diff --git a/channels/cmd/channels/apply_channel.go b/channels/cmd/channels/apply_channel.go
index 502abe8318..3c6a2fd3be 100644
--- a/channels/cmd/channels/apply_channel.go
+++ b/channels/cmd/channels/apply_channel.go
@@ -5,6 +5,7 @@ import (
 	"github.com/spf13/cobra"
 	"k8s.io/kops/channels/pkg/channels"
 	"k8s.io/kops/util/pkg/tables"
+	"net/url"
 	"os"
 )
 
@@ -37,9 +38,25 @@ func (c *ApplyChannelCmd) Run(args []string) error {
 		return err
 	}
 
+	cwd, err := os.Getwd()
+	if err != nil {
+		return fmt.Errorf("error getting current directory: %v", err)
+	}
+	baseURL, err := url.Parse(cwd + string(os.PathSeparator))
+	if err != nil {
+		return fmt.Errorf("error building url for current directory %q: %v", cwd, err)
+	}
+
 	var addons []*channels.Addon
 	for _, arg := range args {
-		o, err := channels.LoadAddons(arg)
+		channel, err := url.Parse(arg)
+		if err != nil {
+			return fmt.Errorf("unable to parse argument %q as url", arg)
+		}
+		if !channel.IsAbs() {
+			channel = baseURL.ResolveReference(channel)
+		}
+		o, err := channels.LoadAddons(channel)
 		if err != nil {
 			return fmt.Errorf("error loading file %q: %v", arg, err)
 		}
diff --git a/channels/pkg/channels/addon.go b/channels/pkg/channels/addon.go
index 679fdc84b4..e7f638a94f 100644
--- a/channels/pkg/channels/addon.go
+++ b/channels/pkg/channels/addon.go
@@ -6,11 +6,12 @@ import (
 	"k8s.io/kops/channels/pkg/api"
 	"k8s.io/kubernetes/pkg/client/clientset_generated/release_1_3"
 	"k8s.io/kubernetes/pkg/util/validation/field"
+	"net/url"
 )
 
 type Addon struct {
 	Name    string
-	Channel string
+	Channel url.URL
 	Spec    *api.AddonSpec
 }
 
@@ -21,8 +22,9 @@ type AddonUpdate struct {
 }
 
 func (a *Addon) ChannelVersion() *ChannelVersion {
+	channel := a.Channel.String()
 	return &ChannelVersion{
-		Channel: &a.Channel,
+		Channel: &channel,
 		Version: a.Spec.Version,
 	}
 }
@@ -74,9 +76,16 @@ func (a *Addon) EnsureUpdated(k8sClient *release_1_3.Clientset) (*AddonUpdate, e
 	}
 
 	manifest := *a.Spec.Manifest
-	glog.Infof("Applying update from %q", manifest)
+	manifestURL, err := url.Parse(manifest)
+	if err != nil {
+		return nil, field.Invalid(field.NewPath("Spec", "Manifest"), manifest, "Not a valid URL")
+	}
+	if !manifestURL.IsAbs() {
+		manifestURL = a.Channel.ResolveReference(manifestURL)
+	}
+	glog.Infof("Applying update from %q", manifestURL)
 
-	err = Apply(manifest)
+	err = Apply(manifestURL.String())
 	if err != nil {
 		return nil, fmt.Errorf("error applying update from %q: %v", manifest, err)
 	}
diff --git a/channels/pkg/channels/addons.go b/channels/pkg/channels/addons.go
index ea1c443a90..a911136533 100644
--- a/channels/pkg/channels/addons.go
+++ b/channels/pkg/channels/addons.go
@@ -5,16 +5,17 @@ import (
 	"k8s.io/kops/channels/pkg/api"
 	"k8s.io/kops/upup/pkg/fi/utils"
 	"k8s.io/kops/util/pkg/vfs"
+	"net/url"
 	"strings"
 )
 
 type Addons struct {
-	Channel   string
+	Channel   url.URL
 	APIObject *api.Addons
 }
 
-func LoadAddons(location string) (*Addons, error) {
-	data, err := vfs.Context.ReadFile(location)
+func LoadAddons(location *url.URL) (*Addons, error) {
+	data, err := vfs.Context.ReadFile(location.String())
 	if err != nil {
 		return nil, fmt.Errorf("error reading addons from %q: %v", location, err)
 	}
@@ -31,7 +32,7 @@ func LoadAddons(location string) (*Addons, error) {
 		}
 	}
 
-	return &Addons{Channel: location, APIObject: apiObject}, nil
+	return &Addons{Channel: *location, APIObject: apiObject}, nil
 }
 
 func (a *Addons) GetCurrent() ([]*Addon, error) {
@@ -42,7 +43,11 @@ func (a *Addons) GetCurrent() ([]*Addon, error) {
 			name = *s.Name
 		}
 
-		addon := &Addon{Channel: a.Channel, Spec: s, Name: name}
+		addon := &Addon{
+			Channel: a.Channel,
+			Spec:    s,
+			Name:    name,
+		}
 		existing := specs[name]
 		if existing == nil || addon.ChannelVersion().Replaces(existing.ChannelVersion()) {
 			specs[name] = addon