diff --git a/bashdb.in b/bashdb.in
index cdedbe3..6d002f9 100755
--- a/bashdb.in
+++ b/bashdb.in
@@ -102,6 +102,15 @@ if [[ -n $_Dbg_script_file ]] ; then
 fi
 typeset _Dbg_dollar_0="$0"
 
+# Resolve and save mapping for main script, and resolve
+# the starting directory.
+_Dbg_full_filename=$(_Dbg_is_file "$_Dbg_script_file")
+_Dbg_file2canonic["${_Dbg_script_file}"]="$_Dbg_full_filename"
+# Note: expand_filename is expanding a *directory* here, not a filename.
+# This might cause a problem in the future if _Dbg_expand_filename becomes
+# more specific about this aspect.
+_Dbg_init_cwd=$(_Dbg_expand_filename "${_Dbg_script_file%/*}")
+
 trap '_Dbg_debug_trap_handler 0 "$BASH_COMMAND" "$@"' DEBUG
 set -o functrace
 . "$_Dbg_script_file"
diff --git a/lib/hook.sh b/lib/hook.sh
index df77e79..f1b79df 100644
--- a/lib/hook.sh
+++ b/lib/hook.sh
@@ -119,6 +119,13 @@ _Dbg_debug_trap_handler() {
 
     _Dbg_save_args "$@"
 
+    typeset _Dbg_full_filename
+    _Dbg_full_filename=$(_Dbg_is_file "${BASH_SOURCE[1]}")
+    if [[ -r "$_Dbg_full_filename" ]] ; then
+	_Dbg_file2canonic["${BASH_SOURCE[1]}"]="$_Dbg_full_filename"
+    fi
+
+
     # if in step mode, decrement counter
     if ((_Dbg_step_ignore > 0)) ; then
 	((_Dbg_step_ignore--))
@@ -146,13 +153,6 @@ _Dbg_debug_trap_handler() {
 	fi
     done
 
-    typeset _Dbg_full_filename
-    _Dbg_full_filename=$(_Dbg_is_file "$_Dbg_frame_last_filename")
-    if [[ -r "$_Dbg_full_filename" ]] ; then
-	_Dbg_file2canonic["$_Dbg_frame_last_filename"]="$_Dbg_full_filename"
-	_Dbg_file2canonic["${BASH_SOURCE[1]}"]="$_Dbg_full_filename"
-    fi
-
     # Run applicable action statement
     if ((_Dbg_action_count > 0)) ; then
 	_Dbg_hook_action_hit "$_Dbg_full_filename"
diff --git a/test/data/brkpt2.right b/test/data/brkpt2.right
index 817c423..0fa18f2 100644
--- a/test/data/brkpt2.right
+++ b/test/data/brkpt2.right
@@ -248,7 +248,7 @@ Num Type       Enb  Expression
 	breakpoint already hit 1 time
 No actions have been set.
 +cont
-FUNCNAME[2]: source called from bashdb at line 107
+FUNCNAME[2]: source called from bashdb at line 116
 Breakpoint 6 hit (3 times).
 (dbg-test1.sub:11):
 11:	        local -i j=i+1
diff --git a/test/data/bug-break.right b/test/data/bug-break.right
index 75c5bac..157ee7f 100644
--- a/test/data/bug-break.right
+++ b/test/data/bug-break.right
@@ -17,7 +17,7 @@ i=1 result=Breakpoint 1 hit (1 times).
 +bt
 ->0 in file `fib.sh' at line 5
 ##1 fibonacci("1") called from file `fib.sh' at line 18
-##2 source("fib.sh") called from file `bashdb' at line 107
+##2 source("fib.sh") called from file `bashdb' at line 116
 ##3 main() called from file `bashdb' at line 0
 +delete 1
 Deleted breakpoint 1
diff --git a/test/data/bug-source.right b/test/data/bug-source.right
index 4658c7c..617ee68 100644
--- a/test/data/bug-source.right
+++ b/test/data/bug-source.right
@@ -15,7 +15,7 @@ SOURCED BASH_SOURCE[0] dbg-test1.sub
 SOURCED FN LINENO 5
 FUNCNAME[0]: sourced_fn called from dbg-test1.sub at line 22
 FUNCNAME[1]: source called from dbg-test1.sh at line 34
-FUNCNAME[2]: source called from bashdb at line 107
+FUNCNAME[2]: source called from bashdb at line 116
 FUNCNAME[3]: main called from bashdb at line 0
 (dbg-test1.sh:35):
 35:	exit 0;
diff --git a/test/data/tbreak.right b/test/data/tbreak.right
index 1ddad76..cdc03f9 100644
--- a/test/data/tbreak.right
+++ b/test/data/tbreak.right
@@ -48,7 +48,7 @@ SOURCED BASH_SOURCE[0] dbg-test1.sub
 SOURCED FN LINENO 5
 FUNCNAME[0]: sourced_fn called from dbg-test1.sub at line 22
 FUNCNAME[1]: source called from dbg-test1.sh at line 34
-FUNCNAME[2]: source called from bashdb at line 107
+FUNCNAME[2]: source called from bashdb at line 116
 FUNCNAME[3]: main called from bashdb at line 0
 Debugged program terminated normally. Use q to quit or R to restart.
 +### Try some commands that require a running debugger
diff --git a/test/data/watch1.right b/test/data/watch1.right
index 9f5aaf1..27c2ccd 100644
--- a/test/data/watch1.right
+++ b/test/data/watch1.right
@@ -66,12 +66,12 @@ Restarting with: /src/external-vcs/sourceforge/bashdb/bashdb -B --no-highlight -
 Watchpoint 2: $x changed:
   old value: '22'
   new value: ''
-(bashdb:106):
-106:	set -o functrace
+(bashdb:115):
+115:	set -o functrace
 +# 2nd part of Restart test
 +l>
-106: => set -o functrace
-107:    . "$_Dbg_script_file"
+115: => set -o functrace
+116:    . "$_Dbg_script_file"
 +info watch
 Num Type       Enb  Expression
 ------------------------------
diff --git a/test/unit/test-file.sh.in b/test/unit/test-file.sh.in
index c00031c..3814f57 100755
--- a/test/unit/test-file.sh.in
+++ b/test/unit/test-file.sh.in
@@ -91,7 +91,7 @@ test_file_resolve_expand_filename()
     filename=$(_Dbg_resolve_expand_filename ./fdafdsa)
     assertEquals '0' $?
     typeset -i size=${#filename}
-    assertEquals '/fdafdsa' "${filename:$size-8}"
+    assertEquals 'fdafdsas' "${filename:$size-8}"
     assertNotEquals '.' "${filename:$size-1}"
 }