diff --git a/applications/test/dictionary/dictionaryTest.C b/applications/test/dictionary/dictionaryTest.C
index d958d81a1a..2c2395e9fb 100644
--- a/applications/test/dictionary/dictionaryTest.C
+++ b/applications/test/dictionary/dictionaryTest.C
@@ -29,6 +29,7 @@ Description
 
 \*---------------------------------------------------------------------------*/
 
+#include "argList.H"
 #include "IOstreams.H"
 #include "IOobject.H"
 #include "IFstream.H"
@@ -41,6 +42,15 @@ using namespace Foam;
 
 int main(int argc, char *argv[])
 {
+    argList::noParallel();
+    argList args(argc, argv);
+
+    Info<< nl
+        << "FOAM_CASE=" << getEnv("FOAM_CASE") << nl
+        << "FOAM_CASENAME=" << getEnv("FOAM_CASENAME") << nl
+        << endl;
+
+
     {
         dictionary dict1(IFstream("testDict")());
         Info<< "dict1: " << dict1 << nl
diff --git a/applications/test/dictionary/testDict b/applications/test/dictionary/testDict
index 6a0863a454..42a473a52b 100644
--- a/applications/test/dictionary/testDict
+++ b/applications/test/dictionary/testDict
@@ -14,6 +14,9 @@ FoamFile
 }
 // * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * //
 #inputMode  merge
+#includeIfPresent "someUnknownFile"
+#includeIfPresent "$FOAM_CASE/someUnknownFile"
+#includeIfPresent "$FOAM_CASE/someUnknownFile-$FOAM_CASENAME"
 
 internalField   uniform 1;
 
@@ -78,7 +81,6 @@ boundaryField
 // NB: the inputMode has a global scope
 #inputMode merge
 #include "testDict2"
-#includeIfPresent "SomeUnknownFile"
 
 foo
 {
diff --git a/src/OpenFOAM/global/argList/argList.C b/src/OpenFOAM/global/argList/argList.C
index 365bff3cfa..01feb13dfc 100644
--- a/src/OpenFOAM/global/argList/argList.C
+++ b/src/OpenFOAM/global/argList/argList.C
@@ -129,14 +129,18 @@ void Foam::argList::getRootCase()
         casePath = iter();
         casePath.removeRepeated('/');
         casePath.removeTrailing('/');
+
+        // handle degenerate form and '-case .' like no -case specified
+        if (casePath.empty() || casePath == ".")
+        {
+            casePath = cwd();
+            options_.erase("case");
+        }
     }
     else
     {
         // nothing specified, use the current dir
         casePath = cwd();
-
-        // we could add this back in as '-case'?
-        // options_.set("case", casePath);
     }
 
     rootPath_   = casePath.path();
@@ -522,10 +526,26 @@ Foam::argList::argList
     }
     jobInfo.write();
 
+
     // Set the case and case-name as an environment variable
-    setEnv("FOAM_CASE", rootPath_/globalCase_, true);
+    if (rootPath_[0] == '/')
+    {
+        // absolute path
+        setEnv("FOAM_CASE", rootPath_/globalCase_, true);
+    }
+    else if (rootPath_ == ".")
+    {
+        // relative to the current working directory
+        setEnv("FOAM_CASE", cwd()/globalCase_, true);
+    }
+    else
+    {
+        // qualify relative path
+        setEnv("FOAM_CASE", cwd()/rootPath_/globalCase_, true);
+    }
     setEnv("FOAM_CASENAME", globalCase_, true);
 
+
     // Switch on signal trapping. We have to wait until after Pstream::init
     // since this sets up its own ones.
     sigFpe_.set(bannerEnabled);