diff --git a/ReleaseNotes.md b/ReleaseNotes.md
index d1f166434..cd41ece88 100644
--- a/ReleaseNotes.md
+++ b/ReleaseNotes.md
@@ -1,5 +1,11 @@
 # Pickles Release Notes
 
+## v1.2.2 - 2015-09-24
+
+### Bugs Fixed
+
+- The PowerShell version now correctly traces relative paths from the current directory ([#216](https://github.com/picklesdoc/pickles/issues/216))
+
 ## v1.2.1 - 2015-08-14
 
 ### Bugs Fixed
@@ -27,7 +33,7 @@
 ### Bugs Fixed
 
 - Abbreviations displayed incorrectly with spaces between letters ([#192](https://github.com/picklesdoc/pickles/issues/192))
- 
+
 ## v1.0.1 - 2015-03-31
 
 ### Bugs Fixed
@@ -55,7 +61,7 @@
 
 - The command line and powershell runners now return an error code of 0 when everything went fine, and 1 if there was an error.
 - The HTML and DHTML output versions no longer horizontally spread tables.
-- The GUI version has an icon  
+- The GUI version has an icon
 
 ## v0.19.0 - 2014-11-25
 
@@ -216,7 +222,7 @@ Some things went wrong during the publication of versions 0.17.0 and 0.17.1. The
 
 ## Older Releases without Release Notes
 
-- v0.9 - 2013-07-23 
+- v0.9 - 2013-07-23
 - v0.8 - 2012-12-17
 - v0.7 - 2012-08-07
 - v0.6 was skipped
diff --git a/build.bat b/build.bat
index 665051882..446098d93 100644
--- a/build.bat
+++ b/build.bat
@@ -1,5 +1,5 @@
 @echo off
-set "picklesVersion=1.2.1"
+set "picklesVersion=1.2.2"
 set "fakeVersion=3.36.0"
 
 cls
diff --git a/src/Pickles/Pickles.PowerShell/Pickle_Features.cs b/src/Pickles/Pickles.PowerShell/Pickle_Features.cs
index d2aaeb6fc..abc347113 100644
--- a/src/Pickles/Pickles.PowerShell/Pickle_Features.cs
+++ b/src/Pickles/Pickles.PowerShell/Pickle_Features.cs
@@ -65,7 +65,7 @@ protected override void ProcessRecord()
 
             var configuration = container.Resolve<Configuration>();
 
-            this.ParseParameters(configuration, container.Resolve<IFileSystem>());
+            this.ParseParameters(configuration, container.Resolve<IFileSystem>(), this.SessionState.Path.CurrentFileSystemLocation);
 
             WriteObject(string.Format("Pickles v.{0}{1}", Assembly.GetExecutingAssembly().GetName().Version,
                                       Environment.NewLine));
@@ -77,10 +77,11 @@ protected override void ProcessRecord()
             WriteObject(string.Format("Pickles completed successfully"));
         }
 
-        private void ParseParameters(Configuration configuration, IFileSystem fileSystem)
+        private void ParseParameters(Configuration configuration, IFileSystem fileSystem, PathInfo currentFileSystemLocation)
         {
-            configuration.FeatureFolder = fileSystem.DirectoryInfo.FromDirectoryName(this.FeatureDirectory);
-            configuration.OutputFolder = fileSystem.DirectoryInfo.FromDirectoryName(this.OutputDirectory);
+            configuration.FeatureFolder = this.DetermineFeatureFolder(fileSystem, currentFileSystemLocation, this.FeatureDirectory);
+            configuration.OutputFolder = this.DetermineFeatureFolder(fileSystem, currentFileSystemLocation, this.OutputDirectory);
+
             if (!string.IsNullOrEmpty(this.TestResultsFormat))
             {
                 configuration.TestResultsFormat =
@@ -101,6 +102,23 @@ private void ParseParameters(Configuration configuration, IFileSystem fileSystem
                 configuration.Language = this.Language;
              }
         }
+
+        private DirectoryInfoBase DetermineFeatureFolder(IFileSystem fileSystem, PathInfo currentFileSystemLocation, string directory)
+        {
+            DirectoryInfoBase result;
+
+            if (fileSystem.Path.IsPathRooted(directory))
+            {
+                result = fileSystem.DirectoryInfo.FromDirectoryName(directory);
+            }
+            else
+            {
+                result = fileSystem.DirectoryInfo.FromDirectoryName(
+                    fileSystem.Path.Combine(currentFileSystemLocation.Path, directory));
+            }
+
+            return result;
+        }
     }
 }
 #endif
\ No newline at end of file
diff --git a/src/Pickles/VersionInfo.cs b/src/Pickles/VersionInfo.cs
index c1d07c320..93cf923d9 100644
--- a/src/Pickles/VersionInfo.cs
+++ b/src/Pickles/VersionInfo.cs
@@ -8,10 +8,10 @@
 [assembly: AssemblyTrademarkAttribute("")]
 [assembly: AssemblyCultureAttribute("")]
 [assembly: ComVisibleAttribute(false)]
-[assembly: AssemblyVersionAttribute("1.2.1")]
-[assembly: AssemblyFileVersionAttribute("1.2.1")]
+[assembly: AssemblyVersionAttribute("1.2.2")]
+[assembly: AssemblyFileVersionAttribute("1.2.2")]
 namespace System {
     internal static class AssemblyVersionInformation {
-        internal const string Version = "1.2.1";
+        internal const string Version = "1.2.2";
     }
 }