diff --git a/autotests/kurlnavigatortest.cpp b/autotests/kurlnavigatortest.cpp
--- a/autotests/kurlnavigatortest.cpp
+++ b/autotests/kurlnavigatortest.cpp
@@ -203,6 +203,11 @@
     QTest::newRow("homeDir") << QStringLiteral("~") << QUrl::fromLocalFile(QDir::homePath());
     KUser user(KUser::UseRealUserID);
     QTest::newRow("userHomeDir") << (QStringLiteral("~") + user.loginName()) << QUrl::fromLocalFile(user.homeDir());
+    QTest::newRow("relativeFile") << QStringLiteral(".dotfile") << QUrl::fromLocalFile(QStringLiteral("/home/foo/.dotfile"));
+    QTest::newRow("relativeDir") << QStringLiteral("some_directory") << QUrl::fromLocalFile(QStringLiteral("/home/foo/some_directory"));
+    QTest::newRow("tildePath") << QStringLiteral("~/dir") << QUrl::fromUserInput(QStringLiteral("dir"), QDir::homePath(), QUrl::AssumeLocalFile);
+    QTest::newRow("pathwithtilde") << QStringLiteral("/home/user/dir/~/subdir") << QUrl::fromLocalFile(QStringLiteral("/home/user/dir/~/subdir"));
+    QTest::newRow("dotslash") << QStringLiteral("./~") << QUrl::fromLocalFile(QStringLiteral("/home/foo/~"));
 }
 
 void KUrlNavigatorTest::testUrlParsing()
@@ -213,6 +218,7 @@
     m_navigator->setLocationUrl(QUrl());
     m_navigator->setUrlEditable(true);
     m_navigator->editor()->setCurrentText(input);
+    m_navigator->setDirectory(QUrl::fromLocalFile("/home/foo"));
     QCOMPARE(m_navigator->uncommittedUrl(), url);
     QTest::keyClick(m_navigator->editor(), Qt::Key_Enter);
     QCOMPARE(m_navigator->locationUrl(), url);
diff --git a/src/filewidgets/kurlnavigator.h b/src/filewidgets/kurlnavigator.h
--- a/src/filewidgets/kurlnavigator.h
+++ b/src/filewidgets/kurlnavigator.h
@@ -195,6 +195,9 @@
      */
     bool isUrlEditable() const;
 
+    void setDirectory(const QUrl &url);
+    QUrl directory() const;
+
     /**
      * Shows the full path of the URL even if a place represents a part of the URL.
      * Assuming that a place called "Pictures" uses the URL /home/user/Pictures.
diff --git a/src/filewidgets/kurlnavigator.cpp b/src/filewidgets/kurlnavigator.cpp
--- a/src/filewidgets/kurlnavigator.cpp
+++ b/src/filewidgets/kurlnavigator.cpp
@@ -192,6 +192,7 @@
     QStringList m_customProtocols;
     QWidget *m_dropWidget;
     KUrlNavigator *q;
+    KUrlCompletion *m_urlCompletion;
 };
 
 KUrlNavigator::Private::Private(KUrlNavigator *q, KFilePlacesModel *placesModel) :
@@ -250,8 +251,8 @@
     m_pathBox->setSizeAdjustPolicy(QComboBox::AdjustToMinimumContentsLength);
     m_pathBox->installEventFilter(q);
 
-    KUrlCompletion *kurlCompletion = new KUrlCompletion(KUrlCompletion::DirCompletion);
-    m_pathBox->setCompletionObject(kurlCompletion);
+    m_urlCompletion = new KUrlCompletion(KUrlCompletion::DirCompletion);
+    m_pathBox->setCompletionObject(m_urlCompletion);
     m_pathBox->setAutoDeleteCompletionObject(true);
 
     connect(m_pathBox, SIGNAL(returnPressed()),
@@ -1002,13 +1003,24 @@
 
 QUrl KUrlNavigator::uncommittedUrl() const
 {
-    KUriFilterData filteredData(d->m_pathBox->currentText().trimmed());
+    QString input = d->m_pathBox->currentText().trimmed();
+
+    // Always expand starting ~/ to $HOME. We want all inputs starting with it to point home directory.
+    // The reason this expansion is performed here, is that kshorturifilter will not return the desired result
+    // if said directory does not exist.
+    if (input.startsWith(QStringLiteral("~/"))) {
+        input.replace(0, 1, QDir::homePath());
+    }
+
+    const QUrl url = QUrl::fromUserInput(input, directory().path(), QUrl::AssumeLocalFile);
+    KUriFilterData filteredData(url, input);
     filteredData.setCheckForExecutables(false);
+
     if (KUriFilter::self()->filterUri(filteredData, QStringList() << QStringLiteral("kshorturifilter") << QStringLiteral("kurisearchfilter"))) {
         return filteredData.uri();
-    } else {
-        return QUrl::fromUserInput(filteredData.typedString());
     }
+
+    return url;
 }
 
 void KUrlNavigator::setLocationUrl(const QUrl &newUrl)
@@ -1234,6 +1246,17 @@
     return d->m_dropWidget;
 }
 
+void KUrlNavigator::setDirectory(const QUrl &url)
+{
+    d->m_urlCompletion->setDir(url);
+}
+
+QUrl KUrlNavigator::directory() const
+{
+    return d->m_urlCompletion->dir();
+}
+
+
 #ifndef KIOFILEWIDGETS_NO_DEPRECATED
 const QUrl &KUrlNavigator::url() const
 {
diff --git a/src/widgets/kurifilter.h b/src/widgets/kurifilter.h
--- a/src/widgets/kurifilter.h
+++ b/src/widgets/kurifilter.h
@@ -222,6 +222,13 @@
      */
     KUriFilterData();
 
+    /**
+     * Creates a KUriFilterData object from the given URL and given string
+     * @param url
+     * @param typedString
+     */
+    explicit KUriFilterData(const QUrl &url, const QString &typedString);
+
     /**
      * Creates a KUriFilterData object from the given URL.
      *
diff --git a/src/widgets/kurifilter.cpp b/src/widgets/kurifilter.cpp
--- a/src/widgets/kurifilter.cpp
+++ b/src/widgets/kurifilter.cpp
@@ -262,6 +262,11 @@
 {
 }
 
+KUriFilterData::KUriFilterData(const QUrl &url, const QString &typedString)
+        : d(new KUriFilterDataPrivate(url, typedString))
+{
+}
+
 KUriFilterData::KUriFilterData(const QUrl &url)
     : d(new KUriFilterDataPrivate(url, url.toString()))
 {