diff --git a/include-files/Makefile b/include-files/Makefile
index 61039b09..3bea887e 100644
--- a/include-files/Makefile
+++ b/include-files/Makefile
@@ -1,16 +1,16 @@
 DIFF ?= diff --strip-trailing-cr -u
 PANDOC ?= pandoc
 
-test: sample.md file-a.md file-b.md file-c.md include-files.lua
+test: sample.md file-a.md file-b.md file-c.md subdir/file-g.md include-files.lua
 	@$(PANDOC) --lua-filter=include-files.lua --to=native $< \
 	    | $(DIFF) expected.native -
 	@$(PANDOC) --lua-filter=include-files.lua -M include-auto --to=native $< \
 	    | $(DIFF) expected-auto.native -
 
-expected.native: sample.md file-a.md file-b.md file-c.md include-files.lua
+expected.native: sample.md file-a.md file-b.md file-c.md subdir/file-g.md include-files.lua
 	$(PANDOC) --lua-filter=include-files.lua --output $@ $<
 
-expected-auto.native: sample.md file-a.md file-b.md file-c.md include-files.lua
+expected-auto.native: sample.md file-a.md file-b.md file-c.md subdir/file-g.md include-files.lua
 	$(PANDOC) --lua-filter=include-files.lua -M include-auto --output $@ $<
 
 .PHONY: test
diff --git a/include-files/README.md b/include-files/README.md
index 050a94af..2d2197d7 100644
--- a/include-files/README.md
+++ b/include-files/README.md
@@ -69,8 +69,8 @@ relative to the directory from which they are included. I.e., if a file `a/b.md`
 is included in the main document, and another file `a/b/c.md` should be included
 from `a/b.md`, then the relative path from `a/b.md` must be used, in this case
 `b/c.md`. The full relative path will be automatically generated in the final
-document. The same goes for image paths and codeblock file paths using the
-`include-code-files` filter.
+document. The same goes for image paths, link paths and codeblock file paths
+using the `include-code-files` filter.
 
 ## Example
 
diff --git a/include-files/expected-auto.native b/include-files/expected-auto.native
index 5536cbf6..144d73ff 100644
--- a/include-files/expected-auto.native
+++ b/include-files/expected-auto.native
@@ -117,11 +117,39 @@
     , Space
     , Str "updated."
     ]
+, Figure
+    ( "" , [] , [] )
+    (Caption
+       Nothing [ Plain [ Str "Image" , Space , Str "title" ] ])
+    [ Plain
+        [ Image
+            ( "" , [] , [] )
+            [ Str "Image" , Space , Str "title" ]
+            ( "subdir/someimage.png" , "" )
+        ]
+    ]
+, Figure
+    ( "" , [] , [] )
+    (Caption
+       Nothing [ Plain [ Str "Image" , Space , Str "title" ] ])
+    [ Plain
+        [ Image
+            ( "" , [] , [] )
+            [ Str "Image" , Space , Str "title" ]
+            ( "https://example.com/someimage.png" , "" )
+        ]
+    ]
+, Para
+    [ Link
+        ( "" , [] , [] )
+        [ Str "Some" , Space , Str "link" ]
+        ( "subdir/someimage.png" , "" )
+    ]
 , Para
-    [ Image
+    [ Link
         ( "" , [] , [] )
-        [ Str "Image" , Space , Str "title" ]
-        ( "subdir/someimage.png" , "fig:" )
+        [ Str "Some" , Space , Str "link" ]
+        ( "https://example.com/someimage.png" , "" )
     ]
 , Header
     2
diff --git a/include-files/expected.native b/include-files/expected.native
index e89a6ba8..c0889e75 100644
--- a/include-files/expected.native
+++ b/include-files/expected.native
@@ -117,11 +117,39 @@
     , Space
     , Str "updated."
     ]
+, Figure
+    ( "" , [] , [] )
+    (Caption
+       Nothing [ Plain [ Str "Image" , Space , Str "title" ] ])
+    [ Plain
+        [ Image
+            ( "" , [] , [] )
+            [ Str "Image" , Space , Str "title" ]
+            ( "subdir/someimage.png" , "" )
+        ]
+    ]
+, Figure
+    ( "" , [] , [] )
+    (Caption
+       Nothing [ Plain [ Str "Image" , Space , Str "title" ] ])
+    [ Plain
+        [ Image
+            ( "" , [] , [] )
+            [ Str "Image" , Space , Str "title" ]
+            ( "https://example.com/someimage.png" , "" )
+        ]
+    ]
+, Para
+    [ Link
+        ( "" , [] , [] )
+        [ Str "Some" , Space , Str "link" ]
+        ( "subdir/someimage.png" , "" )
+    ]
 , Para
-    [ Image
+    [ Link
         ( "" , [] , [] )
-        [ Str "Image" , Space , Str "title" ]
-        ( "subdir/someimage.png" , "fig:" )
+        [ Str "Some" , Space , Str "link" ]
+        ( "https://example.com/someimage.png" , "" )
     ]
 , Header
     1
diff --git a/include-files/include-files.lua b/include-files/include-files.lua
index 2499968c..c9a585a6 100644
--- a/include-files/include-files.lua
+++ b/include-files/include-files.lua
@@ -39,8 +39,24 @@ local function update_contents(blocks, shift_by, include_path)
       end
       return header
     end,
+    -- If link paths are relative then prepend include file path
+    Link = function (link)
+      if string.match(link.target, "^%a+://") then
+        return link
+      end
+
+      if path.is_relative(link.target) then
+          link.target = path.normalize(path.join({include_path, link.target}))
+      end
+
+      return link
+    end,
     -- If image paths are relative then prepend include file path
     Image = function (image)
+      if string.match(image.src, "^%a+://") then
+        return image
+      end
+
       if path.is_relative(image.src) then
         image.src = path.normalize(path.join({include_path, image.src}))
       end
diff --git a/include-files/subdir/file-g.md b/include-files/subdir/file-g.md
index 1ce89a90..cd97dcd9 100644
--- a/include-files/subdir/file-g.md
+++ b/include-files/subdir/file-g.md
@@ -4,6 +4,12 @@ Image relative path will be updated.
 
 ![Image title](someimage.png)
 
+![Image title](https://example.com/someimage.png)
+
+[Some link](someimage.png)
+
+[Some link](https://example.com/someimage.png)
+
 # Source include
 
 File inclusion codeblocks for use with include-code-files will be