diff --git a/CHANGELOG.md b/CHANGELOG.md
index 93132a7..082c86f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -15,6 +15,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - Add missing property in UriResolverTest ([#743](https://github.com/jsonrainbow/json-schema/pull/743))
 - Correct casing of paths used in tests ([#745](https://github.com/jsonrainbow/json-schema/pull/745))
 - Resolve deprecations of optional parameter ([#752](https://github.com/jsonrainbow/json-schema/pull/752))
+- Fix wrong combined paths when traversing upward, fixes #557 ([#652](https://github.com/jsonrainbow/json-schema/pull/652))
 
 ### Changed
 - Bump to minimum PHP 7.2 ([#746](https://github.com/jsonrainbow/json-schema/pull/746))
diff --git a/phpstan-baseline.neon b/phpstan-baseline.neon
index cf92361..46ed739 100644
--- a/phpstan-baseline.neon
+++ b/phpstan-baseline.neon
@@ -1030,21 +1030,11 @@ parameters:
 			count: 1
 			path: src/JsonSchema/Uri/UriResolver.php
 
-		-
-			message: "#^Offset 0 does not exist on array\\{0\\?\\: string, 1\\?\\: non\\-falsy\\-string\\}\\.$#"
-			count: 1
-			path: src/JsonSchema/Uri/UriResolver.php
-
 		-
 			message: "#^Parameter \\#1 \\$uri of method JsonSchema\\\\Uri\\\\UriResolver\\:\\:parse\\(\\) expects string, string\\|null given\\.$#"
 			count: 1
 			path: src/JsonSchema/Uri/UriResolver.php
 
-		-
-			message: "#^Parameter \\#3 \\$length of function array_slice expects int\\|null, float\\|int\\<1, max\\> given\\.$#"
-			count: 1
-			path: src/JsonSchema/Uri/UriResolver.php
-
 		-
 			message: "#^Parameter \\#3 \\$subject of function preg_replace expects array\\|string, string\\|null given\\.$#"
 			count: 1
diff --git a/src/JsonSchema/Uri/UriResolver.php b/src/JsonSchema/Uri/UriResolver.php
index 3ba66e5..b62cbaf 100644
--- a/src/JsonSchema/Uri/UriResolver.php
+++ b/src/JsonSchema/Uri/UriResolver.php
@@ -125,25 +125,37 @@ class UriResolver implements UriResolverInterface
     public static function combineRelativePathWithBasePath($relativePath, $basePath)
     {
         $relativePath = self::normalizePath($relativePath);
-        if ($relativePath == '') {
+        if (!$relativePath) {
             return $basePath;
         }
-        if ($relativePath[0] == '/') {
+        if ($relativePath[0] === '/') {
             return $relativePath;
         }
-
-        $basePathSegments = explode('/', $basePath);
-
-        preg_match('|^/?(\.\./(?:\./)*)*|', $relativePath, $match);
-        $numLevelUp = strlen($match[0]) /3 + 1;
-        if ($numLevelUp >= count($basePathSegments)) {
+        if (!$basePath) {
             throw new UriResolverException(sprintf("Unable to resolve URI '%s' from base '%s'", $relativePath, $basePath));
         }
 
-        $basePathSegments = array_slice($basePathSegments, 0, -$numLevelUp);
-        $path = preg_replace('|^/?(\.\./(\./)*)*|', '', $relativePath);
+        $dirname = $basePath[strlen($basePath) - 1] === '/' ? $basePath : dirname($basePath);
+        $combined = rtrim($dirname, '/') . '/' . ltrim($relativePath, '/');
+        $combinedSegments = explode('/', $combined);
+        $collapsedSegments = [];
+        while ($combinedSegments) {
+            $segment = array_shift($combinedSegments);
+            if ($segment === '..') {
+                if (count($collapsedSegments) <= 1) {
+                    // Do not remove the top level (domain)
+                    // This is not ideal - the domain should not be part of the path here. parse() and generate()
+                    // should handle the "domain" separately, like the schema.
+                    // Then the if-condition here would be `if (!$collapsedSegments) {`.
+                    throw new UriResolverException(sprintf("Unable to resolve URI '%s' from base '%s'", $relativePath, $basePath));
+                }
+                array_pop($collapsedSegments);
+            } else {
+                $collapsedSegments[] = $segment;
+            }
+        }
 
-        return implode('/', $basePathSegments) . '/' . $path;
+        return implode('/', $collapsedSegments);
     }
 
     /**
diff --git a/tests/Uri/UriResolverTest.php b/tests/Uri/UriResolverTest.php
index 898f360..8d524ca 100644
--- a/tests/Uri/UriResolverTest.php
+++ b/tests/Uri/UriResolverTest.php
@@ -7,6 +7,9 @@ use PHPUnit\Framework\TestCase;
 
 class UriResolverTest extends TestCase
 {
+    /**
+     * @var UriResolver
+     */
     private $resolver;
 
     public function setUp(): void
@@ -85,6 +88,21 @@ class UriResolverTest extends TestCase
         );
     }
 
+    /**
+     * Covers https://github.com/justinrainbow/json-schema/issues/557
+     * Relative paths yield wrong result.
+     */
+    public function testCombineRelativePathWithBasePathTraversingUp(): void
+    {
+        $this->assertEquals(
+            '/var/packages/schema/UuidSchema.json',
+            UriResolver::combineRelativePathWithBasePath(
+                '../../../schema/UuidSchema.json',
+                '/var/packages/foo/tests/UnitTests/DemoData/../../../schema/Foo/FooSchema_latest.json'
+            )
+        );
+    }
+
     public function testResolveAbsoluteUri(): void
     {
         $this->assertEquals(