), username);
+              g_free (username);
+              return NULL;
+            }
+
+          /* use the homedir of the specified user */
+          replacement = passwd->pw_dir;
+        }
+
+      /* generate the filename */
+      return g_build_filename (replacement, slash, G_DIR_SEPARATOR_S, NULL);
     }
-  else
+  else if (G_UNLIKELY (*filename == '.'))
     {
-      /* lookup the pwd entry for the username */
-      username = g_strndup (remainder, slash - remainder);
-      passwd = getpwnam (username);
-      g_free (username);
-
-      /* check if we have a valid entry */
-      if (G_UNLIKELY (passwd == NULL))
+      /* examine the remainder of the filename */
+      remainder = filename + 1;
+      
+      /* transform working directory into a filename string */
+      if (G_LIKELY (working_directory != NULL))
         {
-          username = g_strndup (remainder, slash - remainder);
-          g_set_error (error, G_FILE_ERROR, G_FILE_ERROR_INVAL, _("Unknown user \"%s\""), username);
-          g_free (username);
-          return NULL;
+          pwd = thunar_vfs_path_dup_string (working_directory);
+    
+          /* if we only have the slash then we want the working directory only */
+          if (G_UNLIKELY (*remainder == '\0'))
+            return pwd;
+
+          /* concatenate working directory and remainder */
+          result = g_build_filename (pwd, remainder, G_DIR_SEPARATOR_S, NULL);
+
+          /* free the working directory string */
+          g_free (pwd);
         }
+      else
+        result = g_strdup (filename);
 
-      /* use the homedir of the specified user */
-      replacement = passwd->pw_dir;
+      /* return the resulting path string */
+      return result;
     }
 
-  /* generate the filename */
-  return g_build_filename (replacement, slash, NULL);
+  return g_strdup (filename);
 }
 
 
diff --git a/thunar-vfs/thunar-vfs-util.h b/thunar-vfs/thunar-vfs-util.h
index d2cd0ce..d65e498 100644
--- a/thunar-vfs/thunar-vfs-util.h
+++ b/thunar-vfs/thunar-vfs-util.h
@@ -23,12 +23,14 @@
 
 #include <thunar-vfs/thunar-vfs-config.h>
 #include <thunar-vfs/thunar-vfs-types.h>
+#include <thunar-vfs/thunar-vfs-path.h>
 
 G_BEGIN_DECLS;
 
 gchar *thunar_vfs_canonicalize_filename (const gchar      *filename) G_GNUC_MALLOC G_GNUC_WARN_UNUSED_RESULT;
 
 gchar *thunar_vfs_expand_filename       (const gchar      *filename,
+                                         ThunarVfsPath    *working_directory,
                                          GError          **error) G_GNUC_MALLOC G_GNUC_WARN_UNUSED_RESULT;
 
 gchar *thunar_vfs_humanize_size         (ThunarVfsFileSize size,
diff --git a/thunar/thunar-location-dialog.c b/thunar/thunar-location-dialog.c
index 240ca91..67ace0e 100644
--- a/thunar/thunar-location-dialog.c
+++ b/thunar/thunar-location-dialog.c
@@ -167,3 +167,21 @@ thunar_location_dialog_set_selected_file (ThunarLocationDialog *location_dialog,
 }
 
 
+
+/**
+ * thunar_location_dialog_set_working_directory:
+ * @location_dialog : a #ThunarLocationDialog.
+ * @directory       : a #ThunarFile or %NULL.
+ *
+ * Sets the working directory of @location_dialog to @directory.
+ **/
+void
+thunar_location_dialog_set_working_directory (ThunarLocationDialog *location_dialog,
+                                              ThunarFile           *directory)
+{
+  _thunar_return_if_fail (THUNAR_IS_LOCATION_DIALOG (location_dialog));
+  _thunar_return_if_fail (directory == NULL || THUNAR_IS_FILE (directory));
+  thunar_path_entry_set_working_directory (THUNAR_PATH_ENTRY (location_dialog->entry), directory);
+}
+
+
diff --git a/thunar/thunar-location-dialog.h b/thunar/thunar-location-dialog.h
index bb8d17f..2e43f57 100644
--- a/thunar/thunar-location-dialog.h
+++ b/thunar/thunar-location-dialog.h
@@ -46,13 +46,15 @@ struct _ThunarLocationDialog
   GtkWidget           *entry;
 };
 
