diff --git a/src/vs/vscode.d.ts b/src/vs/vscode.d.ts
index bb260eb969a..a01185a1131 100644
--- a/src/vs/vscode.d.ts
+++ b/src/vs/vscode.d.ts
@@ -4681,7 +4681,7 @@ declare module 'vscode' {
 		export function getWorkspaceFolder(uri: Uri): WorkspaceFolder | undefined;
 
 		/**
-		 * Returns a path that is relative to the workspace root.
+		 * Returns a path that is relative to the workspace folder or folders.
 		 *
 		 * When there are no [workspace folders](#workspace.workspaceFolders) or when the path
 		 * is not a child of them, the input is returned.
diff --git a/src/vs/workbench/api/node/extHostWorkspace.ts b/src/vs/workbench/api/node/extHostWorkspace.ts
index f42eb06cfa5..b98c5d0b198 100644
--- a/src/vs/workbench/api/node/extHostWorkspace.ts
+++ b/src/vs/workbench/api/node/extHostWorkspace.ts
@@ -7,7 +7,7 @@
 import URI from 'vs/base/common/uri';
 import Event, { Emitter } from 'vs/base/common/event';
 import { normalize } from 'vs/base/common/paths';
-import { isFalsyOrEmpty, delta } from 'vs/base/common/arrays';
+import { delta } from 'vs/base/common/arrays';
 import { relative, basename } from 'path';
 import { Workspace } from 'vs/platform/workspace/common/workspace';
 import { IThreadService } from 'vs/workbench/services/thread/common/threadService';
@@ -112,12 +112,7 @@ export class ExtHostWorkspace extends ExtHostWorkspaceShape {
 		if (roots.length === 0) {
 			return undefined;
 		}
-		// if (roots.length === 1) {
 		return roots[0].fsPath;
-		// }
-		// return `undefined` when there no or more than 1
-		// root folder.
-		// return undefined;
 	}
 
 	getRelativePath(pathOrUri: string | vscode.Uri): string {
@@ -133,19 +128,20 @@ export class ExtHostWorkspace extends ExtHostWorkspaceShape {
 			return path;
 		}
 
-		if (!this._workspace || isFalsyOrEmpty(this._workspace.roots)) {
+		const folder = this.getWorkspaceFolder(typeof pathOrUri === 'string'
+			? URI.file(pathOrUri)
+			: pathOrUri
+		);
+
+		if (!folder) {
 			return normalize(path);
 		}
 
-		for (const { fsPath } of this._workspace.roots) {
-			let result = relative(fsPath, path);
-			if (!result || result.indexOf('..') === 0) {
-				continue;
-			}
-			return normalize(result);
+		let result = relative(folder.uri.fsPath, path);
+		if (this.workspace.roots.length > 1) {
+			result = `${folder.name}/${result}`;
 		}
-
-		return normalize(path);
+		return normalize(result);
 	}
 
 	$acceptWorkspaceData(data: IWorkspaceData): void {
diff --git a/src/vs/workbench/test/electron-browser/api/extHostWorkspace.test.ts b/src/vs/workbench/test/electron-browser/api/extHostWorkspace.test.ts
index bd4c1109352..275e78a22a8 100644
--- a/src/vs/workbench/test/electron-browser/api/extHostWorkspace.test.ts
+++ b/src/vs/workbench/test/electron-browser/api/extHostWorkspace.test.ts
@@ -44,8 +44,8 @@ suite('ExtHostWorkspace', function () {
 
 	test('asRelativePath, multiple folders', function () {
 		const ws = new ExtHostWorkspace(new TestThreadService(), { id: 'foo', roots: [URI.file('/Coding/One'), URI.file('/Coding/Two')], name: 'Test' });
-		assert.equal(ws.getRelativePath('/Coding/One/file.txt'), 'file.txt');
-		assert.equal(ws.getRelativePath('/Coding/Two/files/out.txt'), 'files/out.txt');
+		assert.equal(ws.getRelativePath('/Coding/One/file.txt'), 'One/file.txt');
+		assert.equal(ws.getRelativePath('/Coding/Two/files/out.txt'), 'Two/files/out.txt');
 		assert.equal(ws.getRelativePath('/Coding/Two2/files/out.txt'), '/Coding/Two2/files/out.txt');
 	});
 
@@ -59,8 +59,8 @@ suite('ExtHostWorkspace', function () {
 		ws = new ExtHostWorkspace(new TestThreadService(), undefined);
 		assert.equal(ws.getPath(), undefined);
 
-		// ws = new ExtHostWorkspace(new TestThreadService(), { id: 'foo', name: 'Test', roots: [URI.file('Folder'), URI.file('Another/Folder')] });
-		// assert.equal(ws.getPath(), undefined);
+		ws = new ExtHostWorkspace(new TestThreadService(), { id: 'foo', name: 'Test', roots: [URI.file('Folder'), URI.file('Another/Folder')] });
+		assert.equal(ws.getPath().replace(/\\/g, '/'), '/Folder');
 
 		ws = new ExtHostWorkspace(new TestThreadService(), { id: 'foo', name: 'Test', roots: [URI.file('/Folder')] });
 		assert.equal(ws.getPath().replace(/\\/g, '/'), '/Folder');