diff --git a/src/link/linker.1.s b/src/link/linker.1.s
index 60f5ca5..242d7bc 100644
--- a/src/link/linker.1.s
+++ b/src/link/linker.1.s
@@ -1800,7 +1800,7 @@ lnkop           sec
                 bit       :dsvalid
                 jpl       :xit
                 ldy       :dsy
-                lda       :aux
+                lda       :rel
                 and       #$FF
                 eor       #$FF
                 inc
@@ -1820,6 +1820,15 @@ lnkop           sec
                 psl       :handle
                 _GetHandleSize
                 pll       :size
+
+                sec
+                lda       :size
+                sbc       :aux
+                sta       :rsize
+                lda       :size+2
+                sbc       #0
+                sta       :rsize+2
+
                 lda       :more
                 clc
                 adc       :size
@@ -1867,9 +1876,7 @@ lnkop           sec
                 sta       :dest+2
                 psl       :src
                 psl       :dest
-                pea       $00
-                lda       :more
-                pha
+                psl       :rsize
                 _BlockMove
                 ldy       :aux
                 ldx       #$00
@@ -1912,6 +1919,7 @@ lnkop           sec
 :dest           ds        4
 :byte           ds        2
 :temp           ds        4
+:rsize          ds        4
 
 :constrainterr  php
                 rep       $30
diff --git a/testdata/3012-rel-ds-1.S b/testdata/3012-rel-ds-1.S
new file mode 100644
index 0000000..33ea185
--- /dev/null
+++ b/testdata/3012-rel-ds-1.S
@@ -0,0 +1,6 @@
+	rel
+
+	nop
+	nop
+
+	sav 3012-rel-ds-1.L
diff --git a/testdata/3012-rel-ds-2.S b/testdata/3012-rel-ds-2.S
new file mode 100644
index 0000000..037d488
--- /dev/null
+++ b/testdata/3012-rel-ds-2.S
@@ -0,0 +1,16 @@
+	rel
+
+
+a	ent
+b	ent
+c	ent
+	nop
+	nop
+
+* should generate $100 - 4  bytes of $ff since 2 bytes in first file, 2 bytes above.
+* extra ent labels to verify the DS padding algorithm adjusts the relacation records.
+
+	ds \,$ff
+d	ent
+
+	sav 3012-rel-ds-2.L
diff --git a/testdata/3012-rel-ds-3.S b/testdata/3012-rel-ds-3.S
new file mode 100644
index 0000000..01e981f
--- /dev/null
+++ b/testdata/3012-rel-ds-3.S
@@ -0,0 +1,9 @@
+	rel
+
+	ext a,b,c,d
+
+	dw a,b,c,d
+
+	ds \,$00
+
+	sav 3012-rel-ds-3.L
diff --git a/testdata/3012-rel-ds-link.S b/testdata/3012-rel-ds-link.S
new file mode 100644
index 0000000..914a5af
--- /dev/null
+++ b/testdata/3012-rel-ds-link.S
@@ -0,0 +1,15 @@
+*
+* test rel DS \ command to verify it uses the current segment offset,
+* not the current file offset.
+*
+
+	ovr all
+	asm 3012-rel-ds-1.S
+	asm 3012-rel-ds-2.S
+	asm 3012-rel-ds-3.S
+
+	lnk 3012-rel-ds-1.L
+	lnk 3012-rel-ds-2.L
+	lnk 3012-rel-ds-3.L
+
+	sav 3012-rel-ds