diff --git a/NEWS.rst b/NEWS.rst
index 5601b8078..2955df0f8 100644
--- a/NEWS.rst
+++ b/NEWS.rst
@@ -255,6 +255,10 @@ Modules 5.7.0 (not yet released)
   shell meta-characters. Completion candidates were passed to ``compgen -W``
   which evaluates command substitution syntax. (fix `CVE-2026-85013`_ found
   by AISLE in partnership with Red Hat)
+* Fix resolution of relative path entries in :envvar:`MODULEPATH` when a
+  module is loaded during a modulefile evaluation. Such entry was resolved
+  against the directory of the evaluating modulefile rather than against the
+  current working directory.
 
 .. _CVE-2026-85013: https://github.com/envmodules/modules/security/advisories/GHSA-8hrw-p88g-qhmg
 
diff --git a/doc/source/modulefile.rst b/doc/source/modulefile.rst
index 49194f469..4c420abe4 100644
--- a/doc/source/modulefile.rst
+++ b/doc/source/modulefile.rst
@@ -2276,7 +2276,12 @@ reloaded or refreshed. This is especially important when the modulefile
 updates an environment variable also altered by other modulefiles like
 :envvar:`PATH`. As the order of the path elements in such variable defines
 priority, it is important that this order does not change depending on the way
-the modulefiles are loaded.
+the modulefiles are loaded. Moreover when :mconfig:`conflict_unload` is
+enabled, a conflicting loaded modulefile is unloaded at the time the
+:mfcmd:`conflict`, :mfcmd:`family` or :mfcmd:`module unload<module>` command
+is evaluated. Environment changes made prior this command by the loading
+modulefile are overridden by this unload. For instance a variable set by the
+loading modulefile ends up unset if it is also set by the unloaded modulefile.
 
 :command:`module` keeps environment consistent which means a modulefile cannot
 be loaded if its requirements are not loaded or if a conflicting module is
diff --git a/tcl/mfcmd.tcl b/tcl/mfcmd.tcl
index ef09513e3..0e7c89662 100644
--- a/tcl/mfcmd.tcl
+++ b/tcl/mfcmd.tcl
@@ -1336,11 +1336,14 @@ proc is-saved {args} {
 # test at least one of the directories passed as argument is set in MODULEPATH
 proc is-used {args} {
    set modpathlist [getModulePathList]
+   set rawmodpathlist [getModulePathList returnempty 0 0]
    foreach path $args {
-      # transform given path in an absolute path to compare with dirs
-      # registered in the MODULEPATH env var which are returned absolute.
-      set abspath [getAbsolutePath $path]
-      if {$abspath in $modpathlist} {
+      # given path is first checked against the raw MODULEPATH content, as a
+      # relative entry there refers to the current working directory whereas
+      # given path is transformed in an absolute path relatively to the
+      # directory of the modulefile being evaluated
+      if {$path in $rawmodpathlist || [getAbsolutePath $path] in\
+         $modpathlist} {
          return 1
       }
    }
diff --git a/tcl/modfind.tcl.in b/tcl/modfind.tcl.in
index 3e48ccebd..52ad0e175 100644
--- a/tcl/modfind.tcl.in
+++ b/tcl/modfind.tcl.in
@@ -507,8 +507,10 @@ proc getModulePathList {{behavior returnempty} {resolv_var 1} {set_abs 1}} {
       if {$resolv_var} {
          set modpath [resolvStringWithEnv $modpath]
       }
+      # relative modulepath refers to current working directory of module
+      # command, not to the directory of the modulefile being evaluated
       if {$set_abs} {
-         set modpath [getAbsolutePath $modpath]
+         set modpath [getAbsolutePath $modpath 1]
       }
       lappendNoDup modpath_list $modpath
    }
diff --git a/tcl/util.tcl b/tcl/util.tcl
index 03873e530..cb3a8b696 100644
--- a/tcl/util.tcl
+++ b/tcl/util.tcl
@@ -94,9 +94,10 @@ proc runCommand {cmd args} {
    }
 }
 
