diff --git a/cgo/cgo.go b/cgo/cgo.go
index 5799b4fa..58aaed81 100644
--- a/cgo/cgo.go
+++ b/cgo/cgo.go
@@ -14,7 +14,9 @@ package cgo
 import (
 	"fmt"
 	"go/ast"
+	"go/scanner"
 	"go/token"
+	"path/filepath"
 	"sort"
 	"strconv"
 	"strings"
@@ -173,6 +175,18 @@ func Process(files []*ast.File, dir string, fset *token.FileSet, cflags []string
 	generatedTokenPos.SetLines([]int{0})
 	p.generatedPos = generatedTokenPos.Pos(0)
 
+	// Find the absolute path for this package.
+	packagePath, err := filepath.Abs(fset.File(files[0].Pos()).Name())
+	if err != nil {
+		return nil, []error{
+			scanner.Error{
+				Pos: fset.Position(files[0].Pos()),
+				Msg: "cgo: cannot find absolute path: " + err.Error(), // TODO: wrap this error
+			},
+		}
+	}
+	packagePath = filepath.Dir(packagePath)
+
 	// Construct a new in-memory AST for CGo declarations of this package.
 	unsafeImport := &ast.ImportSpec{
 		Path: &ast.BasicLit{
@@ -338,6 +352,7 @@ func Process(files []*ast.File, dir string, fset *token.FileSet, cflags []string
 						p.addErrorAfter(comment.Slash, comment.Text[:lineStart+colon+1], err.Error())
 						continue
 					}
+					makePathsAbsolute(flags, packagePath)
 					cflags = append(cflags, flags...)
 				default:
 					startPos := strings.LastIndex(line[4:colon], name) + 4
@@ -395,6 +410,30 @@ func Process(files []*ast.File, dir string, fset *token.FileSet, cflags []string
 	return p.generated, p.errors
 }
 
+// makePathsAbsolute converts some common path compiler flags (-I, -L) from
+// relative flags into absolute flags, if they are relative. This is necessary
+// because the C compiler is usually not invoked from the package path.
+func makePathsAbsolute(args []string, packagePath string) {
+	nextIsPath := false
+	for i, arg := range args {
+		if nextIsPath {
+			if !filepath.IsAbs(arg) {
+				args[i] = filepath.Join(packagePath, arg)
+			}
+		}
+		if arg == "-I" || arg == "-L" {
+			nextIsPath = true
+			continue
+		}
+		if strings.HasPrefix(arg, "-I") || strings.HasPrefix(arg, "-L") {
+			path := arg[2:]
+			if !filepath.IsAbs(path) {
+				args[i] = arg[:2] + filepath.Join(packagePath, path)
+			}
+		}
+	}
+}
+
 // addFuncDecls adds the C function declarations found by libclang in the
 // comment above the `import "C"` statement.
 func (p *cgoPackage) addFuncDecls() {
diff --git a/cgo/testdata/flags.go b/cgo/testdata/flags.go
index bb518e55..d52bbc5b 100644
--- a/cgo/testdata/flags.go
+++ b/cgo/testdata/flags.go
@@ -9,6 +9,9 @@ package main
 
 #cgo CFLAGS: -DFOO
 
+#cgo CFLAGS: -Iinclude
+#include "foo.h"
+
 #if defined(FOO)
 #define BAR 3
 #else
@@ -23,4 +26,5 @@ import "C"
 
 var (
 	_ = C.BAR
+	_ = C.FOO_H
 )
diff --git a/cgo/testdata/flags.out.go b/cgo/testdata/flags.out.go
index dba5d1fb..0bcad0d5 100644
--- a/cgo/testdata/flags.out.go
+++ b/cgo/testdata/flags.out.go
@@ -9,6 +9,7 @@ import "unsafe"
 var _ unsafe.Pointer
 
 const C.BAR = 3
+const C.FOO_H = 1
 
 type C.int16_t = int16
 type C.int32_t = int32
diff --git a/cgo/testdata/include/foo.h b/cgo/testdata/include/foo.h
new file mode 100644
index 00000000..8fa2b1e1
--- /dev/null
+++ b/cgo/testdata/include/foo.h
@@ -0,0 +1 @@
+#define FOO_H 1