diff --git a/lib/isodoc/xslfo_convert.rb b/lib/isodoc/xslfo_convert.rb
index 1e2d8d0c..c8c2a3b1 100644
--- a/lib/isodoc/xslfo_convert.rb
+++ b/lib/isodoc/xslfo_convert.rb
@@ -39,7 +39,13 @@ def pdf_stylesheet(_docxml)
       nil
     end
 
-    def pdf_options(_docxml)
+    def baseassetpath(filename)
+      !@baseassetpath && filename and
+        @baseassetpath = File.expand_path(Pathname.new(filename).parent.to_s)
+    end
+
+    def pdf_options(_docxml, filename)
+      baseassetpath(filename)
       ret = {}
       font_manifest = @options.dig(MN_OPTIONS_KEY, MN2PDF_FONT_MANIFEST) and
         ret[MN2PDF_FONT_MANIFEST] = font_manifest
@@ -61,7 +67,7 @@ def convert(input_fname, file = nil, debug = false,
       @doctype = Nokogiri::XML(file).at(ns("//bibdata/ext/doctype"))&.text
       ::Metanorma::Output::XslfoPdf.new.convert(
         filename, output_fname || output_filename(input_fname),
-        xsl, pdf_options(docxml)
+        xsl, pdf_options(docxml, input_fname)
       )
     end
 
diff --git a/spec/isodoc/xslfo_convert_spec.rb b/spec/isodoc/xslfo_convert_spec.rb
index 90540376..950a814b 100644
--- a/spec/isodoc/xslfo_convert_spec.rb
+++ b/spec/isodoc/xslfo_convert_spec.rb
@@ -8,7 +8,7 @@
       },
     )
 
-    expect(convert.pdf_options(nil)).to eq({ "--syntax-highlight": nil })
+    expect(convert.pdf_options(nil, nil)).to eq({ "--syntax-highlight": nil })
   end
 
   it "test default pdf_options for nil font_manifest_file" do
@@ -21,7 +21,7 @@
       },
     )
 
-    expect(convert.pdf_options(nil)).to eq({ "--syntax-highlight": nil })
+    expect(convert.pdf_options(nil, nil)).to eq({ "--syntax-highlight": nil })
   end
 
   it "test --font-manifest pdf_options" do
@@ -36,7 +36,7 @@
       },
     )
 
-    expect(convert.pdf_options(nil)).to eq(mn2pdf_opts)
+    expect(convert.pdf_options(nil, nil)).to eq(mn2pdf_opts)
   end
 
   it "test --param align-cross-elements pdf_options" do
@@ -47,7 +47,7 @@
       },
     )
 
-    expect(convert.pdf_options(nil))
+    expect(convert.pdf_options(nil, nil))
       .to eq({ "--param align-cross-elements=" => "clause table note",
                "--syntax-highlight": nil })
   end
@@ -60,9 +60,22 @@
       },
     )
 
-    expect(convert.pdf_options(nil))
+    expect(convert.pdf_options(nil, nil))
       .to eq({ "--param baseassetpath=" => "ABC",
                "--syntax-highlight": nil })
+
+    convert = IsoDoc::XslfoPdfConvert.new(
+      {
+        datauriimage: false,
+      },
+    )
+
+    expect(convert.pdf_options(nil, nil))
+      .to eq({ "--syntax-highlight": nil })
+
+    expect(convert.pdf_options(nil, "test.xml"))
+      .to eq({ "--param baseassetpath=" => File.expand_path("."),
+               "--syntax-highlight": nil })
   end
 
   it "test pdf encryption options" do
@@ -83,7 +96,7 @@
       },
     )
 
-    expect(convert.pdf_options(nil))
+    expect(convert.pdf_options(nil, nil))
       .to eq({
                "--allow-access-content" => "i",
                "--allow-assemble-document" => "j",