diff --git a/packager/hls/base/media_playlist.h b/packager/hls/base/media_playlist.h
index 23458bd1d3..9d5e22c7cd 100644
--- a/packager/hls/base/media_playlist.h
+++ b/packager/hls/base/media_playlist.h
@@ -61,7 +61,8 @@ class MediaPlaylist {
   };
 
   /// @param hls_params contains HLS parameters.
-  /// @param file_name is the file name of this media playlist.
+  /// @param file_name is the file name of this media playlist, relative to
+  ///        master playlist output path.
   /// @param name is the name of this playlist. In other words this is the
   ///        value of the NAME attribute for EXT-X-MEDIA. This is not
   ///        necessarily the same as @a file_name.
diff --git a/packager/hls/base/simple_hls_notifier.cc b/packager/hls/base/simple_hls_notifier.cc
index 6b8c11caa9..bf9926f2a1 100644
--- a/packager/hls/base/simple_hls_notifier.cc
+++ b/packager/hls/base/simple_hls_notifier.cc
@@ -281,7 +281,7 @@ SimpleHlsNotifier::SimpleHlsNotifier(const HlsParams& hls_params)
       media_playlist_factory_(new MediaPlaylistFactory()) {
   const base::FilePath master_playlist_path(
       base::FilePath::FromUTF8Unsafe(hls_params.master_playlist_output));
-  output_dir_ = master_playlist_path.DirName().AsUTF8Unsafe();
+  master_playlist_dir_ = master_playlist_path.DirName().AsUTF8Unsafe();
   const std::string& default_audio_langauge = hls_params.default_language;
   const std::string& default_text_language =
       hls_params.default_text_language.empty()
@@ -305,11 +305,14 @@ bool SimpleHlsNotifier::NotifyNewStream(const MediaInfo& media_info,
                                         uint32_t* stream_id) {
   DCHECK(stream_id);
 
+  const std::string relative_playlist_path = MakePathRelative(
+      playlist_name, FilePath::FromUTF8Unsafe(master_playlist_dir_));
+
   std::unique_ptr<MediaPlaylist> media_playlist =
-      media_playlist_factory_->Create(hls_params(), playlist_name, name,
-                                      group_id);
+      media_playlist_factory_->Create(hls_params(), relative_playlist_path,
+                                      name, group_id);
   MediaInfo adjusted_media_info = MakeMediaInfoPathsRelativeToPlaylist(
-      media_info, hls_params().base_url, output_dir_,
+      media_info, hls_params().base_url, master_playlist_dir_,
       media_playlist->file_name());
   if (!media_playlist->SetMediaInfo(adjusted_media_info)) {
     LOG(ERROR) << "Failed to set media info for playlist " << playlist_name;
@@ -353,8 +356,8 @@ bool SimpleHlsNotifier::NotifyNewSegment(uint32_t stream_id,
   }
   auto& media_playlist = stream_iterator->second->media_playlist;
   const std::string& segment_url =
-      GenerateSegmentUrl(segment_name, hls_params().base_url, output_dir_,
-                         media_playlist->file_name());
+      GenerateSegmentUrl(segment_name, hls_params().base_url,
+                         master_playlist_dir_, media_playlist->file_name());
   media_playlist->AddSegment(segment_url, start_time, duration,
                              start_byte_offset, size);
 
@@ -374,15 +377,15 @@ bool SimpleHlsNotifier::NotifyNewSegment(uint32_t stream_id,
     if (target_duration_updated) {
       for (MediaPlaylist* playlist : media_playlists_) {
         playlist->SetTargetDuration(target_duration_);
-        if (!WriteMediaPlaylist(output_dir_, playlist))
+        if (!WriteMediaPlaylist(master_playlist_dir_, playlist))
           return false;
       }
     } else {
-      if (!WriteMediaPlaylist(output_dir_, media_playlist.get()))
+      if (!WriteMediaPlaylist(master_playlist_dir_, media_playlist.get()))
         return false;
     }
-    if (!master_playlist_->WriteMasterPlaylist(hls_params().base_url,
-                                               output_dir_, media_playlists_)) {
+    if (!master_playlist_->WriteMasterPlaylist(
+            hls_params().base_url, master_playlist_dir_, media_playlists_)) {
       LOG(ERROR) << "Failed to write master playlist.";
       return false;
     }
@@ -482,11 +485,11 @@ bool SimpleHlsNotifier::Flush() {
   base::AutoLock auto_lock(lock_);
   for (MediaPlaylist* playlist : media_playlists_) {
     playlist->SetTargetDuration(target_duration_);
-    if (!WriteMediaPlaylist(output_dir_, playlist))
+    if (!WriteMediaPlaylist(master_playlist_dir_, playlist))
       return false;
   }
-  if (!master_playlist_->WriteMasterPlaylist(hls_params().base_url, output_dir_,
-                                             media_playlists_)) {
+  if (!master_playlist_->WriteMasterPlaylist(
+          hls_params().base_url, master_playlist_dir_, media_playlists_)) {
     LOG(ERROR) << "Failed to write master playlist.";
     return false;
   }
diff --git a/packager/hls/base/simple_hls_notifier.h b/packager/hls/base/simple_hls_notifier.h
index d835169191..e0632293b2 100644
--- a/packager/hls/base/simple_hls_notifier.h
+++ b/packager/hls/base/simple_hls_notifier.h
@@ -77,7 +77,7 @@ class SimpleHlsNotifier : public HlsNotifier {
     MediaPlaylist::EncryptionMethod encryption_method;
   };
 
