diff --git a/lib/core.sh b/lib/core.sh
index 11a1f69..31c52f2 100644
--- a/lib/core.sh
+++ b/lib/core.sh
@@ -137,7 +137,7 @@ function setup_from_file_juju(){
     [ ! -e ${imagefile} ] && die "Error: The JuJu image file ${imagefile} does not exist"
 
     info "Installing JuJu from ${imagefile}..."
-    _setup_juju ${ORIGIN_WD}/${imagefile}
+    _setup_juju ${imagefile}
 
     builtin cd $ORIGIN_WD
 }
diff --git a/tests/test_core.sh b/tests/test_core.sh
index 1a4be0c..1555303 100755
--- a/tests/test_core.sh
+++ b/tests/test_core.sh
@@ -69,6 +69,13 @@ function test_setup_from_file_juju(){
     is_equal $? 1 || return 1
 }
 
+function test_setup_from_file_juju_with_absolute_path(){
+    touch file
+    tar -czvf juju-${ARCH}.tar.gz file 1> /dev/null
+    setup_from_file_juju ${ORIGIN_WD}/juju-${ARCH}.tar.gz &> /dev/null
+    [ -e $JUJU_HOME/file ] || return 1
+    [ -e $JUJU_HOME/run/lock ] || return 1
+}
 
 function test_run_juju_as_root(){
     install_mini_juju