diff --git a/dlls/scrrun/filesystem.c b/dlls/scrrun/filesystem.c
index 7a8a7689902..cfeb5bb1532 100644
--- a/dlls/scrrun/filesystem.c
+++ b/dlls/scrrun/filesystem.c
@@ -2699,6 +2699,7 @@ static const IFolderVtbl foldervtbl = {
 HRESULT create_folder(const WCHAR *path, IFolder **folder)
 {
     struct folder *object;
+    DWORD len;
 
     *folder = NULL;
 
@@ -2709,13 +2710,28 @@ HRESULT create_folder(const WCHAR *path, IFolder **folder)
 
     object->IFolder_iface.lpVtbl = &foldervtbl;
     object->ref = 1;
-    object->path = SysAllocString(path);
-    if (!object->path)
+
+    len = GetFullPathNameW(path, 0, NULL, NULL);
+    if (!len)
+    {
+        free(object);
+        return E_FAIL;
+    }
+
+    object->path = SysAllocStringLen(NULL, len);
+    if(!object->path)
     {
         free(object);
         return E_OUTOFMEMORY;
     }
 
+    if (!GetFullPathNameW(path, len, object->path, NULL))
+    {
+        SysFreeString(object->path);
+        free(object);
+        return E_FAIL;
+    }
+
     init_classinfo(&CLSID_Folder, (IUnknown *)&object->IFolder_iface, &object->classinfo);
     *folder = &object->IFolder_iface;
 
diff --git a/dlls/scrrun/tests/filesystem.c b/dlls/scrrun/tests/filesystem.c
index 98652ecf523..f2e23e4011c 100644
--- a/dlls/scrrun/tests/filesystem.c
+++ b/dlls/scrrun/tests/filesystem.c
@@ -973,7 +973,7 @@ static void test_GetFolder(void)
     SysFreeString(str);
     hr = IFolder_get_Path(folder, &str);
     ok(hr == S_OK, "Unexpected hr %#lx.\n", hr);
-    todo_wine ok(!PathIsRelativeW(str), "path %s is relative.\n", wine_dbgstr_w(str));
+    ok(!PathIsRelativeW(str), "path %s is relative.\n", wine_dbgstr_w(str));
     SysFreeString(str);
     IFolder_Release(folder);
     RemoveDirectoryW(dir);