-  std::string output_dir_;
+  std::string master_playlist_dir_;
   uint32_t target_duration_ = 0;
 
   std::unique_ptr<MediaPlaylistFactory> media_playlist_factory_;
diff --git a/packager/hls/base/simple_hls_notifier_unittest.cc b/packager/hls/base/simple_hls_notifier_unittest.cc
index 1b120d93d0..f816be95b4 100644
--- a/packager/hls/base/simple_hls_notifier_unittest.cc
+++ b/packager/hls/base/simple_hls_notifier_unittest.cc
@@ -379,6 +379,8 @@ struct RebaseUrlTestData {
   std::string master_playlist_dir;
   // Media playlist path. This may be relative or absolute.
   std::string playlist_path;
+  // Expected relative playlist path. It is path_relative_to(master_directory).
+  std::string expected_relative_playlist_path;
   // Media segment path. This may be relative or absolute.
   std::string segment_path;
   // Expected segment URL in the media playlist:
@@ -421,7 +423,7 @@ TEST_P(SimpleHlsNotifierRebaseUrlTest, Test) {
 
   // Pointer released by SimpleHlsNotifier.
   MockMediaPlaylist* mock_media_playlist =
-      new MockMediaPlaylist(test_data_.playlist_path, "", "");
+      new MockMediaPlaylist(test_data_.expected_relative_playlist_path, "", "");
 
   EXPECT_CALL(
       *mock_media_playlist,
@@ -433,8 +435,9 @@ TEST_P(SimpleHlsNotifierRebaseUrlTest, Test) {
     EXPECT_CALL(*mock_media_playlist,
                 AddSegment(test_data_.expected_segment_url, _, _, _, _));
   }
-  EXPECT_CALL(*factory, CreateMock(_, StrEq(test_data_.playlist_path),
-                                   StrEq("name"), StrEq("groupid")))
+  EXPECT_CALL(*factory,
+              CreateMock(_, StrEq(test_data_.expected_relative_playlist_path),
+                         StrEq("name"), StrEq("groupid")))
       .WillOnce(Return(mock_media_playlist));
 
   InjectMasterPlaylist(std::move(mock_master_playlist), &test_notifier);
@@ -459,35 +462,54 @@ INSTANTIATE_TEST_CASE_P(
     SimpleHlsNotifierRebaseUrlTest,
     ::testing::Values(
         // Verify relative segment path.
-        RebaseUrlTestData{
-            "http://testprefix.com/", "master_directory/",
-            "video_playlist.m3u8", "master_directory/path/to/media1.ts",
-            "http://testprefix.com/path/to/media1.ts",
-            "" /* init segment path */, "" /* expected init segment url */},
+        RebaseUrlTestData{"http://testprefix.com/", "master_directory/",
+                          "video_playlist.m3u8", "video_playlist.m3u8",
+                          "master_directory/path/to/media1.ts",
+                          "http://testprefix.com/path/to/media1.ts",
+                          "" /* init segment path */,
+                          "" /* expected init segment url */},
         // Verify relative init segment path.
         RebaseUrlTestData{"http://testprefix.com/", "master_directory/",
-                          "video_playlist.m3u8", "" /* segment path */,
-                          "" /* expected segment url */,
+                          "video_playlist.m3u8", "video_playlist.m3u8",
+                          "" /* segment path */, "" /* expected segment url */,
                           "master_directory/path/to/init.mp4",
                           "http://testprefix.com/path/to/init.mp4"},
         // Verify segment url relative to playlist.
         RebaseUrlTestData{
-            "" /* no base_url */, "master_directory/",
-            "video/video_playlist.m3u8",
+            "" /* no base url */, "master_directory/",
+            "video/video_playlist.m3u8", "video/video_playlist.m3u8",
             "master_directory/video/path/to/media1.m4s", "path/to/media1.m4s",
             "master_directory/video/path/to/init.mp4", "path/to/init.mp4"},
         // Verify absolute directory.
         RebaseUrlTestData{
             "http://testprefix.com/", "/tmp/something/", "video_playlist.m3u8",
-            "/tmp/something/media1.ts", "http://testprefix.com/media1.ts",
-            "" /* init segment path */, "" /* expected init segment url */},
+            "video_playlist.m3u8", "/tmp/something/media1.ts",
+            "http://testprefix.com/media1.ts", "" /* init segment path */,
+            "" /* expected init segment url */},
         // Verify absolute directory, but media in a different directory.
         // Note that we don't really expect this in practice.
-        RebaseUrlTestData{"http://testprefix.com/", "/tmp/something/",
-                          "video_playlist.m3u8", "/var/somewhereelse/media1.ts",
-                          "http://testprefix.com//var/somewhereelse/media1.ts",
-                          "" /* init segment path */,
-                          "" /* expected init segment url */}));
+        RebaseUrlTestData{
+            "http://testprefix.com/", "/tmp/something/", "video_playlist.m3u8",
+            "video_playlist.m3u8", "/var/somewhereelse/media1.ts",
+            "http://testprefix.com//var/somewhereelse/media1.ts",
+            "" /* init segment path */, "" /* expected init segment url */
+        },
+        // Verify absolute directory, absolute media playlist path.
+        RebaseUrlTestData{
+            "http://testprefix.com/", "/tmp/something/",
+            "/tmp/something/video/video_playlist.m3u8",
+            "video/video_playlist.m3u8", "/tmp/something/video/media1.ts",
+            "http://testprefix.com/video/media1.ts", "" /* init segment path */,
+            "" /* expected init segment url */
+        },
+        // Same as above, but without base_url.
+        RebaseUrlTestData{
+            "" /* no base url */, "/tmp/something/",
+            "/tmp/something/video/video_playlist.m3u8",
+            "video/video_playlist.m3u8", "/tmp/something/video/media1.ts",
+            "media1.ts", "" /* init segment path */,
+            "" /* expected init segment url */
+        }));
 
 class LiveOrEventSimpleHlsNotifierTest
     : public SimpleHlsNotifierTest,