diff --git a/src/eval.c b/src/eval.c
index 7aefdb5..ebd7e37 100644
--- a/src/eval.c
+++ b/src/eval.c
@@ -10271,7 +10271,11 @@
     typval_T	*argvars;
     typval_T	*rettv;
 {
-    rettv->vval.v_number = mch_can_exe(get_tv_string(&argvars[0]), NULL);
+    char_u *name = get_tv_string(&argvars[0]);
+
+    /* Check in $PATH and also check directly if there is a directory name. */
+    rettv->vval.v_number = mch_can_exe(name, NULL, TRUE)
+		 || (gettail(name) != name && mch_can_exe(name, NULL, FALSE));
 }
 
 /*
@@ -10284,7 +10288,7 @@
 {
     char_u *p = NULL;
 
-    (void)mch_can_exe(get_tv_string(&argvars[0]), &p);
+    (void)mch_can_exe(get_tv_string(&argvars[0]), &p, TRUE);
     rettv->v_type = VAR_STRING;
     rettv->vval.v_string = p;
 }
diff --git a/src/ex_getln.c b/src/ex_getln.c
index e18a8ed..31e61d0 100644
--- a/src/ex_getln.c
+++ b/src/ex_getln.c
@@ -4885,6 +4885,7 @@
     char_u	*s, *e;
     int		flags = flagsarg;
     int		ret;
+    int		did_curdir = FALSE;
 
     if (buf == NULL)
 	return FAIL;
@@ -4896,7 +4897,7 @@
 	if (pat[i] == '\\' && pat[i + 1] == ' ')
 	    STRMOVE(pat + i, pat + i + 1);
 
-    flags |= EW_FILE | EW_EXEC;
+    flags |= EW_FILE | EW_EXEC | EW_SHELLCMD;
 
     /* For an absolute name we don't use $PATH. */
     if (mch_isFullName(pat))
@@ -4913,11 +4914,22 @@
 
     /*
      * Go over all directories in $PATH.  Expand matches in that directory and
-     * collect them in "ga".
+     * collect them in "ga".  When "." is not in $PATH also expand for the
+     * current directory, to find "subdir/cmd".
      */
     ga_init2(&ga, (int)sizeof(char *), 10);
-    for (s = path; *s != NUL; s = e)
+    for (s = path; ; s = e)
     {
+	if (*s == NUL)
+	{
+	    if (did_curdir)
+		break;
+	    /* Find directories in the current directory, path is empty. */
+	    did_curdir = TRUE;
+	}
+	else if (*s == '.')
+	    did_curdir = TRUE;
+
 	if (*s == ' ')
 	    ++s;	/* Skip space used for absolute path name. */
 
diff --git a/src/misc1.c b/src/misc1.c
index 940a3e9..bd1fe25 100644
--- a/src/misc1.c
+++ b/src/misc1.c
@@ -10987,8 +10987,10 @@
     if ((isdir && !(flags & EW_DIR)) || (!isdir && !(flags & EW_FILE)))
 	return;
 
-    /* If the file isn't executable, may not add it.  Do accept directories. */
-    if (!isdir && (flags & EW_EXEC) && !mch_can_exe(f, NULL))
+    /* If the file isn't executable, may not add it.  Do accept directories.
+     * When invoked from expand_shellcmd() do not use $PATH. */
+    if (!isdir && (flags & EW_EXEC)
+			     && !mch_can_exe(f, NULL, !(flags & EW_SHELLCMD)))
 	return;
 
     /* Make room for another item in the file list. */
diff --git a/src/os_amiga.c b/src/os_amiga.c
index 324fc36..ccd3b0c 100644
--- a/src/os_amiga.c
+++ b/src/os_amiga.c
@@ -881,12 +881,14 @@
 
