diff --git a/src/api/extendOptions.ts b/src/api/extendOptions.ts
index c4236e25fe..c2bd956e57 100644
--- a/src/api/extendOptions.ts
+++ b/src/api/extendOptions.ts
@@ -35,5 +35,8 @@ export default (opts?: PnpmOptions): StrictPnpmOptions => {
   if (extendedOpts.force) {
     logger.warn('using --force I sure hope you know what you are doing')
   }
+  if (extendedOpts.localRegistry !== DEFAULT_LOCAL_REGISTRY) {
+    extendedOpts.localRegistry = expandTilde(extendedOpts.localRegistry, extendedOpts.cwd)
+  }
   return extendedOpts
 }
diff --git a/src/fs/expandTilde.ts b/src/fs/expandTilde.ts
index 206514ca8a..b8a28fdaca 100644
--- a/src/fs/expandTilde.ts
+++ b/src/fs/expandTilde.ts
@@ -1,13 +1,19 @@
 import osHomedir = require('os-homedir')
 import path = require('path')
 
-export default function expandTilde (filepath: string) {
+export default function expandTilde (filepath: string, cwd?: string) {
   const home = getHomedir()
 
-  if (!isHomepath(filepath)) {
+  if (isHomepath(filepath)) {
+    return path.join(home, filepath.substr(2))
+  }
+  if (path.isAbsolute(filepath)) {
     return filepath
   }
-  return path.resolve(home, filepath.substr(2))
+  if (cwd) {
+    return path.join(cwd, filepath)
+  }
+  return path.resolve(filepath)
 }
 
 function getHomedir () {