diff --git a/unreleased_changes/8720.md b/unreleased_changes/8720.md
new file mode 100644
index 00000000000..5e4adb50845
--- /dev/null
+++ b/unreleased_changes/8720.md
@@ -0,0 +1,2 @@
+### Fixed
+- Fixed a bug where the checks on relative paths were too strict when editing dataset settings.
diff --git a/webknossos-datastore/app/com/scalableminds/webknossos/datastore/services/DataSourceService.scala b/webknossos-datastore/app/com/scalableminds/webknossos/datastore/services/DataSourceService.scala
index a313a99405d..0db71b5a843 100644
--- a/webknossos-datastore/app/com/scalableminds/webknossos/datastore/services/DataSourceService.scala
+++ b/webknossos-datastore/app/com/scalableminds/webknossos/datastore/services/DataSourceService.scala
@@ -226,7 +226,10 @@ class DataSourceService @Inject()(
       val uri = new URI(pathStr)
       if (DataVaultService.isRemoteScheme(uri.getScheme)) true
       else {
-        val path = Path.of(new URI(pathStr).getPath).normalize().toAbsolutePath
+        val path = organizationDir
+          .resolve(dataSource.id.directoryName)
+          .resolve(Path.of(new URI(pathStr).getPath).normalize())
+          .toAbsolutePath
         val allowedParent = organizationDir.toAbsolutePath
         if (path.startsWith(allowedParent)) true else false
       }