diff --git a/dvc/parsing/context.py b/dvc/parsing/context.py
index ee0e07e75..d2df9ae9c 100644
--- a/dvc/parsing/context.py
+++ b/dvc/parsing/context.py
@@ -401,9 +401,9 @@ class Context(CtxDict):
     ):
         path, _, keys_str = item.partition(":")
         select_keys = lfilter(bool, keys_str.split(",")) if keys_str else None
-        path_info = wdir / path
 
-        abspath = os.path.abspath(path_info)
+        abspath = os.path.abspath(wdir / path)
+        path_info = PathInfo(abspath)
         if abspath in self.imports:
             if not select_keys and self.imports[abspath] is None:
                 return  # allow specifying complete filepath multiple times
diff --git a/tests/func/parsing/test_resolver.py b/tests/func/parsing/test_resolver.py
index 16f38917c..baa18ebf9 100644
--- a/tests/func/parsing/test_resolver.py
+++ b/tests/func/parsing/test_resolver.py
@@ -1,10 +1,11 @@
+import os
 from copy import deepcopy
 
 import pytest
 
 from dvc.parsing import DEFAULT_PARAMS_FILE, DataResolver, ResolveError
 from dvc.parsing.context import Context
-from dvc.utils.serialize import dump_json, dump_yaml
+from dvc.utils.serialize import dump_json, dump_yaml, dumps_yaml
 
 from . import CONTEXT_DATA, RESOLVED_DVC_YAML_DATA, TEMPLATED_DVC_YAML_DATA
 
@@ -67,6 +68,19 @@ def test_load_vars_from_file(tmp_dir, dvc):
     assert resolver.context == expected
 
 
+def test_load_vars_with_relpath(tmp_dir, scm, dvc):
+    tmp_dir.scm_gen(DEFAULT_PARAMS_FILE, dumps_yaml(DATA), commit="add params")
+
+    subdir = tmp_dir / "subdir"
+    d = {"vars": [os.path.relpath(tmp_dir / DEFAULT_PARAMS_FILE, subdir)]}
+
+    revisions = ["HEAD", "workspace"]
+    for rev in dvc.brancher(revs=["HEAD"]):
+        assert rev == revisions.pop()
+        resolver = DataResolver(dvc, subdir, d)
+        assert resolver.context == deepcopy(DATA)
+
+
 def test_partial_vars_doesnot_exist(tmp_dir, dvc):
     dump_yaml("test_params.yaml", {"sub1": "sub1"})