diff --git a/Makefile b/Makefile
index 7b1b23f..f59c91d 100644
--- a/Makefile
+++ b/Makefile
@@ -21,7 +21,7 @@ TESTS:=$(wildcard tests/*.t)
 uniq = $(if $1,$(firstword $1) $(call uniq,$(filter-out $(firstword $1),$1)))
 _TESTS_REL_AND_ABS:=$(call uniq,$(abspath $(TESTS)) $(TESTS))
 $(_TESTS_REL_AND_ABS):
-	ZDOTDIR="${CURDIR}/tests" cram --shell=zsh -v $@
+	cram --shell=zsh -v $@
 .PHONY: $(_TESTS_REL_AND_ABS)
 
 .PHONY: itest test
diff --git a/autoenv.zsh b/autoenv.zsh
index 561a336..c569ef8 100644
--- a/autoenv.zsh
+++ b/autoenv.zsh
@@ -74,11 +74,24 @@ _autoenv_stack_entered_remove() {
 }
 
 # Is the given entry already in the stack?
+# This checks for the env_file ($1) as-is and with symlinks resolved.
 _autoenv_stack_entered_contains() {
   local env_file=$1
+  local f i
   if (( ${+_autoenv_stack_entered[(r)${env_file}]} )); then
     # Entry is in stack.
-    if [[ $_autoenv_stack_entered_mtime[$env_file] == $(_autoenv_get_file_mtime $env_file) ]]; then
+    f=$env_file
+  else
+    for i in $_autoenv_stack_entered; do
+      if [[ ${i:A} == ${env_file:A} ]]; then
+        # Entry is in stack (compared with resolved symlinks).
+        f=$i
+        break
+      fi
+    done
+  fi
+  if [[ -n $f ]]; then
+    if [[ $_autoenv_stack_entered_mtime[$f] == $(_autoenv_get_file_mtime $f) ]]; then
       # Entry has the expected mtime.
       return
     fi
@@ -275,8 +288,8 @@ _autoenv_chpwd_handler() {
   if [[ $AUTOENV_HANDLE_LEAVE == 1 ]] && (( $#_autoenv_stack_entered )); then
     local prev_file prev_dir
     for prev_file in ${_autoenv_stack_entered}; do
-      prev_dir=${prev_file:A:h}
-      if ! [[ ${PWD:A}/ == ${prev_dir}/* ]]; then
+      prev_dir=${prev_file:h}
+      if ! [[ ${PWD}/ == ${prev_dir}/* ]]; then
         local env_file_leave=$prev_dir/$AUTOENV_FILE_LEAVE
         if _autoenv_check_authorized_env_file $env_file_leave; then
           _autoenv_source $env_file_leave leave $prev_dir
diff --git a/tests/cwd.t b/tests/cwd.t
index ee586b4..e0ae132 100644
--- a/tests/cwd.t
+++ b/tests/cwd.t
@@ -33,5 +33,8 @@ Check that symlinked dirs get handled correctly.
   $ cd sub_linked
   ENTERED: PWD:sub_linked pwd:sub_linked from:cwd.t to:sub_linked event:enter
   $ cd sub2
-  ENTERED: PWD:sub2 pwd:sub2 from:sub_linked to:sub2 event:enter
-  $ cd .
+
+  $ cd ../..
+  LEFT: PWD:cwd.t pwd:cwd.t from:sub2 to:cwd.t event:leave
+  $ cd sub_linked/sub2
+  ENTERED: PWD:sub2 pwd:sub2 from:cwd.t to:sub2 event:enter
diff --git a/tests/leave.t b/tests/leave.t
index 227da71..fb7ee37 100644
--- a/tests/leave.t
+++ b/tests/leave.t
@@ -88,3 +88,28 @@ Test that .env is sourced only once with AUTOENV_HANDLE_LEAVE=0.
   ENTERED
   $ cd ..
   $ cd sub
+
+
+Test that "leave" is not triggered when entering an outside dir via symlink.
+
+  $ AUTOENV_HANDLE_LEAVE=1
+  $ cd ..
+  LEFT
+  $ mkdir outside
+  $ cd outside
+  $ echo 'echo ENTERED outside: PWD:${PWD:t} pwd:${${"$(pwd)"}:t} from:${autoenv_from_dir:t} to:${autoenv_to_dir:t} event:${autoenv_event}' > .env
+  $ echo 'echo LEFT outside: PWD:${PWD:t} pwd:${${"$(pwd)"}:t} from:${autoenv_from_dir:t} to:${autoenv_to_dir:t} event:${autoenv_event}' > .env.leave
+  $ test_autoenv_auth_env_files
+
+  $ cd ..
+  $ ln -s ../outside sub/symlink
+  $ cd sub
+  ENTERED
+  $ cd symlink
+  ENTERED outside: PWD:symlink pwd:symlink from:sub to:symlink event:enter
+
+  $ cd ../..
+  LEFT
+  LEFT outside: PWD:leave.t pwd:leave.t from:symlink to:leave.t event:leave
+  $ cd sub/symlink
+  ENTERED outside: PWD:symlink pwd:symlink from:leave.t to:symlink event:enter