-proc getAbsolutePath {path} {
+proc getAbsolutePath {path {from_cwd 0}} {
    # currently executing a modulefile or rc, so get the directory of this file
-   if {[currentState modulefile] ne {}} {
+   # unless resolution from current working directory is requested
+   if {!$from_cwd && [currentState modulefile] ne {}} {
       set curdir [file dirname [currentState modulefile]]
    # elsewhere get module command current working directory
    } else {
diff --git a/testsuite/modulefiles.4/bar/1 b/testsuite/modulefiles.4/bar/1
index 615fbf555..e3c626638 100644
--- a/testsuite/modulefiles.4/bar/1
+++ b/testsuite/modulefiles.4/bar/1
@@ -78,3 +78,21 @@ if {[info exists env(TESTSUITE_LCOMPAT)]} {
         }
     }
 }
+if {[info exists env(TESTSUITE_RELATIVE_MODULEPATH)]} {
+    switch -- $env(TESTSUITE_RELATIVE_MODULEPATH) {
+        load1 {
+            module load foo/1.0
+        }
+        prereq1 {
+            prereq foo/1.0
+        }
+        depon1 {
+            depends-on foo/1.0
+        }
+        isused1 {
+            setenv TS_ISUSED_RAW [is-used $env(MODULEPATH)]
+            setenv TS_ISUSED_REL [is-used ..]
+            setenv TS_ISUSED_UNK [is-used [file tail $env(MODULEPATH)]]
+        }
+    }
+}
diff --git a/testsuite/modulefiles.4/conun/1 b/testsuite/modulefiles.4/conun/1
index d9ea46f2b..6da854014 100644
--- a/testsuite/modulefiles.4/conun/1
+++ b/testsuite/modulefiles.4/conun/1
@@ -67,6 +67,22 @@ if {[info exists env(TESTSUITE_CONFLICT_UNLOAD)]} {
         depun_of_conun_is_sticky1 - depun_of_conun_is_super_sticky1 {
             conflict conun
         }
+        setenv_before_conflict1 {
+            setenv TSCONUN conun
+            conflict foo
+        }
+        setenv_after_conflict1 {
+            conflict foo
+            setenv TSCONUN conun
+        }
+        setenv_before_unload1 {
+            setenv TSCONUN conun
+            module unload foo
+        }
+        setenv_before_family1 {
+            setenv TSCONUN conun
+            family conun
+        }
         implicit_default_off1 {
             conflict conun
         }
diff --git a/testsuite/modulefiles.4/foo/1.0 b/testsuite/modulefiles.4/foo/1.0
index c6a6b8d3b..6f2e3c590 100644
--- a/testsuite/modulefiles.4/foo/1.0
+++ b/testsuite/modulefiles.4/foo/1.0
@@ -61,6 +61,13 @@ if {[info exists env(TESTSUITE_CONFLICT_UNLOAD)]} {
         depre_of_conun_is_conflict_of_reqlo1 {
             conflict bar/1
         }
+        setenv_before_conflict1 - setenv_after_conflict1 - setenv_before_unload1 {
+            setenv TSCONUN foo
+        }
+        setenv_before_family1 {
+            setenv TSCONUN foo
+            family conun
+        }
     }
 }
 if {[info exists env(TESTSUITE_MODULEPATH_OPT)]} {
diff --git a/testsuite/modules.50-cmds/660-conflict_unload.exp b/testsuite/modules.50-cmds/660-conflict_unload.exp
index 91cdb2178..366b96cae 100644
--- a/testsuite/modules.50-cmds/660-conflict_unload.exp
+++ b/testsuite/modules.50-cmds/660-conflict_unload.exp
@@ -910,6 +910,61 @@ set tserr [msg_top_load_conun conun/1 {} conun/2 {} {} bar/1]
 testouterr_cmd bash {load conun/1} $ans $tserr
 
