diff --git a/usr.sbin/pkg_install/add/perform.c b/usr.sbin/pkg_install/add/perform.c
index c921b900db40..28cd30f45aec 100644
--- a/usr.sbin/pkg_install/add/perform.c
+++ b/usr.sbin/pkg_install/add/perform.c
@@ -1,6 +1,6 @@
 #ifndef lint
 static const char rcsid[] =
-	"$Id: perform.c,v 1.43 1997/10/08 07:45:48 charnier Exp $";
+	"$Id: perform.c,v 1.44 1997/10/13 15:03:46 jkh Exp $";
 #endif
 
 /*
@@ -246,7 +246,7 @@ pkg_do(char *pkg)
 		    if (cp) {
 			if (Verbose)
 			    printf("Loading it from %s.\n", cp);
-			if (vsystem("pkg_add %s", cp)) {
+			if (vsystem("pkg_add %s%s", Verbose ? "-v " : "", cp)) {
 			    warnx("autoload of dependency `%s' failed%s",
 				cp, Force ? " (proceeding anyway)" : "!");
 			    if (!Force)
diff --git a/usr.sbin/pkg_install/add/pkg_add.1 b/usr.sbin/pkg_install/add/pkg_add.1
index cba9744d5217..32431effa4bd 100644
--- a/usr.sbin/pkg_install/add/pkg_add.1
+++ b/usr.sbin/pkg_install/add/pkg_add.1
@@ -69,7 +69,11 @@ The following command line arguments are supported:
 .It Ar pkg-name [... pkg-name]
 The named packages are installed.  A package name of - will cause
 .Nm
-to read from stdin.
+to read from stdin. If the packages are not found in the current
+working directory, 
+.Nm
+will search them in each directory named by
+.Ev PKG_PATH .
 .It Fl v
 Turn on verbose output.
 .It Fl I
@@ -322,6 +326,14 @@ is installed, even if the user might change it with the
 .Fl p
 flag to
 .Cm pkg_add .
+.Sh ENVIRONMENT
+The value of the
+.Ev PKG_PATH
+is used if a given package can't be found.  The environment variable
+should be a series of entries seperated by colons.  Each entry
+consists of a directory name. The current directory may be indicated
+implicitly by an empty directory name, or explicitly by a single
+period.
 .Sh SEE ALSO
 .Xr pkg_create 1 ,
 .Xr pkg_delete 1 ,
diff --git a/usr.sbin/pkg_install/lib/file.c b/usr.sbin/pkg_install/lib/file.c
index 8bf27b655348..ef52dcaa6133 100644
--- a/usr.sbin/pkg_install/lib/file.c
+++ b/usr.sbin/pkg_install/lib/file.c
@@ -1,6 +1,6 @@
 #ifndef lint
 static const char rcsid[] =
-	"$Id: file.c,v 1.28 1997/07/01 06:13:50 jkh Exp $";
+	"$Id: file.c,v 1.29 1997/10/08 07:47:54 charnier Exp $";
 #endif
 
 /*
@@ -294,15 +294,16 @@ fileFindByPath(char *base, char *fname)
     if (base) {
 	strcpy(tmp, base);
 
-	cp = strrchr(fname, '/');
+	cp = strrchr(tmp, '/');
 	if (cp) {
 	    *cp = '\0';	/* chop name */
-	    cp = strrchr(fname, '/');
+	    cp = strrchr(tmp, '/');
 	}
 	if (cp) {
 	    *(cp + 1) = '\0';
 	    strcat(cp, "All/");
 	    strcat(cp, fname);
+	    strcat(cp, ".tgz");
 	    if (fexists(tmp))
 		return tmp;
 	}