diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4dacb4bb5aa..049eda99642 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -19,6 +19,7 @@ Note that this project **does not** adhere to [Semantic Versioning](https://semv
 
 ### Fixed
 
+- We fixed an issue where directory check for relative path was not handled properly under library properties. [#13017](https://github.com/JabRef/jabref/issues/13017)
 - We fixed an issue where the option for which method to use when parsing plaintext citations was unavailable in the 'Create New Entry' tool. [#8808](https://github.com/JabRef/jabref/issues/8808)
 
 ### Removed
diff --git a/jabgui/src/main/java/org/jabref/gui/libraryproperties/general/GeneralPropertiesViewModel.java b/jabgui/src/main/java/org/jabref/gui/libraryproperties/general/GeneralPropertiesViewModel.java
index bff693ee35d..0851d198dd4 100644
--- a/jabgui/src/main/java/org/jabref/gui/libraryproperties/general/GeneralPropertiesViewModel.java
+++ b/jabgui/src/main/java/org/jabref/gui/libraryproperties/general/GeneralPropertiesViewModel.java
@@ -196,24 +196,40 @@ public StringProperty laTexFileDirectoryProperty() {
     }
 
     private Path getBrowseDirectory(String configuredDir) {
+        Optional<Path> libPath = this.databaseContext.getDatabasePath();
+        Path workingDir = preferences.getFilePreferences().getWorkingDirectory();
+
+        if (libPath.isEmpty()) {
+            Path potentialAbsolutePath = Path.of(configuredDir);
+            return Files.isDirectory(potentialAbsolutePath) ? potentialAbsolutePath : workingDir;
+        }
         if (configuredDir.isEmpty()) {
-            return preferences.getFilePreferences().getWorkingDirectory();
+            return workingDir;
         }
-        Optional<Path> foundPath = this.databaseContext.getFileDirectories(preferences.getFilePreferences()).stream()
-                                                       .filter(path -> path.toString().endsWith(configuredDir))
-                                                       .filter(Files::exists).findFirst();
 
-        if (foundPath.isEmpty()) {
-            dialogService.notify(Localization.lang("Path %0 could not be resolved. Using working dir.", configuredDir));
-            return preferences.getFilePreferences().getWorkingDirectory();
+        Path configuredPath = libPath.get().getParent().resolve(configuredDir).normalize();
+
+        // configuredDir can be input manually, which may lead it to being invalid
+        if (!Files.isDirectory(configuredPath)) {
+            dialogService.notify(Localization.lang("Path %0 could not be resolved. Using working directory.", configuredDir));
+            return workingDir;
         }
-        return foundPath.get();
+
+        return configuredPath;
     }
 
     private ValidationMessage validateDirectory(String directoryPath, String messageKey) {
+        Optional<Path> libPath = this.databaseContext.getDatabasePath();
+        Path potentialAbsolutePath = Path.of(directoryPath);
+
+        // check absolute path separately in case of unsaved libraries
+        if (libPath.isEmpty() && Files.isDirectory(potentialAbsolutePath)) {
+            return null;
+        }
         try {
-            Path path = Path.of(directoryPath);
-            if (!Files.isDirectory(path)) {
+            if (!libPath.map(p -> p.getParent().resolve(directoryPath).normalize())
+                        .map(Files::isDirectory)
+                        .orElse(false)) {
                 return ValidationMessage.error(
                         Localization.lang("File directory '%0' not found.\nCheck \"%1\" file directory path.", directoryPath, messageKey)
                 );
diff --git a/jablib/src/main/resources/l10n/JabRef_en.properties b/jablib/src/main/resources/l10n/JabRef_en.properties
index 787fd76c617..ad1042ff3a3 100644
--- a/jablib/src/main/resources/l10n/JabRef_en.properties
+++ b/jablib/src/main/resources/l10n/JabRef_en.properties
@@ -1090,7 +1090,7 @@ Expected\ syntax\ for\ --fetch\='<name\ of\ fetcher>\:<query>'=Expected syntax f
 Library-specific\ file\ directory=Library-specific file directory
 User-specific\ file\ directory=User-specific file directory
 LaTeX\ file\ directory=LaTeX file directory
-Path\ %0\ could\ not\ be\ resolved.\ Using\ working\ dir.=Path %0 could not be resolved. Using working dir.
+Path\ %0\ could\ not\ be\ resolved.\ Using\ working\ directory.=Path %0 could not be resolved. Using working directory.
 
 
 You\ must\ enter\ an\ integer\ value\ in\ the\ interval\ 1025-65535=You must enter an integer value in the interval 1025-65535