diff --git a/CHANGES.md b/CHANGES.md
index 74a16fae..5b81896a 100644
--- a/CHANGES.md
+++ b/CHANGES.md
@@ -9,6 +9,7 @@ Change Log
 * Added ability to use the first material in the mtl file when the obj is missing `usemtl`. [#163](https://github.com/AnalyticalGraphicsInc/obj2gltf/pull/163)
 * Fixed loading faces that contain less than 3 vertices. [#163](https://github.com/AnalyticalGraphicsInc/obj2gltf/pull/163)
 * Fixed loading mtllib paths that contain spaces. [#163](https://github.com/AnalyticalGraphicsInc/obj2gltf/pull/163)
+* Attempt to load missing materials and textures from within the same directory as the obj. [#163](https://github.com/AnalyticalGraphicsInc/obj2gltf/pull/163)
 
 ### 1.3.4 2018-10-16
 
diff --git a/lib/loadObj.js b/lib/loadObj.js
index 441504cb..00036876 100644
--- a/lib/loadObj.js
+++ b/lib/loadObj.js
@@ -463,13 +463,11 @@ function normalizeMtlPath(mtlPath, objDirectory) {
     return path.normalize(path.join(objDirectory, mtlPath));
 }
 
-function outsideDirectory(filePath, objPath) {
-    return (path.relative(path.dirname(objPath), filePath).indexOf('..') === 0);
+function outsideDirectory(file, directory) {
+    return (path.relative(directory, file).indexOf('..') === 0);
 }
 
 function loadMaterials(mtlPaths, objPath, options) {
-    var secure = options.secure;
-    var logger = options.logger;
     var objDirectory = path.dirname(objPath);
     var materials = {};
 
@@ -480,39 +478,69 @@ function loadMaterials(mtlPaths, objPath, options) {
 
     return Promise.map(mtlPaths, function(mtlPath) {
         mtlPath = normalizeMtlPath(mtlPath, objDirectory);
-        if (secure && outsideDirectory(mtlPath, objPath)) {
-            logger('Could not read mtl file at ' + mtlPath + ' because it is outside of the obj directory and the secure flag is true. Using default material instead.');
-            return;
+        var shallowPath = path.join(objDirectory, path.basename(mtlPath));
+        if (options.secure && outsideDirectory(mtlPath, objPath)) {
+            // Try looking for the .mtl in the same directory as the obj
+            optionslogger('The material file is outside of the obj directory and the secure flag is true. Attempting to read the material file from within the obj directory instead.');
+            return loadMtl(shallowPath)
+                .then(function(materialsInMtl) {
+                    Object.assign(materials, materialsInMtl);
+                })
+                .catch(function(error) {
+                    console.logger(error.message);
+                    console.logger('Could not read material file at ' + shallowPath + '. Using default material instead.');
+                });
         }
         return loadMtl(mtlPath)
+            .catch(function(error) {
+                // Try looking for the .mtl in the same directory as the obj
+                options.logger(error.message);
+                options.logger('Could not read material file at ' + mtlPath + '. Attempting to read the material file from within the obj directory instead.');
+                return loadMtl(shallowPath);
+            })
             .then(function(materialsInMtl) {
-                materials = Object.assign(materials, materialsInMtl);
+                Object.assign(materials, materialsInMtl);
             })
-            .catch(function() {
-                logger('Could not read mtl file at ' + mtlPath + '. Using default material instead.');
+            .catch(function(error) {
+                options.logger(error.message);
+                options.logger('Could not read material file at ' + shallowPath + '. Using default material instead.');
             });
     }, {concurrency : 10})
-        .thenReturn(materials);
+        .then(function() {
+            return materials;
+        });
 }
 
