diff --git a/changelog/55159.fixed b/changelog/55159.fixed
new file mode 100644
index 00000000000..6ee1a783666
--- /dev/null
+++ b/changelog/55159.fixed
@@ -0,0 +1 @@
+Jinja renderer resolves wrong relative paths when importing subdirectories
diff --git a/salt/utils/jinja.py b/salt/utils/jinja.py
index 68a8646474f..3f27c2c7e14 100644
--- a/salt/utils/jinja.py
+++ b/salt/utils/jinja.py
@@ -148,7 +148,7 @@ def get_source(self, environment, template):
                     'Relative path "%s" cannot be resolved without an environment',
                     template,
                 )
-                raise TemplateNotFound
+                raise TemplateNotFound(template)
             base_path = environment.globals["tpldir"]
             _template = os.path.normpath("/".join((base_path, _template)))
             if _template.split("/", 1)[0] == "..":
diff --git a/salt/utils/templates.py b/salt/utils/templates.py
index 0f705cfa377..4c59553bc85 100644
--- a/salt/utils/templates.py
+++ b/salt/utils/templates.py
@@ -494,9 +494,10 @@ def opt_jinja_env_helper(opts, optname):
                 SLS_ENCODING,
             )
             decoded_context[key] = salt.utils.data.decode(value)
+
+    jinja_env.globals.update(decoded_context)
     try:
         template = jinja_env.from_string(tmplstr)
-        template.globals.update(decoded_context)
         output = template.render(**decoded_context)
     except jinja2.exceptions.UndefinedError as exc:
         trace = traceback.extract_tb(sys.exc_info()[2])
diff --git a/tests/unit/utils/test_jinja.py b/tests/unit/utils/test_jinja.py
index fb67e17fa23..e23caf11aef 100644
--- a/tests/unit/utils/test_jinja.py
+++ b/tests/unit/utils/test_jinja.py
@@ -619,6 +619,22 @@ def test_render_with_undefined_variable_unicode(self):
             dict(opts=self.local_opts, saltenv="test", salt=self.local_salt),
         )
 
+    def test_relative_include(self):
+        template = "{% include './hello_import' %}"
+        expected = "Hey world !a b !"
+        filename = os.path.join(self.template_dir, "hello_import")
+        with salt.utils.files.fopen(filename) as fp_:
+            out = render_jinja_tmpl(
+                template,
+                dict(
+                    opts=self.local_opts,
+                    saltenv="test",
+                    salt=self.local_salt,
+                    tpldir=self.template_dir,
+                ),
+            )
+        self.assertEqual(out, expected)
+
 
 class TestJinjaDefaultOptions(TestCase):
     @classmethod