 
+#
+# environment variable set by loading module prior conflict declaration
+#
+
+unsetenv_loaded_module
+unsetenv_var __MODULES_LMPREREQ
+unsetenv_var __MODULES_LMCONFLICT
+unsetenv_var __MODULES_LMTAG
+unsetenv_var __MODULES_LMALTNAME
+unsetenv_var MODULES_FAMILY_CONUN
+
+setenv_loaded_module [list foo/1.0] [list $mp/foo/1.0]
+setenv_var TSCONUN foo
+
+# conflicting module unload occurs when conflict is evaluated, so variable
+# set by loading module before that is unset by this unload
+setenv_var TESTSUITE_CONFLICT_UNLOAD setenv_before_conflict1
+set ans [list]
+lappend ans [list set __MODULES_LMCONFLICT conun/1&foo]
+lappend ans [list set _LMFILES_ $mp/conun/1]
+lappend ans [list set LOADEDMODULES conun/1]
+lappend ans [list unset TSCONUN]
+set tserr [msg_top_load_conun conun/1 {} {foo/1.0} {} {} {} {}]
+testouterr_cmd bash {load conun/1} $ans $tserr
+
+setenv_var TESTSUITE_CONFLICT_UNLOAD setenv_before_unload1
+testouterr_cmd bash {load conun/1} $ans $tserr
+
+# variable is preserved if set after conflict declaration
+setenv_var TESTSUITE_CONFLICT_UNLOAD setenv_after_conflict1
+set ans [list]
+lappend ans [list set __MODULES_LMCONFLICT conun/1&foo]
+lappend ans [list set _LMFILES_ $mp/conun/1]
+lappend ans [list set LOADEDMODULES conun/1]
+lappend ans [list set TSCONUN conun]
+testouterr_cmd bash {load conun/1} $ans $tserr
+
+setenv_var TESTSUITE_CONFLICT_UNLOAD setenv_before_family1
+setenv_var MODULES_FAMILY_CONUN foo
+setenv_var __MODULES_LMALTNAME foo/1.0&al|conun
+set ans [list]
+lappend ans [list set MODULES_FAMILY_CONUN conun]
+lappend ans [list set __MODULES_LMCONFLICT conun/1&conun]
+lappend ans [list set __MODULES_LMALTNAME conun/1&al|conun]
+lappend ans [list set _LMFILES_ $mp/conun/1]
+lappend ans [list set LOADEDMODULES conun/1]
+lappend ans [list unset TSCONUN]
+lappend ans [list set LMOD_FAMILY_CONUN conun]
+testouterr_cmd bash {load conun/1} $ans $tserr
+
+unsetenv_var MODULES_FAMILY_CONUN
+unsetenv_var __MODULES_LMALTNAME
+unsetenv_var TSCONUN
+
+
 #
 # Disabled implicit default
 #
diff --git a/testsuite/modules.50-cmds/745-modulepath-relative.exp b/testsuite/modules.50-cmds/745-modulepath-relative.exp
new file mode 100644
index 000000000..e2d7f0f3a
--- /dev/null
+++ b/testsuite/modules.50-cmds/745-modulepath-relative.exp
@@ -0,0 +1,66 @@
+##############################################################################
+#   Modules Revision 3.0
+#   Providing a flexible user environment
+#
+#   File:		modules.50-cmds/%M%
+#   Revision:		%I%
+#   First Edition:	2026/09/15
+#   Last Mod.:		%U%, %G%
+#
+#   Authors:		Xavier Delaruelle, xavier.delaruelle@cea.fr
+#
+#   Description:	Testuite testsequence
+#   Command:		load
+#   Modulefiles:    bar, foo
+#   Sub-Command:    is-used
+#
+#   Comment:	%C{
+#           Test module load made during a modulefile evaluation when
+#           modulepath is set as a relative path
+#		}C%
+#
+##############################################################################
+
+skip_if_quick_mode
+
+set mp $modpath.4
+set mpre $modpathre.4
+
+# modulepath relative to current working directory of module command
+set relmp [file tail $env(TESTSUITEDIR)]/[file tail $mp]
+
+setenv_var MODULES_AUTO_HANDLING 1
+
+set ans [list]
+lappend ans [list set __MODULES_LMPREREQ bar/1&foo/1.0]
+lappend ans [list set _LMFILES_ $mp/foo/1.0:$mp/bar/1]
+lappend ans [list set LOADEDMODULES foo/1.0:bar/1]
+lappend ans [list set __MODULES_LMTAG foo/1.0&auto-loaded]
+set tserr [msg_top_load bar/1 {} foo/1.0 {}]
+
+# is-used given the raw relative entry or a path relative to the modulefile
+# directory, which is not the current working directory
+set ans2 [list]
+lappend ans2 [list set TS_ISUSED_UNK 0]
+lappend ans2 [list set TS_ISUSED_RAW 1]
+lappend ans2 [list set TS_ISUSED_REL 1]
+lappend ans2 [list set _LMFILES_ $mp/bar/1]
+lappend ans2 [list set LOADEDMODULES bar/1]
+
+foreach modulepath [list $relmp ./$relmp] {
+    setenv_path_var MODULEPATH $modulepath
+    foreach tscase {load1 prereq1 depon1} {
+        setenv_var TESTSUITE_RELATIVE_MODULEPATH $tscase
+        testouterr_cmd bash {load bar/1} $ans $tserr
+    }
+
+    setenv_var TESTSUITE_RELATIVE_MODULEPATH isused1
+    testouterr_cmd bash {load bar/1} $ans2 {}
+}
+
+
+#
+#  Cleanup
+#
+
+reset_test_env