diff --git a/activerecord/CHANGELOG b/activerecord/CHANGELOG
index fdc127dff2..c7fc7aaf54 100644
--- a/activerecord/CHANGELOG
+++ b/activerecord/CHANGELOG
@@ -1,5 +1,7 @@
 *CVS*
 
+* Added relative path search for sqlite dbfiles in database.yml (if RAILS_ROOT is defined) #233 [bitsweat]
+
 * Added option to establish_connection where you'll be able to leave out the parameter to have it use the RAILS_ENV environment variable
 
 * Added ADO-based SQLServerAdapter (only works on Windows) [Joey Gibson]
diff --git a/activerecord/lib/active_record/connection_adapters/sqlite_adapter.rb b/activerecord/lib/active_record/connection_adapters/sqlite_adapter.rb
index 1f3845e6a8..afe545b313 100644
--- a/activerecord/lib/active_record/connection_adapters/sqlite_adapter.rb
+++ b/activerecord/lib/active_record/connection_adapters/sqlite_adapter.rb
@@ -12,7 +12,8 @@ module ActiveRecord
       unless config.has_key?(:dbfile)
         raise ArgumentError, "No database file specified. Missing argument: dbfile"
       end
-
+      
+      config[:dbfile] = File.join(RAILS_ROOT, config[:dbfile]) if config[:dbfile] =~ /^\w/ && Object.const_defined?(:RAILS_ROOT)
       db = SQLite::Database.new(config[:dbfile], 0)
 
       db.show_datatypes   = "ON" if !defined? SQLite::Version
@@ -102,4 +103,4 @@ module ActiveRecord
         end
     end
   end
-end
\ No newline at end of file
+end