 function loadImages(imagePaths, objPath, options) {
-    var secure = options.secure;
-    var logger = options.logger;
     var images = {};
+    var objDirectory = path.dirname(objPath);
     return Promise.map(imagePaths, function(imagePath) {
-        if (secure && outsideDirectory(imagePath, objPath)) {
-            logger('Could not read image file at ' + imagePath + ' because it is outside of the obj directory and the secure flag is true. Material will ignore this image.');
-            return;
+        var shallowPath = path.join(objDirectory, path.basename(imagePath));
+        if (options.secure && outsideDirectory(imagePath, objDirectory)) {
+            // Try looking for the image in the same directory as the obj
+            options.logger('Image file is outside of the obj directory and the secure flag is true. Attempting to read the image file from within the obj directory instead.');
+            return loadImage(shallowPath, options)
+                .catch(function(error) {
+                    options.logger(error.message);
+                    options.logger('Could not read image file at ' + shallowPath + '. This image will be ignored');
+                });
+        } else {
+            return loadImage(imagePath, options)
+                .catch(function(error) {
+                    // Try looking for the image in the same directory as the obj
+                    options.logger(error.message);
+                    options.logger('Could not read image file at ' + imagePath + '. Attempting to read the image file from within the obj directory instead.');
+                    return loadImage(shallowPath, options);
+                })
+                .catch(function(error) {
+                    options.logger(error.message);
+                    options.logger('Could not read image file at ' + shallowPath + '. This image will be ignored.');
+                });
         }
-        return loadImage(imagePath, options)
-            .then(function(image) {
-                images[imagePath] = image;
-            })
-            .catch(function() {
-                logger('Could not read image file at ' + imagePath + '. Material will ignore this image.');
-            });
     }, {concurrency : 10})
-        .thenReturn(images);
+        .then(function(images) {
+            return images;
+        });
 }
 
