diff --git a/lib/utils.sh b/lib/utils.sh
index a50cad74..1d380eb5 100644
--- a/lib/utils.sh
+++ b/lib/utils.sh
@@ -378,5 +378,17 @@ resolve_symlink() {
   # This seems to be the only cross-platform way to resolve symlink paths to
   # the real file path.
   # shellcheck disable=SC2012
-  ls -l "$symlink" | sed -e 's|.*-> \(.*\)|\1|'
+  resolved_path=$(ls -l "$symlink" | sed -e 's|.*-> \(.*\)|\1|')
+
+  # Check if resolved path is relative or not by looking at the first character.
+  # If it is a slash we can assume it's root and absolute. Otherwise we treat it
+  # as relative
+  case $resolved_path in
+    /*)
+      echo "$resolved_path"
+      ;;
+    *)
+      echo "$PWD/$resolved_path"
+      ;;
+  esac
 }
diff --git a/test/utils.bats b/test/utils.bats
index 3947ce32..ab842816 100644
--- a/test/utils.bats
+++ b/test/utils.bats
@@ -268,3 +268,25 @@ teardown() {
   [ "$status" -eq 0 ]
   [ "$output" = "$PROJECT_DIR/.tool-versions" ]
 }
+
+@test "resolve_symlink converts the symlink path to the real file path" {
+  touch foo
+  ln -s $(pwd)/foo bar
+
+  run resolve_symlink bar
+  [ "$status" -eq 0 ]
+  echo $status
+  [ "$output" = $(pwd)/foo ]
+  rm -f foo bar
+}
+
+@test "resolve_symlink converts relative symlink path to the real file path" {
+  touch foo
+  ln -s foo bar
+
+  run resolve_symlink bar
+  [ "$status" -eq 0 ]
+  echo $status
+  [ "$output" = $(pwd)/foo ]
+  rm -f foo bar
+}