diff --git a/ghost/admin/app/components/gh-navitem-url-input.js b/ghost/admin/app/components/gh-navitem-url-input.js
index 20130684db..2d061e105b 100644
--- a/ghost/admin/app/components/gh-navitem-url-input.js
+++ b/ghost/admin/app/components/gh-navitem-url-input.js
@@ -88,14 +88,13 @@ export default TextField.extend({
     },
 
     notifyUrlChanged() {
-        let value = this.get('value').trim();
+        let url = this.get('value').trim();
         let urlParts = document.createElement('a');
         let baseUrl = this.get('baseUrl');
         let baseUrlParts = document.createElement('a');
-        let url = value;
 
         // ensure value property is trimmed
-        this.set('value', value);
+        this.set('value', url);
 
         // leverage the browser's native URI parsing
         urlParts.href = url;
@@ -113,12 +112,28 @@ export default TextField.extend({
             this.set('value', url);
         }
 
-        // remove the base url before sending to action
-        if (urlParts.host === baseUrlParts.host && !url.match(/^#/)) {
+        // get our baseUrl relativity checks in order
+        let isOnSameHost = urlParts.host === baseUrlParts.host;
+        let isAnchorLink = url.match(/^#/);
+        let isRelativeToBasePath = urlParts.pathname.indexOf(baseUrlParts.pathname) === 0;
+
+        // if our pathname is only missing a trailing / mark it as relative
+        if (`${urlParts.pathname}/` === baseUrlParts.pathname) {
+            isRelativeToBasePath = true;
+        }
+
+        // if relative to baseUrl, remove the base url before sending to action
+        if (!isAnchorLink && isOnSameHost && isRelativeToBasePath) {
             url = url.replace(/^[a-zA-Z0-9\-]+:/, '');
             url = url.replace(/^\/\//, '');
             url = url.replace(baseUrlParts.host, '');
             url = url.replace(baseUrlParts.pathname, '');
+
+            // handle case where url path is same as baseUrl path but missing trailing slash
+            if (urlParts.pathname.slice(-1) !== '/') {
+                url = url.replace(baseUrlParts.pathname.slice(0, -1), '');
+            }
+
             if (!url.match(/^\//)) {
                 url = `/${url}`;
             }
diff --git a/ghost/admin/tests/integration/components/gh-navitem-url-input-test.js b/ghost/admin/tests/integration/components/gh-navitem-url-input-test.js
index 1314a8cbad..edcfcdaa99 100644
--- a/ghost/admin/tests/integration/components/gh-navitem-url-input-test.js
+++ b/ghost/admin/tests/integration/components/gh-navitem-url-input-test.js
@@ -320,35 +320,6 @@ describeComponent(
             testUrl('test/nested');
         });
 
-        it('handles a baseUrl with a path component', function () {
-            let expectedUrl = '';
-
-            this.set('baseUrl', `${currentUrl}blog/`);
-
-            this.on('updateUrl', (url) => {
-                expect(url).to.equal(expectedUrl);
-            });
-
-            this.render(hbs `
-                {{gh-navitem-url-input baseUrl=baseUrl url=url last=isLast change="updateUrl"}}
-            `);
-            let $input = this.$('input');
-
-            let testUrl = (url) => {
-                expectedUrl = url;
-                run(() => {
-                    $input.val(`${currentUrl}blog${url}`).trigger('input');
-                });
-                run(() => {
-                    $input.trigger('blur');
-                });
-            };
-
-            testUrl('/about');
-            testUrl('/about#contact');
-            testUrl('/test/nested');
-        });
-
         it('handles links to subdomains of blog domain', function () {
             let expectedUrl = '';
 
@@ -369,5 +340,72 @@ describeComponent(
             });
             expect($input.val()).to.equal(expectedUrl);
         });
+
+        describe('with sub-folder baseUrl', function () {
+            beforeEach(function () {
+                this.set('baseUrl', `${currentUrl}blog/`);
+            });
+
+            it('handles URLs relative to base url', function () {
+                let expectedUrl = '';
+
+                this.on('updateUrl', (url) => {
+                    expect(url).to.equal(expectedUrl);
+                });
+
+                this.render(hbs `
+                    {{gh-navitem-url-input baseUrl=baseUrl url=url last=isLast change="updateUrl"}}
+                `);
+                let $input = this.$('input');
+
+                let testUrl = (url) => {
+                    expectedUrl = url;
+                    run(() => {
+                        $input.val(`${currentUrl}blog${url}`).trigger('input');
+                    });
+                    run(() => {
+                        $input.trigger('blur');
+                    });
+                };
+
+                testUrl('/about');
+                testUrl('/about#contact');
+                testUrl('/test/nested');
+            });
+
+            it('handles URLs relative to base host', function () {
+                let expectedUrl = '';
+
+                this.on('updateUrl', (url) => {
+                    expect(url).to.equal(expectedUrl);
+                });
+
+                this.render(hbs `
+                    {{gh-navitem-url-input baseUrl=baseUrl url=url last=isLast change="updateUrl"}}
+                `);
+                let $input = this.$('input');
+
+                let testUrl = (url) => {
+                    expectedUrl = url;
+                    run(() => {
+                        $input.val(url).trigger('input');
+                    });
+                    run(() => {
+                        $input.trigger('blur');
+                    });
+                };
+
+                testUrl(`http://${window.location.host}`);
+                testUrl(`https://${window.location.host}`);
+                testUrl(`http://${window.location.host}/`);
+                testUrl(`https://${window.location.host}/`);
+                testUrl(`http://${window.location.host}/test`);
+                testUrl(`https://${window.location.host}/test`);
+                testUrl(`http://${window.location.host}/#test`);
+                testUrl(`https://${window.location.host}/#test`);
+                testUrl(`http://${window.location.host}/another/folder`);
+                testUrl(`https://${window.location.host}/another/folder`);
+            });
+        });
     }
 );