diff --git a/src/Buffer.cpp b/src/Buffer.cpp
index 07a82c0371..7532c14ca9 100644
--- a/src/Buffer.cpp
+++ b/src/Buffer.cpp
@@ -2083,7 +2083,7 @@ void Buffer::dispatch(FuncRequest const & func, DispatchResult & dr)
 
 		// Execute the command in the background
 		Systemcall call;
-		call.startscript(Systemcall::DontWait, command);
+		call.startscript(Systemcall::DontWait, command, filePath());
 		break;
 	}
 
@@ -2261,7 +2261,8 @@ void Buffer::dispatch(FuncRequest const & func, DispatchResult & dr)
 				command2 += quoteName(psname);
 				// First run dvips.
 				// If successful, then spool command
-				res = one.startscript(Systemcall::Wait, command);
+				res = one.startscript(Systemcall::Wait, command,
+						      filePath());
 
 				if (res == 0) {
 					// If there's no GUI, we have to wait on this command. Otherwise,
@@ -2269,7 +2270,8 @@ void Buffer::dispatch(FuncRequest const & func, DispatchResult & dr)
 					// file, before it can be printed!!
 					Systemcall::Starttype stype = use_gui ?
 						Systemcall::DontWait : Systemcall::Wait;
-					res = one.startscript(stype, command2);
+					res = one.startscript(stype, command2,
+							      filePath());
 				}
 			} else {
 				// case 2: print directly to a printer
@@ -2278,7 +2280,8 @@ void Buffer::dispatch(FuncRequest const & func, DispatchResult & dr)
 				// as above....
 				Systemcall::Starttype stype = use_gui ?
 					Systemcall::DontWait : Systemcall::Wait;
-				res = one.startscript(stype, command + quoteName(dviname));
+				res = one.startscript(stype, command +
+						quoteName(dviname), filePath());
 			}
 
 		} else {
@@ -2301,7 +2304,7 @@ void Buffer::dispatch(FuncRequest const & func, DispatchResult & dr)
 			// as above....
 			Systemcall::Starttype stype = use_gui ?
 				Systemcall::DontWait : Systemcall::Wait;
-			res = one.startscript(stype, command);
+			res = one.startscript(stype, command, filePath());
 		}
 
 		if (res == 0) 
diff --git a/src/Converter.cpp b/src/Converter.cpp
index 0f0f4b44eb..8adcfc3258 100644
--- a/src/Converter.cpp
+++ b/src/Converter.cpp
@@ -307,7 +307,7 @@ bool Converters::convert(Buffer const * buffer,
 			LYXERR(Debug::FILES, "No converter defined! "
 				   "I use convertDefault.py:\n\t" << command);
 			Systemcall one;
-			one.startscript(Systemcall::Wait, command);
+			one.startscript(Systemcall::Wait, command, buffer->filePath());
 			if (to_file.isReadableFile()) {
 				if (conversionflags & try_cache)
 					ConverterCache::get().add(orig_from,
@@ -443,12 +443,14 @@ bool Converters::convert(Buffer const * buffer,
 			int res;
 			if (dummy) {
 				res = one.startscript(Systemcall::DontWait,
-					to_filesystem8bit(from_utf8(command)));
+					to_filesystem8bit(from_utf8(command)),
+					buffer->filePath());
 				// We're not waiting for the result, so we can't do anything
 				// else here.
 			} else {
 				res = one.startscript(Systemcall::Wait,
-						to_filesystem8bit(from_utf8(command)));
+						to_filesystem8bit(from_utf8(command)),
+						buffer->filePath());
 				if (!real_outfile.empty()) {
 					Mover const & mover = getMover(conv.to);
 					if (!mover.rename(outfile, real_outfile))
@@ -468,7 +470,8 @@ bool Converters::convert(Buffer const * buffer,
 						" < " + quoteName(infile2 + ".out") +
 						" > " + quoteName(logfile);
 					one.startscript(Systemcall::Wait,
-						to_filesystem8bit(from_utf8(command2)));
+						to_filesystem8bit(from_utf8(command2)),
+						buffer->filePath());
 					if (!scanLog(*buffer, command, makeAbsPath(logfile, path), errorList))
 						return false;
 				}
@@ -612,7 +615,8 @@ bool Converters::runLaTeX(Buffer const & buffer, string const & command,
 
