diff --git a/src/fs/loader.ts b/src/fs/loader.ts
index 70eb45f4c..c1b7f8970 100644
--- a/src/fs/loader.ts
+++ b/src/fs/loader.ts
@@ -45,7 +45,7 @@ export class Loader {
         if (!enforceRoot || referenced.startsWith(dir)) {
           // the relatively referenced file is within one of root dirs
           yield referenced
-          return
+          break
         }
       }
     }
diff --git a/test/integration/liquid/liquid.ts b/test/integration/liquid/liquid.ts
index 69b20bff7..2adf9d712 100644
--- a/test/integration/liquid/liquid.ts
+++ b/test/integration/liquid/liquid.ts
@@ -113,6 +113,30 @@ describe('Liquid', function () {
       expect(str).to.equal('foo')
     })
   })
+  describe('#parse', function () {
+    it('should resolve relative partials', function () {
+      const engine = new Liquid({
+        root: ['/'],
+        extname: '.html'
+      })
+      mock({
+        '/root/partial.html': 'foo'
+      })
+      const tpls = engine.parse('{% render "./partial.html" %}', '/root/index.html')
+      return expect(engine.renderSync(tpls)).to.equal('foo')
+    })
+    it('should resolve against pwd for relative filepath', function () {
+      const engine = new Liquid({
+        root: ['/'],
+        extname: '.html'
+      })
+      mock({
+        [`${process.cwd()}/partial.html`]: 'foo'
+      })
+      const tpls = engine.parse('{% render "./partial.html" %}', './index.html')
+      return expect(engine.renderSync(tpls)).to.equal('foo')
+    })
+  })
   describe('#parseFileSync', function () {
     it('should throw with lookup list when file not exist', function () {
       const engine = new Liquid({
diff --git a/test/unit/fs/loader.ts b/test/unit/fs/loader.ts
index 54da91365..63eddeba6 100644
--- a/test/unit/fs/loader.ts
+++ b/test/unit/fs/loader.ts
@@ -7,10 +7,10 @@ use(chaiAsPromised)
 
 describe('fs/loader', function () {
   describe('.candidates()', function () {
-    it('should break once found', async function () {
+    it('should resolve relatively', async function () {
       const loader = new Loader({ relativeReference: true, fs, extname: '' } as any)
       const candidates = [...loader.candidates('./foo/bar', ['/root', '/root/foo'], '/root/current', true)]
-      expect(candidates.join()).to.equal('/root/foo/bar')
+      expect(candidates).to.contain('/root/foo/bar')
     })
   })
 })