diff --git a/src/Mod/Path/Gui/Resources/preferences/PathJob.ui b/src/Mod/Path/Gui/Resources/preferences/PathJob.ui
index 7d88c71040..ea59592362 100644
--- a/src/Mod/Path/Gui/Resources/preferences/PathJob.ui
+++ b/src/Mod/Path/Gui/Resources/preferences/PathJob.ui
@@ -621,6 +621,14 @@
       </layout>
      </widget>
      <widget class="QWidget" name="page_4">
+      <property name="geometry">
+       <rect>
+        <x>0</x>
+        <y>0</y>
+        <width>412</width>
+        <height>461</height>
+       </rect>
+      </property>
       <attribute name="label">
        <string>Tools</string>
       </attribute>
@@ -636,15 +644,12 @@
         </widget>
        </item>
        <item>
-        <widget class="QCheckBox" name="toolsRelativePaths">
+        <widget class="QCheckBox" name="toolsAbsolutePaths">
          <property name="toolTip">
-          <string>&lt;html&gt;&lt;head/&gt;&lt;body&gt;&lt;p&gt;References to Tool Bits and their shapes can either be stored with an absolute path or with a relative path to the search path.&lt;/p&gt;&lt;p&gt;&lt;br/&gt;&lt;/p&gt;&lt;p&gt;Generally it is recommended to use relative paths due to their flexibility and robustness to layout changes.&lt;/p&gt;&lt;p&gt;&lt;br/&gt;&lt;/p&gt;&lt;p&gt;Should multiple tools or tool shapes with the same name exist in different directories it can be required to use absolute paths. &lt;/p&gt;&lt;/body&gt;&lt;/html&gt;</string>
+          <string>&lt;html&gt;&lt;head/&gt;&lt;body&gt;&lt;p&gt;References to Tool Bits and their shapes can either be stored with an absolute path or with a relative path to the search path.&lt;/p&gt;&lt;p&gt;Generally it is recommended to use relative paths due to their flexibility and robustness to layout changes.&lt;/p&gt;&lt;p&gt;Should multiple tools or tool shapes with the same name exist in different directories it can be required to use absolute paths. &lt;/p&gt;&lt;/body&gt;&lt;/html&gt;</string>
          </property>
          <property name="text">
-          <string>Store Relative Paths</string>
-         </property>
-         <property name="checked">
-          <bool>true</bool>
+          <string>Store Absolute Paths</string>
          </property>
         </widget>
        </item>
diff --git a/src/Mod/Path/PathScripts/PathPreferences.py b/src/Mod/Path/PathScripts/PathPreferences.py
index 37e16d98ab..2fc5bf261b 100644
--- a/src/Mod/Path/PathScripts/PathPreferences.py
+++ b/src/Mod/Path/PathScripts/PathPreferences.py
@@ -46,7 +46,7 @@ LastPathToolLibrary       = "LastPathToolLibrary"
 LastPathToolShape         = "LastPathToolShape"
 
 UseLegacyTools            = "UseLegacyTools"
-UseRelativeToolPaths      = "UseRelativeToolPaths"
+UseAbsoluteToolPaths      = "UseAbsoluteToolPaths"
 
 # Linear tolerance to use when generating Paths, eg when tessellating geometry
 GeometryTolerance       = "GeometryTolerance"
@@ -152,13 +152,13 @@ def searchPathsTool(sub='Bit'):
 def toolsUseLegacyTools():
     return preferences().GetBool(UseLegacyTools, True)
 