 	// do the LaTeX run(s)
 	string const name = buffer.latexName();
-	LaTeX latex(command, runparams, FileName(makeAbsPath(name)));
+	LaTeX latex(command, runparams, FileName(makeAbsPath(name)),
+		    buffer.filePath());
 	TeXErrors terr;
 	ShowMessage show(buffer);
 	latex.message.connect(show);
diff --git a/src/Format.cpp b/src/Format.cpp
index ec61b84387..cc85b85000 100644
--- a/src/Format.cpp
+++ b/src/Format.cpp
@@ -285,7 +285,7 @@ bool Formats::view(Buffer const & buffer, FileName const & filename,
 	}
 	// viewer is 'auto'
 	if (format->viewer() == "auto") {
-		if (os::autoOpenFile(filename.absFileName(), os::VIEW))
+		if (os::autoOpenFile(filename.absFileName(), os::VIEW, buffer.filePath()))
 			return true;
 		else {
 			Alert::error(_("Cannot view file"),
@@ -320,7 +320,7 @@ bool Formats::view(Buffer const & buffer, FileName const & filename,
 	buffer.message(_("Executing command: ") + from_utf8(command));
 
 	Systemcall one;
-	one.startscript(Systemcall::DontWait, command);
+	one.startscript(Systemcall::DontWait, command, buffer.filePath());
 
 	// we can't report any sort of error, since we aren't waiting
 	return true;
@@ -364,7 +364,7 @@ bool Formats::edit(Buffer const & buffer, FileName const & filename,
 
 	// editor is 'auto'
 	if (format->editor() == "auto") {
-		if (os::autoOpenFile(filename.absFileName(), os::EDIT))
+		if (os::autoOpenFile(filename.absFileName(), os::EDIT, buffer.filePath()))
 			return true;
 		else {
 			Alert::error(_("Cannot edit file"),
@@ -387,7 +387,7 @@ bool Formats::edit(Buffer const & buffer, FileName const & filename,
 	buffer.message(_("Executing command: ") + from_utf8(command));
 
 	Systemcall one;
-	one.startscript(Systemcall::DontWait, command);
+	one.startscript(Systemcall::DontWait, command, buffer.filePath());
 
 	// we can't report any sort of error, since we aren't waiting
 	return true;
diff --git a/src/LaTeX.cpp b/src/LaTeX.cpp
index 1596ba1e82..f1d7b1a779 100644
--- a/src/LaTeX.cpp
+++ b/src/LaTeX.cpp
@@ -93,8 +93,8 @@ bool operator!=(AuxInfo const & a, AuxInfo const & o)
  */
 
 LaTeX::LaTeX(string const & latex, OutputParams const & rp,
-	     FileName const & f)
-	: cmd(latex), file(f), runparams(rp)
+	     FileName const & f, string const & p)
+	: cmd(latex), file(f), path(p), runparams(rp)
 {
 	num_errors = 0;
 	if (prefixIs(cmd, "pdf")) { // Do we use pdflatex ?
@@ -421,7 +421,7 @@ int LaTeX::startscript()
 		     + quoteName(onlyFileName(file.toFilesystemEncoding()))
 		     + " > " + os::nulldev();
 	Systemcall one;
-	return one.startscript(Systemcall::Wait, tmp);
+	return one.startscript(Systemcall::Wait, tmp, path);
 }
 
 
@@ -448,7 +448,7 @@ bool LaTeX::runMakeIndex(string const & f, OutputParams const & runparams,
 	tmp += quoteName(f);
 	tmp += params;
 	Systemcall one;
-	one.startscript(Systemcall::Wait, tmp);
+	one.startscript(Systemcall::Wait, tmp, path);
 	return true;
 }
 
@@ -464,7 +464,7 @@ bool LaTeX::runMakeIndexNomencl(FileName const & file,
 	tmp += " -o "
 		+ onlyFileName(changeExtension(file.toFilesystemEncoding(), nls));
 	Systemcall one;
-	one.startscript(Systemcall::Wait, tmp);
+	one.startscript(Systemcall::Wait, tmp, path);
 	return true;
 }
 
@@ -604,7 +604,7 @@ bool LaTeX::runBibTeX(vector<AuxInfo> const & bibtex_info,
 		tmp += quoteName(onlyFileName(removeExtension(
 				it->aux_file.absFileName())));
 		Systemcall one;
-		one.startscript(Systemcall::Wait, tmp);
+		one.startscript(Systemcall::Wait, tmp, path);
 	}
 	// Return whether bibtex was run
 	return result;
diff --git a/src/LaTeX.h b/src/LaTeX.h
index 85088209ca..4d1c3356d8 100644
--- a/src/LaTeX.h
+++ b/src/LaTeX.h
@@ -151,7 +151,8 @@ public:
 	   path = name of the files original path.
 	*/
 	LaTeX(std::string const & cmd, OutputParams const &,
-	      support::FileName const & file);
+	      support::FileName const & file,
+	      std::string const & path = empty_string());
 
 	/// runs LaTeX several times
 	int run(TeXErrors &);
@@ -210,6 +211,9 @@ private:
 	///
 	support::FileName file;
 
