diff --git a/plug-api/lib/resolve.test.ts b/plug-api/lib/resolve.test.ts
index fc81dbe..f79cb61 100644
--- a/plug-api/lib/resolve.test.ts
+++ b/plug-api/lib/resolve.test.ts
@@ -1,6 +1,7 @@
 import {
   cleanPageRef,
   federatedPathToUrl,
+  resolveAttachmentPath,
   resolvePath,
   rewritePageRefs,
 } from "$sb/lib/resolve.ts";
@@ -90,4 +91,22 @@ This is a [[!silverbullet.md/local link]] and [[!silverbullet.md/local link|with
     rewrittenText,
     `This is a [[local link]] and [[local link|with alias]].`,
   );
+
+  assertEquals("test.jpg", resolveAttachmentPath("test", "test.jpg"));
+  assertEquals(
+    "folder/test.jpg",
+    resolveAttachmentPath("folder/test", "test.jpg"),
+  );
+  assertEquals(
+    "test.jpg",
+    resolveAttachmentPath("folder/test", "/test.jpg"),
+  );
+  assertEquals(
+    "https://silverbullet.md/something/test.jpg",
+    resolveAttachmentPath("!silverbullet.md/something/bla", "test.jpg"),
+  );
+  assertEquals(
+    "https://silverbullet.md/test.jpg",
+    resolveAttachmentPath("!silverbullet.md/something/bla", "/test.jpg"),
+  );
 });
diff --git a/plug-api/lib/resolve.ts b/plug-api/lib/resolve.ts
index 08acdce..84c2ff1 100644
--- a/plug-api/lib/resolve.ts
+++ b/plug-api/lib/resolve.ts
@@ -16,7 +16,24 @@ export function resolvePath(
   }
 }
 
+export function resolveAttachmentPath(
+  currentPage: string,
+  pathToResolve: string,
+): string {
+  const folder = folderName(currentPage);
+  if (folder && !pathToResolve.startsWith("/")) {
+    pathToResolve = folder + "/" + pathToResolve;
+  }
+  if (pathToResolve.startsWith("/")) {
+    pathToResolve = pathToResolve.slice(1);
+  }
+  return federatedPathToUrl(resolvePath(currentPage, pathToResolve));
+}
+
 export function federatedPathToUrl(path: string): string {
+  if (!path.startsWith("!")) {
+    return path;
+  }
   path = path.substring(1);
   if (path.startsWith("localhost")) {
     path = "http://" + path;
@@ -101,3 +118,7 @@ export function cleanPageRef(pageRef: string) {
     return pageRef;
   }
 }
+
+export function folderName(path: string) {
+  return path.split("/").slice(0, -1).join("/");
+}
diff --git a/plugs/editor/navigate.ts b/plugs/editor/navigate.ts
index b0828af..a26f3b6 100644
--- a/plugs/editor/navigate.ts
+++ b/plugs/editor/navigate.ts
@@ -7,7 +7,7 @@ import {
   nodeAtPos,
   ParseTree,
 } from "$sb/lib/tree.ts";
-import { resolvePath } from "$sb/lib/resolve.ts";
+import { resolveAttachmentPath, resolvePath } from "$sb/lib/resolve.ts";
 
 async function actionClickOrActionEnter(
   mdTree: ParseTree | null,
@@ -79,7 +79,9 @@ async function actionClickOrActionEnter(
         return editor.flashNotification("Empty link, ignoring", "error");
       }
       if (url.indexOf("://") === -1 && !url.startsWith("mailto:")) {
-        return editor.openUrl(resolvePath(currentPage, decodeURI(url)));
+        return editor.openUrl(
+          resolveAttachmentPath(currentPage, decodeURI(url)),
+        );
       } else {
         await editor.openUrl(url);
       }
@@ -93,8 +95,11 @@ async function actionClickOrActionEnter(
       try {
         const args = argsText ? JSON.parse(`[${argsText}]`) : [];
         await system.invokeCommand(commandName, args);
-      } catch(e: any) {
-        await editor.flashNotification(`Error parsing command link arguments: ${e.message}`, "error");
+      } catch (e: any) {
+        await editor.flashNotification(
+          `Error parsing command link arguments: ${e.message}`,
+          "error",
+        );
       }
       break;
     }
diff --git a/plugs/markdown/preview.ts b/plugs/markdown/preview.ts
index 1020750..556b6a9 100644
--- a/plugs/markdown/preview.ts
+++ b/plugs/markdown/preview.ts
@@ -1,8 +1,7 @@
 import { asset, clientStore, editor, markdown, system } from "$sb/syscalls.ts";
 import { renderMarkdownToHtml } from "./markdown_render.ts";
-import { resolvePath } from "$sb/lib/resolve.ts";
+import { resolveAttachmentPath } from "$sb/lib/resolve.ts";
 import { expandCodeWidgets } from "./api.ts";
-import { folderName, resolve } from "../../common/path.ts";
 
 export async function updateMarkdownPreview() {
   if (!(await clientStore.get("enableMarkdownPreview"))) {
@@ -19,14 +18,9 @@ export async function updateMarkdownPreview() {
   const html = renderMarkdownToHtml(mdTree, {
     smartHardBreak: true,
     annotationPositions: true,
-    translateUrls: (url, type) => {
+    translateUrls: (url) => {
       if (!url.includes("://")) {
-        if (type === "image" && !url.startsWith("/")) {
-          // Make relative to current folder
-          url = resolve(folderName(currentPage), decodeURI(url));
-        } else if (type === "link") { // link
-          url = resolvePath(currentPage, decodeURI(url), true);
-        }
+        url = resolveAttachmentPath(currentPage, decodeURI(url));
       }
       return url;
     },
diff --git a/web/cm_plugins/clean.ts b/web/cm_plugins/clean.ts
index 65f2656..4ca2f6c 100644
--- a/web/cm_plugins/clean.ts
+++ b/web/cm_plugins/clean.ts
@@ -16,7 +16,7 @@ import { fencedCodePlugin } from "./fenced_code.ts";
 
