diff --git a/src/Microsoft.OpenApi/Reader/OpenApiJsonReader.cs b/src/Microsoft.OpenApi/Reader/OpenApiJsonReader.cs
index b01a5644e..fd17a3643 100644
--- a/src/Microsoft.OpenApi/Reader/OpenApiJsonReader.cs
+++ b/src/Microsoft.OpenApi/Reader/OpenApiJsonReader.cs
@@ -192,7 +192,8 @@ private JsonNode LoadJsonNodes(TextReader input)
         private async Task<OpenApiDiagnostic> LoadExternalRefs(OpenApiDocument document, CancellationToken cancellationToken, OpenApiReaderSettings settings, string format = null)
         {
             // Create workspace for all documents to live in.
-            var openApiWorkSpace = new OpenApiWorkspace();
+            var baseUrl = settings.BaseUrl ?? new Uri(OpenApiConstants.BaseRegistryUri);
+            var openApiWorkSpace = new OpenApiWorkspace(baseUrl);
 
             // Load this root document into the workspace
             var streamLoader = new DefaultStreamLoader(settings.BaseUrl);
diff --git a/src/Microsoft.OpenApi/Reader/Services/DefaultStreamLoader.cs b/src/Microsoft.OpenApi/Reader/Services/DefaultStreamLoader.cs
index dba3c6811..7c8888abb 100644
--- a/src/Microsoft.OpenApi/Reader/Services/DefaultStreamLoader.cs
+++ b/src/Microsoft.OpenApi/Reader/Services/DefaultStreamLoader.cs
@@ -56,7 +56,9 @@ public Stream Load(Uri uri)
         /// <exception cref="ArgumentException"></exception>
         public async Task<Stream> LoadAsync(Uri uri)
         {
-            var absoluteUri = new Uri(baseUrl, uri);
+            Uri absoluteUri;
+            absoluteUri = baseUrl.AbsoluteUri.Equals(OpenApiConstants.BaseRegistryUri) ? new Uri(Directory.GetCurrentDirectory() + uri) 
+                : new Uri(baseUrl, uri);
 
             switch (absoluteUri.Scheme)
             {