+	///
+	std::string path;
+
 	/// used by scanLogFile
 	int num_errors;
 
diff --git a/src/LyXRC.cpp b/src/LyXRC.cpp
index 20daf4ac20..57c0856ac7 100644
--- a/src/LyXRC.cpp
+++ b/src/LyXRC.cpp
@@ -192,6 +192,7 @@ LexerKeyword lyxrcTags[] = {
 	{ "\\template_path", LyXRC::RC_TEMPLATEPATH },
 	{ "\\tex_allows_spaces", LyXRC::RC_TEX_ALLOWS_SPACES },
 	{ "\\tex_expects_windows_paths", LyXRC::RC_TEX_EXPECTS_WINDOWS_PATHS },
+	{ "\\texinputs_prefix", LyXRC::RC_TEXINPUTS_PREFIX },
 	{ "\\thesaurusdir_path", LyXRC::RC_THESAURUSDIRPATH },
 	{ "\\ui_file", LyXRC::RC_UIFILE },
 	{ "\\use_converter_cache", LyXRC::RC_USE_CONVERTER_CACHE },
@@ -227,6 +228,8 @@ void LyXRC::setDefaults()
 	bind_file = "cua";
 	def_file = "default";
 	ui_file = "default";
+	// The current document directory
+	texinputs_prefix = ".";
 	// Get printer from the environment. If fail, use default "",
 	// assuming that everything is set up correctly.
 	printer = getEnv("PRINTER");
@@ -499,6 +502,10 @@ LyXRC::ReturnValues LyXRC::read(Lexer & lexrc, bool check_format)
 			lexrc >> tex_allows_spaces;
 			break;
 
+		case RC_TEXINPUTS_PREFIX:
+			lexrc >> texinputs_prefix;
+			break;
+
 		case RC_KBMAP:
 			lexrc >> use_kbmap;
 			break;
@@ -2213,6 +2220,14 @@ void LyXRC::write(ostream & os, bool ignore_system_lyxrc, string const & name) c
 		   << "# TEX SECTION #######################################\n"
 		   << "#\n\n";
 
+	case RC_TEXINPUTS_PREFIX:
+		if (ignore_system_lyxrc ||
+		    texinputs_prefix != system_lyxrc.texinputs_prefix) {
+			os << "\\texinputs_prefix \"" << texinputs_prefix << "\"\n";
+		}
+		if (tag != RC_LAST)
+			break;
+
 	case RC_FONT_ENCODING:
 		if (ignore_system_lyxrc ||
 		    fontenc != system_lyxrc.fontenc) {
@@ -3020,6 +3035,10 @@ void actOnUpdatedPrefs(LyXRC const & lyxrc_orig, LyXRC const & lyxrc_new)
 		if (lyxrc_orig.windows_style_tex_paths != lyxrc_new.windows_style_tex_paths) {
 			os::windows_style_tex_paths(lyxrc_new.windows_style_tex_paths);
 		}
+	case LyXRC::RC_TEXINPUTS_PREFIX:
+		if (lyxrc_orig.texinputs_prefix != lyxrc_new.texinputs_prefix) {
+			lyxrc.texinputs_prefix = lyxrc_new.texinputs_prefix;
+		}
 	case LyXRC::RC_THESAURUSDIRPATH:
 	case LyXRC::RC_UIFILE:
 	case LyXRC::RC_USER_EMAIL:
@@ -3470,6 +3489,13 @@ string const LyXRC::getDescription(LyXRCTags tag)
 	case RC_TEX_EXPECTS_WINDOWS_PATHS:
 		break;
 
+	case RC_TEXINPUTS_PREFIX:
+		str = _("Specify those directories which should be "
+			 "prepended to the TEXINPUTS environment variable. "
+			 "A '.' represents the current document directory. "
+			 "Use the OS native format.");
+		break;
+
 	case RC_UIFILE:
 		str = _("The UI (user interface) file. Can either specify an absolute path, or LyX will look in its global and local ui/ directories.");
 		break;
diff --git a/src/LyXRC.h b/src/LyXRC.h
index e8e4ee16db..9b067da329 100644
--- a/src/LyXRC.h
+++ b/src/LyXRC.h
@@ -174,6 +174,7 @@ public:
 		RC_TEMPLATEPATH,
 		RC_TEX_ALLOWS_SPACES,
 		RC_TEX_EXPECTS_WINDOWS_PATHS,
+		RC_TEXINPUTS_PREFIX,
 		RC_THESAURUSDIRPATH,
 		RC_UIFILE,
 		RC_USELASTFILEPOS,
@@ -469,6 +470,11 @@ public:
 	 *  The string is input, stored and output in native format.
 	 */
 	std::string path_prefix;
+	/** Prepend paths to the TEXINPUTS environment variable.
+	 *  The string is input, stored and output in native format.
+	 *  A '.' here stands for the current document directory.
+	 */
+	std::string texinputs_prefix;
 	/// Use the cache for file converters?
 	bool use_converter_cache;
 	/// The maximum age of cache files in seconds
diff --git a/src/VCBackend.cpp b/src/VCBackend.cpp
index bc47719480..342584284a 100644
--- a/src/VCBackend.cpp
+++ b/src/VCBackend.cpp
@@ -43,7 +43,7 @@ int VCS::doVCCommandCall(string const & cmd, FileName const & path)
 	LYXERR(Debug::LYXVC, "doVCCommandCall: " << cmd);
 	Systemcall one;
 	support::PathChanger p(path);
-	return one.startscript(Systemcall::Wait, cmd, false);
+	return one.startscript(Systemcall::Wait, cmd, string(), false);
 }
 
