diff --git a/src/machine/loader.rs b/src/machine/loader.rs
index 91d41c7f..e713916f 100644
--- a/src/machine/loader.rs
+++ b/src/machine/loader.rs
@@ -1270,8 +1270,11 @@ impl Machine {
 
     pub(crate) fn load_context_directory(&mut self) {
         if let Some(load_context) = self.load_contexts.last() {
-            if let Some(directory) = load_context.path.ancestors().next() {
+            if let Some(directory) = load_context.path.parent() {
+                // canonicalize returns the absolute path of the directory.
+                let directory = directory.canonicalize().unwrap();
                 let directory_str = directory.to_str().unwrap();
+
                 let directory_atom =
                     clause_name!(directory_str.to_string(), self.machine_st.atom_tbl);