 function getImagePaths(materials) {
diff --git a/specs/data/box-external-resources-in-root/box-external-resources-in-root.mtl b/specs/data/box-external-resources-in-root/box-external-resources-in-root.mtl
new file mode 100644
index 00000000..2e2d3a50
--- /dev/null
+++ b/specs/data/box-external-resources-in-root/box-external-resources-in-root.mtl
@@ -0,0 +1,13 @@
+# Blender MTL File: 'box.blend'
+# Material Count: 1
+
+newmtl MaterialTextured
+Ns 96.078431
+Ka 0.000000 0.000000 0.000000
+Kd 0.640000 0.640000 0.640000
+Ks 0.500000 0.500000 0.500000
+Ke 0.000000 0.000000 0.000000
+Ni 1.000000
+d 1.000000
+illum 2
+map_Kd ../box-textured/cesium.png
diff --git a/specs/data/box-external-resources-in-root/box-external-resources-in-root.obj b/specs/data/box-external-resources-in-root/box-external-resources-in-root.obj
new file mode 100644
index 00000000..6b17fc59
--- /dev/null
+++ b/specs/data/box-external-resources-in-root/box-external-resources-in-root.obj
@@ -0,0 +1,46 @@
+# Blender v2.78 (sub 0) OBJ File: 'box-multiple-materials.blend'
+# www.blender.org
+mtllib box-external-resources-in-root.mtl
+mtllib ../box/box.mtl
+v -1.000000 -1.000000 1.000000
+v -1.000000 1.000000 1.000000
+v -1.000000 -1.000000 -1.000000
+v -1.000000 1.000000 -1.000000
+v 1.000000 -1.000000 1.000000
+v 1.000000 1.000000 1.000000
+v 1.000000 -1.000000 -1.000000
+v 1.000000 1.000000 -1.000000
+vt 0.0000 0.0000
+vt 1.0000 0.0000
+vt 1.0000 1.0000
+vt 0.0000 1.0000
+vt 0.0000 0.0000
+vt 1.0000 0.0000
+vt 1.0000 1.0000
+vt 0.0000 1.0000
+vt 0.0000 0.0000
+vt 1.0000 0.0000
+vt 1.0000 1.0000
+vt 0.0000 1.0000
+vt 0.0000 0.0000
+vt 1.0000 0.0000
+vt 1.0000 1.0000
+vt 0.0000 1.0000
+vt 1.0000 1.0000
+vt 0.0000 1.0000
+vt 0.0000 0.0000
+vt 1.0000 0.0000
+vn 0.0000 -1.0000 0.0000
+vn 0.0000 1.0000 0.0000
+vn -1.0000 0.0000 0.0000
+vn 1.0000 0.0000 0.0000
+vn 0.0000 0.0000 -1.0000
+vn 0.0000 0.0000 1.0000
+usemtl MaterialTextured
+f 3/1/1 7/2/1 5/3/1 1/4/1
+f 1/9/3 2/10/3 4/11/3 3/12/3
+f 3/1/5 4/6/5 8/17/5 7/18/5
+usemtl Material
+f 8/5/2 4/6/2 2/7/2 6/8/2
+f 7/13/4 8/14/4 6/15/4 5/16/4
+f 5/19/6 6/20/6 2/7/6 1/4/6
diff --git a/specs/data/box-external-resources-in-root/box.mtl b/specs/data/box-external-resources-in-root/box.mtl
new file mode 100644
index 00000000..4f8d1294
--- /dev/null
+++ b/specs/data/box-external-resources-in-root/box.mtl
@@ -0,0 +1,12 @@
+# Blender MTL File: 'None'
+# Material Count: 1
+
+newmtl Material
+Ns 96.078431
+Ka 0.100000 0.000000 0.000000
+Kd 0.640000 0.640000 0.640000
+Ks 0.500000 0.500000 0.500000
+Ke 0.000000 0.000000 0.100000
+Ni 1.000000
+d 1.000000
+illum 2
diff --git a/specs/data/box-external-resources-in-root/cesium.png b/specs/data/box-external-resources-in-root/cesium.png
new file mode 100644
index 00000000..3b8baee1
Binary files /dev/null and b/specs/data/box-external-resources-in-root/cesium.png differ
diff --git a/specs/data/box-resources-in-root/box-resources-in-root.mtl b/specs/data/box-resources-in-root/box-resources-in-root.mtl
new file mode 100644
index 00000000..7bc18460
--- /dev/null
+++ b/specs/data/box-resources-in-root/box-resources-in-root.mtl
@@ -0,0 +1,13 @@
+# Blender MTL File: 'box.blend'
+# Material Count: 1
+
+newmtl Material
+Ns 96.078431
+Ka 0.000000 0.000000 0.000000
+Kd 0.640000 0.640000 0.640000
+Ks 0.500000 0.500000 0.500000
+Ke 0.000000 0.000000 0.000000
+Ni 1.000000
+d 1.000000
+illum 2
+map_Kd resources/textures/cesium.png
diff --git a/specs/data/box-resources-in-root/box-resources-in-root.obj b/specs/data/box-resources-in-root/box-resources-in-root.obj
new file mode 100644
index 00000000..1e9d9453
--- /dev/null
+++ b/specs/data/box-resources-in-root/box-resources-in-root.obj
@@ -0,0 +1,46 @@
+# Blender v2.78 (sub 0) OBJ File: 'box.blend'
+# www.blender.org
+mtllib resources/box-resources-in-root.mtl
+o Cube
+v -1.000000 -1.000000 1.000000
+v -1.000000 1.000000 1.000000
+v -1.000000 -1.000000 -1.000000
+v -1.000000 1.000000 -1.000000
+v 1.000000 -1.000000 1.000000
+v 1.000000 1.000000 1.000000
+v 1.000000 -1.000000 -1.000000
+v 1.000000 1.000000 -1.000000
+vt 0.0000 0.0000
+vt 1.0000 0.0000
+vt 1.0000 1.0000
+vt 0.0000 1.0000
+vt 0.0000 0.0000
+vt 1.0000 0.0000
+vt 1.0000 1.0000
+vt 0.0000 1.0000
+vt 0.0000 0.0000
+vt 1.0000 0.0000
+vt 1.0000 1.0000
+vt 0.0000 1.0000
+vt 0.0000 0.0000
+vt 1.0000 0.0000
+vt 1.0000 1.0000
+vt 0.0000 1.0000
+vt 1.0000 0.0000
+vt 1.0000 1.0000
+vt 0.0000 0.0000
+vt 0.0000 1.0000
+vn -1.0000 0.0000 0.0000
+vn 0.0000 0.0000 -1.0000
+vn 1.0000 0.0000 0.0000
+vn 0.0000 0.0000 1.0000
+vn 0.0000 -1.0000 0.0000
+vn 0.0000 1.0000 0.0000
+usemtl Material
+s off
+f 1/1/1 2/2/1 4/3/1 3/4/1
+f 3/5/2 4/6/2 8/7/2 7/8/2
+f 7/9/3 8/10/3 6/11/3 5/12/3
+f 5/13/4 6/14/4 2/15/4 1/16/4
+f 3/5/5 7/17/5 5/18/5 1/16/5
+f 8/19/6 4/6/6 2/15/6 6/20/6
diff --git a/specs/data/box-resources-in-root/cesium.png b/specs/data/box-resources-in-root/cesium.png
new file mode 100644
index 00000000..3b8baee1
Binary files /dev/null and b/specs/data/box-resources-in-root/cesium.png differ
diff --git a/specs/lib/loadObjSpec.js b/specs/lib/loadObjSpec.js
index 2e265453..b117f1f1 100644
--- a/specs/lib/loadObjSpec.js
+++ b/specs/lib/loadObjSpec.js
@@ -31,6 +31,8 @@ var objMtllibSpacesUrl = 'specs/data/box-mtllib-spaces/box mtllib.obj';
 var objMissingMtllibUrl = 'specs/data/box-missing-mtllib/box-missing-mtllib.obj';
 var objMissingUsemtlUrl = 'specs/data/box-missing-usemtl/box-missing-usemtl.obj';
 var objExternalResourcesUrl = 'specs/data/box-external-resources/box-external-resources.obj';
+var objResourcesInRootUrl = 'specs/data/box-resources-in-root/box-resources-in-root.obj';
+var objExternalResourcesInRootUrl = 'specs/data/box-external-resources-in-root/box-external-resources-in-root.obj';
 var objTexturedUrl = 'specs/data/box-textured/box-textured.obj';
 var objMissingTextureUrl = 'specs/data/box-missing-texture/box-missing-texture.obj';
 var objSubdirectoriesUrl = 'specs/data/box-subdirectories/box-textured.obj';
@@ -329,7 +331,10 @@ describe('loadObj', function() {
         expect(loadObj(objMissingMtllibUrl, defaultOptions)
             .then(function(data) {
                 expect(data.materials).toEqual({});
-                expect(console.log.calls.argsFor(0)[0].indexOf('Could not read mtl file') >= 0).toBe(true);
+                expect(spy.calls.argsFor(0)[0].indexOf('ENOENT') >= 0).toBe(true);
+                expect(spy.calls.argsFor(1)[0].indexOf('Attempting to read the material file from within the obj directory instead.') >= 0).toBe(true);
+                expect(spy.calls.argsFor(2)[0].indexOf('ENOENT') >= 0).toBe(true);
+                expect(spy.calls.argsFor(3)[0].indexOf('Could not read material file') >= 0).toBe(true);
             }), done).toResolve();
     });
 