 
diff --git a/src/frontends/qt4/GuiPrefs.cpp b/src/frontends/qt4/GuiPrefs.cpp
index dfac183249..24b9a47f68 100644
--- a/src/frontends/qt4/GuiPrefs.cpp
+++ b/src/frontends/qt4/GuiPrefs.cpp
@@ -1312,6 +1312,9 @@ PrefPaths::PrefPaths(GuiPreferences * form)
 
 	connect(pathPrefixED, SIGNAL(textChanged(QString)),
 		this, SIGNAL(changed()));
+
+	connect(texinputsPrefixED, SIGNAL(textChanged(QString)),
+		this, SIGNAL(changed()));
 }
 
 
@@ -1325,6 +1328,7 @@ void PrefPaths::apply(LyXRC & rc) const
 	rc.thesaurusdir_path = internal_path(fromqstr(thesaurusDirED->text()));
 	rc.hunspelldir_path = internal_path(fromqstr(hunspellDirED->text()));
 	rc.path_prefix = internal_path_list(fromqstr(pathPrefixED->text()));
+	rc.texinputs_prefix = internal_path_list(fromqstr(texinputsPrefixED->text()));
 	// FIXME: should be a checkbox only
 	rc.lyxpipes = internal_path(fromqstr(lyxserverDirED->text()));
 }
@@ -1340,6 +1344,7 @@ void PrefPaths::update(LyXRC const & rc)
 	thesaurusDirED->setText(toqstr(external_path(rc.thesaurusdir_path)));
 	hunspellDirED->setText(toqstr(external_path(rc.hunspelldir_path)));
 	pathPrefixED->setText(toqstr(external_path_list(rc.path_prefix)));
+	texinputsPrefixED->setText(toqstr(external_path_list(rc.texinputs_prefix)));
 	// FIXME: should be a checkbox only
 	lyxserverDirED->setText(toqstr(external_path(rc.lyxpipes)));
 }
diff --git a/src/frontends/qt4/ui/PrefPathsUi.ui b/src/frontends/qt4/ui/PrefPathsUi.ui
index cab4cba8c0..5f7797d653 100644
--- a/src/frontends/qt4/ui/PrefPathsUi.ui
+++ b/src/frontends/qt4/ui/PrefPathsUi.ui
@@ -19,7 +19,7 @@
    <property name="spacing" >
     <number>6</number>
    </property>
-   <item row="11" column="0" colspan="3" >
+   <item row="12" column="0" colspan="3" >
     <spacer>
      <property name="orientation" >
       <enum>Qt::Vertical</enum>
@@ -46,7 +46,20 @@
     </widget>
    </item>
    <item row="10" column="1" colspan="2" >
-    <widget class="QLineEdit" name="pathPrefixED" />
+    <widget class="QLineEdit" name="pathPrefixED"/>
+   </item>
+   <item row="11" column="0">
+    <widget class="QLabel" name="texinputsPrefixLA">
+     <property name="text">
+      <string>TEX&amp;INPUTS prefix:</string>
+     </property>
+     <property name="buddy">
+      <cstring>texinputsPrefixED</cstring>
+     </property>
+    </widget>
+   </item>
+   <item row="11" column="1" colspan="2">
+    <widget class="QLineEdit" name="texinputsPrefixED"/>
    </item>
    <item row="6" column="2" >
     <widget class="QPushButton" name="thesaurusDirPB" >
diff --git a/src/support/Systemcall.cpp b/src/support/Systemcall.cpp
index 8cedb09a33..0753c590c8 100644
--- a/src/support/Systemcall.cpp
+++ b/src/support/Systemcall.cpp
@@ -14,6 +14,8 @@
 #include <config.h>
 
