diff --git a/pip/index.py b/pip/index.py
index 4136d05dc..f6b13baec 100644
--- a/pip/index.py
+++ b/pip/index.py
@@ -20,7 +20,7 @@ from pip.util import Inf
 from pip.util import normalize_name, splitext
 from pip.exceptions import DistributionNotFound, BestVersionAlreadyInstalled
 from pip.backwardcompat import (WindowsError, BytesIO,
-                                Queue, httplib, urlparse,
+                                Queue, urlparse,
                                 URLError, HTTPError, u,
                                 product, url2pathname)
 from pip.backwardcompat import Empty as QueueEmpty
@@ -80,17 +80,17 @@ class PackageFinder(object):
 
         for url in locations:
             is_path = os.path.exists(url)
-            if url.startswith('file:'):
-                if is_path:
-                    path = url
-                else:
-                    path = url_to_path(url)
-                if os.path.isdir(path):
-                    path = os.path.realpath(path)
-                    for item in os.listdir(path):
-                        sort_path(os.path.join(path, item))
-                elif os.path.isfile(path):
-                    sort_path(path)
+            path = None
+            if is_path:
+                path = url
+            elif url.startswith('file:'):
+                path = url_to_path(url)
+            if path and os.path.isdir(path):
+                path = os.path.realpath(path)
+                for item in os.listdir(path):
+                    sort_path(os.path.join(path, item))
+            elif path and os.path.isfile(path):
+                sort_path(path)
             else:
                 urls.append(url)
         return files, urls
diff --git a/pip/req.py b/pip/req.py
index 57141150d..3550cca21 100644
--- a/pip/req.py
+++ b/pip/req.py
@@ -1273,6 +1273,7 @@ def parse_requirements(filename, finder=None, comes_from=None, options=None):
     skip_regex = options.skip_requirements_regex if options else None
     if skip_regex:
         skip_match = re.compile(skip_regex)
+    reqs_file_dir = os.path.dirname(os.path.abspath(filename))
     filename, content = get_file_content(filename, comes_from=comes_from)
     for line_number, line in enumerate(content.splitlines()):
         line_number += 1
@@ -1304,6 +1305,10 @@ def parse_requirements(filename, finder=None, comes_from=None, options=None):
                 line = line[len('--find-links'):].strip().lstrip('=')
             ## FIXME: it would be nice to keep track of the source of
             ## the find_links:
+            # support a find-links local path relative to a requirements file
+            relative_to_reqs_file = os.path.join(reqs_file_dir, line)
+            if os.path.exists(relative_to_reqs_file):
+                line = relative_to_reqs_file
             if finder:
                 finder.find_links.append(line)
         elif line.startswith('-i') or line.startswith('--index-url'):
@@ -1317,6 +1322,8 @@ def parse_requirements(filename, finder=None, comes_from=None, options=None):
             line = line[len('--extra-index-url'):].strip().lstrip('=')
             if finder:
                 finder.index_urls.append(line)
+        elif line.startswith('--no-index'):
+            finder.index_urls = []
         else:
             comes_from = '-r %s (line %s)' % (filename, line_number)
             if line.startswith('-e') or line.startswith('--editable'):
diff --git a/tests/test_basic.py b/tests/test_basic.py
index a49824abf..e1b990a35 100644
--- a/tests/test_basic.py
+++ b/tests/test_basic.py
@@ -5,7 +5,6 @@ import textwrap
 import sys
 from os.path import abspath, join, curdir, pardir
 
-from nose import SkipTest
 from nose.tools import assert_raises
 from mock import patch
 
diff --git a/tests/test_find_links.py b/tests/test_find_links.py
new file mode 100644
index 000000000..b9f3cde55
--- /dev/null
+++ b/tests/test_find_links.py
@@ -0,0 +1,38 @@
+import textwrap
+
+from tests.test_pip import reset_env, run_pip, pyversion, here, write_file
+
+
+def test_find_links_relative_path():
+    """Test find-links as a relative path."""
+    e = reset_env()
+    result = run_pip(
+        'install',
+        'parent==0.1',
+        '--no-index',
+        '--find-links',
+        'packages/',
+        cwd=here)
+    egg_info_folder = e.site_packages / 'parent-0.1-py%s.egg-info' % pyversion
+    initools_folder = e.site_packages / 'parent'
+    assert egg_info_folder in result.files_created, str(result)
+    assert initools_folder in result.files_created, str(result)
+
+
+def test_find_links_requirements_file_relative_path():
+    """Test find-links as a relative path to a reqs file."""
+    e = reset_env()
+    write_file('test-req.txt', textwrap.dedent("""
+        --no-index
+        --find-links=../../../packages/
+        parent==0.1
+        """))
+    result = run_pip(
+        'install',
+        '-r',
+        e.scratch_path / "test-req.txt",
+        cwd=here)
+    egg_info_folder = e.site_packages / 'parent-0.1-py%s.egg-info' % pyversion
+    initools_folder = e.site_packages / 'parent'
+    assert egg_info_folder in result.files_created, str(result)
+    assert initools_folder in result.files_created, str(result)