diff --git a/new/property.jam b/new/property.jam
index 7c60320f1..b9b1cb60f 100644
--- a/new/property.jam
+++ b/new/property.jam
@@ -356,6 +356,8 @@ rule split-conditional ( property )
 
 
 # Interpret all path properties in 'properties' as relative to 'path'
+# The property values are assumed to be in system-specific form, and
+# will be translated into normalized form.
 rule translate-paths ( properties * : path )
 {
     local result ;
@@ -371,7 +373,7 @@ rule translate-paths ( properties * : path )
                 
         if path in [ feature.attributes $(p:G) ] 
         {
-            local t = [ path.root $(p:TG=) $(path) ] ;
+            local t = [ path.root [ path.make $(p:TG=) ] $(path) ] ;
             result += $(condition)$(t:TG=$(p:G)) ;
         }
         else
diff --git a/test/path_features.py b/test/path_features.py
index b53d66572..ba89e2bf5 100644
--- a/test/path_features.py
+++ b/test/path_features.py
@@ -38,5 +38,30 @@ int main() { foo(); }
 t.rm("d/bin")
 t.run_build_system(subdir="d")
 
+# Test that absolute paths inside requirements are ok. The problem
+# appear only when building targets in subprojects.
+t.write("project-root.jam", "")
+t.write("Jamfile", "build-project x ; ")
+t.write("x/Jamfile", """
+local pwd = [ PWD ] ;
+project : requirements <include>$(pwd)/x/include ;
+exe m : m.cpp : <include>$(pwd)/x/include2 ;
+""")
+t.write("x/m.cpp", """
+#include <h1.hpp>
+#include <h2.hpp>
+
+int main() {}
+""")
+t.write("x/include/h1.hpp", "\n")
+t.write("x/include2/h2.hpp", "\n")
+
+t.run_build_system()
+t.expect_addition("x/bin/$toolset/debug/main-target-m/m.exe")
+
+
+
+
+
 
 t.cleanup()
diff --git a/v2/build/property.jam b/v2/build/property.jam
index 7c60320f1..b9b1cb60f 100644
--- a/v2/build/property.jam
+++ b/v2/build/property.jam
@@ -356,6 +356,8 @@ rule split-conditional ( property )
 
 
 # Interpret all path properties in 'properties' as relative to 'path'
+# The property values are assumed to be in system-specific form, and
+# will be translated into normalized form.
 rule translate-paths ( properties * : path )
 {
     local result ;
@@ -371,7 +373,7 @@ rule translate-paths ( properties * : path )
                 
         if path in [ feature.attributes $(p:G) ] 
         {
-            local t = [ path.root $(p:TG=) $(path) ] ;
+            local t = [ path.root [ path.make $(p:TG=) ] $(path) ] ;
             result += $(condition)$(t:TG=$(p:G)) ;
         }
         else
diff --git a/v2/test/path_features.py b/v2/test/path_features.py
index b53d66572..ba89e2bf5 100644
--- a/v2/test/path_features.py
+++ b/v2/test/path_features.py
@@ -38,5 +38,30 @@ int main() { foo(); }
 t.rm("d/bin")
 t.run_build_system(subdir="d")
 
+# Test that absolute paths inside requirements are ok. The problem
+# appear only when building targets in subprojects.
+t.write("project-root.jam", "")
+t.write("Jamfile", "build-project x ; ")
+t.write("x/Jamfile", """
+local pwd = [ PWD ] ;
+project : requirements <include>$(pwd)/x/include ;
+exe m : m.cpp : <include>$(pwd)/x/include2 ;
+""")
+t.write("x/m.cpp", """
+#include <h1.hpp>
+#include <h2.hpp>
+
+int main() {}
+""")
+t.write("x/include/h1.hpp", "\n")
+t.write("x/include2/h2.hpp", "\n")
+
+t.run_build_system()
+t.expect_addition("x/bin/$toolset/debug/main-target-m/m.exe")
+
+
+
+
+
 
 t.cleanup()