 #include "support/debug.h"
+#include "support/environment.h"
+#include "support/filetools.h"
 #include "support/lstrings.h"
 #include "support/qstring_helpers.h"
 #include "support/Systemcall.h"
@@ -21,6 +23,7 @@
 #include "support/os.h"
 #include "support/ProgressInterface.h"
 
+#include "LyXRC.h"
 
 #include <cstdlib>
 #include <iostream>
@@ -96,9 +99,26 @@ ProgressInterface* ProgressInterface::instance()
 // Reuse of instance
 #ifndef USE_QPROCESS
 int Systemcall::startscript(Starttype how, string const & what,
-							bool /*process_events*/)
+			    std::string const & path, bool /*process_events*/)
 {
-	string command = what;
+	string command;
+	string const texinputs = os::latex_path_list(
+			replaceCurdirPath(path, lyxrc.texinputs_prefix));
+	string const sep = string(1, os::path_separator(os::TEXENGINE));
+	string const env = getEnv("TEXINPUTS");
+
+	switch (os::shell()) {
+	case os::UNIX:
+		command = path.empty() || lyxrc.texinputs_prefix.empty() ? what
+			: "env TEXINPUTS='." + sep + texinputs
+					     + sep + env + "' " + what;
+		break;
+	case os::CMD_EXE:
+		command = path.empty() || lyxrc.texinputs_prefix.empty() ? what
+			: "set TEXINPUTS=." + sep + texinputs
+					    + sep + env + " & " + what;
+		break;
+	}
 
 	if (how == DontWait) {
 		switch (os::shell()) {
@@ -204,7 +224,8 @@ string const parsecmd(string const & inputcmd, string & outfile)
 
 
 
-int Systemcall::startscript(Starttype how, string const & what, bool process_events)
+int Systemcall::startscript(Starttype how, string const & what,
+			    string const & path, bool process_events)
 {
 	string outfile;
 	QString cmd = toqstr(parsecmd(what, outfile));
@@ -212,7 +233,7 @@ int Systemcall::startscript(Starttype how, string const & what, bool process_eve
 	SystemcallPrivate d(outfile);
 
 
-	d.startProcess(cmd);
+	d.startProcess(cmd, path);
 	if (!d.waitWhile(SystemcallPrivate::Starting, process_events, -1)) {
 		LYXERR0("Systemcall: '" << cmd << "' did not start!");
 		LYXERR0("error " << d.errorMessage());
@@ -264,10 +285,24 @@ SystemcallPrivate::SystemcallPrivate(const std::string& of) :
 
 
 
-void SystemcallPrivate::startProcess(const QString& cmd)
+void SystemcallPrivate::startProcess(QString const & cmd, string const & path)
 {
 	cmd_ = cmd;
 	if (process_) {
+		if (!path.empty() && !lyxrc.texinputs_prefix.empty()) {
+			QString const texinputs = toqstr(os::latex_path_list(
+				replaceCurdirPath(path, lyxrc.texinputs_prefix)));
+			QChar const sep = os::path_separator(os::TEXENGINE);
+			QString const prefix = QLatin1String("TEXINPUTS=.")
+						+ sep + texinputs + sep;
+			QStringList env = QProcess::systemEnvironment();
+			if (env.filter("TEXINPUTS=").isEmpty())
+				env << prefix;
+			else
+				env.replaceInStrings(QRegExp("^TEXINPUTS=(.*)"),
+						     prefix + "\\1");
+			process_->setEnvironment(env);
+		}
 		state = SystemcallPrivate::Starting;
 		process_->start(cmd_);
 	}
diff --git a/src/support/Systemcall.h b/src/support/Systemcall.h
index 6d7d708e05..71e4c6237d 100644
--- a/src/support/Systemcall.h
+++ b/src/support/Systemcall.h
@@ -40,10 +40,13 @@ public:
 
 	/** Start child process.
 	 *  The string "what" contains a commandline with arguments separated
-	 *  by spaces. Unset "process_events" in case UI should be blocked while
-	 *  processing the external command.
+	 *  by spaces. The string "path" contains the path to be prepended to
+	 *  the TEXINPUTS environment variable. Unset "process_events" in
+	 *  case UI should be blocked while processing the external command.
 	 */
-	int startscript(Starttype how, std::string const & what, bool process_events = false);
+	int startscript(Starttype how, std::string const & what,
+			std::string const & path = empty_string(),
+			bool process_events = false);
 };
 
