diff --git a/src/buffer.c b/src/buffer.c
index c29fb23..9f4c3de 100644
--- a/src/buffer.c
+++ b/src/buffer.c
@@ -4261,12 +4261,12 @@
 do_arg_all(count, forceit, keep_tabs)
     int	count;
     int	forceit;		/* hide buffers in current windows */
-    int keep_tabs;		/* keep curren tabs, for ":tab drop file" */
+    int keep_tabs;		/* keep current tabs, for ":tab drop file" */
 {
     int		i;
     win_T	*wp, *wpnext;
     char_u	*opened;	/* array of flags for which args are open */
-    int		opened_len;	/* lenght of opened[] */
+    int		opened_len;	/* length of opened[] */
     int		use_firstwin = FALSE;	/* use first window for arglist */
     int		split_ret = OK;
     int		p_ea_save;
@@ -4946,10 +4946,7 @@
 	/* Expand "~/" in the file name at "line + 1" to a full path.
 	 * Then try shortening it by comparing with the current directory */
 	expand_env(xline, NameBuff, MAXPATHL);
-	mch_dirname(IObuff, IOSIZE);
-	sfname = shorten_fname(NameBuff, IObuff);
-	if (sfname == NULL)
-	    sfname = NameBuff;
+	sfname = shorten_fname1(NameBuff);
 
 	buf = buflist_new(NameBuff, sfname, (linenr_T)0, BLN_LISTED);
 	if (buf != NULL)	/* just in case... */
diff --git a/src/ex_docmd.c b/src/ex_docmd.c
index 3b874e7..72b939b 100644
--- a/src/ex_docmd.c
+++ b/src/ex_docmd.c
@@ -276,7 +276,6 @@
 static void	ex_swapname __ARGS((exarg_T *eap));
 static void	ex_syncbind __ARGS((exarg_T *eap));
 static void	ex_read __ARGS((exarg_T *eap));
-static void	ex_cd __ARGS((exarg_T *eap));
 static void	ex_pwd __ARGS((exarg_T *eap));
 static void	ex_equal __ARGS((exarg_T *eap));
 static void	ex_sleep __ARGS((exarg_T *eap));
@@ -7778,7 +7777,7 @@
 /*
  * ":cd", ":lcd", ":chdir" and ":lchdir".
  */
-    static void
+    void
 ex_cd(eap)
     exarg_T	*eap;
 {
diff --git a/src/fileio.c b/src/fileio.c
index 84416df..39b4226 100644
--- a/src/fileio.c
+++ b/src/fileio.c
@@ -114,7 +114,7 @@
 {
     int		bw_fd;		/* file descriptor */
     char_u	*bw_buf;	/* buffer with data to be written */
-    int		bw_len;	/* lenght of data */
+    int		bw_len;		/* length of data */
 #ifdef HAS_BW_FLAGS
     int		bw_flags;	/* FIO_ flags */
 #endif
@@ -5556,6 +5556,27 @@
 /*
  * Try to find a shortname by comparing the fullname with the current
  * directory.
+ * Returns "full_path" or pointer into "full_path" if shortened.
+ */
+    char_u *
+shorten_fname1(full_path)
+    char_u	*full_path;
+{
+    char_u	dirname[MAXPATHL];
+    char_u	*p = full_path;
+
+    if (mch_dirname(dirname, MAXPATHL) == OK)
+    {
+	p = shorten_fname(full_path, dirname);
+	if (p == NULL || *p == NUL)
+	    p = full_path;
+    }
+    return p;
+}
+
+/*
+ * Try to find a shortname by comparing the fullname with the current
+ * directory.
  * Returns NULL if not shorter name possible, pointer into "full_path"
  * otherwise.
  */
diff --git a/src/gui_gtk.c b/src/gui_gtk.c
index cfba5c7..740d4a0 100644
--- a/src/gui_gtk.c
+++ b/src/gui_gtk.c
@@ -1272,7 +1272,6 @@
     GtkWidget		*fc;
 #endif
     char_u		dirbuf[MAXPATHL];
-    char_u		*p;
 
