diff --git a/pelican/settings.py b/pelican/settings.py
index 98a11216..bc866494 100644
--- a/pelican/settings.py
+++ b/pelican/settings.py
@@ -75,7 +75,7 @@ def read_settings(filename):
         log.warn("LOCALE option doesn't contain a correct value")
 
     # Make the paths relative to the settings file
-    for path in ['PATH']:
+    for path in ['PATH', 'OUTPUT_PATH']:
         if path in context:
             if not os.path.isabs(context[path]):
                 context[path] = os.path.abspath(os.path.normpath(os.path.join(os.path.dirname(filename), context[path])))