 } // namespace support
diff --git a/src/support/SystemcallPrivate.h b/src/support/SystemcallPrivate.h
index c8e3aa734c..c0a4c7755a 100644
--- a/src/support/SystemcallPrivate.h
+++ b/src/support/SystemcallPrivate.h
@@ -44,7 +44,7 @@ public:
 	State state;
 
 	bool waitWhile(State, bool processEvents, int timeout = -1);
-	void startProcess(const QString& cmd);
+	void startProcess(QString const & cmd, std::string const & path);
 	
 	int exitCode();
 
diff --git a/src/support/filetools.cpp b/src/support/filetools.cpp
index 10387de422..dbf91ee59e 100644
--- a/src/support/filetools.cpp
+++ b/src/support/filetools.cpp
@@ -577,6 +577,42 @@ string const replaceEnvironmentPath(string const & path)
 }
 
 
+// Replace current directory in all elements of a path list with a given path.
+string const replaceCurdirPath(string const & path, string const & pathlist)
+{
+	string const oldpathlist = replaceEnvironmentPath(pathlist);
+	char const sep = os::path_separator();
+	string newpathlist;
+
+	for (size_t i = 0, k = 0; i != string::npos; k = i) {
+		i = oldpathlist.find(sep, i);
+		string p = oldpathlist.substr(k, i - k);
+		if (FileName::isAbsolute(p)) {
+			newpathlist += p;
+		} else if (i > k) {
+			size_t offset = 0;
+			if (p == ".") {
+				offset = 1;
+			} else if (prefixIs(p, "./")) {
+				offset = 2;
+				while (p[offset] == '/')
+					++offset;
+			}
+			newpathlist += addPath(path, p.substr(offset));
+			if (suffixIs(p, "//"))
+				newpathlist += '/';
+		}
+		if (i != string::npos) {
+			newpathlist += sep;
+			// Stop here if the last element is empty 
+			if (++i == oldpathlist.length())
+				break;
+		}
+	}
+	return newpathlist;
+}
+
+
 // Make relative path out of two absolute paths
 docstring const makeRelPath(docstring const & abspath, docstring const & basepath)
 // Makes relative path out of absolute path. If it is deeper than basepath,
diff --git a/src/support/filetools.h b/src/support/filetools.h
index cd25d47200..001c0f3ddc 100644
--- a/src/support/filetools.h
+++ b/src/support/filetools.h
@@ -247,6 +247,12 @@ std::string const onlyFileName(std::string const & fname);
 */
 std::string const replaceEnvironmentPath(std::string const & path);
 
+/** Replace all references to a current directory (a lonely '.' or
+    the prefix "./") in \c pathlist with \c path. Also prefixes
+    all non-absolute paths with \c path.
+*/
+std::string const replaceCurdirPath(std::string const & path, std::string const & pathlist);
+
 /** Set \c link to the path \c file points to as a symbolic link.
     \return true if successful.
  */
diff --git a/src/support/os.h b/src/support/os.h
index 8d1744bf7e..d66173b1a7 100644
--- a/src/support/os.h
+++ b/src/support/os.h
@@ -104,6 +104,12 @@ std::string internal_path_list(std::string const & p);
  */
 std::string latex_path(std::string const & p);
 
+/**
+ * Converts a platform style path list into a form suitable for the TeX engine.
+ * \p p is encoded in utf8.
+ */
+std::string latex_path_list(std::string const & p);
+
 /// Checks if the format string is suitable on the OS
 bool is_valid_strftime(std::string const & p);
 
@@ -112,10 +118,15 @@ bool is_valid_strftime(std::string const & p);
  */
 char const * popen_read_mode();
 
-/** The character used to separate paths returned by the
- *  PATH environment variable.
+enum path_type {
+	PLATFORM,
+	TEXENGINE
+};
+
+/** The character used to separate paths for platform environment variables
+ *  (such as PATH) or for the TeX engine.
  */
-char path_separator();
+char path_separator(path_type type = PLATFORM);
 
 /** If @c use_windows_paths is true, LyX will output Windows-style paths to
  *  latex files rather than posix ones. Obviously, this option is used only
@@ -133,14 +144,15 @@ enum auto_open_mode {
  *  \param mode can be opened in VIEW or EDIT mode
  *  \returns whether or not the format can be opened according to \p mode
  */
-bool canAutoOpenFile(std::string const & ext, auto_open_mode const mode = VIEW);
+bool canAutoOpenFile(std::string const & ext, auto_open_mode const mode);
 
 /** View or edit a file with the default viewer or editor.
  *  \param filename file to open (encoded in utf8)
  *  \param mode open in VIEW or EDIT mode
  *  \returns whether or not the file is viewed (or edited) successfully.
  */
-bool autoOpenFile(std::string const & filename, auto_open_mode const mode = VIEW);
+bool autoOpenFile(std::string const & filename, auto_open_mode const mode,
+		  std::string const & path = empty_string());
 
