diff --git a/CHANGES b/CHANGES
index 12f0384c8..593433f92 100644
--- a/CHANGES
+++ b/CHANGES
@@ -1,6 +1,8 @@
 Release 0.5.1 (in development)
 ==============================
 
+* Fix a bug when including images in sources in subdirectories.
+
 * Fix the JavaScript search when html_copy_source is off.
 
 * Fix a bug in autodoc when documenting classes with the option.
diff --git a/sphinx/environment.py b/sphinx/environment.py
index c03da1100..826fe8faa 100644
--- a/sphinx/environment.py
+++ b/sphinx/environment.py
@@ -625,15 +625,17 @@ class BuildEnvironment:
                 self.warn(docname, 'Nonlocal image URI found: %s' % imguri, node.line)
                 candidates['?'] = imguri
                 continue
+            # imgpath is the image path *from srcdir*
             imgpath = path.normpath(path.join(docdir, imguri))
+            # set imgpath as default URI
             node['uri'] = imgpath
             if imgpath.endswith(os.extsep + '*'):
                 for filename in glob(path.join(self.srcdir, imgpath)):
-                    relname = relative_path(self.srcdir, filename)
+                    new_imgpath = relative_path(self.srcdir, filename)
                     if filename.lower().endswith('.pdf'):
-                        candidates['application/pdf'] = path.join(docdir, relname)
+                        candidates['application/pdf'] = new_imgpath
                     elif filename.lower().endswith('.svg'):
-                        candidates['image/svg+xml'] = path.join(docdir, relname)
+                        candidates['image/svg+xml'] = new_imgpath
                     else:
                         try:
                             f = open(filename, 'rb')
@@ -644,9 +646,11 @@ class BuildEnvironment:
                         except (OSError, IOError):
                             self.warn(docname, 'Image file %s not readable' % filename)
                         if imgtype:
-                            candidates['image/' + imgtype] = path.join(docdir, relname)
+                            candidates['image/' + imgtype] = new_imgpath
             else:
                 candidates['*'] = imgpath
+            # map image paths to unique image names (so that they can be put
+            # into a single directory)
             for imgpath in candidates.itervalues():
                 self.dependencies.setdefault(docname, set()).add(imgpath)
                 if not os.access(path.join(self.srcdir, imgpath), os.R_OK):
diff --git a/tests/root/contents.txt b/tests/root/contents.txt
index e8e6a5644..61646f622 100644
--- a/tests/root/contents.txt
+++ b/tests/root/contents.txt
@@ -11,6 +11,7 @@ Contents:
    :maxdepth: 2
 
    images
+   subdir/images
    includes
    markup
    desc
diff --git a/tests/root/subdir/images.txt b/tests/root/subdir/images.txt
new file mode 100644
index 000000000..33adf5b56
--- /dev/null
+++ b/tests/root/subdir/images.txt
@@ -0,0 +1,4 @@
+Image including source in subdir
+================================
+
+.. image:: img.*
diff --git a/tests/test_build.py b/tests/test_build.py
index 938d3c985..bde843b44 100644
--- a/tests/test_build.py
+++ b/tests/test_build.py
@@ -51,6 +51,9 @@ HTML_XPATH = {
         ".//img[@src='_images/img1.png']": '',
         ".//img[@src='_images/simg.png']": '',
     },
+    'subdir/images.html': {
+        ".//img[@src='../_images/img1.png']": '',
+    },
     'includes.html': {
         ".//pre/span[@class='s']": u'üöä',
         ".//pre": u'Max Strauß',