diff --git a/collects/syntax/modcollapse.ss b/collects/syntax/modcollapse.ss
index 14c4dce838..774083c8b8 100644
--- a/collects/syntax/modcollapse.ss
+++ b/collects/syntax/modcollapse.ss
@@ -31,6 +31,13 @@
           (let ([m (regexp-match #rx"^(.*/)/*[^/]*$" relto)])
             (string-append (cadr m) elem-str)))))
 
+    (define (simpler-relpath path)
+      (let loop ([s (regexp-replace* #px"(?<![.])[.]/" path "")])
+        (let ([s2 (regexp-replace #rx"([^/.]*)/[.][.]/" s "")])
+          (if (equal? s s2)
+              s
+              (loop s2)))))
+
     (define (add-main s)
       (if (regexp-match #rx"[.][^/]*$" s)
           s
@@ -96,11 +103,7 @@
                                                 (string-append s "/"))
                                               (cddr relto-mp))
                                          (list (cadr relto-mp)))))])
-             (let ([simpler (let loop ([s (regexp-replace* #px"(?<![.])[.]/" path "")])
-                              (let ([s2 (regexp-replace #rx"([^/.]*)/[.][.]/" s "")])
-                                (if (equal? s s2)
-                                    s
-                                    (loop s2))))])
+             (let ([simpler (simpler-relpath path)])
                (let ([m (regexp-match #rx"^(.*)/([^/]*)$" simpler)])
                  (if m
                      (normalize-lib `(lib ,(caddr m) ,(cadr m)))
@@ -108,8 +111,9 @@
                             "relative path escapes collection: ~s relative to ~s"
                             elements relto-mp))))))]
          [(eq? (car relto-mp) 'planet)
-         (let ([pathstr (attach-to-relative-path-string
-                         elements (cadr relto-mp))])
+         (let ([pathstr (simpler-relpath
+                         (attach-to-relative-path-string
+                          elements (cadr relto-mp)))])
            (normalize-planet `(planet ,pathstr ,(caddr relto-mp))))]
         [else (error 'combine-relative-elements
                      "don't know how to deal with: ~s" relto-mp)]))
diff --git a/collects/tests/mzscheme/moddep.ss b/collects/tests/mzscheme/moddep.ss
index 47da1382db..9ad4d5fe00 100644
--- a/collects/tests/mzscheme/moddep.ss
+++ b/collects/tests/mzscheme/moddep.ss
@@ -116,6 +116,9 @@
 (test-cmp '(planet "x.ss" ("m" "z.plt" 2 (- 5))) '(planet "m/z:2:<=5/x.ss") (build-path "yikes"))
 (test-cmp '(planet "x.ss" ("m" "z.plt" 2 (7 99))) '(planet "m/z:2:7-99/x.ss") (build-path "yikes"))
 
+(test-cmp '(planet "utils.ss" ("untyped" "unlib.plt" 3 (= 6))) 
+          "../utils.ss" '(planet "doc/stuff.ss" ("untyped" "unlib.plt" 3 (= 6))))
+
 (test-cmp (build-path 'same "x.ss") "x.ss" (build-path 'same))
 
 ;; Try path cases that don't fit UTF-8 (and therefore would go wrong as a string):