diff --git a/MLPApi.py b/MLPApi.py
index d1a6c99..a0bec98 100644
--- a/MLPApi.py
+++ b/MLPApi.py
@@ -49,12 +49,10 @@ def show_html(md_view, preview):
     html.append(pre_with_br(md2.markdown(get_view_content(md_view),
                                          extras=['fenced-code-blocks',
                                                  'no-code-highlighting'])))
-
-    html = '\n'.join(html)
-
     # the option no-code-highlighting does not exists
     # in the official version of markdown2 for now
     # I personaly edited the file (markdown2.py:1743)
+    html = '\n'.join(html)
 
     html = html.replace(' ', '&nbspespace;') # save where are the spaces
 
@@ -64,7 +62,8 @@ def show_html(md_view, preview):
 
     # exception, again, because <pre> aren't supported by the phantoms
     html = html.replace('&nbspespace;', '<i class="space">.</i>')
-    html = replace_img_src_base64(html)
+    html = replace_img_src_base64(html, basepath=os.path.dirname(
+                                                md_view.file_name()))
     preview.erase_phantoms('markdown_preview')
     preview.add_phantom('markdown_preview',
                          sublime.Region(-1),
diff --git a/MarkdownLivePreview.tasks b/MarkdownLivePreview.tasks
index fb6c7b7..3918bba 100644
--- a/MarkdownLivePreview.tasks
+++ b/MarkdownLivePreview.tasks
@@ -4,13 +4,13 @@ Fast:
   ☐ cache image in object when used, so that it's faster @needsTest
   ☐ call settings listener on_new too - might be too heavy
   ☐ add clear cache command
+  ☐ update README for settings in view
 
 Medium:
   ☐ auto refresh preview if loading images
   ☐ use alt attribute for 404 error
   ☐ use MarkdownLivePreview syntax, so we can use syntax's settings
   ☐ listen for settings to change
-  ☐ fix relative source
 
 Long:
   ☐ fix #4 @high
@@ -22,6 +22,7 @@ Unknown:
 
 ＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
 Archive:
+ ✔ fix relative source @done Sun 08 Jan 2017 at 19:22 @project(Medium)
  ✔ add settings for the preview @done Sun 08 Jan 2017 at 17:36 @project(Fast)
  ✔ regive focus to the right markdown view @done Mon 02 Jan 2017 at 18:34 @project(Fast)
  ✔ try/except for 404 @done Mon 02 Jan 2017 at 18:03 @project(Fast)
diff --git a/functions.py b/functions.py
index 04490be..c22b79d 100644
--- a/functions.py
+++ b/functions.py
@@ -11,7 +11,7 @@ def plugin_loaded():
     error404 = sublime.load_resource('Packages/MarkdownLivePreview/404.txt')
 
 
-def replace_img_src_base64(html):
+def replace_img_src_base64(html, basepath):
     """Really messy, but it works (should be updated)"""
     index = -1
     tag_start = '<img src="'
@@ -30,7 +30,9 @@ def replace_img_src_base64(html):
 
         else:
             # local image
-            image = to_base64(''.join(path))
+            path = ''.join(path)
+            path = os.path.join(basepath, path)
+            image = to_base64(path)
         html[index+len(tag_start):end] = image
         shtml = ''.join(html)
     return ''.join(html)
diff --git a/sample.md b/sample.md
index d13d719..4ed3dac 100644
--- a/sample.md
+++ b/sample.md
@@ -13,7 +13,3 @@ if DEBUG:
 > Only a fool knows everything. A wise man knows how little he knows
 
 The only think I know right now is that Boxy Theme's just awesome.
-
-this is a test, hello world, I know this, it's cool
-
-Hello world, this is a test, and it's working also.