diff --git a/tests/run-tests.py b/tests/run-tests.py
--- a/tests/run-tests.py
+++ b/tests/run-tests.py
@@ -1506,7 +1506,7 @@ class TestSuite(unittest.TestSuite):
             def get():
                 num_tests[0] += 1
                 if getattr(test, 'should_reload', False):
-                    return self._loadtest(test.bname, num_tests[0])
+                    return self._loadtest(test.path, num_tests[0])
                 return test
             if not os.path.exists(test.path):
                 result.addSkip(test, "Doesn't exist")
diff --git a/tests/test-run-tests.t b/tests/test-run-tests.t
--- a/tests/test-run-tests.t
+++ b/tests/test-run-tests.t
@@ -718,3 +718,13 @@ test support for --allow-slow-tests
   $ rt $HGTEST_RUN_TESTS_PURE --allow-slow-tests test-very-slow-test.t
   .
   # Ran 1 tests, 0 skipped, 0 warned, 0 failed.
+
+support for running a test outside the current directory
+  $ mkdir nonlocal
+  $ cat > nonlocal/test-is-not-here.t << EOF
+  >   $ echo pass
+  >   pass
+  > EOF
+  $ rt nonlocal/test-is-not-here.t
+  .
+  # Ran 1 tests, 0 skipped, 0 warned, 0 failed.