diff --git a/dvc/repo/move.py b/dvc/repo/move.py
index 6b1e0a6f6..46b4fc98b 100644
--- a/dvc/repo/move.py
+++ b/dvc/repo/move.py
@@ -52,7 +52,9 @@ def move(self, from_path, to_path):
             os.path.basename(to_path) + Stage.STAGE_FILE_SUFFIX,
         )
 
-        stage.cwd = os.path.join(self.root_dir, os.path.dirname(to_path))
+        stage.cwd = os.path.abspath(
+            os.path.join(os.curdir, os.path.dirname(to_path))
+        )
 
     to_out = Output.loads_from(
         stage, [os.path.basename(to_path)], out.cache, out.metric
diff --git a/dvc/utils/compat.py b/dvc/utils/compat.py
index da16b3afc..c72871dec 100644
--- a/dvc/utils/compat.py
+++ b/dvc/utils/compat.py
@@ -2,6 +2,7 @@
 
 import sys
 import os
+import errno
 
 
 # Syntax sugar.
@@ -42,8 +43,9 @@ def _makedirs(name, mode=0o777, exist_ok=False):
     if head and tail and not os.path.exists(head):
         try:
             _makedirs(head, exist_ok=exist_ok)
-        except FileExistsError:
-            pass
+        except OSError as e:
+            if e.errno == errno.EEXIST:
+                pass
         cdir = os.curdir
         if isinstance(tail, bytes):
             cdir = bytes(os.curdir, "ASCII")
diff --git a/tests/test_move.py b/tests/test_move.py
index cff338801..297400ae1 100644
--- a/tests/test_move.py
+++ b/tests/test_move.py
@@ -6,7 +6,7 @@ from dvc.stage import Stage
 
 from tests.basic_env import TestDvc
 from tests.test_repro import TestRepro
-from tests.utils import load_stage_file
+from tests.utils import load_stage_file, cd
 
 
 class TestMove(TestDvc):
@@ -168,3 +168,17 @@ class TestMoveFileBetweenDirectories(TestDvc):
         self.assertEqual(
             os.path.basename(self.DATA), new_stage_file["outs"][0]["path"]
         )
+
+
+class TestMoveFileInsideDirectory(TestDvc):
+    def test(self):
+        ret = main(["add", "data_dir/data"])
+        self.assertEqual(ret, 0)
+
+        with cd("data_dir"):
+            ret = main(["move", "data", "data.txt"])
+            self.assertEqual(ret, 0)
+
+        self.assertFalse(os.path.exists("data_dir/data"))
+        self.assertTrue(os.path.exists("data_dir/data.txt"))
+        self.assertTrue(os.path.exists("data_dir/data.txt.dvc"))
diff --git a/tests/utils/__init__.py b/tests/utils/__init__.py
index d4e2f91e1..d39ef5d9a 100644
--- a/tests/utils/__init__.py
+++ b/tests/utils/__init__.py
@@ -1,5 +1,7 @@
 import yaml
+import os
 from mock import MagicMock
+from contextlib import contextmanager
 
 
 def spy(method_to_decorate):
@@ -16,3 +18,13 @@ def spy(method_to_decorate):
 def load_stage_file(path):
     with open(path, "r") as fobj:
         return yaml.safe_load(fobj)
+
+
+@contextmanager
+def cd(newdir):
+    prevdir = os.getcwd()
+    os.chdir(os.path.expanduser(newdir))
+    try:
+        yield
+    finally:
+        os.chdir(prevdir)