@@ -360,8 +365,27 @@ describe('loadObj', function() {
                 expect(data.images[imagePath]).toBeUndefined();
                 expect(data.materials.MaterialTextured).toBeDefined();
                 expect(data.materials.Material).toBeUndefined(); // Not in directory, so not included
-                expect(console.log.calls.argsFor(0)[0].indexOf('Could not read mtl file') >= 0).toBe(true);
-                expect(console.log.calls.argsFor(1)[0].indexOf('Could not read image file') >= 0).toBe(true);
+                expect(spy.calls.argsFor(0)[0].indexOf('The material file is outside of the obj directory and the secure flag is true. Attempting to read the material file from within the obj directory instead.') >= 0).toBe(true);
+                expect(spy.calls.argsFor(1)[0].indexOf('ENOENT') >= 0).toBe(true);
+                expect(spy.calls.argsFor(2)[0].indexOf('Could not read material file') >= 0).toBe(true);
+            }), done).toResolve();
+    });
+
+    it('loads resources from root directory when the .mtl path does not exist', function(done) {
+        expect(loadObj(objResourcesInRootUrl, options)
+            .then(function(data) {
+                expect(data.materials['Material'].diffuseTexture.source).toBeDefined();
+                expect(diffuseTexture.source).toBeDefined();
+            }), done).toResolve();
+    });
+
+    it('loads resources from root directory when the .mtl path is outside of the obj directory and secure is true', function(done) {
+        options.secure = true;
+        expect(loadObj(objExternalResourcesInRootUrl, options)
+            .then(function(data) {
+                var materials = data.materials;
+                expect(Object.keys(materials).length).toBe(2);
+                expect(materials['MaterialTextured'].diffuseTexture.source).toBeDefined();
             }), done).toResolve();
     });
 
@@ -380,7 +404,10 @@ describe('loadObj', function() {
                 var imagePath = getImagePath(objMissingTextureUrl, 'cesium.png');
                 expect(data.images[imagePath]).toBeUndefined();
                 expect(data.materials.Material.diffuseTexture).toEqual(imagePath);
-                expect(console.log.calls.argsFor(0)[0].indexOf('Could not read image file') >= 0).toBe(true);
+                expect(spy.calls.argsFor(0)[0].indexOf('ENOENT') >= 0).toBe(true);
+                expect(spy.calls.argsFor(1)[0].indexOf('Attempting to read the image file from within the obj directory instead.') >= 0).toBe(true);
+                expect(spy.calls.argsFor(2)[0].indexOf('ENOENT') >= 0).toBe(true);
+                expect(spy.calls.argsFor(3)[0].indexOf('Could not read image file') >= 0).toBe(true);
             }), done).toResolve();
     });