diff --git a/src/library.c b/src/library.c
index 2bb9e13..b3758b9 100644
--- a/src/library.c
+++ b/src/library.c
@@ -155,8 +155,6 @@ parrot_init_library_paths(PARROT_INTERP)
         if (!STRING_IS_NULL(envvar) && !STRING_IS_EMPTY(envvar))
             VTABLE_push_string(interp, paths, envvar);
     }
-    entry = CONST_STRING(interp, "./");
-    VTABLE_push_string(interp, paths, entry);
 
     /* define library paths */
     paths = Parrot_pmc_new(interp, enum_class_ResizableStringArray);
@@ -168,15 +166,11 @@ parrot_init_library_paths(PARROT_INTERP)
         if (!STRING_IS_NULL(envvar) && !STRING_IS_EMPTY(envvar))
             VTABLE_push_string(interp, paths, envvar);
     }
-    entry = CONST_STRING(interp, "./");
-    VTABLE_push_string(interp, paths, entry);
 
     /* define languages paths */
     paths = Parrot_pmc_new(interp, enum_class_ResizableStringArray);
     VTABLE_set_pmc_keyed_int(interp, lib_paths,
             PARROT_LIB_PATH_LANG, paths);
-    entry = CONST_STRING(interp, "./");
-    VTABLE_push_string(interp, paths, entry);
 
     /* define dynext paths */
     paths = Parrot_pmc_new(interp, enum_class_ResizableStringArray);
diff --git a/t/library/lib_search_path.t b/t/library/lib_search_path.t
new file mode 100644
index 0000000..62c3cca
--- /dev/null
+++ b/t/library/lib_search_path.t
@@ -0,0 +1,43 @@
+#!./parrot
+# Copyright (C) 2011 Parrot Foundation.
+
+=head1 NAME
+
+t/library/lib_search_path.t - testing for proper search path precedence
+
+=head1 SYNOPSIS
+
+This test program verifies that Parrot searches for libraries in the
+proper order.
+
+=head1 AUTHOR
+
+Kevin Polulak (a.k.a. soh_cah_toa) kpolulak@gmail.com
+
+=cut
+
+.const string TESTS = 2
+
+.sub 'main' :main
+    .include 'test_more.pir'
+
+    .local pmc lib
+    .local pmc lib_cwd
+
+    plan(TESTS)
+
+    # Verify current working directory isn't searched
+    lib_cwd = loadlib 'lib_search_path.t'
+    is(lib_cwd, '', 'Verify current working directory not searched')
+
+    # Verify runtime/parrot/dynext is searched
+	lib = loadlib 'osutils.pir'
+    isnt(lib, '', 'Verify runtime/parrot/dynext is searched')
+.end
+
+# Local Variables:
+#   mode: pir
+#   fill-column: 100
+# End:
+# vim: expandtab shiftwidth=4 ft=pir:
+