diff --git a/sigal/__init__.py b/sigal/__init__.py
index ec07a01..5b57292 100644
--- a/sigal/__init__.py
+++ b/sigal/__init__.py
@@ -89,12 +89,11 @@ def build(source, destination, debug=False, verbose=False, force=False,
           config=None, theme=None):
     """Run sigal to process a directory. """
 
-    level = (debug and logging.DEBUG) or (verbose and logging.INFO) \
-            or logging.WARNING
+    level = ((debug and logging.DEBUG) or (verbose and logging.INFO)
+             or logging.WARNING)
     init_logging(level=level)
     logger = logging.getLogger(__name__)
 
-    logger.info("Reading settings ...")
     settings_file = config or _DEFAULT_CONFIG_FILE
     if not os.path.isfile(settings_file):
         logger.error("Settings file not found (%s)", settings_file)
diff --git a/sigal/settings.py b/sigal/settings.py
index 7150132..cf63aec 100644
--- a/sigal/settings.py
+++ b/sigal/settings.py
@@ -59,20 +59,29 @@ def read_settings(filename=None):
     """Read settings from a config file in the source_dir root."""
 
     logger = logging.getLogger(__name__)
+    logger.info("Reading settings ...")
     settings = _DEFAULT_CONFIG.copy()
+    settings_path = os.path.dirname(filename)
 
     if filename:
+        logger.debug("Settings file: %s", filename)
         tempdict = {}
         execfile(filename, tempdict)
         settings.update((k, v) for k, v in tempdict.iteritems()
                         if k not in ['__builtins__'])
 
         # Make the paths relative to the settings file
-        for key in ['source', 'destination']:
-            path = settings[key]
+        paths = ['source', 'destination']
+
+        if os.path.isdir(os.path.join(settings_path, settings['theme'])):
+            paths.append('theme')
+
+        for p in paths:
+            path = settings[p]
             if path and not os.path.isabs(path):
-                settings[key] = os.path.abspath(os.path.normpath(os.path.join(
-                    os.path.dirname(filename), path)))
+                settings[p] = os.path.abspath(os.path.normpath(os.path.join(
+                    settings_path, path)))
+                logger.debug("%s : %s -> %s", p, path, settings[p])
 
     for key in ('img_size', 'thumb_size'):
         w, h = settings[key]
@@ -81,5 +90,4 @@ def read_settings(filename=None):
             logger.warning("The %s setting should be specified with the "
                            "largest value first.", key)
 
-
     return settings
diff --git a/tests/test_settings.py b/tests/test_settings.py
index b08047d..55d736f 100644
--- a/tests/test_settings.py
+++ b/tests/test_settings.py
@@ -5,12 +5,13 @@ import pytest
 
 from sigal.settings import read_settings, get_thumb
 
+CURRENT_DIR = os.path.abspath(os.path.dirname(__file__))
+
 
 @pytest.fixture(scope='module')
 def settings():
     """Read the sample config file."""
-    path = os.path.abspath(os.path.dirname(__file__))
-    return read_settings(os.path.join(path, 'sample', 'sigal.conf.py'))
+    return read_settings(os.path.join(CURRENT_DIR, 'sample', 'sigal.conf.py'))
 
 
 def test_read_settings(settings):
@@ -18,6 +19,8 @@ def test_read_settings(settings):
     assert settings['img_size'] == (640, 480)
     assert settings['thumb_size'] == (200, 150)
     assert settings['thumb_suffix'] == '.tn'
+    assert settings['source'] == os.path.join(CURRENT_DIR, 'sample',
+                                              'pictures')
 
 
 def test_thumb(settings):
@@ -40,3 +43,17 @@ thumb_size = (150, 200)
 
     settings = read_settings(str(conf))
     assert settings['thumb_size'] == (200, 150)
+
+
+def test_theme_path(tmpdir):
+    """Test that image size is swaped if needed."""
+
+    tmpdir.join('theme').mkdir()
+    conf = tmpdir.join('sigal.conf.py')
+    conf.write("""# -*- coding: utf-8 -*-
+
+theme = 'theme'
+""")
+
+    settings = read_settings(str(conf))
+    assert settings['theme'] == tmpdir.join('theme')