 /** Resolves a path such that it does not contain '.', '..', or symbolic links.
   * \p path and the return value are encoded in utf8.
diff --git a/src/support/os_cygwin.cpp b/src/support/os_cygwin.cpp
index 6f5d57fdaf..389b4e2f78 100644
--- a/src/support/os_cygwin.cpp
+++ b/src/support/os_cygwin.cpp
@@ -15,12 +15,16 @@
 
 #include <config.h>
 
+#include "LyXRC.h"
+
 #include "support/os.h"
 
+#include "support/debug.h"
+#include "support/environment.h"
 #include "support/FileName.h"
+#include "support/filetools.h"
 #include "support/lassert.h"
 #include "support/lstrings.h"
-#include "support/debug.h"
 
 #include <windows.h>
 #include <io.h>
@@ -343,6 +347,19 @@ string latex_path(string const & p)
 }
 
 
+string latex_path_list(string const & p)
+{
+	// We may need a posix style path or a windows style path (depending
+	// on windows_style_tex_paths_), but we use always forward slashes,
+	// since this is standard for all tex engines.
+
+	if (windows_style_tex_paths_)
+		return convert_path_list(p, PathStyle(windows));
+
+	return convert_path_list(p, PathStyle(posix));
+}
+
+
 bool is_valid_strftime(string const & p)
 {
 	string::size_type pos = p.find_first_of('%');
@@ -387,8 +404,11 @@ int timeout_min()
 }
 
 
-char path_separator()
+char path_separator(path_type type)
 {
+	if (type == TEXENGINE)
+		return windows_style_tex_paths_ ? ';' : ':';
+
 	return ':';
 }
 
@@ -415,13 +435,30 @@ bool canAutoOpenFile(string const & ext, auto_open_mode const mode)
 }
 
 
-bool autoOpenFile(string const & filename, auto_open_mode const mode)
+bool autoOpenFile(string const & filename, auto_open_mode const mode,
+		  string const & path)
 {
+	string const texinputs = os::latex_path_list(
+			replaceCurdirPath(path, lyxrc.texinputs_prefix));
+	string const sep = windows_style_tex_paths_ ? ";" : ":";
+	string const oldval = getEnv("TEXINPUTS");
+	string const newval = "." + sep + texinputs + sep + oldval;
+	if (!path.empty() && !lyxrc.texinputs_prefix.empty()) {
+		setEnv("TEXINPUTS", newval);
+		cygwin_internal(CW_SYNC_WINENV);
+	}
+
 	// reference: http://msdn.microsoft.com/en-us/library/bb762153.aspx
 	string const win_path = to_local8bit(from_utf8(convert_path(filename, PathStyle(windows))));
 	char const * action = (mode == VIEW) ? "open" : "edit";
-	return reinterpret_cast<int>(ShellExecute(NULL, action,
-		win_path.c_str(), NULL, NULL, 1)) > 32;
+	bool success = reinterpret_cast<int>(ShellExecute(NULL, action,
+					win_path.c_str(), NULL, NULL, 1)) > 32;
+
+	if (!path.empty() && !lyxrc.texinputs_prefix.empty()) {
+		setEnv("TEXINPUTS", oldval);
+		cygwin_internal(CW_SYNC_WINENV);
+	}
+	return success;
 }
 
 
diff --git a/src/support/os_unix.cpp b/src/support/os_unix.cpp
index 8727cff2b7..b8a94b2c56 100644
--- a/src/support/os_unix.cpp
+++ b/src/support/os_unix.cpp
@@ -12,9 +12,13 @@
 
 #include <config.h>
 
+#include "LyXRC.h"
+
 #include "support/os.h"
 #include "support/docstring.h"
+#include "support/environment.h"
 #include "support/FileName.h"
+#include "support/filetools.h"
 #include "support/lstrings.h"
 #include "support/lassert.h"
 
@@ -176,6 +180,12 @@ string latex_path(string const & p)
 }
 
 
+string latex_path_list(string const & p)
+{
+	return p;
+}
+
+
 bool is_valid_strftime(string const & p)
 {
 	string::size_type pos = p.find_first_of('%');
@@ -218,7 +228,7 @@ int timeout_min()
 }
 
 
-char path_separator()
+char path_separator(path_type)
 {
 	return ':';
 }
@@ -258,7 +268,8 @@ bool canAutoOpenFile(string const & ext, auto_open_mode const mode)
 }
 
 
-bool autoOpenFile(string const & filename, auto_open_mode const mode)
+bool autoOpenFile(string const & filename, auto_open_mode const mode,
+		  string const & path)
 {
 #ifdef __APPLE__
 // Reference: http://developer.apple.com/documentation/Carbon/Reference/LaunchServicesReference/
@@ -279,6 +290,13 @@ bool autoOpenFile(string const & filename, auto_open_mode const mode)
 	if (status == kLSApplicationNotFoundErr)
 		return false;
 
