diff --git a/slug.go b/slug.go
index 09d8fbe..df33063 100644
--- a/slug.go
+++ b/slug.go
@@ -158,6 +158,13 @@ func (p *Packer) Pack(src string, w io.Writer) (*Meta, error) {
 		ignoreRules = parseIgnoreFile(src)
 	}
 
+	if !filepath.IsAbs(src) {
+		src, err = filepath.Abs(src)
+		if err != nil {
+			return nil, fmt.Errorf("something went super wrong root")
+		}
+	}
+
 	// Walk the tree of files.
 	err = filepath.Walk(src, p.packWalkFn(src, src, src, tarW, meta, ignoreRules))
 	if err != nil {
@@ -183,6 +190,19 @@ func (p *Packer) packWalkFn(root, src, dst string, tarW *tar.Writer, meta *Meta,
 			return err
 		}
 
+		if !filepath.IsAbs(src) {
+			src, err = filepath.Abs(src)
+			if err != nil {
+				return fmt.Errorf("failed to get absolute path for src %q: %w", src, err)
+			}
+		}
+
+		if !filepath.IsAbs(path) {
+			path, err = filepath.Abs(path)
+			if err != nil {
+				return fmt.Errorf("failed to get absolute path for file %q: %w", path, err)
+			}
+		}
 		// Get the relative path from the current src directory.
 		subpath, err := filepath.Rel(src, path)
 		if err != nil {
diff --git a/slug_test.go b/slug_test.go
index 44b6878..6aa7a47 100644
--- a/slug_test.go
+++ b/slug_test.go
@@ -55,6 +55,40 @@ func TestPack_rootIsSymlink(t *testing.T) {
 	}
 }
 
+func TestPack_absoluteSrcRelativeSymlinks(t *testing.T) {
+	var path string
+
+	// In instances we run within CI, we want to fetch
+	// the absolute path where our test is located
+	if workDir, ok := os.LookupEnv("GITHUB_WORKSPACE"); ok {
+		path = workDir
+	} else {
+		homeDir, err := os.UserHomeDir()
+		if err != nil {
+			t.Fatalf("Could not read home dir: %v", err)
+		}
+		// !! Ugly code alert: This tests assumes the repository
+		// lives in $HOME/hashicorp/go-slug. You may need to change
+		// this according to your needs
+		path = filepath.Join(homeDir, "hashicorp/go-slug")
+	}
+
+	// One last check, if this variable is empty we'll error
+	// since we need the absolute path for the source
+	if path == "" {
+		t.Fatal("Home directory could not be determined")
+	}
+
+	path = filepath.Join(path, "testdata/archive-dir-absolute/dev")
+	slug := bytes.NewBuffer(nil)
+	_, err := Pack(path, slug, true)
+	if err != nil {
+		// We simply want to ensure paths can be resolved while
+		// traversing the source directory
+		t.Fatalf("err: %v", err)
+	}
+}
+
 func TestPackWithoutIgnoring(t *testing.T) {
 	slug := bytes.NewBuffer(nil)
 
@@ -1088,8 +1122,8 @@ func assertArchiveFixture(t *testing.T, slug *bytes.Buffer, got *Meta) {
 		}
 
 		if hdr.Name == "example.tf" {
-			if hdr.Typeflag != tar.TypeSymlink {
-				t.Fatalf("expected symlink file 'example.tf'")
+			if hdr.Typeflag != tar.TypeReg {
+				t.Fatalf("expected symlink to be dereferenced 'example.tf'")
 			}
 			externalTargetFound = true
 		}
@@ -1100,9 +1134,9 @@ func assertArchiveFixture(t *testing.T, slug *bytes.Buffer, got *Meta) {
 		t.Fatal("expected to find symlink")
 	}
 
-	// Make sure we saw and handled a nested symlink
+	// Make sure we saw and handled a dereferenced symlink
 	if !externalTargetFound {
-		t.Fatal("expected to find nested symlink")
+		t.Fatal("expected to find dereferenced symlink")
 	}
 