-GType       thunar_location_dialog_get_type          (void) G_GNUC_CONST;
+GType       thunar_location_dialog_get_type              (void) G_GNUC_CONST;
 
-GtkWidget  *thunar_location_dialog_new               (void) G_GNUC_MALLOC;
+GtkWidget  *thunar_location_dialog_new                   (void) G_GNUC_MALLOC;
 
-ThunarFile *thunar_location_dialog_get_selected_file (ThunarLocationDialog *location_dialog);
-void        thunar_location_dialog_set_selected_file (ThunarLocationDialog *location_dialog,
-                                                      ThunarFile           *selected_file);
+ThunarFile *thunar_location_dialog_get_selected_file     (ThunarLocationDialog *location_dialog);
+void        thunar_location_dialog_set_selected_file     (ThunarLocationDialog *location_dialog,
+                                                          ThunarFile           *selected_file);
+void        thunar_location_dialog_set_working_directory (ThunarLocationDialog *location_dialog,
+                                                          ThunarFile           *directory);
 
 G_END_DECLS;
 
diff --git a/thunar/thunar-location-entry.c b/thunar/thunar-location-entry.c
index 3158bab..e5373a9 100644
--- a/thunar/thunar-location-entry.c
+++ b/thunar/thunar-location-entry.c
@@ -320,6 +320,8 @@ thunar_location_entry_set_property (GObject      *object,
     {
     case PROP_CURRENT_DIRECTORY:
       thunar_navigator_set_current_directory (THUNAR_NAVIGATOR (object), g_value_get_object (value));
+      thunar_path_entry_set_working_directory (THUNAR_PATH_ENTRY (THUNAR_LOCATION_ENTRY (object)->path_entry), 
+                                               THUNAR_LOCATION_ENTRY (object)->current_directory);
       break;
 
     case PROP_SELECTED_FILES:
diff --git a/thunar/thunar-path-entry.c b/thunar/thunar-path-entry.c
index 8bc31e6..fead0f7 100644
--- a/thunar/thunar-path-entry.c
+++ b/thunar/thunar-path-entry.c
@@ -143,6 +143,7 @@ struct _ThunarPathEntry
   ThunarIconFactory *icon_factory;
   ThunarFile        *current_folder;
   ThunarFile        *current_file;
+  ThunarVfsPath     *working_directory;
   GdkWindow         *icon_area;
 
   gint               drag_button;
@@ -282,6 +283,7 @@ thunar_path_entry_init (ThunarPathEntry *path_entry)
   ThunarListModel    *store;
 
   path_entry->check_completion_idle_id = -1;
+  path_entry->working_directory = NULL;
 
   /* allocate a new entry completion for the given model */
   completion = gtk_entry_completion_new ();
@@ -343,6 +345,9 @@ thunar_path_entry_finalize (GObject *object)
       g_object_unref (G_OBJECT (path_entry->current_file));
     }
 
+  if (G_LIKELY (path_entry->working_directory != NULL))
+    thunar_vfs_path_unref (path_entry->working_directory);
+
   /* drop the check_completion_idle source */
   if (G_UNLIKELY (path_entry->check_completion_idle_id >= 0))
     g_source_remove (path_entry->check_completion_idle_id);
@@ -1253,7 +1258,9 @@ thunar_path_entry_parse (ThunarPathEntry *path_entry,
   _thunar_return_val_if_fail (file_part != NULL, FALSE);
 
   /* expand the filename */
-  filename = thunar_vfs_expand_filename (gtk_entry_get_text (GTK_ENTRY (path_entry)), error);
+  filename = thunar_vfs_expand_filename (gtk_entry_get_text (GTK_ENTRY (path_entry)), 
+                                         path_entry->working_directory, error);
+  g_debug ("filename = %s", filename);
   if (G_UNLIKELY (filename == NULL))
     return FALSE;
 
