diff --git a/news/2422.bugfix.md b/news/2422.bugfix.md
new file mode 100644
index 0000000000..a470af4cbf
--- /dev/null
+++ b/news/2422.bugfix.md
@@ -0,0 +1 @@
+Resolve `-r` requirements paths relative to the requirement file they are specified in
\ No newline at end of file
diff --git a/src/pdm/formats/requirements.py b/src/pdm/formats/requirements.py
index 6f412a6ec2..a14aacfbe6 100644
--- a/src/pdm/formats/requirements.py
+++ b/src/pdm/formats/requirements.py
@@ -52,7 +52,7 @@ def _clean_line(self, line: str) -> str:
             return ""
         return line.split(" #", 1)[0].strip()
 
-    def _parse_line(self, line: str) -> None:
+    def _parse_line(self, filename: str, line: str) -> None:
         if not line.startswith("-"):
             # Starts with a requirement, just ignore all per-requirement options
             req_string = line.split(" -", 1)[0].strip()
@@ -76,7 +76,8 @@ def _parse_line(self, line: str) -> None:
         if args.editable:
             self.requirements.append(parse_requirement(" ".join(args.editable), True))
         if args.requirement:
-            self.parse(args.requirement)
+            referenced_requirements = str(Path(filename).parent.joinpath(args.requirement))
+            self.parse(referenced_requirements)
 
     def parse(self, filename: str) -> None:
         with open(filename, encoding="utf-8") as f:
@@ -86,10 +87,10 @@ def parse(self, filename: str) -> None:
                     this_line += line[:-1].rstrip() + " "
                     continue
                 this_line += line
-                self._parse_line(this_line)
+                self._parse_line(filename, this_line)
                 this_line = ""
             if this_line:
-                self._parse_line(this_line)
+                self._parse_line(filename, this_line)
 
 
 def check_fingerprint(project: Project, filename: PathLike) -> bool:
diff --git a/src/pdm/installers/installers.py b/src/pdm/installers/installers.py
index dfd86e0c2d..6bb97fa365 100644
--- a/src/pdm/installers/installers.py
+++ b/src/pdm/installers/installers.py
@@ -73,8 +73,7 @@ def _is_namespace_package(root: str) -> bool:
 
 
 def _create_symlinks_recursively(source: str, destination: str) -> Iterable[str]:
-    """Create symlinks recursively from source to destination.
-    Caveats: This don't work for pkgutil or pkg_resources namespace packages.
+    """Create symlinks recursively from source to destination. In the following ways:
     package  <-- link
         __init__.py
     namespace_package  <-- mkdir