 # ifdef HAVE_GTK2
     title = CONVERT_TO_UTF8(title);
@@ -1363,11 +1362,7 @@
 	return NULL;
 
     /* shorten the file name if possible */
-    mch_dirname(dirbuf, MAXPATHL);
-    p = shorten_fname(gui.browse_fname, dirbuf);
-    if (p == NULL)
-	p = gui.browse_fname;
-    return vim_strsave(p);
+    return vim_strsave(shorten_fname1(gui.browse_fname));
 }
 
 #if defined(HAVE_GTK2) || defined(PROTO)
@@ -1427,11 +1422,7 @@
 	return NULL;
 
     /* shorten the file name if possible */
-    mch_dirname(dirbuf, MAXPATHL);
-    p = shorten_fname(dirname, dirbuf);
-    if (p == NULL || *p == NUL)
-	p = dirname;
-    p = vim_strsave(p);
+    p = vim_strsave(shorten_fname1(dirname));
     g_free(dirname);
     return p;
 
diff --git a/src/gui_w48.c b/src/gui_w48.c
index f073926..cfbbbc0 100644
--- a/src/gui_w48.c
+++ b/src/gui_w48.c
@@ -3301,11 +3301,7 @@
     SetFocus(s_hwnd);
 
     /* Shorten the file name if possible */
-    mch_dirname(IObuff, IOSIZE);
-    p = shorten_fname((char_u *)fileBuf, IObuff);
-    if (p == NULL)
-	p = (char_u *)fileBuf;
-    return vim_strsave(p);
+    return vim_strsave(shorten_fname1((char_u *)fileBuf));
 }
 # endif /* FEAT_MBYTE */
 
@@ -3450,11 +3446,7 @@
     SetFocus(s_hwnd);
 
     /* Shorten the file name if possible */
-    mch_dirname(IObuff, IOSIZE);
-    p = shorten_fname((char_u *)fileBuf, IObuff);
-    if (p == NULL)
-	p = (char_u *)fileBuf;
-    return vim_strsave(p);
+    return vim_strsave(shorten_fname1((char_u *)fileBuf));
 }
 #endif /* FEAT_BROWSE */
 
diff --git a/src/proto/ex_docmd.pro b/src/proto/ex_docmd.pro
index 899c68e..22a0f10 100644
--- a/src/proto/ex_docmd.pro
+++ b/src/proto/ex_docmd.pro
@@ -39,6 +39,7 @@
 void tabpage_new __ARGS((void));
 void do_exedit __ARGS((exarg_T *eap, win_T *old_curwin));
 void free_cd_dir __ARGS((void));
+void ex_cd __ARGS((exarg_T *eap));
 void do_sleep __ARGS((long msec));
 int vim_mkdir_emsg __ARGS((char_u *name, int prot));
 FILE *open_exfile __ARGS((char_u *fname, int forceit, char *mode));
diff --git a/src/proto/fileio.pro b/src/proto/fileio.pro
index fd7a04f..e5a1b28 100644
--- a/src/proto/fileio.pro
+++ b/src/proto/fileio.pro
@@ -6,6 +6,7 @@
 int buf_write __ARGS((buf_T *buf, char_u *fname, char_u *sfname, linenr_T start, linenr_T end, exarg_T *eap, int append, int forceit, int reset_changed, int filtering));
 void msg_add_fname __ARGS((buf_T *buf, char_u *fname));
 void msg_add_lines __ARGS((int insert_space, long lnum, long nchars));
+char_u *shorten_fname1 __ARGS((char_u *full_path));
 char_u *shorten_fname __ARGS((char_u *full_path, char_u *dir_name));
 void shorten_fnames __ARGS((int force));
 void shorten_filenames __ARGS((char_u **fnames, int count));
diff --git a/src/quickfix.c b/src/quickfix.c
index c3cee13..32c6cd0 100644
--- a/src/quickfix.c
+++ b/src/quickfix.c
@@ -2972,6 +2972,7 @@
     regmmatch_T	regmatch;
     int		fcount;
     char_u	**fnames;
+    char_u	*fname;
     char_u	*s;
     char_u	*p;
     int		fi;
@@ -2995,6 +2996,9 @@
     int		flags = 0;
     colnr_T	col;
     long	tomatch;
+    char_u	dirname_start[MAXPATHL];
+    char_u	dirname_now[MAXPATHL];
+    char_u	*target_dir = NULL;
 
