diff --git a/lib/docker-compose/models/compose_container.rb b/lib/docker-compose/models/compose_container.rb
index 0f0636d..e924606 100644
--- a/lib/docker-compose/models/compose_container.rb
+++ b/lib/docker-compose/models/compose_container.rb
@@ -68,7 +68,7 @@ def prepare_container
     port_bindings = prepare_port_bindings
     links = prepare_links
     volumes = prepare_volumes
-    volume_binds = @attributes[:volumes] && @attributes[:volumes].reject { |volume| volume.split(':').one? }
+    volume_binds = prepare_volume_binds
 
     # Exposed ports are port bindings with an empty hash as value
     exposed_ports = {}
@@ -150,6 +150,27 @@ def prepare_volumes
     volumes
   end
 
+  #
+  # Prepare Hostconfig Bind mounts by converting
+  # relative paths into absolute paths
+  #
+  def prepare_volume_binds
+    return if @attributes[:volumes].nil?
+
+    binds = @attributes[:volumes].reject { |volume| volume.split(':').one? }
+
+    # Convert relative paths to absolute paths
+    binds.map do |bind|
+      bind.split(':').map do |path|
+        if ! path.start_with? '/' and ! ['rw','ro'].include? path
+          File.expand_path(path)
+        else
+          path
+        end
+      end.join(':')
+    end
+  end
+
   #
   # Process each port entry in docker compose file and
   # create structure recognized by docker client