diff --git a/src/databricks/labs/ucx/source_code/notebooks/loaders.py b/src/databricks/labs/ucx/source_code/notebooks/loaders.py
index d90a2fd8ae..5f4a494c7c 100644
--- a/src/databricks/labs/ucx/source_code/notebooks/loaders.py
+++ b/src/databricks/labs/ucx/source_code/notebooks/loaders.py
@@ -41,6 +41,7 @@ def resolve(self, path_lookup: PathLookup, path: Path) -> Path | None:
         return None."""
         # check current working directory first
         absolute_path = path_lookup.cwd / path
+        absolute_path = absolute_path.resolve()
         if is_a_notebook(absolute_path):
             return absolute_path
         # When exported through Git, notebooks are saved with a .py extension. So check with and without extension
diff --git a/tests/integration/source_code/test_cells.py b/tests/integration/source_code/test_cells.py
index a1621ad94a..b35306b228 100644
--- a/tests/integration/source_code/test_cells.py
+++ b/tests/integration/source_code/test_cells.py
@@ -5,6 +5,7 @@
 from databricks.labs.ucx.source_code.base import CurrentSessionState
 from databricks.labs.ucx.source_code.graph import Dependency, DependencyGraph
 from databricks.labs.ucx.source_code.linters.files import FileLoader
+from databricks.labs.ucx.source_code.notebooks.loaders import NotebookLoader
 from databricks.labs.ucx.source_code.notebooks.sources import Notebook
 
 
@@ -25,3 +26,25 @@ def test_malformed_pip_cell_is_supported(simple_ctx):
     )
     problems = notebook.build_dependency_graph(parent)
     assert not problems
+
+
+def test_relative_grand_parent_path_is_supported(
+    simple_ctx, make_notebook, make_directory, make_random, watchdog_purge_suffix
+):
+    grand_parent = make_notebook()
+    top_dir = make_directory()
+    child_dir = make_directory(path=f"~/{top_dir.name}/dummy-{make_random(4)}-{watchdog_purge_suffix}")
+    source = f"""
+%run ../../{grand_parent.name}
+
+"""
+    notebook_path = make_notebook(
+        path=f"{child_dir.as_posix()}/dummy-{make_random(4)}-{watchdog_purge_suffix}", content=source.encode("utf-8")
+    )
+    dependency = Dependency(NotebookLoader(), notebook_path)
+    root = DependencyGraph(
+        dependency, None, simple_ctx.dependency_resolver, simple_ctx.path_lookup, CurrentSessionState()
+    )
+    container = dependency.load(simple_ctx.path_lookup)
+    problems = container.build_dependency_graph(root)
+    assert not problems