diff --git a/lib/classes/YamlParser.js b/lib/classes/YamlParser.js
index 161be346c..714eae351 100644
--- a/lib/classes/YamlParser.js
+++ b/lib/classes/YamlParser.js
@@ -1,6 +1,5 @@
 'use strict';
 
-const path = require('path');
 const YAML = require('js-yaml');
 const resolve = require('json-refs').resolveRefs;
 
@@ -10,10 +9,6 @@ class YamlParser {
   }
 
   parse(yamlFilePath) {
-    let parentDir = yamlFilePath.split(path.sep);
-    parentDir.pop();
-    parentDir = parentDir.join('/');
-
     const root = this.serverless.utils.readFileSync(yamlFilePath);
     const options = {
       filter: ['relative', 'remote'],
@@ -22,7 +17,7 @@ class YamlParser {
           callback(null, YAML.load(res.text));
         },
       },
-      relativeBase: parentDir,
+      location: yamlFilePath,
     };
     return resolve(root, options).then(res => res.resolved);
   }
diff --git a/package.json b/package.json
index 3b66ad355..c4224e1e8 100644
--- a/package.json
+++ b/package.json
@@ -204,7 +204,7 @@
     "is-wsl": "^2.2.0",
     "js-yaml": "^3.13.1",
     "json-cycle": "^1.3.0",
-    "json-refs": "^2.1.7",
+    "json-refs": "^3.0.15",
     "jwt-decode": "^2.2.0",
     "lodash": "^4.17.15",
     "memoizee": "^0.4.14",