diff --git a/README b/README
index d76954b67f..3afd283ecc 100644
--- a/README
+++ b/README
@@ -20,7 +20,10 @@ If PKGFS_CONFIG_FILE is not set or specified from the command line with the
 Once that you read the "pkgfs.conf" file and configured it, you can start
 installing packages by using the command:
 
-	$ pkgfs.sh -c pkgfs.conf install templates/glib-2.18.1.tmpl
+	$ pkgfs.sh -c pkgfs.conf install glib-2.18.1
+
+Please note that it's assumed that PKGFS_TEMPLATESDIR is properly defined
+and actually contains valid template files.
 
 While installing your first package, if pkgfs couldn't find the Xstow program
 specified at the configuration file with PKGFS_XSTOW_CMD, the Xstow package
@@ -55,7 +58,7 @@ and to unstow an already installed (stowned) package:
 
 You can also print some stuff about any template, e.g:
 
-	$ pkgfs.sh info templates/glib-2.18.1.tmpl
+	$ pkgfs.sh info glib-2.18.1
 
 To list installed (stowned) packages, use this:
 
diff --git a/pkgfs.sh b/pkgfs.sh
index 80c80f6b61..3fbf242b1f 100755
--- a/pkgfs.sh
+++ b/pkgfs.sh
@@ -29,7 +29,6 @@
 #-
 #
 # TODO
-#	- milosn says: "pkgfs.sh -c pkgfs.conf build glib" work
 # 	- Multiple distfiles in a package.
 #	- Multiple URLs to download source distribution files.
 #	- Support GNU/BSD-makefile style source distribution files.
@@ -97,6 +96,9 @@ check_path()
 	eval local orig="$1"
 
 	case "$orig" in
+	$PKGFS_TEMPLATESDIR)
+		orig="$PKGFS_TEMPLATESDIR/$orig"
+		;;
 	/)
 		;;
 	/*)
@@ -122,13 +124,13 @@ run_file()
 info_tmpl()
 {
 	local tmpl="$1"
-	if [ -z "$tmpl" -o ! -f "$tmpl" ]; then
-		echo -n "*** ERROR: invalid template file '$tmpl',"
+	if [ -z "$tmpl" -o ! -f "$PKGFS_TEMPLATESDIR/$tmpl.tmpl" ]; then
+		echo -n "*** ERROR: invalid template file '$tmpl'"
 		echo ", aborting ***"
 		exit 1
 	fi
 
-	run_file ${tmpl}
+	run_file ${PKGFS_TEMPLATESDIR}/${tmpl}.tmpl
 
 	echo " pkgfs template definitions:"
 	echo
@@ -201,12 +203,18 @@ check_config_vars()
 		exit 1
 	fi
 
-	if [ -z "$PKGFS_DEPSDIR" ]; then
+	if [ ! -d "$PKGFS_DEPSDIR" ]; then
 		echo -n "**** ERROR: PKGFS_DEPSDIR not set in configuration "
 		echo "file, aborting ***"
 		exit 1
 	fi
 
+	if [ ! -d "$PKGFS_TEMPLATESDIR" ]; then
+		echo -n "*** ERROR: PKGFS_TEMPLATESDIR cannot be read"
+		echo ", aborting ***"
+		exit 1
+	fi
+
 	local PKGFS_VARS="PKGFS_MASTERDIR PKGFS_DESTDIR PKGFS_BUILDDIR \
 			  PKGFS_SRC_DISTDIR"
 
@@ -603,7 +611,7 @@ install_dependency_tmpl()
 		check_installed_tmpl $i
 		[ "$?" -eq 0 ] && continue
 		echo ">>> Installing dependency: $i"
-		install_tmpl "${PKGFS_TEMPLATESDIR}/${i%%-deps.db}.tmpl"
+		install_tmpl "${i%-deps.db}"
 	done
 
 	deps_list=
@@ -678,7 +686,7 @@ check_installed_tmpl()
 
 install_tmpl()
 {
-	cur_tmpl="$1"
+	cur_tmpl="$PKGFS_TEMPLATESDIR/$1.tmpl"
 	if [ -z "$cur_tmpl" -o ! -f "$cur_tmpl" ]; then
 		echo -n "*** ERROR: invalid template file '$cur_tmpl',"
 		echo " aborting ***"