 export function cleanModePlugins(editor: Client) {
   return [
-    linkPlugin(),
+    linkPlugin(editor),
     directivePlugin(),
     blockquotePlugin(),
     admonitionPlugin(editor),
diff --git a/web/cm_plugins/inline_image.ts b/web/cm_plugins/inline_image.ts
index d87791e..566bcda 100644
--- a/web/cm_plugins/inline_image.ts
+++ b/web/cm_plugins/inline_image.ts
@@ -8,8 +8,7 @@ import {
 import { decoratorStateField } from "./util.ts";
 
 import type { Client } from "../client.ts";
-import { resolvePath } from "$sb/lib/resolve.ts";
-import { folderName, resolve } from "../../common/path.ts";
+import { resolveAttachmentPath, resolvePath } from "$sb/lib/resolve.ts";
 
 class InlineImageWidget extends WidgetType {
   constructor(
@@ -77,11 +76,8 @@ export function inlineImagesPlugin(client: Client) {
         let url = imageRexexResult.groups.url;
         const title = imageRexexResult.groups.title;
 
-        const currentPage = client.currentPage!;
-        const currentFolder = folderName(currentPage);
-
         if (url.indexOf("://") === -1 && !url.startsWith("/")) {
-          url = resolve(currentFolder, decodeURI(url));
+          url = resolveAttachmentPath(client.currentPage!, decodeURI(url));
         }
         widgets.push(
           Decoration.widget({
diff --git a/web/cm_plugins/link.ts b/web/cm_plugins/link.ts
index 3cf0f56..a7a917d 100644
--- a/web/cm_plugins/link.ts
+++ b/web/cm_plugins/link.ts
@@ -1,3 +1,5 @@
+import { resolveAttachmentPath } from "$sb/lib/resolve.ts";
+import { Client } from "../client.ts";
 import { Decoration, syntaxTree } from "../deps.ts";
 import {
   decoratorStateField,
@@ -5,7 +7,7 @@ import {
   isCursorInRange,
 } from "./util.ts";
 
-export function linkPlugin() {
+export function linkPlugin(client: Client) {
   return decoratorStateField((state) => {
     const widgets: any[] = [];
 
@@ -31,7 +33,14 @@ export function linkPlugin() {
           return;
         }
         const cleanAnchor = anchorPart.substring(1); // cut off the initial [
-        const cleanLink = linkPart.substring(0, linkPart.length - 1); // cut off the final )
+        let cleanLink = linkPart.substring(0, linkPart.length - 1); // cut off the final )
+
+        if (!cleanLink.includes("://")) {
+          cleanLink = resolveAttachmentPath(
+            client.currentPage!,
+            decodeURI(cleanLink),
+          );
+        }
 
         // Hide the start [
         widgets.push(
diff --git a/web/cm_plugins/table.ts b/web/cm_plugins/table.ts
index 492049e..88e9e9f 100644
--- a/web/cm_plugins/table.ts
+++ b/web/cm_plugins/table.ts
@@ -9,8 +9,7 @@ import { renderMarkdownToHtml } from "../../plugs/markdown/markdown_render.ts";
 import { ParseTree } from "$sb/lib/tree.ts";
 import { lezerToParseTree } from "../../common/markdown_parser/parse_tree.ts";
 import type { Client } from "../client.ts";
-import { resolvePath } from "$sb/lib/resolve.ts";
-import { folderName, resolve } from "../../common/path.ts";
+import { resolveAttachmentPath } from "$sb/lib/resolve.ts";
 
 class TableViewWidget extends WidgetType {
   constructor(
@@ -39,14 +38,9 @@ class TableViewWidget extends WidgetType {
       // Annotate every element with its position so we can use it to put
       // the cursor there when the user clicks on the table.
       annotationPositions: true,
-      translateUrls: (url, type) => {
+      translateUrls: (url) => {
         if (!url.includes("://")) {
-          if (type === "image" && !url.startsWith("/")) {
-            // Make relative to current folder
-            url = resolve(folderName(this.editor.currentPage!), decodeURI(url));
-          } else if (type === "link") { // link
-            url = resolvePath(this.editor.currentPage!, decodeURI(url), true);
-          }
+          url = resolveAttachmentPath(this.editor.currentPage!, decodeURI(url));
         }
 
         return url;
diff --git a/website/CHANGELOG.md b/website/CHANGELOG.md
index 11f94ca..b40677c 100644
--- a/website/CHANGELOG.md
+++ b/website/CHANGELOG.md
@@ -11,6 +11,7 @@ release.
 * A new `silverbullet sync` command to [[Sync]] spaces (early days, use with caution)
 * Technical refactoring in preparation for multi-tenant deployment support (allowing you to run a single SB instance and serve multiple spaces and users at the same time)
   * Lazy everything: plugs are now lazily loaded (after a first load,  manifests are cached). On the server side, a whole lot of infrastructure is now only booted once the first HTTP request comes in
+* Non-external URLs used in links (`[page](url)` syntax and `![alt](url)` image syntax) are now relative to the page's folder, unless their URL starts with a `/` then they're relative to the space root.
 
 ---