diff --git a/README.md b/README.md
index 9e74a28..214acdd 100644
--- a/README.md
+++ b/README.md
@@ -1,8 +1,8 @@
 # ejs-compiled-loader for webpack
 
-EJS loader for [webpack](http://webpack.github.io/). Uses [ejs](https://github.com/tj/ejs) function to compile templates.
+EJS loader for [webpack](http://webpack.github.io/). Uses [ejs](https://github.com/mde/ejs) function to compile templates.
 
-To use EJS by tj use 1.x branch and 1.x.x versions.
+To use [EJS by tj](https://github.com/tj/ejs) use 1.x branch and 1.x.x versions.
 
 ## Installation
 
diff --git a/index.js b/index.js
index 6cdbd8b..ff4c82f 100644
--- a/index.js
+++ b/index.js
@@ -1,16 +1,30 @@
 var ejs = require('ejs'),
   uglify = require('uglify-js'),
-  utils = require("loader-utils");
+  utils = require('loader-utils'),
+  path = require('path');
 
 
 module.exports = function (source) {
   this.cacheable && this.cacheable();
   var opts = utils.parseQuery(this.query);
   opts.client = true;
-  opts.filename = this.resourcePath;
+
+  // Skip compile debug for production when running with
+  // webpack --optimize-minimize
+  if (this.minimize && opts.compileDebug === undefined) {
+    opts.compileDebug = false;
+  }
+
+  // Use filenames relative to the context (in most cases the project root)
+  opts.filename = path.relative(this.context, this.resourcePath);
+
   var template = ejs.compile(source, opts);
 
-  var ast = uglify.parser.parse(template.toString());
+  // Beautify javascript code
+  if (!this.minimize && opts.beautify !== false) {
+    var ast = uglify.parser.parse(template.toString());
+    template = uglify.uglify.gen_code(ast, {beautify: true});
+  }
 
-  return 'module.exports = ' + uglify.uglify.gen_code(ast, {beautify: true});
+  return 'module.exports = ' + template;
 };