diff --git a/src/aeso_compiler.erl b/src/aeso_compiler.erl
index 1ff6ec3..54ed8f3 100644
--- a/src/aeso_compiler.erl
+++ b/src/aeso_compiler.erl
@@ -99,7 +99,7 @@ add_include_path(File, Options) ->
         false ->
             Dir = filename:dirname(File),
             {ok, Cwd} = file:get_cwd(),
-            [{include, {file_system, [Cwd, Dir]}} | Options]
+            [{include, {file_system, [Cwd, aeso_utils:canonical_dir(Dir)]}} | Options]
     end.
 
 -spec from_string(binary() | string(), options()) -> {ok, map()} | {error, [aeso_errors:error()]}.
diff --git a/src/aeso_utils.erl b/src/aeso_utils.erl
index e86f9ca..dcf9b7d 100644
--- a/src/aeso_utils.erl
+++ b/src/aeso_utils.erl
@@ -6,10 +6,22 @@
 %%%-------------------------------------------------------------------
 -module(aeso_utils).
 
--export([scc/1]).
+-export([scc/1, canonical_dir/1]).
 
 -export_type([graph/1]).
 
+%% -- Simplistic canonical directory
+%% Note: no attempts to be 100% complete
+
+canonical_dir(Dir) ->
+    {ok, Cwd} = file:get_cwd(),
+    AbsName = filename:absname(Dir),
+    RelAbsName = filename:join(tl(filename:split(AbsName))),
+    case filelib:safe_relative_path(RelAbsName, Cwd) of
+        unsafe -> AbsName;
+        Simplified -> filename:absname(Simplified, "")
+    end.
+
 %% -- Topological sort
 
 -type graph(Node) :: #{Node => [Node]}. %% List of incoming edges (dependencies).