--- a/tests/test-diff-subdir.t	Tue Mar 17 15:06:40 2015 -0700
+++ b/tests/test-diff-subdir.t	Tue Mar 17 15:46:30 2015 -0700
@@ -44,4 +44,24 @@
   @@ -0,0 +1,1 @@
   +2
 
+relative to beta
+
   $ cd ..
+  $ hg diff --nodates --relative beta
+  diff -r 7d5ef1aea329 two
+  --- a/two
+  +++ b/two
+  @@ -0,0 +1,1 @@
+  +2
+
+inside beta
+
+  $ cd beta
+  $ hg diff --nodates --relative .
+  diff -r 7d5ef1aea329 two
+  --- a/two
+  +++ b/two
+  @@ -0,0 +1,1 @@
+  +2
+
+  $ cd ..