diff --git a/README.md b/README.md
index 58b01b1..d23b881 100644
--- a/README.md
+++ b/README.md
@@ -10,7 +10,7 @@ var url = require("file-loader!./file.png");
 // => returns i. e. "/public-path/0dcbbaa701328a3c262cfd45869e351f.png"
 ```
 
-By default the filename of the resulting file is the MD5 hash of the file's contents 
+By default the filename of the resulting file is the MD5 hash of the file's contents
 with the original extension of the required resource.
 
 By default a file is emitted, however this can be disabled if required (e.g. for server
@@ -24,10 +24,15 @@ var url = require("file-loader?emitFile=false!./file.png");
 
 ## Filename templates
 
-You can configure a custom filename template for your file using the query
-parameter `name`. For instance, to copy a file from your `context` directory
-into the output directory retaining the full directory structure, you might
-use `?name=[path][name].[ext]`.
+You can configure a custom filename template for your file using the query parameter `name`. For instance, to copy a file from your `context` directory into the output directory retaining the full directory structure, you might use `?name=[path][name].[ext]`.
+
+By default, the path and name you specify will output the file in that same directory and will also use that same URL path to access the file.
+
+You can specify custom output and public paths by using the `outputPath` and `publicPath` query name parameters:
+
+```
+loader: "file-loader?name=[name].[ext]&publicPath=assets/foo/&outputPath=app/images/"
+```
 
 ### Filename template placeholders
 
diff --git a/index.js b/index.js
index 99ff6af..bb95093 100644
--- a/index.js
+++ b/index.js
@@ -33,19 +33,28 @@ module.exports = function(content) {
 		regExp: config.regExp
 	});
 
+	var outputPath = url;
+
 	var publicPath = "__webpack_public_path__ + " + JSON.stringify(url);
 
+	if (config.outputPath) {
+		 // support functions as outputPath to generate them dynamically
+		 outputPath = typeof config.outputPath === "function"
+		 ? config.outputPath(url)
+		 : config.outputPath + url
+	}
+
 	if (config.publicPath) {
 		// support functions as publicPath to generate them dynamically
 		publicPath = JSON.stringify(
-				typeof config.publicPath === "function" 
-				 ? config.publicPath(url) 
+				typeof config.publicPath === "function"
+				 ? config.publicPath(url)
 				 : config.publicPath + url
 		);
 	}
 
 	if (query.emitFile === undefined || query.emitFile) {
-		this.emitFile(url, content);
+		this.emitFile(outputPath, content);
 	}
 
 	return "module.exports = " + publicPath + ";";