diff --git a/bundle-uri.c b/bundle-uri.c
index 70be53aa38d..9e7dc0fb4ca 100644
--- a/bundle-uri.c
+++ b/bundle-uri.c
@@ -7,6 +7,7 @@
 #include "run-command.h"
 #include "hashmap.h"
 #include "pkt-line.h"
+#include "remote.h"
 
 static int compare_bundles(const void *hashmap_cmp_fn_data,
 			   const struct hashmap_entry *he1,
@@ -49,6 +50,7 @@ void clear_bundle_list(struct bundle_list *list)
 
 	for_all_bundles_in_list(list, clear_remote_bundle_info, NULL);
 	hashmap_clear_and_free(&list->bundles, struct remote_bundle_info, ent);
+	free(list->baseURI);
 }
 
 int for_all_bundles_in_list(struct bundle_list *list,
@@ -169,7 +171,7 @@ static int bundle_list_update(const char *key, const char *value,
 
 	if (!strcmp(dot, "uri")) {
 		free(bundle->uri);
-		bundle->uri = xstrdup(value);
+		bundle->uri = relative_url(list->baseURI, value, NULL);
 		return 0;
 	}
 
@@ -197,6 +199,8 @@ int parse_bundle_list_in_config_format(const char *uri,
 	};
 
 	list->mode = BUNDLE_MODE_NONE;
+	if (!list->baseURI)
+		list->baseURI = xstrdup(uri);
 	result = git_config_from_file_with_options(config_to_bundle_list,
 						   filename, list,
 						   &opts);
diff --git a/bundle-uri.h b/bundle-uri.h
index 9f6fc2d75f9..fdcaea048a8 100644
--- a/bundle-uri.h
+++ b/bundle-uri.h
@@ -65,6 +65,15 @@ struct bundle_list {
 	enum bundle_list_mode mode;
 	unsigned forFetch : 1;
 	struct hashmap bundles;
+
+	/**
+	 * The baseURI of a bundle_list is used as the base for any
+	 * relative URIs advertised by the bundle list at that location.
+	 *
+	 * When the list is generated from a Git server, then use that
+	 * server's location.
+	 */
+	char *baseURI;
 };
 
 void init_bundle_list(struct bundle_list *list);
diff --git a/t/helper/test-bundle-uri.c b/t/helper/test-bundle-uri.c
index 23ce0eebca3..b535dc47134 100644
--- a/t/helper/test-bundle-uri.c
+++ b/t/helper/test-bundle-uri.c
@@ -35,6 +35,8 @@ static int cmd__bundle_uri_parse(int argc, const char **argv, enum input_mode mo
 
 	init_bundle_list(&list);
 
+	list.baseURI = xstrdup("<uri>");
+
 	switch (mode) {
 	case KEY_VALUE_PAIRS:
 		if (argc)
diff --git a/t/t5750-bundle-uri-parse.sh b/t/t5750-bundle-uri-parse.sh
index c2b7a8ce968..ea279c2b762 100755
--- a/t/t5750-bundle-uri-parse.sh
+++ b/t/t5750-bundle-uri-parse.sh
@@ -30,6 +30,30 @@ test_expect_success 'bundle_uri_parse_line() just URIs' '
 	test_cmp_config_output expect actual
 '
 
+test_expect_success 'bundle_uri_parse_line(): relative URIs' '
+	cat >in <<-\EOF &&
+	bundle.one.uri=bundle.bdl
+	bundle.two.uri=../bundle.bdl
+	bundle.three.uri=sub/dir/bundle.bdl
+	EOF
+
+	cat >expect <<-\EOF &&
+	[bundle "list"]
+		version = 1
+		mode = all
+	[bundle "one"]
+		uri = <uri>/bundle.bdl
+	[bundle "two"]
+		uri = bundle.bdl
+	[bundle "three"]
+		uri = <uri>/sub/dir/bundle.bdl
+	EOF
+
+	test-tool bundle-uri parse-key-values <in >actual 2>err &&
+	test_must_be_empty err &&
+	test_cmp_config_output expect actual
+'
+
 test_expect_success 'bundle_uri_parse_line() parsing edge cases: empty key or value' '
 	cat >in <<-\EOF &&
 	=bogus-value
@@ -106,6 +130,36 @@ test_expect_success 'parse config format: just URIs' '
 	test_cmp_config_output expect actual
 '
 
+test_expect_success 'parse config format: relative URIs' '
+	cat >in <<-\EOF &&
+	[bundle "list"]
+		version = 1
+		mode = all
+	[bundle "one"]
+		uri = bundle.bdl
+	[bundle "two"]
+		uri = ../bundle.bdl
+	[bundle "three"]
+		uri = sub/dir/bundle.bdl
+	EOF
+
+	cat >expect <<-\EOF &&
+	[bundle "list"]
+		version = 1
+		mode = all
+	[bundle "one"]
+		uri = <uri>/bundle.bdl
+	[bundle "two"]
+		uri = bundle.bdl
+	[bundle "three"]
+		uri = <uri>/sub/dir/bundle.bdl
+	EOF
+
+	test-tool bundle-uri parse-config in >actual 2>err &&
+	test_must_be_empty err &&
+	test_cmp_config_output expect actual
+'
+
 test_expect_success 'parse config format edge cases: empty key or value' '
 	cat >in1 <<-\EOF &&
 	= bogus-value
diff --git a/transport.c b/transport.c
index f0114778ff4..52b99cd3298 100644
--- a/transport.c
+++ b/transport.c
@@ -1544,6 +1544,9 @@ int transport_get_remote_bundle_uri(struct transport *transport, int quiet)
 	    (git_config_get_bool("transfer.bundleuri", &value) || !value))
 		return 0;
 
+	if (!transport->bundles->baseURI)
+		transport->bundles->baseURI = xstrdup(transport->url);
+
 	if (!vtable->get_bundle_uri) {
 		if (quiet)
 			return -1;
