diff --git a/appview/reporesolver/resolver.go b/appview/reporesolver/resolver.go
index 2a924cb9..c7fe61ed 100644
--- a/appview/reporesolver/resolver.go
+++ b/appview/reporesolver/resolver.go
@@ -63,7 +63,7 @@ func (rr *RepoResolver) GetRepoInfo(r *http.Request, user *oauth.User) repoinfo.
 	}
 
 	// get dir/ref
-	currentDir := path.Dir(extractPathAfterRef(r.URL.EscapedPath()))
+	currentDir := extractCurrentDir(r.URL.EscapedPath())
 	ref := chi.URLParam(r, "ref")
 
 	repoAt := repo.RepoAt()
@@ -132,6 +132,31 @@ func (rr *RepoResolver) GetRepoInfo(r *http.Request, user *oauth.User) repoinfo.
 	return repoInfo
 }
 
+// extractCurrentDir gets the current directory for markdown link resolution.
+// for blob paths, returns the parent dir. for tree paths, returns the path itself.
+//
+//	/@user/repo/blob/main/docs/README.md => docs
+//	/@user/repo/tree/main/docs           => docs
+func extractCurrentDir(fullPath string) string {
+	fullPath = strings.TrimPrefix(fullPath, "/")
+
+	blobPattern := regexp.MustCompile(`blob/[^/]+/(.*)$`)
+	if matches := blobPattern.FindStringSubmatch(fullPath); len(matches) > 1 {
+		return path.Dir(matches[1])
+	}
+
+	treePattern := regexp.MustCompile(`tree/[^/]+/(.*)$`)
+	if matches := treePattern.FindStringSubmatch(fullPath); len(matches) > 1 {
+		dir := strings.TrimSuffix(matches[1], "/")
+		if dir == "" {
+			return "."
+		}
+		return dir
+	}
+
+	return "."
+}
+
 // extractPathAfterRef gets the actual repository path
 // after the ref. for example:
 //
diff --git a/appview/reporesolver/resolver_test.go b/appview/reporesolver/resolver_test.go
new file mode 100644
index 00000000..5a620aaf
--- /dev/null
+++ b/appview/reporesolver/resolver_test.go
@@ -0,0 +1,22 @@
+package reporesolver
+
+import "testing"
+
+func TestExtractCurrentDir(t *testing.T) {
+	tests := []struct {
+		path string
+		want string
+	}{
+		{"/@user/repo/blob/main/docs/README.md", "docs"},
+		{"/@user/repo/blob/main/README.md", "."},
+		{"/@user/repo/tree/main/docs", "docs"},
+		{"/@user/repo/tree/main/docs/", "docs"},
+		{"/@user/repo/tree/main", "."},
+	}
+
+	for _, tt := range tests {
+		if got := extractCurrentDir(tt.path); got != tt.want {
+			t.Errorf("extractCurrentDir(%q) = %q, want %q", tt.path, got, tt.want)
+		}
+	}
+}