diff --git a/ivlpp/lexor.lex b/ivlpp/lexor.lex
index 6917e4dd9..d6271a5a8 100644
--- a/ivlpp/lexor.lex
+++ b/ivlpp/lexor.lex
@@ -763,10 +763,22 @@ static void do_include()
 		    fprintf(depend_file, "%s\n", istack->path);
 	    }
       } else {
-	    unsigned idx = 0;
+	    unsigned idx, start = 0;
+	    char path[4096];
+	    char *cp;
+
+	    /* Add the current path to the start of the include_dir list. */
+	    strcpy(path, istack->path);
+	    cp = strrchr(path, '/');
+	    if (cp == 0) start = 1;  /* A base file so already in [1] */
+	    else *cp = '\0';
+	    /* We do not need a strdup here since the path is read before
+	     * it is overridden. If the search order is changed add a
+	     * strdup here and a free before the include_dir[0] = 0 below.
+	     */
+	    include_dir[0] = path;
 	    standby->file = 0;
-	    for (idx = 0 ;  idx < include_cnt ;  idx += 1) {
-		  char path[4096];
+	    for (idx = start ;  idx < include_cnt ;  idx += 1) {
 		  sprintf(path, "%s/%s", include_dir[idx], standby->path);
 		  standby->file = fopen(path, "r");
 		  if (standby->file) {
@@ -776,6 +788,7 @@ static void do_include()
 			break;
 		  }
 	    }
+            include_dir[0] = 0;
       }
 
       if (standby->file == 0) {
diff --git a/ivlpp/main.c b/ivlpp/main.c
index d7a377fe9..d9fd5f1c6 100644
--- a/ivlpp/main.c
+++ b/ivlpp/main.c
@@ -220,9 +220,10 @@ int main(int argc, char*argv[])
       define_macro("unconnected_drive",   "`unconnected_drive", 1);
       define_macro("uselib",              "`uselib", 1);
 
-      include_dir = malloc(sizeof(char*));
-      include_dir[0] = strdup(".");
-      include_cnt = 1;
+      include_cnt = 2;
+      include_dir = malloc(include_cnt*sizeof(char*));
+      include_dir[0] = 0;  /* 0 is reserved for the current files path. */
+      include_dir[1] = strdup(".");
 
       while ((opt=getopt(argc, argv, "F:f:K:Lo:v")) != EOF) switch (opt) {
 
@@ -333,52 +334,3 @@ int main(int argc, char*argv[])
       return error_count;
 }
 
-/*
- * $Log: main.c,v $
- * Revision 1.23  2006/10/02 18:16:18  steve
- *  Save dep_path because arg space is overrun.
- *
- * Revision 1.22  2006/07/26 00:11:40  steve
- *  Pass depfiles through temp defines file.
- *
- * Revision 1.21  2006/07/26 00:02:48  steve
- *  Pass defines and includes through temp file.
- *
- * Revision 1.20  2004/09/10 00:15:45  steve
- *  Remove bad casts.
- *
- * Revision 1.19  2004/09/05 21:29:08  steve
- *  Better type safety.
- *
- * Revision 1.18  2004/02/15 18:03:30  steve
- *  Cleanup of warnings.
- *
- * Revision 1.17  2003/09/26 02:08:31  steve
- *  Detect missing endif markers.
- *
- * Revision 1.16  2002/08/12 01:35:02  steve
- *  conditional ident string using autoconfig.
- *
- * Revision 1.15  2002/04/04 05:26:13  steve
- *  Add dependency generation.
- *
- * Revision 1.14  2001/11/21 02:59:27  steve
- *  Remove diag print.
- *
- * Revision 1.13  2001/11/21 02:20:35  steve
- *  Pass list of file to ivlpp via temporary file.
- *
- * Revision 1.12  2001/09/15 18:27:04  steve
- *  Make configure detect malloc.h
- *
- * Revision 1.11  2001/07/25 03:10:50  steve
- *  Create a config.h.in file to hold all the config
- *  junk, and support gcc 3.0. (Stephan Boettcher)
- *
- * Revision 1.10  2001/06/23 18:41:02  steve
- *  Include stdlib.h
- *
- * Revision 1.9  2001/05/20 18:08:07  steve
- *  local declares if the header is missing.
- */
-