diff --git a/lib/compile.js b/lib/compile.js
index <HASH>..<HASH> 100644
--- a/lib/compile.js
+++ b/lib/compile.js
@@ -62,6 +62,7 @@ function compile(path, options, cb, cacheUpdated) {
     insertGlobals: options.insertGlobals,
     detectGlobals: options.detectGlobals,
     ignoreMissing: options.ignoreMissing,
+    basedir: options.basedir,
     debug: options.debug,
     standalone: options.standalone || false,
     cache: cache ? cache.getCache() : undefined
diff --git a/lib/settings.js b/lib/settings.js
index <HASH>..<HASH> 100644
--- a/lib/settings.js
+++ b/lib/settings.js
@@ -42,7 +42,7 @@ exports.detectGlobals = true;
 exports.standalone = false;
 exports.noParse = [];
 exports.extensions = [];
-exports.basedir = false;
+exports.basedir = undefined;
 exports.grep = /\.js$/;
 
 //set some safe defaults for
improve: add basedir option to be passed on