diff --git a/pathologic.module b/pathologic.module
index 87ffd26..bb91c94 100644
--- a/pathologic.module
+++ b/pathologic.module
@@ -136,56 +136,18 @@ function _pathologic_filter($text, $filter, $format, $langcode, $cache, $cache_i
       $filter_settings['protocol_style'] = variable_get('pathologic_protocol_style', 'full');
       $filter_settings['local_paths'] = variable_get('pathologic_local_paths', '');
     }
+    // Build an array of the exploded local paths for this format's settings.
+    // array_filter() below is filtering out items from the array which equal
+    // FALSE - so empty strings (which were causing problems,
+    // @see http://drupal.org/node/1727492)
     $filter_settings['local_paths_exploded'] = array();
-    if ($filter_settings['local_paths'] !== '') {
-      // Build an array of the exploded local paths for this format's settings.
-      // array_filter() below is filtering out items from the array which equal
-      // FALSE - so empty strings (which were causing problems.
-      // @see http://drupal.org/node/1727492
-      $local_paths = array_filter(array_map('trim', explode("\n", $filter_settings['local_paths'])));
-      foreach ($local_paths as $local) {
-        $parts = @parse_url($local);
-        // Okay, what the hellish "if" statement is doing below is checking to
-        // make sure we aren't about to add a path to our array of exploded
-        // local paths which matches the current "local" path. We consider it
-        // not a match, if…
-        // @todo: This is pretty horrible. Can this be simplified?
-        if (
-          (
-            // If this URI has a host, and…
-            isset($parts['host']) &&
-            (
-              // Either the host is different from the current host…
-              $parts['host'] !== $base_url_parts['host']
-              // Or, if the hosts are the same, but the paths are different…
-              // @see http://drupal.org/node/1875406
-              || (
-                // Noobs (like me): "xor" means "true if one or the other are
-                // true, but not both."
-                (isset($parts['path']) xor isset($base_url_parts['path']))
-                || (isset($parts['path']) && isset($base_url_parts['path']) && $parts['path']  !== $base_url_parts['path'])
-              )
-            )
-          ) ||
-          // Or…
-          (
-            // The URI doesn't have a host…
-            !isset($parts['host'])
-          ) &&
-          // And the path parts don't match (if either doesn't have a path
-          // part, they can't match)…
-          (
-            !isset($parts['path']) ||
-            !isset($base_url_parts['path']) ||
-            $parts['path'] !== $base_url_parts['path']
-          )
-        ) {
-          // Add it to the list.
-          $filter_settings['local_paths_exploded'][] = $parts;
-        }
-      }
+    $local_paths = array_filter(array_map('trim', explode("\n", $filter_settings['local_paths'])));
+    foreach ($local_paths as $local) {
+      $parts = @parse_url($local);
+      $filter_settings['local_paths_exploded'][] = $parts;
     }
-    // Now add local paths based on "this" server URL.
+    // To be sure, now add local paths based on "this" server URL, even if they
+    // may already have been added above.
     $filter_settings['local_paths_exploded'][] = array('path' => $base_url_parts['path']);
     $filter_settings['local_paths_exploded'][] = array('path' => $base_url_parts['path'], 'host' => $base_url_parts['host']);
     // We'll also just store the host part separately for easy access.
diff --git a/tests/pathologic.test b/tests/pathologic.test
index 2e62320..21974c2 100644
--- a/tests/pathologic.test
+++ b/tests/pathologic.test
@@ -227,6 +227,29 @@ class PathologicTestCase extends DrupalWebTestCase {
       '<img src="' . _pathologic_url_to_protocol_relative(_pathologic_content_url('foo.jpeg', array('absolute' => TRUE))) . '" />',
       t('Use global settings when so configured on the format')
     );
+
+    // Test local paths where one is being a sub path of another.
+    // @see https://drupal.org/node/2545396.
+    // Fake that we are running on the test environment on a sub directory test.
+    $base_path_org = $base_path;
+    $base_url_org = $base_url;
+    $base_path .= 'test/';
+    $base_url .= '/test';
+    $format_id = _pathologic_build_format(array(
+      'protocol_style' => 'path',
+      'local_paths' => "/test/\n/\n",
+      'settings_source' => 'local',
+    ));
+
+    $this->assertEqual(
+      check_markup('<a href="/test/foo">bar</a>', $format_id),
+      '<a href="' . _pathologic_content_url('foo', array('absolute' => FALSE)) . '">bar</a>',
+      "Local paths where one is being a sub path of another"
+    );
+
+    // Restore $base_path and $base_url.
+    $base_path .= $base_path_org;
+    $base_url .= $base_url_org;
   }
 }