diff --git a/config/application.rb b/config/application.rb
index 33d7b881fa4..1e9ec74cdbf 100644
--- a/config/application.rb
+++ b/config/application.rb
@@ -52,17 +52,11 @@ module Gitlab
 
     config.action_view.sanitized_allowed_protocols = %w(smb)
 
-    # Relative url support
-    # Uncomment and customize the last line to run in a non-root path
-    # WARNING: We recommend creating a FQDN to host GitLab in a root path instead of this.
-    # Note that following settings need to be changed for this to work.
-    # 1) In your application.rb file: config.relative_url_root = "/gitlab"
-    # 2) In your gitlab.yml file: relative_url_root: /gitlab
-    # 3) In your unicorn.rb: ENV['RAILS_RELATIVE_URL_ROOT'] = "/gitlab"
-    # 4) In ../gitlab-shell/config.yml: gitlab_url: "http://127.0.0.1/gitlab"
-    # 5) In lib/support/nginx/gitlab : do not use asset gzipping, remove block starting with "location ~ ^/(assets)/"
-    #
-    # To update the path, run: sudo -u git -H bundle exec rake assets:precompile RAILS_ENV=production
+    # Relative URL support
+    # WARNING: We recommend using an FQDN to host GitLab in a root path instead
+    # of using a relative URL.
+    # Documentation: http://doc.gitlab.com/ce/install/relative_url.html
+    # Uncomment and customize the following line to run in a non-root path
     #
     # config.relative_url_root = "/gitlab"
 
diff --git a/config/gitlab.yml.example b/config/gitlab.yml.example
index d6e2c9380a5..faf05ecd466 100644
--- a/config/gitlab.yml.example
+++ b/config/gitlab.yml.example
@@ -38,8 +38,12 @@ production: &base
     # Otherwise, ssh host will be set to the `host:` value above
     # ssh_host: ssh.host_example.com
 
-    # WARNING: See config/application.rb under "Relative url support" for the list of
-    # other files that need to be changed for relative url support
+    # Relative URL support
+    # WARNING: We recommend using an FQDN to host GitLab in a root path instead
+    # of using a relative URL.
+    # Documentation: http://doc.gitlab.com/ce/install/relative_url.html
+    # Uncomment and customize the following line to run in a non-root path
+    #
     # relative_url_root: /gitlab
 
     # Uncomment and customize if you can't use the default user to run GitLab (default: 'git')
diff --git a/config/unicorn.rb.example b/config/unicorn.rb.example
index b937b092789..e5058cebce8 100644
--- a/config/unicorn.rb.example
+++ b/config/unicorn.rb.example
@@ -10,9 +10,12 @@
 
 # Note: If you change this file in a Merge Request, please also create a
 # Merge Request on https://gitlab.com/gitlab-org/omnibus-gitlab/merge_requests
-#
-# WARNING: See config/application.rb under "Relative url support" for the list of
-# other files that need to be changed for relative url support
+
+# Relative URL support
+# WARNING: We recommend using an FQDN to host GitLab in a root path instead
+# of using a relative URL.
+# Documentation: http://doc.gitlab.com/ce/install/relative_url.html
+# Uncomment and customize the following line to run in a non-root path
 #
 # ENV['RAILS_RELATIVE_URL_ROOT'] = "/gitlab"
 
diff --git a/doc/install/installation.md b/doc/install/installation.md
index c91e05e4793..fe614df91fd 100644
--- a/doc/install/installation.md
+++ b/doc/install/installation.md
@@ -484,6 +484,11 @@ You can use `sudo service gitlab start` and `sudo service gitlab stop` to start
 
 ## Advanced Setup Tips
 
+### Relative URL support
+
+See the [Relative URL documentation](relative_url.md) for more information on
+how to configure GitLab with a relative URL.
+
 ### Using HTTPS
 