-def toolsStoreRelativePaths():
-    return preferences().GetBool(UseRelativeToolPaths, True)
+def toolsStoreAbsolutePaths():
+    return preferences().GetBool(UseAbsoluteToolPaths, False)
 
 def setToolsSettings(legacy, relative):
     pref = preferences()
     pref.SetBool(UseLegacyTools, legacy)
-    pref.SetBool(UseRelativeToolPaths, relative)
+    pref.SetBool(UseAbsoluteToolPaths, relative)
 
 def defaultJobTemplate():
     template = preferences().GetString(DefaultJobTemplate)
diff --git a/src/Mod/Path/PathScripts/PathPreferencesPathJob.py b/src/Mod/Path/PathScripts/PathPreferencesPathJob.py
index 525ba9c6e1..0782efd67b 100644
--- a/src/Mod/Path/PathScripts/PathPreferencesPathJob.py
+++ b/src/Mod/Path/PathScripts/PathPreferencesPathJob.py
@@ -109,7 +109,7 @@ class JobPreferencesPage:
             PathPreferences.setDefaultStockTemplate('')
 
     def saveToolsSettings(self):
-        PathPreferences.setToolsSettings(self.form.toolsUseLegacy.isChecked(), self.form.toolsRelativePaths.isChecked())
+        PathPreferences.setToolsSettings(self.form.toolsUseLegacy.isChecked(), self.form.toolsAbsolutePaths.isChecked())
 
     def selectComboEntry(self, widget, text):
         index = widget.findText(text, QtCore.Qt.MatchFixedString)
@@ -251,7 +251,7 @@ class JobPreferencesPage:
 
     def loadToolSettings(self):
         self.form.toolsUseLegacy.setChecked(PathPreferences.toolsUseLegacyTools())
-        self.form.toolsRelativePaths.setChecked(PathPreferences.toolsStoreRelativePaths())
+        self.form.toolsAbsolutePaths.setChecked(PathPreferences.toolsStoreAbsolutePaths())
 
     def getPostProcessor(self, name):
         if not name in self.processor.keys():
diff --git a/src/Mod/Path/PathScripts/PathToolBit.py b/src/Mod/Path/PathScripts/PathToolBit.py
index 6dec07e999..b3c50c5484 100644
--- a/src/Mod/Path/PathScripts/PathToolBit.py
+++ b/src/Mod/Path/PathScripts/PathToolBit.py
@@ -96,6 +96,26 @@ def findLibrary(path, dbg=False):
         return _findTool(path, 'Library', dbg)
     return _findTool("{}.fctl".format(path), 'Library', dbg)
 
+def _findRelativePath(path, typ):
+    relative = path
+    for p in PathPreferences.searchPathsTool(typ):
+        if path.startswith(p):
+            p = path[len(p):]
+            if '/' == p[0]:
+                p = p[1:]
+            if len(p) < len(relative):
+                relative = p
+    return relative
+
+def findRelativePathShape(path):
+    return _findRelativePath(path, 'Shape')
+
+def findRelativePathTool(path):
+    return _findRelativePath(path, 'Bit')
+
+def findRelativePathLibrary(path):
+    return _findRelativePath(path, 'Library')
+
 def updateConstraint(sketch, name, value):
     for i, constraint in enumerate(sketch.Constraints):
         if constraint.Name.split(';')[0] == name:
@@ -116,6 +136,7 @@ def updateConstraint(sketch, name, value):
                     PathLog.track(name, constraint.Type, 'unchanged')
             break
 
+
 PropertyGroupBit       = 'Bit'
 PropertyGroupAttribute = 'Attribute'
 
