diff --git a/NEWS.md b/NEWS.md
index ac2b34a6..a6448607 100644
--- a/NEWS.md
+++ b/NEWS.md
@@ -3,6 +3,9 @@
 * New `path_select_components()` function to select components of one or
   more paths (#326, @Tazinho).
 
+* `dir_exists()` follows relative symlinks in non-current directories
+  (@heavywatal, #395).
+
 # fs 1.6.6
 
 * No changes.
diff --git a/R/access.R b/R/access.R
index 538bed52..8aeeb1ed 100644
--- a/R/access.R
+++ b/R/access.R
@@ -44,7 +44,7 @@ dir_exists <- function(path) {
   res <- is_dir(path)
 
   links <- is_link(path)
-  res[links] <- is_dir(link_path(path[links]))
+  res[links] <- is_dir(path_real(path[links]))
 
   !is.na(res) & res
 }
diff --git a/tests/testthat/test-access.R b/tests/testthat/test-access.R
index 26cf1481..71f1241f 100644
--- a/tests/testthat/test-access.R
+++ b/tests/testthat/test-access.R
@@ -34,6 +34,9 @@ describe("file_access", {
 
 with_dir_tree(list("foo/bar"  = "test"), {
   link_create(path_abs("foo"), "loo")
+  if (!is_windows()) {
+    link_create("foo", "relloo")
+  }
 
   describe("file_exists", {
     it("returns true for files that exist, false for those that do not", {
@@ -64,6 +67,15 @@ with_dir_tree(list("foo/bar"  = "test"), {
     })
     it("returns true for links to directories, like -d in bash", {
         expect_equal(dir_exists("loo"), c(loo = TRUE))
+        if (!is_windows()) {
+          expect_equal(dir_exists("relloo"), c(relloo = TRUE))
+        }
+        .old_wd <- setwd("foo")
+        expect_equal(dir_exists("../loo"), c("../loo" = TRUE))
+        if (!is_windows()) {
+          expect_equal(dir_exists("../relloo"), c("../relloo" = TRUE))
+        }
+        setwd(.old_wd)
     })
     it("returns FALSE on missing input", {
       expect_identical(dir_exists(NA_character_), structure(names = NA, FALSE))