diff --git a/file.go b/file.go
index 46d86837..13c6b2a5 100644
--- a/file.go
+++ b/file.go
@@ -23,7 +23,9 @@ func maxTime(a, b time.Time) time.Time {
 
 func getPatternsMinTime(dir string, patterns []string) (m time.Time, err error) {
 	for _, p := range patterns {
-		p = filepath.Join(dir, p)
+		if !filepath.IsAbs(p) {
+			p = filepath.Join(dir, p)
+		}
 		mp, err := getPatternMinTime(p)
 		if err != nil {
 			return time.Time{}, err
@@ -34,7 +36,9 @@ func getPatternsMinTime(dir string, patterns []string) (m time.Time, err error)
 }
 func getPatternsMaxTime(dir string, patterns []string) (m time.Time, err error) {
 	for _, p := range patterns {
-		p = filepath.Join(dir, p)
+		if !filepath.IsAbs(p) {
+			p = filepath.Join(dir, p)
+		}
 		mp, err := getPatternMaxTime(p)
 		if err != nil {
 			return time.Time{}, err
diff --git a/task_test.go b/task_test.go
index f7c3db50..e75ea8d4 100644
--- a/task_test.go
+++ b/task_test.go
@@ -2,6 +2,7 @@ package task_test
 
 import (
 	"bytes"
+	"fmt"
 	"io/ioutil"
 	"os"
 	"path/filepath"
@@ -149,6 +150,61 @@ func TestStatus(t *testing.T) {
 	}
 }
 
+func TestGenerates(t *testing.T) {
+	var srcTask = "sub/src.txt"
+	var relTask = "rel.txt"
+	var absTask = "abs.txt"
+
+	// This test does not work with a relative dir.
+	dir, err := filepath.Abs("testdata/generates")
+	assert.NoError(t, err)
+	var srcFile = filepath.Join(dir, srcTask)
+
+	for _, task := range []string{srcTask, relTask, absTask} {
+		path := filepath.Join(dir, task)
+		_ = os.Remove(path)
+		if _, err := os.Stat(path); err == nil {
+			t.Errorf("File should not exists: %v", err)
+		}
+	}
+
+	buff := bytes.NewBuffer(nil)
+	e := &task.Executor{
+		Dir:    dir,
+		Stdout: buff,
+		Stderr: buff,
+	}
+	assert.NoError(t, e.ReadTaskfile())
+
+	for _, task := range []string{relTask, absTask} {
+		var destFile = filepath.Join(dir, task)
+		var upToDate = fmt.Sprintf("task: Task \"%s\" is up to date\n", srcTask) +
+			fmt.Sprintf("task: Task \"%s\" is up to date\n", task)
+
+		// Run task for the first time.
+		assert.NoError(t, e.Run(task))
+
+		if _, err := os.Stat(srcFile); err != nil {
+			t.Errorf("File should exists: %v", err)
+		}
+		if _, err := os.Stat(destFile); err != nil {
+			t.Errorf("File should exists: %v", err)
+		}
+		// Ensure task was not incorrectly found to be up-to-date on first run.
+		if buff.String() == upToDate {
+			t.Errorf("Wrong output message: %s", buff.String())
+		}
+		buff.Reset()
+
+		// Re-run task to ensure it's now found to be up-to-date.
+		assert.NoError(t, e.Run(task))
+		if buff.String() != upToDate {
+			t.Errorf("Wrong output message: %s", buff.String())
+		}
+		buff.Reset()
+	}
+}
+
 func TestInit(t *testing.T) {
 	const dir = "testdata/init"
 	var file = filepath.Join(dir, "Taskfile.yml")
diff --git a/testdata/generates/.gitignore b/testdata/generates/.gitignore
new file mode 100644
index 00000000..2211df63
--- /dev/null
+++ b/testdata/generates/.gitignore
@@ -0,0 +1 @@
+*.txt
diff --git a/testdata/generates/Taskfile.yml b/testdata/generates/Taskfile.yml
new file mode 100644
index 00000000..3d5aa2c4
--- /dev/null
+++ b/testdata/generates/Taskfile.yml
@@ -0,0 +1,34 @@
+abs.txt:
+  desc: generates dest file based on absolute paths
+  deps:
+    - sub/src.txt
+  dir: sub
+  cmds:
+    - cat src.txt > '{{.BUILD_DIR}}/abs.txt'
+  sources:
+    - src.txt
+  generates:
+    - "{{.BUILD_DIR}}/abs.txt"
+
+rel.txt:
+  desc: generates dest file based on relative paths
+  deps:
+    - sub/src.txt
+  dir: sub
+  cmds:
+    - cat src.txt > '../rel.txt'
+  sources:
+    - src.txt
+  generates:
+    - "../rel.txt"
+
+sub/src.txt:
+  desc: generate source file
+  cmds:
+    - mkdir -p sub
+    - echo "hello world" > sub/src.txt
+    # Sleep to avoid time-stamp issue. Some filesystems, E.g. HFS+ for Mac OS,
+    # only support one second precision on file timestamps.
+    - sleep 1
+  status:
+    - test -f sub/src.txt
diff --git a/testdata/generates/Taskvars.yml b/testdata/generates/Taskvars.yml
new file mode 100644
index 00000000..0907174f
--- /dev/null
+++ b/testdata/generates/Taskvars.yml
@@ -0,0 +1 @@
+BUILD_DIR: $pwd