diff --git a/spy.cabal b/spy.cabal
--- a/spy.cabal
+++ b/spy.cabal
@@ -1,5 +1,5 @@
 name:               spy
-version:            0.5
+version:            0.6
 license:            BSD3
 license-file:       LICENSE
 author:             Stefan Saasen
diff --git a/src/Main.hs b/src/Main.hs
--- a/src/Main.hs
+++ b/src/Main.hs
@@ -3,10 +3,11 @@
 
 import System.Console.CmdArgs
 import System.Directory (canonicalizePath)
+import System.FilePath (addTrailingPathSeparator)
 import Spy.Watcher
 
 version :: String
-version = "spy v0.5, (C) Stefan Saasen"
+version = "spy v0.6, (C) Stefan Saasen"
 
 hiddenOpts x = x &= help "Set to true if hidden files/directories should be included" &= name "i" &= typ  "BOOL"
 
@@ -41,6 +42,5 @@
 main = do
     config <- cmdArgsRun mode
     canonicalizedDir <- canonicalizePath $ dir config
-    spy config { dir = canonicalizedDir }
+    spy config { dir = addTrailingPathSeparator canonicalizedDir }
     putStrLn "No eyes on the target"
-
diff --git a/src/Spy/Watcher.hs b/src/Spy/Watcher.hs
--- a/src/Spy/Watcher.hs
+++ b/src/Spy/Watcher.hs
@@ -18,9 +18,10 @@
 import System.IO (stderr, hPrint)
 import System.FilePath.GlobPattern
 import System.FilePath (splitDirectories, takeFileName)
-import Filesystem.Path.CurrentOS (encodeString, decodeString)
+import Filesystem.Path.CurrentOS
+  (encodeString, decodeString, commonPrefix, stripPrefix)
 import Data.Time.Clock(UTCTime)
-import Data.Maybe (fromMaybe, maybeToList)
+import Data.Maybe (fromMaybe, maybeToList, fromJust)
 import Text.JSON
 
 -- | The output format when Spy prints out changes to STDOUT
@@ -92,8 +93,10 @@
 skipEvent :: Spy -> FilePath -> Bool
 skipEvent config path = skipHidden || skipNonMatchingGlob
     where skipHidden            = let includeHiddenfiles = hidden config
-                                  in not includeHiddenfiles && containsHiddenPathElement path
+                                  in not includeHiddenfiles && containsHiddenPathElement relPath
           skipNonMatchingGlob   = maybe False (not . matchesFile path) $ glob config
+          relPath = encodeString . fromJust $ stripPrefix prefix (decodeString path)
+          prefix = commonPrefix (map decodeString [dir config, path])
 
 eventTime :: Event -> UTCTime
 eventTime (Added _ t) = t
diff --git a/tests/Tests.hs b/tests/Tests.hs
--- a/tests/Tests.hs
+++ b/tests/Tests.hs
@@ -23,13 +23,29 @@
   "Skip path if hidden directory and showing hidden files is not enabled"
   (skipEvent (mockWatch {hidden = False}) "/a/b/.git/refs")
 
+test_dontSkipEventOnMatchingGlob = H.assertBool
+  "Don't skip path if the glob matches"
+  (not $ skipEvent (mockWatch {glob = Just "*.hs"}) "/a/b/Main.hs")
+
+test_skipEventOnMatchingGlob = H.assertBool
+  "Skip path if the glob pattern doesn't match the file path"
+  (skipEvent (mockWatch {glob = Just "*.hs"}) "/a/b/Main.sh")
+
 test_containsHiddenPathElement = H.assertBool
   "Should identify hidden directory"
   (containsHiddenPathElement "/a/b/.git/info/exclude")
 
+test_containsHiddenPathElementFirst = H.assertBool
+  "Should identify hidden directory"
+  (containsHiddenPathElement ".git/info/exclude")
+
+test_containsNoHiddenPathElement = H.assertBool
+  "Should not identify hidden directory"
+  (not $ containsHiddenPathElement "info/exclude")
+
 -- ===========================================================
 mockWatch :: Spy
-mockWatch = Watch { dir = ".", glob = Nothing, format = Nothing, hidden = False }
+mockWatch = Watch { dir = "foo/bar", glob = Nothing, format = Nothing, hidden = False }
 
 -- ===========================================================
 -- Test harness
@@ -47,7 +63,11 @@
       testGroup "Watcher opts"
       [
         testCase "watcher/optHidden" test_skipEventHidden,
-        testCase "watcher/containsHiddenPathElement" test_containsHiddenPathElement
+        testCase "watcher/dontSkipEventOnMatchingGlob" test_dontSkipEventOnMatchingGlob,
+        testCase "watcher/skipEventOnMatchingGlob" test_skipEventOnMatchingGlob,
+        testCase "watcher/containsHiddenPathElement" test_containsHiddenPathElement,
+        testCase "watcher/containsHiddenPathElementFirst" test_containsHiddenPathElementFirst,
+        testCase "watcher/containsNoHiddenPathElement" test_containsNoHiddenPathElement
       ]
     ]