@@ -124,9 +145,9 @@ class ToolBit(object):
     def __init__(self, obj, shapeFile):
         PathLog.track(obj.Label, shapeFile)
         self.obj = obj
-        obj.addProperty('App::PropertyFile',       'BitShape', 'Base', translate('PathToolBit', 'Shape for bit shape'))
-        obj.addProperty('App::PropertyLink',       'BitBody',     'Base', translate('PathToolBit', 'The parametrized body representing the tool bit'))
-        obj.addProperty('App::PropertyFile',       'File',        'Base', translate('PathToolBit', 'The file of the tool'))
+        obj.addProperty('App::PropertyFile', 'BitShape', 'Base', translate('PathToolBit', 'Shape for bit shape'))
+        obj.addProperty('App::PropertyLink', 'BitBody',  'Base', translate('PathToolBit', 'The parametrized body representing the tool bit'))
+        obj.addProperty('App::PropertyFile', 'File',     'Base', translate('PathToolBit', 'The file of the tool'))
         if shapeFile is not None:
             obj.BitShape = shapeFile
             self._setupBitShape(obj)
@@ -283,7 +304,10 @@ class ToolBit(object):
         attrs = {}
         attrs['version'] = 2 # Path.Tool is version 1
         attrs['name'] = obj.Label
-        attrs['shape'] = obj.BitShape
+        if PathPreferences.toolsStoreAbsolutePaths():
+            attrs['shape'] = obj.BitShape
+        else:
+            attrs['shape'] = findRelativePathShape(obj.BitShape)
         params = {}
         for name in self.propertyNamesBit(obj):
             params[name] = PathUtil.getPropertyValueString(obj, name)
@@ -332,7 +356,9 @@ class ToolBitFactory(object):
     def CreateFrom(self, path, name='ToolBit'):
         try:
             data = Declaration(path)
-            return Factory.CreateFromAttrs(data, name)
+            bit = Factory.CreateFromAttrs(data, name)
+            bit.File = path
+            return bit
         except (OSError, IOError) as e:
             PathLog.error("%s not a valid tool file (%s)" % (path, e))
             raise
diff --git a/src/Mod/Path/PathScripts/PathToolBitLibraryGui.py b/src/Mod/Path/PathScripts/PathToolBitLibraryGui.py
index 68e159eff0..17b12638a2 100644
--- a/src/Mod/Path/PathScripts/PathToolBitLibraryGui.py
+++ b/src/Mod/Path/PathScripts/PathToolBitLibraryGui.py
@@ -263,7 +263,10 @@ class ToolBitLibrary(object):
         for row in range(self.model.rowCount()):
             toolNr   = self.model.data(self.model.index(row, 0), PySide.QtCore.Qt.EditRole)
             toolPath = self.model.data(self.model.index(row, 0), _PathRole)
-            tools.append({'nr': toolNr, 'path': toolPath})
+            if PathPreferences.toolsStoreAbsolutePaths():
+                tools.append({'nr': toolNr, 'path': toolPath})
+            else:
+                tools.append({'nr': toolNr, 'path': PathToolBit.findRelativePathTool(toolPath)})
 
         with open(self.path, 'w') as fp:
             json.dump(library, fp, sort_keys=True, indent=2)
diff --git a/src/Mod/Path/PathTests/TestPathToolBit.py b/src/Mod/Path/PathTests/TestPathToolBit.py
index b7e27c1842..2eb2bbfa4b 100644
--- a/src/Mod/Path/PathTests/TestPathToolBit.py
+++ b/src/Mod/Path/PathTests/TestPathToolBit.py
@@ -43,3 +43,18 @@ class TestPathToolBit(PathTestUtils.PathTestBase):
         self.assertNotEqual(path, '/this/is/unlikely/a/valid/path/v-bit.fcstd')
 