 /*
  * Return 1 if "name" can be executed, 0 if not.
+ * If "use_path" is FALSE only check if "name" is executable.
  * Return -1 if unknown.
  */
     int
-mch_can_exe(name, path)
+mch_can_exe(name, path, use_path)
     char_u	*name;
     char_u	**path;
+    int		use_path;
 {
     /* TODO */
     return -1;
diff --git a/src/os_msdos.c b/src/os_msdos.c
index f24a6f8..1b75a30 100644
--- a/src/os_msdos.c
+++ b/src/os_msdos.c
@@ -2942,15 +2942,24 @@
 
 /*
  * Return 1 if "name" can be executed, 0 if not.
+ * If "use_path" is FALSE only check if "name" is executable.
  * Return -1 if unknown.
  */
     int
-mch_can_exe(name, path)
+mch_can_exe(name, path, use_path)
     char_u	*name;
     char_u	**path;
+    int		use_path;
 {
     char	*p;
+    int		mode;
 
+    if (!use_path)
+    {
+	/* TODO: proper check if file is executable. */
+	mode = vim_chmod(name);
+	return mode != -1 && (mode & FA_DIREC) == 0;
+    }
     p = searchpath(name);
     if (p == NULL || mch_isdir(p))
 	return FALSE;
diff --git a/src/os_unix.c b/src/os_unix.c
index 8f6b914..df045a5 100644
--- a/src/os_unix.c
+++ b/src/os_unix.c
@@ -3104,22 +3104,27 @@
 
 /*
  * Return 1 if "name" can be found in $PATH and executed, 0 if not.
+ * If "use_path" is FALSE only check if "name" is executable.
  * Return -1 if unknown.
  */
     int
-mch_can_exe(name, path)
+mch_can_exe(name, path, use_path)
     char_u	*name;
     char_u	**path;
+    int		use_path;
 {
     char_u	*buf;
     char_u	*p, *e;
     int		retval;
 
-    /* If it's an absolute or relative path don't need to use $PATH. */
-    if (mch_isFullName(name) || (name[0] == '.' && (name[1] == '/'
-				      || (name[1] == '.' && name[2] == '/'))))
+    /* When "use_path" is false and if it's an absolute or relative path don't
+     * need to use $PATH. */
+    if (!use_path || mch_isFullName(name) || (name[0] == '.'
+		   && (name[1] == '/' || (name[1] == '.' && name[2] == '/'))))
     {
-	if (executable_file(name))
+	/* There must be a path separator, files in the current directory
+	 * can't be executed. */
+	if (gettail(name) != name && executable_file(name))
 	{
 	    if (path != NULL)
 	    {
@@ -5730,7 +5735,8 @@
 		    continue;
 
 		/* Skip files that are not executable if we check for that. */
-		if (!dir && (flags & EW_EXEC) && !mch_can_exe(p, NULL))
+		if (!dir && (flags & EW_EXEC)
+			     && !mch_can_exe(p, NULL, !(flags & EW_SHELLCMD)))
 		    continue;
 
 		if (--files_free == 0)
@@ -6230,7 +6236,8 @@
 	    continue;
 
 	/* Skip files that are not executable if we check for that. */
-	if (!dir && (flags & EW_EXEC) && !mch_can_exe((*file)[i], NULL))
+	if (!dir && (flags & EW_EXEC)
+		    && !mch_can_exe((*file)[i], NULL, !(flags & EW_SHELLCMD)))
 	    continue;
 
 	p = alloc((unsigned)(STRLEN((*file)[i]) + 1 + dir));
diff --git a/src/os_vms.c b/src/os_vms.c
index 12eceed..7c2d872 100644
--- a/src/os_vms.c
+++ b/src/os_vms.c
@@ -483,7 +483,8 @@
 		continue;
 
 	    /* Skip files that are not executable if we check for that. */
-	    if (!dir && (flags & EW_EXEC) && !mch_can_exe(vms_fmatch[i], NULL))
+	    if (!dir && (flags & EW_EXEC)
+		 && !mch_can_exe(vms_fmatch[i], NULL, !(flags & EW_SHELLCMD)))
 		continue;
 