+	string const texinputs = os::latex_path_list(
+			replaceCurdirPath(path, lyxrc.texinputs_prefix));
+	string const oldval = getEnv("TEXINPUTS");
+	string const newval = ".:" + texinputs + ":" + oldval;
+	if (!path.empty() && !lyxrc.texinputs_prefix.empty())
+		setEnv("TEXINPUTS", newval);
+
 	LSLaunchFSRefSpec inLaunchSpec;
 	inLaunchSpec.appRef = &outAppRef;
 	inLaunchSpec.numDocs = 1;
@@ -288,11 +306,15 @@ bool autoOpenFile(string const & filename, auto_open_mode const mode)
 	inLaunchSpec.asyncRefCon = NULL;
 	status = LSOpenFromRefSpec(&inLaunchSpec, NULL);
 
+	if (!path.empty() && !lyxrc.texinputs_prefix.empty())
+		setEnv("TEXINPUTS", oldval);
+
 	return status != kLSApplicationNotFoundErr;
 #else
 	// silence compiler warnings
 	(void)filename;
 	(void)mode;
+	(void)path;
 
 	// currently, no default viewer is tried for non-windows system
 	// support for KDE/Gnome/Macintosh may be added later
diff --git a/src/support/os_win32.cpp b/src/support/os_win32.cpp
index 2caf085691..72bf218a04 100644
--- a/src/support/os_win32.cpp
+++ b/src/support/os_win32.cpp
@@ -15,10 +15,13 @@
 
 #include <config.h>
 
+#include "LyXRC.h"
+
 #include "support/os.h"
 #include "support/os_win32.h"
 
 #include "support/debug.h"
+#include "support/environment.h"
 #include "support/FileName.h"
 #include "support/gettext.h"
 #include "support/filetools.h"
@@ -385,6 +388,38 @@ string latex_path(string const & p)
 }
 
 
+string latex_path_list(string const & p)
+{
+	if (p.empty())
+		return p;
+
+	// We may need a posix style path or a windows style path (depending
+	// on windows_style_tex_paths_), but we use always forward slashes,
+	// since this is standard for all tex engines.
+
+	if (!windows_style_tex_paths_) {
+		string pathlist;
+		for (size_t i = 0, k = 0; i != string::npos; k = i) {
+			i = p.find(';', i);
+			string path = subst(p.substr(k, i - k), '\\', '/');
+			if (FileName::isAbsolute(path)) {
+				string const drive = path.substr(0, 2);
+				string const cygprefix = cygdrive + "/"
+							+ drive.substr(0, 1);
+				path = subst(path, drive, cygprefix);
+			}
+			pathlist += path;
+			if (i != string::npos) {
+				pathlist += ':';
+				++i;
+			}
+		}
+		return pathlist;
+	}
+	return subst(p, '\\', '/');
+}
+
+
 bool is_valid_strftime(string const & p)
 {
 	string::size_type pos = p.find_first_of('%');
@@ -429,8 +464,11 @@ int timeout_min()
 }
 
 
-char path_separator()
+char path_separator(path_type type)
 {
+	if (type == TEXENGINE)
+		return windows_style_tex_paths_ ? ';' : ':';
+
 	return ';';
 }
 
@@ -507,12 +545,25 @@ bool canAutoOpenFile(string const & ext, auto_open_mode const mode)
 }
 
 
-bool autoOpenFile(string const & filename, auto_open_mode const mode)
+bool autoOpenFile(string const & filename, auto_open_mode const mode,
+		  string const & path)
 {
+	string const texinputs = os::latex_path_list(
+			replaceCurdirPath(path, lyxrc.texinputs_prefix));
+	string const sep = windows_style_tex_paths_ ? ";" : ":";
+	string const oldval = getEnv("TEXINPUTS");
+	string const newval = "." + sep + texinputs + sep + oldval;
+	if (!path.empty() && !lyxrc.texinputs_prefix.empty())
+		setEnv("TEXINPUTS", newval);
+
 	// reference: http://msdn.microsoft.com/en-us/library/bb762153.aspx
 	char const * action = (mode == VIEW) ? "open" : "edit";
-	return reinterpret_cast<int>(ShellExecute(NULL, action,
+	bool success = reinterpret_cast<int>(ShellExecute(NULL, action,
 		to_local8bit(from_utf8(filename)).c_str(), NULL, NULL, 1)) > 32;
+
+	if (!path.empty() && !lyxrc.texinputs_prefix.empty())
+		setEnv("TEXINPUTS", oldval);
+	return success;
 }