 
+    def test10(self):
+        '''find the relative path of a tool bit'''
+        shape = 'endmill-straight.fcstd'
+        path = PathToolBit.findShape(shape)
+        self.assertIsNot(path, None)
+        self.assertGreater(len(path), len(shape))
+        rel = PathToolBit.findRelativePathShape(path)
+        self.assertEqual(rel, shape)
+
+    def test11(self):
+        '''store full path if relative path isn't found'''
+        path = '/this/is/unlikely/a/valid/path/v-bit.fcstd'
+        rel = PathToolBit.findRelativePathShape(path)
+        self.assertEqual(rel, path)
+
diff --git a/src/Mod/Path/Tools/Bit/t1.fctb b/src/Mod/Path/Tools/Bit/t1.fctb
index 27f271ff99..0fe10f2e03 100644
--- a/src/Mod/Path/Tools/Bit/t1.fctb
+++ b/src/Mod/Path/Tools/Bit/t1.fctb
@@ -1,12 +1,12 @@
 {
-  "version": 1,
+  "version": 2,
   "name": "T1",
-  "shape": "src/Mod/Path/Tools/Shape/endmill-straight.fcstd",
-  "attribute": {},
+  "shape": "endmill-straight.fcstd",
   "parameter": {
     "CuttingEdgeHeight": "30.000 mm",
-    "Diameter": "1.000 mm",
+    "Diameter": "5.000 mm",
     "Length": "50.000 mm",
     "ShankDiameter": "3.000 mm"
-  }
+  },
+  "attribute": {}
 }
diff --git a/src/Mod/Path/Tools/Bit/t2.fctb b/src/Mod/Path/Tools/Bit/t2.fctb
index 931c833964..b947d7f4f5 100644
--- a/src/Mod/Path/Tools/Bit/t2.fctb
+++ b/src/Mod/Path/Tools/Bit/t2.fctb
@@ -1,7 +1,7 @@
 {
   "version": 1,
   "name": "T2",
-  "shape": "src/Mod/Path/Tools/Shape/endmill-straight.fcstd",
+  "shape": "endmill-straight.fcstd",
   "attribute": {},
   "parameter": {
     "CuttingEdgeHeight": "30.000 mm",
diff --git a/src/Mod/Path/Tools/Bit/t3.fctb b/src/Mod/Path/Tools/Bit/t3.fctb
index b4e204e13f..0986533ddd 100644
--- a/src/Mod/Path/Tools/Bit/t3.fctb
+++ b/src/Mod/Path/Tools/Bit/t3.fctb
@@ -1,12 +1,12 @@
 {
-  "version": 1,
+  "version": 2,
   "name": "T3",
-  "shape": "src/Mod/Path/Tools/Shape/endmill-straight.fcstd",
-  "attribute": {},
+  "shape": "endmill-straight.fcstd",
   "parameter": {
     "CuttingEdgeHeight": "30.000 mm",
-    "Diameter": "3.000 mm",
+    "Diameter": "5.000 mm",
     "Length": "50.000 mm",
     "ShankDiameter": "3.000 mm"
-  }
+  },
+  "attribute": {}
 }
diff --git a/src/Mod/Path/Tools/Bit/t4.fctb b/src/Mod/Path/Tools/Bit/t4.fctb
index dc3042205f..df4edfaaa9 100644
--- a/src/Mod/Path/Tools/Bit/t4.fctb
+++ b/src/Mod/Path/Tools/Bit/t4.fctb
@@ -1,7 +1,7 @@
 {
   "version": 1,
   "name": "T4",
-  "shape": "src/Mod/Path/Tools/Shape/endmill-straight.fcstd",
+  "shape": "endmill-straight.fcstd",
   "attribute": {},
   "parameter": {
     "CuttingEdgeHeight": "30.000 mm",
diff --git a/src/Mod/Path/Tools/Bit/t5.fctb b/src/Mod/Path/Tools/Bit/t5.fctb
index 9db3300c7a..9f8bdb0a6a 100644
--- a/src/Mod/Path/Tools/Bit/t5.fctb
+++ b/src/Mod/Path/Tools/Bit/t5.fctb
@@ -1,7 +1,7 @@
 {
   "version": 1,
   "name": "T5",
-  "shape": "src/Mod/Path/Tools/Shape/endmill-straight.fcstd",
+  "shape": "endmill-straight.fcstd",
   "attribute": {},
   "parameter": {
     "CuttingEdgeHeight": "30.000 mm",
diff --git a/src/Mod/Path/Tools/Bit/t6.fctb b/src/Mod/Path/Tools/Bit/t6.fctb
index b1c2f58c61..61efb7d319 100644