 	// Make sure the .git directory is ignored
diff --git a/testdata/archive-dir-absolute/_common/extra-files/bar.sh b/testdata/archive-dir-absolute/_common/extra-files/bar.sh
new file mode 100644
index 0000000..5b0e87e
--- /dev/null
+++ b/testdata/archive-dir-absolute/_common/extra-files/bar.sh
@@ -0,0 +1,2 @@
+#!/usr/bin/env bash
+echo "bar"
diff --git a/testdata/archive-dir-absolute/_common/extra-files/foo.sh b/testdata/archive-dir-absolute/_common/extra-files/foo.sh
new file mode 100644
index 0000000..af85c95
--- /dev/null
+++ b/testdata/archive-dir-absolute/_common/extra-files/foo.sh
@@ -0,0 +1,2 @@
+#!/usr/bin/env bash
+echo "foo"
diff --git a/testdata/archive-dir-absolute/_common/locals.tf b/testdata/archive-dir-absolute/_common/locals.tf
new file mode 100644
index 0000000..7324c9d
--- /dev/null
+++ b/testdata/archive-dir-absolute/_common/locals.tf
@@ -0,0 +1,3 @@
+locals {
+  app = "service-01"
+}
diff --git a/testdata/archive-dir-absolute/_common/output.tf b/testdata/archive-dir-absolute/_common/output.tf
new file mode 100644
index 0000000..94e8f35
--- /dev/null
+++ b/testdata/archive-dir-absolute/_common/output.tf
@@ -0,0 +1,7 @@
+locals {
+    files = fileset("${path.module}/extra-files", "*.sh")
+}
+
+output "scripts" {
+    value = local.files
+}
diff --git a/testdata/archive-dir-absolute/_common/versions.tf b/testdata/archive-dir-absolute/_common/versions.tf
new file mode 100644
index 0000000..c509258
--- /dev/null
+++ b/testdata/archive-dir-absolute/_common/versions.tf
@@ -0,0 +1,3 @@
+terraform {
+  required_version = "~> 1.2"
+}
diff --git a/testdata/archive-dir-absolute/dev/backend.tf b/testdata/archive-dir-absolute/dev/backend.tf
new file mode 100644
index 0000000..3e1c863
--- /dev/null
+++ b/testdata/archive-dir-absolute/dev/backend.tf
@@ -0,0 +1,10 @@
+terraform {
+  remote "backend" {
+    hostname     = "foobar.terraform.io"
+    organization = "hashicorp"
+
+    workspaces {
+      name = "dev-service-02"
+    }
+  }
+}
diff --git a/testdata/archive-dir-absolute/dev/extra-files b/testdata/archive-dir-absolute/dev/extra-files
new file mode 120000
index 0000000..6773dc5
--- /dev/null
+++ b/testdata/archive-dir-absolute/dev/extra-files
@@ -0,0 +1 @@
+../_common/extra-files
\ No newline at end of file
diff --git a/testdata/archive-dir-absolute/dev/locals.tf b/testdata/archive-dir-absolute/dev/locals.tf
new file mode 120000
index 0000000..173668c
--- /dev/null
+++ b/testdata/archive-dir-absolute/dev/locals.tf
@@ -0,0 +1 @@
+../_common/locals.tf
\ No newline at end of file
diff --git a/testdata/archive-dir-absolute/dev/output.tf b/testdata/archive-dir-absolute/dev/output.tf
new file mode 120000
index 0000000..d597fae
--- /dev/null
+++ b/testdata/archive-dir-absolute/dev/output.tf
@@ -0,0 +1 @@
+../_common/output.tf
\ No newline at end of file
diff --git a/testdata/archive-dir-absolute/dev/variables.tf b/testdata/archive-dir-absolute/dev/variables.tf
new file mode 100644
index 0000000..ec9ce9d
--- /dev/null
+++ b/testdata/archive-dir-absolute/dev/variables.tf
@@ -0,0 +1,4 @@
+locals {
+  env    = "dev"
+  region = "us-east-2"
+}
diff --git a/testdata/archive-dir-absolute/dev/versions.tf b/testdata/archive-dir-absolute/dev/versions.tf
new file mode 120000
index 0000000..08a39e4
--- /dev/null
+++ b/testdata/archive-dir-absolute/dev/versions.tf
@@ -0,0 +1 @@
+../_common/versions.tf
\ No newline at end of file