diff --git a/index.js b/index.js
index 6e9f3ad..2ef8200 100644
--- a/index.js
+++ b/index.js
@@ -31,16 +31,20 @@ function resolveUrlLoader(content, sourceMap) {
   /* jshint validthis:true */
 
   // details of the file being processed
+  //  we would normally use compilation.getPath(options.output.path) to get the most correct outputPath,
+  //  however we need to match to the sass-loader and it does not do so
   var loader     = this,
       filePath   = loader.context,
-      outputPath = loader.options.output.path,
-      options    = defaults(loaderUtils.parseQuery(loader.query), loader.options[camelcase(PACKAGE_NAME)], {
-        absolute : false,
-        sourceMap: false,
-        fail     : false,
-        silent   : false,
-        root     : null
-      });
+      outputPath = path.resolve(loader.options.output.path);
+
+  // prefer loader query, else options object, else default values
+  var options = defaults(loaderUtils.parseQuery(loader.query), loader.options[camelcase(PACKAGE_NAME)], {
+    absolute : false,
+    sourceMap: false,
+    fail     : false,
+    silent   : false,
+    root     : null
+  });
 
   // validate root directory
   var resolvedRoot = (typeof options.root === 'string') && path.resolve(options.root),