diff --git a/plugin/core/windows.py b/plugin/core/windows.py
index 5d8a940fb..f299f886a 100644
--- a/plugin/core/windows.py
+++ b/plugin/core/windows.py
@@ -26,7 +26,9 @@
 from .types import matches_pattern
 from .types import sublime_pattern_to_glob
 from .typing import Optional, Any, Dict, Deque, List, Generator, Tuple, Union
+from .url import filename_to_uri
 from .url import parse_uri
+from .url import uri_to_filename
 from .views import extract_variables
 from .views import format_diagnostic_for_panel
 from .views import make_link
@@ -40,6 +42,7 @@
 from weakref import WeakSet
 import functools
 import json
+import os
 import sublime
 import threading
 import urllib.parse
@@ -375,15 +378,24 @@ def should_present_diagnostics(self, uri: DocumentUri) -> Optional[str]:
         project_data = self.window.project_data()
         if project_data:
             for folder in project_data.get('folders', []):
+                folder_path = folder['path']
+                if not os.path.isabs(folder_path):
+                    project_file_directory = os.path.dirname(self.window.project_file_name())
+                    folder_path = os.path.abspath(os.path.join(project_file_directory, folder_path))
+                    # Normalize path
+                    folder_path = uri_to_filename(filename_to_uri(folder_path))
                 for pattern in folder.get('folder_exclude_patterns', []):
                     if pattern.startswith('//'):
-                        patterns.append(sublime_pattern_to_glob(pattern, True, folder['path']))
+                        patterns.append(sublime_pattern_to_glob(pattern, True, folder_path))
                     elif pattern.startswith('/'):
                         patterns.append(sublime_pattern_to_glob(pattern, True))
                     else:
-                        patterns.append(sublime_pattern_to_glob('//' + pattern, True, folder['path']))
-                        patterns.append(sublime_pattern_to_glob('//**/' + pattern, True, folder['path']))
+                        patterns.append(sublime_pattern_to_glob('//' + pattern, True, folder_path))
+                        patterns.append(sublime_pattern_to_glob('//**/' + pattern, True, folder_path))
+        print('PATH', path)
+        print('PATTERNS', patterns)
         if matches_pattern(path, patterns):
+            print('MATCHES')
             return "matches a pattern in folder_exclude_patterns"
         return None