 	    /* allocate memory for pointers */
diff --git a/src/proto/os_amiga.pro b/src/proto/os_amiga.pro
index 16ee657..24c1f72 100644
--- a/src/proto/os_amiga.pro
+++ b/src/proto/os_amiga.pro
@@ -26,7 +26,7 @@
 void mch_hide __ARGS((char_u *name));
 int mch_isdir __ARGS((char_u *name));
 int mch_mkdir __ARGS((char_u *name));
-int mch_can_exe __ARGS((char_u *name, char_u **path));
+int mch_can_exe __ARGS((char_u *name, char_u **path, int use_path));
 int mch_nodetype __ARGS((char_u *name));
 void mch_early_init __ARGS((void));
 void mch_exit __ARGS((int r));
diff --git a/src/proto/os_msdos.pro b/src/proto/os_msdos.pro
index e755211..e035b95 100644
--- a/src/proto/os_msdos.pro
+++ b/src/proto/os_msdos.pro
@@ -38,7 +38,7 @@
 int mch_setperm __ARGS((char_u *name, long perm));
 void mch_hide __ARGS((char_u *name));
 int mch_isdir __ARGS((char_u *name));
-int mch_can_exe __ARGS((char_u *name, char_u **path));
+int mch_can_exe __ARGS((char_u *name, char_u **path, int use_path));
 int mch_nodetype __ARGS((char_u *name));
 int mch_dirname __ARGS((char_u *buf, int len));
 int mch_remove __ARGS((char_u *name));
diff --git a/src/proto/os_unix.pro b/src/proto/os_unix.pro
index a59b6aa..23434ba 100644
--- a/src/proto/os_unix.pro
+++ b/src/proto/os_unix.pro
@@ -42,7 +42,7 @@
 void mch_free_acl __ARGS((vim_acl_T aclent));
 void mch_hide __ARGS((char_u *name));
 int mch_isdir __ARGS((char_u *name));
-int mch_can_exe __ARGS((char_u *name, char_u **path));
+int mch_can_exe __ARGS((char_u *name, char_u **path, int use_path));
 int mch_nodetype __ARGS((char_u *name));
 void mch_early_init __ARGS((void));
 void mch_free_mem __ARGS((void));
diff --git a/src/proto/os_win32.pro b/src/proto/os_win32.pro
index c149bc8..cbabe3a 100644
--- a/src/proto/os_win32.pro
+++ b/src/proto/os_win32.pro
@@ -26,7 +26,7 @@
 int mch_is_linked __ARGS((char_u *fname));
 int win32_fileinfo __ARGS((char_u *fname, BY_HANDLE_FILE_INFORMATION *info));
 int mch_writable __ARGS((char_u *name));
-int mch_can_exe __ARGS((char_u *name, char_u **path));
+int mch_can_exe __ARGS((char_u *name, char_u **path, int use_path));
 int mch_nodetype __ARGS((char_u *name));
 vim_acl_T mch_get_acl __ARGS((char_u *fname));
 void mch_set_acl __ARGS((char_u *fname, vim_acl_T acl));
diff --git a/src/version.c b/src/version.c
index 405b8a7..344c327 100644
--- a/src/version.c
+++ b/src/version.c
@@ -742,6 +742,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    672,
+/**/
     671,
 /**/
     670,
diff --git a/src/vim.h b/src/vim.h
index 825c844..fe8f558 100644
--- a/src/vim.h
+++ b/src/vim.h
@@ -841,6 +841,8 @@
 /* Note: mostly EW_NOTFOUND and EW_SILENT are mutually exclusive: EW_NOTFOUND
  * is used when executing commands and EW_SILENT for interactive expanding. */
 #define EW_ALLLINKS	0x1000	/* also links not pointing to existing file */
+#define EW_SHELLCMD	0x2000	/* called from expand_shellcmd(), don't check
+				 * if executable is in $PATH */
 
 /* Flags for find_file_*() functions. */
 #define FINDFILE_FILE	0	/* only files */