diff --git a/tests/src/core/resolve.js b/tests/src/core/resolve.js
index bfff7935c..307befcde 100644
--- a/tests/src/core/resolve.js
+++ b/tests/src/core/resolve.js
@@ -3,6 +3,7 @@ import { expect } from 'chai'
 import resolve, { CASE_SENSITIVE_FS, fileExistsWithCaseSync } from 'eslint-module-utils/resolve'
 import ModuleCache from 'eslint-module-utils/ModuleCache'
 
+import * as path from 'path'
 import * as fs from 'fs'
 import * as utils from '../utils'
 
@@ -133,6 +134,11 @@ describe('resolve', function () {
       expect(fileExistsWithCaseSync(file, ModuleCache.getSettings(testContext)))
         .to.be.false
     })
+    it('detecting case does not include parent folder path (issue #720)', function () {
+      const f = path.join(process.cwd().toUpperCase(), './tests/files/jsx/MyUnCoolComponent.jsx')
+      expect(fileExistsWithCaseSync(f, ModuleCache.getSettings(testContext), true))
+        .to.be.true
+    })
   })
 
   describe('rename cache correctness', function () {
diff --git a/utils/resolve.js b/utils/resolve.js
index 1d6e164b1..8193e7731 100644
--- a/utils/resolve.js
+++ b/utils/resolve.js
@@ -21,6 +21,7 @@ exports.fileExistsWithCaseSync = function fileExistsWithCaseSync(filepath, cache
 
   // null means it resolved to a builtin
   if (filepath === null) return true
+  if (filepath.toLowerCase() === process.cwd().toLowerCase()) return true
   const parsedPath = path.parse(filepath)
       , dir = parsedPath.dir