diff --git a/lisp/ob-lisp.el b/lisp/ob-lisp.el
index a11a300c1..a7c4ec576 100644
--- a/lisp/ob-lisp.el
+++ b/lisp/ob-lisp.el
@@ -73,8 +73,13 @@
     (with-temp-buffer
       (insert (org-babel-expand-body:lisp body params))
       (slime-eval `(swank:eval-and-grab-output
-		    ,(format "(progn %s)" (buffer-substring-no-properties
-					   (point-min) (point-max))))
+		    ,(format "(let ((*default-pathname-defaults* %S)) %s)"
+			     (let ((dir (if (assoc :dir params)
+					    (cdr (assoc :dir params))
+					  default-directory)))
+			       (when dir (concat "#P" dir)))
+			     (buffer-substring-no-properties
+			      (point-min) (point-max))))
 		  (cdr (assoc :package params)))))
    (org-babel-pick-name (cdr (assoc :colname-names params))
 			(cdr (assoc :colnames params)))