diff --git a/lib/fakefs/file.rb b/lib/fakefs/file.rb
index 04e30c7..2ed69e2 100644
--- a/lib/fakefs/file.rb
+++ b/lib/fakefs/file.rb
@@ -37,7 +37,12 @@ module FakeFS
     end
 
     def self.exist?(path)
-      !!FileSystem.find(path)
+      if(File.symlink?(path)) then
+        referent = File.expand_path(File.readlink(path), File.dirname(path))
+        exist?(referent)
+      else
+        !!FileSystem.find(path)
+      end
     end
 
     class << self
@@ -132,7 +137,7 @@ module FakeFS
 
     def self.readlink(path)
       symlink = FileSystem.find(path)
-      FileSystem.find(symlink.target).to_s
+      symlink.target
     end
 
     def self.read(path)
diff --git a/lib/fakefs/file_system.rb b/lib/fakefs/file_system.rb
index 1c6f851..a5c8087 100644
--- a/lib/fakefs/file_system.rb
+++ b/lib/fakefs/file_system.rb
@@ -7,7 +7,7 @@ module FakeFS
     end
 
     def fs
-      @fs ||= FakeDir.new('.')
+      @fs ||= FakeDir.new('/')
     end
 
     def clear
diff --git a/test/fakefs_test.rb b/test/fakefs_test.rb
index eda6ea2..ffb1169 100644
--- a/test/fakefs_test.rb
+++ b/test/fakefs_test.rb
@@ -117,6 +117,11 @@ class FakeFSTest < Test::Unit::TestCase
     assert File.exists?(path)
   end
 
+  def test_symlink_with_missing_refferent_does_not_exist
+    File.symlink('/foo', '/bar')
+    assert !File.exists?('/bar')
+  end
+
   def test_can_create_symlinks
     FileUtils.mkdir_p(target = "/path/to/target")
     FileUtils.ln_s(target, "/path/to/link")
@@ -155,6 +160,27 @@ class FakeFSTest < Test::Unit::TestCase
     assert_equal target, File.readlink(link)
   end
 
+  def test_symlink_with_relative_path_exists
+    FileUtils.touch("/file")
+    FileUtils.mkdir_p("/a/b")
+    FileUtils.ln_s("../../file", link = "/a/b/symlink")
+    assert File.exist?('/a/b/symlink')
+  end
+
+  def test_symlink_with_relative_path_and_nonexistant_file_does_not_exist
+    FileUtils.touch("/file")
+    FileUtils.mkdir_p("/a/b")
+    FileUtils.ln_s("../../file_foo", link = "/a/b/symlink")
+    assert !File.exist?('/a/b/symlink')
+  end
+
+  def test_symlink_with_relative_path_has_correct_target
+    FileUtils.touch("/file")
+    FileUtils.mkdir_p("/a/b")
+    FileUtils.ln_s("../../file", link = "/a/b/symlink")
+    assert_equal "../../file", File.readlink(link)
+  end
+
   def test_symlinks_to_symlinks
     FileUtils.mkdir_p(target = "/path/to/foo/target")
     FileUtils.mkdir_p("/path/to/bar")
@@ -685,7 +711,7 @@ class FakeFSTest < Test::Unit::TestCase
     FileUtils.mkdir_p '/path'
 
     # this fails. the root dir should be named '/' but it is '.'
-    #assert_equal ['/'], Dir['/']
+    assert_equal ['/'], Dir['/']
   end
 
   def test_dir_glob_handles_recursive_globs
@@ -781,14 +807,14 @@ class FakeFSTest < Test::Unit::TestCase
   def test_chdir_changes_directories_like_a_boss
     # I know memes!
     FileUtils.mkdir_p '/path'
-    assert_equal '.', FileSystem.fs.name
+    assert_equal '/', FileSystem.fs.name
     assert_equal({}, FileSystem.fs['path'])
     Dir.chdir '/path' do
       File.open('foo', 'w') { |f| f.write 'foo'}
       File.open('foobar', 'w') { |f| f.write 'foo'}
     end
 
-    assert_equal '.', FileSystem.fs.name
+    assert_equal '/', FileSystem.fs.name
     assert_equal(['foo', 'foobar'], FileSystem.fs['path'].keys.sort)
 
     c = nil