diff --git a/CHANGELOG b/CHANGELOG
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -1,3 +1,11 @@
+0.9.0
+-----
+* Support cabal 2.0
+
+0.8.2
+-----
+* Update to cabal-lenses-0.5.0
+
 0.8.1
 -----
 * Fix tests
diff --git a/cabal-cargs.cabal b/cabal-cargs.cabal
--- a/cabal-cargs.cabal
+++ b/cabal-cargs.cabal
@@ -1,5 +1,5 @@
 name: cabal-cargs
-version: 0.8.1
+version: 0.9.0
 cabal-version: >=1.9.2
 build-type: Simple
 license: BSD3
@@ -56,8 +56,8 @@
         system-filepath >=0.4.9 && <0.5,
         system-fileio >=0.3.12 && <0.4,
         unordered-containers >=0.2.3.3 && <0.3,
-        cabal-lenses >=0.4.6 && <0.5,
-        Cabal >=1.16 && <1.25
+        cabal-lenses >=0.6.0 && <0.7,
+        Cabal >=2.0.0.2 && <2.1
     cpp-options: -DCABAL
     hs-source-dirs: lib
     other-modules:
diff --git a/lib/CabalCargs/CompilerArgs.hs b/lib/CabalCargs/CompilerArgs.hs
--- a/lib/CabalCargs/CompilerArgs.hs
+++ b/lib/CabalCargs/CompilerArgs.hs
@@ -26,7 +26,7 @@
 -- | The collected compiler args from the cabal file. Till the field 'packageDB'
 --   all fields represent the equaliy named fields ('-' replaced by CamelCase)
 --   from the cabal file.
-data CompilerArgs = CompilerArgs 
+data CompilerArgs = CompilerArgs
    { hsSourceDirs        :: [FilePath]
    , ghcOptions          :: [String]
    , defaultExtensions   :: [String]
@@ -79,24 +79,25 @@
 
 -- | Create a 'CompilerArgs' and collect the compiler args specified by 'Spec'.
 fromSpec :: Spec -> CompilerArgs
-fromSpec spec = absolutePaths $ foldl' collectFromSection defaultCompilerArgs (Spec.sections spec)
+fromSpec spec = changePaths $ foldl' collectFromSection defaultCompilerArgs (Spec.sections spec)
    where
-      absolutePaths cargs
+      changePaths cargs
          | Spec.relativePaths spec
-         = cargs
+         = cargs & hsSourceDirsL            %~ map stripCabalDir
+                 & cSourcesL                %~ map stripCabalDir
+                 & extraLibDirsL            %~ map stripCabalDir
+                 & includeDirsL             %~ map stripCabalDir
+                 & autogenHsSourceDirsL     %~ map stripCabalDir
+                 & autogenIncludeDirsL      %~ map stripCabalDir
+                 & packageDBL . _Just       %~ stripCabalDir
+                 & hdevtoolsSocketL . _Just %~ stripCabalDir
 
          | otherwise
-         = cargs & hsSourceDirsL            %~ map prependCabalDir
-                 & cSourcesL                %~ map prependCabalDir
-                 & extraLibDirsL            %~ map prependCabalDir
-                 & includeDirsL             %~ map prependCabalDir
-                 & autogenHsSourceDirsL     %~ map prependCabalDir
-                 & autogenIncludeDirsL      %~ map prependCabalDir
-                 & packageDBL . _Just       %~ prependCabalDir
-                 & hdevtoolsSocketL . _Just %~ prependCabalDir
+         = cargs
+
          where
-            prependCabalDir path = FP.encodeString $ cabalDir </> FP.decodeString path
-            cabalDir             = FP.directory . FP.decodeString $ Spec.cabalFile spec
+            stripCabalDir path = maybe path FP.encodeString (FP.stripPrefix cabalDir (FP.decodeString path))
+            cabalDir           = FP.directory . FP.decodeString $ Spec.cabalFile spec
 
       collectFromSection cargs section =
          foldl' addCarg cargs (Spec.fields spec)
@@ -129,7 +130,7 @@
                cargs & hdevtoolsSocketL .~ Just ".hdevtools.sock"
 
             addCarg cargs F.Build_Depends =
-               cargs & buildDependsL %~ nub . (++ dependencies) 
+               cargs & buildDependsL %~ nub . (++ dependencies)
 
             addCarg cargs field =
                cargs & fieldL field %~ nub . (++ buildInfoFields)
diff --git a/lib/CabalCargs/Spec.hs b/lib/CabalCargs/Spec.hs
--- a/lib/CabalCargs/Spec.hs
+++ b/lib/CabalCargs/Spec.hs
@@ -6,7 +6,7 @@
    ) where
 
 import Distribution.PackageDescription (GenericPackageDescription)
-import Distribution.PackageDescription.Parse (parsePackageDescription, ParseResult(..))
+import Distribution.PackageDescription.Parse (parseGenericPackageDescription, ParseResult(..))
 import qualified Distribution.System as Sys
 import CabalCargs.Args (Args)
 import qualified CabalCargs.Args as A
@@ -36,8 +36,8 @@
    , condVars      :: CL.CondVars               -- ^ used for the evaluation of the conditional fields in the cabal file
    , pkgDescrp     :: GenericPackageDescription -- ^ the package description of the read in cabal file
    , cabalFile     :: FilePath                  -- ^ the cabal file read from
-   , distDir       :: Maybe FilePath            -- ^ the dist directory of the cabal build, a relative path to the directory of the cabal file
-   , packageDB     :: Maybe FilePath            -- ^ the directory of package database of the cabal sandbox, a relative path to the directory of the cabal file
+   , distDir       :: Maybe FilePath            -- ^ the dist directory of the cabal build
+   , packageDB     :: Maybe FilePath            -- ^ the directory of package database of the cabal sandbox
    , relativePaths :: Bool                      -- ^ if all returned paths are relative to the directory of the cabal file, otherwise all paths are absolute
    }
 
@@ -182,7 +182,7 @@
 packageDescription :: FilePath -> EitherT Error IO GenericPackageDescription
 packageDescription file = do
    contents <- io $ Strict.readFile file
-   case parsePackageDescription contents of
+   case parseGenericPackageDescription contents of
         ParseFailed error   -> left $ show error
         ParseOk _ pkgDescrp -> right pkgDescrp