--- a/src/Mod/Path/Tools/Bit/t6.fctb
+++ b/src/Mod/Path/Tools/Bit/t6.fctb
@@ -1,7 +1,7 @@
 {
   "version": 1,
   "name": "T6",
-  "shape": "src/Mod/Path/Tools/Shape/endmill-straight.fcstd",
+  "shape": "endmill-straight.fcstd",
   "attribute": {},
   "parameter": {
     "CuttingEdgeHeight": "30.000 mm",
diff --git a/src/Mod/Path/Tools/Bit/t7.fctb b/src/Mod/Path/Tools/Bit/t7.fctb
index 10a3fc10a6..600de9ded1 100644
--- a/src/Mod/Path/Tools/Bit/t7.fctb
+++ b/src/Mod/Path/Tools/Bit/t7.fctb
@@ -1,7 +1,7 @@
 {
   "version": 1,
   "name": "T7",
-  "shape": "src/Mod/Path/Tools/Shape/endmill-straight.fcstd",
+  "shape": "endmill-straight.fcstd",
   "attribute": {},
   "parameter": {
     "CuttingEdgeHeight": "30.000 mm",
diff --git a/src/Mod/Path/Tools/Bit/t8.fctb b/src/Mod/Path/Tools/Bit/t8.fctb
index 995b5012e2..b957c96871 100644
--- a/src/Mod/Path/Tools/Bit/t8.fctb
+++ b/src/Mod/Path/Tools/Bit/t8.fctb
@@ -1,7 +1,7 @@
 {
   "version": 1,
   "name": "T8",
-  "shape": "src/Mod/Path/Tools/Shape/endmill-straight.fcstd",
+  "shape": "endmill-straight.fcstd",
   "attribute": {},
   "parameter": {
     "CuttingEdgeHeight": "30.000 mm",
diff --git a/src/Mod/Path/Tools/Bit/t9.fctb b/src/Mod/Path/Tools/Bit/t9.fctb
index ab49b17dbc..2135c0a9b6 100644
--- a/src/Mod/Path/Tools/Bit/t9.fctb
+++ b/src/Mod/Path/Tools/Bit/t9.fctb
@@ -1,7 +1,7 @@
 {
   "version": 1,
   "name": "T9",
-  "shape": "src/Mod/Path/Tools/Shape/endmill-straight.fcstd",
+  "shape": "endmill-straight.fcstd",
   "attribute": {},
   "parameter": {
     "CuttingEdgeHeight": "30.000 mm",
diff --git a/src/Mod/Path/Tools/Library/endmills.fctl b/src/Mod/Path/Tools/Library/endmills.fctl
index f3e9b37c34..c443e6cd10 100644
--- a/src/Mod/Path/Tools/Library/endmills.fctl
+++ b/src/Mod/Path/Tools/Library/endmills.fctl
@@ -2,40 +2,40 @@
   "tools": [
     {
       "nr": 1,
-      "path": "/media/sdb/projects/FreeCAD/dev/FreeCAD/src/Mod/Path/Tools/Bit/t1.fctb"
+      "path": "t1.fctb"
     },
     {
       "nr": 2,
-      "path": "/media/sdb/projects/FreeCAD/dev/FreeCAD/src/Mod/Path/Tools/Bit/t2.fctb"
+      "path": "t2.fctb"
     },
     {
       "nr": 3,
-      "path": "/media/sdb/projects/FreeCAD/dev/FreeCAD/src/Mod/Path/Tools/Bit/t3.fctb"
+      "path": "t3.fctb"
     },
     {
       "nr": 4,
-      "path": "/media/sdb/projects/FreeCAD/dev/FreeCAD/src/Mod/Path/Tools/Bit/t4.fctb"
+      "path": "t4.fctb"
     },
     {
       "nr": 5,
-      "path": "/media/sdb/projects/FreeCAD/dev/FreeCAD/src/Mod/Path/Tools/Bit/t5.fctb"
+      "path": "t5.fctb"
     },
     {
       "nr": 6,
-      "path": "/media/sdb/projects/FreeCAD/dev/FreeCAD/src/Mod/Path/Tools/Bit/t6.fctb"
+      "path": "t6.fctb"
     },
     {
       "nr": 7,
-      "path": "/media/sdb/projects/FreeCAD/dev/FreeCAD/src/Mod/Path/Tools/Bit/t7.fctb"
+      "path": "t7.fctb"
     },
     {
       "nr": 8,
-      "path": "/media/sdb/projects/FreeCAD/dev/FreeCAD/src/Mod/Path/Tools/Bit/t8.fctb"
+      "path": "t8.fctb"
     },
     {
       "nr": 9,
-      "path": "/media/sdb/projects/FreeCAD/dev/FreeCAD/src/Mod/Path/Tools/Bit/t9.fctb"
+      "path": "t9.fctb"
     }
   ],
   "version": 1
-}
\ No newline at end of file
+}