 To use GitLab with HTTPS:
diff --git a/doc/install/relative_url.md b/doc/install/relative_url.md
new file mode 100644
index 00000000000..b341b6311c6
--- /dev/null
+++ b/doc/install/relative_url.md
@@ -0,0 +1,126 @@
+## Install GitLab under a relative URL
+
+_**Note:**
+This document describes how to run GitLab under a relative URL for installations
+from source. If you are using an Omnibus package,
+[the steps are different][omnibus-rel]. Use this guide along with the
+[installation guide](installation.md) if you are installing GitLab for the
+first time._
+
+---
+
+While it is recommended to install GitLab on its own (sub)domain, sometimes
+this is not possible due to a variety of reasons. In that case, GitLab can also
+be installed under a relative URL, for example `https://example.com/gitlab`.
+
+There is no limit to how deeply nested the relative URL can be. For example you
+could serve GitLab under `/foo/bar/gitlab/git` without any issues.
+
+Note that by changing the URL on an existing GitLab installation, all remote
+URLs will change, so you'll have to manually edit them in any local repository
+that points to your GitLab instance.
+
+---
+
+The TL;DR list of configuration files that you need to change in order to
+serve GitLab under a relative URL is:
+
+- `/home/git/gitlab/config/application.rb`
+- `/home/git/gitlab/config/gitlab.yml`
+- `/home/git/gitlab/config/unicorn.rb`
+- `/home/git/gitlab-shell/config.yml`
+- `/etc/default/gitlab`
+
+After all the changes you need to recompile the assets and [restart GitLab].
+
+### Relative URL requirements
+
+If you configure GitLab with a relative URL, the assets (JavaScript, CSS, fonts,
+images, etc.) will need to be recompiled, which is a task which consumes a lot
+of CPU and memory resources. To avoid out-of-memory errors, you should have at
+least 2GB of RAM available on your system, while we recommend 4GB RAM, and 4 or
+8 CPU cores.
+
+See the [requirements](requirements.md) document for more information.
+
+### Enable relative URL in GitLab
+
+_**Note:**
+Do not make any changes to your web server configuration file regarding
+relative URL. The relative URL support is implemented by GitLab Workhorse._
+
+---
+
+Before following the steps below to enable relative URL in GitLab, some
+assumptions are made:
+
+- GitLab is served under `/gitlab`
+- The directory under which GitLab is installed is `/home/git/`
+
+Make sure to follow all steps below:
+
+1.  (Optional) If you run short on resources, you can temporarily free up some
+    memory by shutting down the GitLab service with the following command:
+
+    ```shell
+    sudo service gitlab stop
+    ```
+
+1.  Edit `/home/git/gitlab/config/application.rb` and uncomment/change the
+    following line:
+
+    ```ruby
+    config.relative_url_root = "/gitlab"
+    ```
+
+1.  Edit `/home/git/gitlab/config/gitlab.yml` and uncomment/change the
+    following line:
+
+    ```yaml
+    relative_url_root: /gitlab
+    ```
+
+1.  Edit `/home/git/gitlab/config/unicorn.rb` and uncomment/change the
+    following line:
+
+    ```ruby
+    ENV['RAILS_RELATIVE_URL_ROOT'] = "/gitlab"
+    ```
+
+1.  Edit `/home/git/gitlab-shell/config.yml` and append the relative path to
+    the following line:
+
+    ```yaml
+    gitlab_url: http://127.0.0.1/gitlab
+    ```
+
+1.  Make sure you have copied the supplied init script and the defaults file
+    as stated in the [installation guide](installation.md#install-init-script).
+    Then, edit `/etc/default/gitlab` and set in `gitlab_workhorse_options` the
+    `-authBackend` setting to read like:
+
+    ```shell
+    -authBackend http://127.0.0.1:8080/gitlab
+    ```
+
+    **Note:**
+    If you are using a custom init script, make sure to edit the above
+    gitlab-workhorse setting as needed.
+
+1.  After all the above changes recompile the assets. This is an important task
+    and will take some time to complete depending on the server resources:
+
+    ```
+    cd /home/git/gitlab
+    sudo -u git -H bundle exec rake assets:clean assets:precompile RAILS_ENV=production
+    ```
+
+1. [Restart GitLab][] for the changes to take effect.
+
+### Disable relative URL in GitLab
+
+To disable the relative URL, follow the same steps as above and set up the
+GitLab URL to one that doesn't contain a relative path.
+
+[omnibus-rel]: http://doc.gitlab.com/omnibus/settings/configuration.html#configuring-a-relative-url-for-gitlab "How to setup relative URL in Omnibus GitLab"
+[restart gitlab]: ../administration/restart_gitlab.md#installations-from-source "How to restart GitLab"
diff --git a/lib/support/init.d/gitlab.default.example b/lib/support/init.d/gitlab.default.example
index 4e6e56ac2db..cc8617b72ca 100755
--- a/lib/support/init.d/gitlab.default.example
+++ b/lib/support/init.d/gitlab.default.example
@@ -34,11 +34,16 @@ sidekiq_pid_path="$pid_path/sidekiq.pid"
 # /home/git/gitlab-workhorse .
 gitlab_workhorse_dir=$(cd $app_root/../gitlab-workhorse && pwd)
 gitlab_workhorse_pid_path="$pid_path/gitlab-workhorse.pid"
+
 # The -listenXxx settings determine where gitlab-workhorse
-# listens for connections from NGINX. To listen on localhost:8181, write
-# '-listenNetwork tcp -listenAddr localhost:8181'.
-# The -authBackend setting tells gitlab-workhorse where it can reach
-# Unicorn.
+# listens for connections from the web server. By default it listens to a
+# socket. To listen on TCP connections (needed by Apache) change to:
+# '-listenNetwork tcp -listenAddr 127.0.0.1:8181'
+#
+# The -authBackend setting tells gitlab-workhorse where it can reach Unicorn.
+# For relative URL support change to:
+# '-authBackend http://127.0.0.1/8080/gitlab'
+# Read more in http://doc.gitlab.com/ce/install/relative_url.html
 gitlab_workhorse_options="-listenUmask 0 -listenNetwork unix -listenAddr $socket_path/gitlab-workhorse.socket -authBackend http://127.0.0.1:8080 -authSocket $socket_path/gitlab.socket -documentRoot $app_root/public"
 gitlab_workhorse_log="$app_root/log/gitlab-workhorse.log"