diff --git a/middleman-more/features/helpers_link_to.feature b/middleman-more/features/helpers_link_to.feature
index 1607cc24..e445f7f0 100644
--- a/middleman-more/features/helpers_link_to.feature
+++ b/middleman-more/features/helpers_link_to.feature
@@ -21,6 +21,40 @@ Feature: link_to helper
     Then I should see 'absolute: <a href="../needs_index.html">Needs Index</a>'
     Then I should see 'relative: <a href="../needs_index.html">Relative</a>'
 
+  Scenario: link_to relative works with strip_index_file
+    Given a fixture app "indexable-app"
+    And a file named "config.rb" with:
+    """
+    set :relative_links, true
+    set :strip_index_file, true
+    helpers do
+      def menu_items(path='link_to.html')
+        sitemap.find_resource_by_destination_path(path).children
+      end
+    end
+    """
+    And a file named "source/link_to.html.erb" with:
+    """
+    <% menu_items.each do |item| %>
+        <%= link_to(item.metadata[:page]['title'], item.url) %>
+        <%= link_to(item.metadata[:page]['title'], item) %>
+    <% end %>
+    """
+    And a file named "source/link_to/sub.html.erb" with:
+    """
+    <% menu_items.each do |item| %>
+        <%= link_to(item.metadata[:page]['title'], item.url) %>
+        <%= link_to(item.metadata[:page]['title'], item) %>
+    <% end %>
+    """
+    And the Server is running at "indexable-app"
+    When I go to "/link_to.html"
+    Then I should see '"link_to/sub.html"'
+    Then I should not see "/link_to/sub.html"
+    When I go to "/link_to/sub.html"
+    Then I should see '"sub.html"'
+    Then I should not see "/link_to/sub.html"
+
   Scenario: link_to produces relative links when :relative_links is set to true
     Given a fixture app "indexable-app"
     And a file named "config.rb" with:
diff --git a/middleman-more/lib/middleman-more/core_extensions/default_helpers.rb b/middleman-more/lib/middleman-more/core_extensions/default_helpers.rb
index c2028407..78c4b50e 100644
--- a/middleman-more/lib/middleman-more/core_extensions/default_helpers.rb
+++ b/middleman-more/lib/middleman-more/core_extensions/default_helpers.rb
@@ -129,8 +129,10 @@ module Middleman
 
             # Handle Resources, which define their own url method
             if url.respond_to? :url
-              args[url_arg_index] = url.url
-            elsif url.include? '://'
+              url = args[url_arg_index] = url.url
+            end
+
+            if url.include? '://'
               raise "Can't use the relative option with an external URL" if relative
             elsif current_resource
               # Handle relative urls