diff --git a/CHANGELOG.md b/CHANGELOG.md
index 85b8cc32e..9b4c74bfe 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -8,6 +8,7 @@
 - Configurable item list grid view ([#1363](../../pull/1363))
 - Allow labels in item list view ([#1366](../../pull/1366))
 - Improve cache key guard ([#1368](../../pull/1368))
+- Improve handling dicom files in the working directory ([#1370](../../pull/137068))
 
 ### Bug Fixes
 - Default to "None" for the DICOM assetstore limit ([#1359](../../pull/1359))
diff --git a/sources/dicom/large_image_source_dicom/__init__.py b/sources/dicom/large_image_source_dicom/__init__.py
index ede687db5..89ba73de0 100644
--- a/sources/dicom/large_image_source_dicom/__init__.py
+++ b/sources/dicom/large_image_source_dicom/__init__.py
@@ -127,12 +127,13 @@ def __init__(self, path, **kwargs):
             path = str(path)
             if not os.path.isfile(path):
                 raise TileSourceFileNotFoundError(path) from None
-            root = os.path.dirname(path)
+            root = os.path.dirname(path) or '.'
             self._largeImagePath = [
                 os.path.join(root, entry) for entry in os.listdir(root)
                 if os.path.isfile(os.path.join(root, entry)) and
                 self._pathMightBeDicom(entry)]
-            if path not in self._largeImagePath:
+            if (path not in self._largeImagePath and
+                    os.path.join(root, os.path.basename(path)) not in self._largeImagePath):
                 self._largeImagePath = [path]
         else:
             self._largeImagePath = path