     switch (eap->cmdidx)
     {
@@ -3069,17 +3073,23 @@
 	goto theend;
     }
 
+    /* Remember the current directory, because a BufRead autocommand that does
+     * ":lcd %:p:h" changes the meaning of short path names. */
+    mch_dirname(dirname_start, MAXPATHL);
+
     seconds = (time_t)0;
     for (fi = 0; fi < fcount && !got_int && tomatch > 0; ++fi)
     {
+	fname = shorten_fname1(fnames[fi]);
 	if (time(NULL) > seconds)
 	{
-	    /* Display the file name every second or so. */
+	    /* Display the file name every second or so, show the user we are
+	     * working on it. */
 	    seconds = time(NULL);
 	    msg_start();
-	    p = msg_strtrunc(fnames[fi], TRUE);
+	    p = msg_strtrunc(fname, TRUE);
 	    if (p == NULL)
-		msg_outtrans(fnames[fi]);
+		msg_outtrans(fname);
 	    else
 	    {
 		msg_outtrans(p);
@@ -3111,7 +3121,19 @@
 
 	    /* Load file into a buffer, so that 'fileencoding' is detected,
 	     * autocommands applied, etc. */
-	    buf = load_dummy_buffer(fnames[fi]);
+	    buf = load_dummy_buffer(fname);
+
+	    /* When autocommands changed directory: go back.  We assume it was
+	     * ":lcd %:p:h". */
+	    mch_dirname(dirname_now, MAXPATHL);
+	    if (STRCMP(dirname_start, dirname_now) != 0)
+	    {
+		exarg_T ea;
+
+		ea.arg = dirname_start;
+		ea.cmdidx = CMD_lcd;
+		ex_cd(&ea);
+	    }
 
 	    p_mls = save_mls;
 #if defined(FEAT_AUTOCMD) && defined(FEAT_SYN_HL)
@@ -3125,7 +3147,7 @@
 	if (buf == NULL)
 	{
 	    if (!got_int)
-		smsg((char_u *)_("Cannot open file \"%s\""), fnames[fi]);
+		smsg((char_u *)_("Cannot open file \"%s\""), fname);
 	}
 	else
 	{
@@ -3139,9 +3161,10 @@
 		while (vim_regexec_multi(&regmatch, curwin, buf, lnum,
 								     col) > 0)
 		{
+		    ;
 		    if (qf_add_entry(qi, &prevp,
 				NULL,       /* dir */
-				fnames[fi],
+				fname,
 				0,
 				ml_get_buf(buf,
 				     regmatch.startpos[0].lnum + lnum, FALSE),
@@ -3209,6 +3232,13 @@
 
 		if (buf != NULL)
 		{
+		    /* If the buffer is still loaded we need to use the
+		     * directory we jumped to below. */
+		    if (buf == first_match_buf
+			    && target_dir == NULL
+			    && STRCMP(dirname_start, dirname_now) != 0)
+			target_dir = vim_strsave(dirname_now);
+
 		    /* The buffer is still loaded, the Filetype autocommands
 		     * need to be done now, in that buffer.  And the modelines
 		     * need to be done (again).  But not the window-local
@@ -3252,6 +3282,16 @@
 		/* If we jumped to another buffer redrawing will already be
 		 * taken care of. */
 		redraw_for_dummy = FALSE;
+
+	    /* Jump to the directory used after loading the buffer. */
+	    if (curbuf == first_match_buf && target_dir != NULL)
+	    {
+		exarg_T ea;
+
+		ea.arg = target_dir;
+		ea.cmdidx = CMD_lcd;
+		ex_cd(&ea);
+	    }
 	}
     }
     else
@@ -3269,6 +3309,7 @@
     }
 
 theend:
+    vim_free(target_dir);
     vim_free(regmatch.regprog);
 }
 
diff --git a/src/version.c b/src/version.c
index eef1e88..6714a92 100644
--- a/src/version.c
+++ b/src/version.c
@@ -667,6 +667,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    126,
+/**/
     125,
 /**/
     124,