@@ -1431,3 +1438,29 @@ uri:  /* display the URI for the path */
   gtk_widget_queue_draw (GTK_WIDGET (path_entry));
 }
 
+
+
+/**
+ * thunar_path_entry_set_working_directory:
+ * @path_entry        : a #ThunarPathEntry.
+ * @working_directory : a #ThunarFile or %NULL.
+ *
+ * Sets the #ThunarFile that should be used as the
+ * working directory for @path_entry.
+ **/
+void
+thunar_path_entry_set_working_directory (ThunarPathEntry *path_entry,
+                                         ThunarFile      *working_directory)
+{
+  _thunar_return_if_fail (THUNAR_IS_PATH_ENTRY (path_entry));
+  _thunar_return_if_fail (working_directory == NULL || THUNAR_IS_FILE (working_directory));
+
+  if (G_LIKELY (path_entry->working_directory != NULL))
+    thunar_vfs_path_unref (path_entry->working_directory);
+
+  path_entry->working_directory = NULL;
+
+  if (THUNAR_IS_FILE (working_directory))
+    path_entry->working_directory = thunar_vfs_path_ref (thunar_file_get_path (working_directory));
+}
+
diff --git a/thunar/thunar-path-entry.h b/thunar/thunar-path-entry.h
index d3ce081..404f08c 100644
--- a/thunar/thunar-path-entry.h
+++ b/thunar/thunar-path-entry.h
@@ -34,13 +34,15 @@ typedef struct _ThunarPathEntry      ThunarPathEntry;
 #define THUNAR_IS_PATH_ENTRY_CLASS(klass) (G_TYPE_CHECK_CLASS_TYPE ((klass), THUNAR_TYPE_PATH_ENTRY))
 #define THUNAR_PATH_ENTRY_GET_CLASS(obj)  (G_TYPE_INSTANCE_GET_CLASS ((obj), THUNAR_TYPE_PATH_ENTRY, ThunarPathEntryClass))
 
-GType       thunar_path_entry_get_type         (void) G_GNUC_CONST;
+GType       thunar_path_entry_get_type              (void) G_GNUC_CONST;
 
-GtkWidget  *thunar_path_entry_new              (void);
+GtkWidget  *thunar_path_entry_new                   (void);
 
-ThunarFile *thunar_path_entry_get_current_file (ThunarPathEntry *path_entry);
-void        thunar_path_entry_set_current_file (ThunarPathEntry *path_entry,
-                                                ThunarFile      *current_file);
+ThunarFile *thunar_path_entry_get_current_file      (ThunarPathEntry *path_entry);
+void        thunar_path_entry_set_current_file      (ThunarPathEntry *path_entry,
+                                                     ThunarFile      *current_file);
+void        thunar_path_entry_set_working_directory (ThunarPathEntry *path_entry,
+                                                     ThunarFile      *directory);
 
 G_END_DECLS;
 
diff --git a/thunar/thunar-window.c b/thunar/thunar-window.c
index b45c0b6..060b862 100644
--- a/thunar/thunar-window.c
+++ b/thunar/thunar-window.c
@@ -1437,6 +1437,7 @@ thunar_window_start_open_location (ThunarWindow *window,
       gtk_window_set_modal (GTK_WINDOW (dialog), TRUE);
       gtk_window_set_destroy_with_parent (GTK_WINDOW (dialog), TRUE);
       gtk_window_set_transient_for (GTK_WINDOW (dialog), GTK_WINDOW (window));
+      thunar_location_dialog_set_working_directory (THUNAR_LOCATION_DIALOG (dialog), thunar_window_get_current_directory (window));
       thunar_location_dialog_set_selected_file (THUNAR_LOCATION_DIALOG (dialog), thunar_window_get_current_directory (window));
 
       /* setup the initial text (if any) */