diff --git a/lib/git/base.rb b/lib/git/base.rb
index c902f0a5..13edf848 100644
--- a/lib/git/base.rb
+++ b/lib/git/base.rb
@@ -12,43 +12,35 @@ class Base
 
     # (see Git.bare)
     def self.bare(git_dir, options = {})
-      self.new({:repository => git_dir}.merge(options))
+      normalize_paths(options, default_repository: git_dir, bare: true)
+      self.new(options)
     end
 
     # (see Git.clone)
     def self.clone(repository, name, options = {})
-      self.new(Git::Lib.new(nil, options[:log]).clone(repository, name, options))
+      new_options = Git::Lib.new(nil, options[:log]).clone(repository, name, options)
+      normalize_paths(new_options, bare: options[:bare] || options[:mirror])
+      self.new(new_options)
     end
 
     # Returns (and initialize if needed) a Git::Config instance
     #
     # @return [Git::Config] the current config instance.
     def self.config
-      return @@config ||= Config.new
+      @@config ||= Config.new
     end
 
     # (see Git.init)
-    def self.init(directory, options = {})
-      options[:working_directory] ||= directory
-      options[:repository] ||= File.join(options[:working_directory], '.git')
-
-      FileUtils.mkdir_p(options[:working_directory]) if options[:working_directory] && !File.directory?(options[:working_directory])
+    def self.init(directory = '.', options = {})
+      normalize_paths(options, default_working_directory: directory, default_repository: directory, bare: options[:bare])
 
       init_options = {
         :bare => options[:bare],
         :initial_branch => options[:initial_branch],
       }
 
-      options.delete(:working_directory) if options[:bare]
-
-      # Submodules have a .git *file* not a .git folder.
-      # This file's contents point to the location of
-      # where the git refs are held (In the parent repo)
-      if options[:working_directory] && File.file?(File.join(options[:working_directory], '.git'))
-        git_file = File.open('.git').read[8..-1].strip
-        options[:repository] = git_file
-        options[:index] = git_file + '/index'
-      end
+      directory = options[:bare] ? options[:repository] : options[:working_directory]
+      FileUtils.mkdir_p(directory) unless File.exist?(directory)
 
       # TODO: this dance seems awkward: this creates a Git::Lib so we can call
       #   init so we can create a new Git::Base which in turn (ultimately)
@@ -66,21 +58,8 @@ def self.init(directory, options = {})
     end
 
     # (see Git.open)
-    def self.open(working_dir, options={})
-       # TODO: move this to Git.open?
-
-      options[:working_directory] ||= working_dir
-      options[:repository] ||= File.join(options[:working_directory], '.git')
-
-       # Submodules have a .git *file* not a .git folder.
-      # This file's contents point to the location of
-      # where the git refs are held (In the parent repo)
-      if options[:working_directory] && File.file?(File.join(options[:working_directory], '.git'))
-        git_file = File.open('.git').read[8..-1].strip
-        options[:repository] = git_file
-        options[:index] = git_file + '/index'
-      end
-
+    def self.open(working_dir, options = {})
+      normalize_paths(options, default_working_directory: working_dir)
       self.new(options)
     end
 
@@ -571,7 +550,6 @@ def with_temp_working &blk
       with_working(temp_dir, &blk)
     end
 
-
     # runs git rev-parse to convert the objectish to a full sha
     #
     # @example
@@ -596,6 +574,93 @@ def current_branch
       self.lib.branch_current
     end
 
-  end
+    private
+
+    # Normalize options before they are sent to Git::Base.new
+    #
+    # Updates the options parameter by setting appropriate values for the following keys:
+    #   * options[:working_directory]
+    #   * options[:repository]
+    #   * options[:index]
+    #
+    # All three values will be set to absolute paths. An exception is that
+    # :working_directory will be set to nil if bare is true.
+    #
+    private_class_method def self.normalize_paths(
+      options, default_working_directory: nil, default_repository: nil, bare: false
+    )
+      normalize_working_directory(options, default: default_working_directory, bare: bare)
+      normalize_repository(options, default: default_repository, bare: bare)
+      normalize_index(options)
+    end
+
+    # Normalize options[:working_directory]
+    #
+    # If working with a bare repository, set to `nil`.
+    # Otherwise, set to the first non-nil value of:
+    #   1. `options[:working_directory]`,
+    #   2. the `default` parameter, or
+    #   3. the current working directory
+    #
+    # Finally, if options[:working_directory] is a relative path, convert it to an absoluite
+    # path relative to the current directory.
+    #
+    private_class_method def self.normalize_working_directory(options, default:, bare: false)
+      working_directory =
+        if bare
+          nil
+        else
+          File.expand_path(options[:working_directory] || default || Dir.pwd)
+        end
 
+      options[:working_directory] = working_directory
+    end
+
+    # Normalize options[:repository]
+    #
+    # If working with a bare repository, set to the first non-nil value out of:
+    #   1. `options[:repository]`
+    #   2. the `default` parameter
+    #   3. the current working directory
+    #
+    # Otherwise, set to the first non-nil value of:
+    #   1. `options[:repository]`
+    #   2. `.git`
+    #
+    # Next, if options[:repository] refers to a *file* and not a *directory*, set
+    # options[:repository] to the contents of that file.  This is the case when
+    # working with a submodule or a secondary working tree (created with git worktree
+    # add). In these cases the repository is actually contained/nested within the
+    # parent's repository directory.
+    #
+    # Finally, if options[:repository] is a relative path, convert it to an absolute
+    # path relative to:
+    #   1. the current directory if working with a bare repository or
+    #   2. the working directory if NOT working with a bare repository
+    #
+    private_class_method def self.normalize_repository(options, default:, bare: false)
+      repository =
+        if bare
+          File.expand_path(options[:repository] || default || Dir.pwd)
+        else
+          File.expand_path(options[:repository] || '.git', options[:working_directory])
+        end
+
+      if File.file?(repository)
+        repository = File.expand_path(File.open(repository).read[8..-1].strip, options[:working_directory])
+      end
+
+      options[:repository] = repository
+    end
+
+    # Normalize options[:index]
+    #
+    # If options[:index] is a relative directory, convert it to an absolute
+    # directory relative to the repository directory
+    #
+    private_class_method def self.normalize_index(options)
+      index = File.expand_path(options[:index] || 'index', options[:repository])
+      options[:index] = index
+    end
+  end
 end
diff --git a/tests/units/test_init.rb b/tests/units/test_init.rb
index c9cd1af5..4ec4771d 100644
--- a/tests/units/test_init.rb
+++ b/tests/units/test_init.rb
@@ -45,8 +45,7 @@ def test_git_init
   def test_git_init_bare
     in_temp_dir do |path|
       repo = Git.init(path, :bare => true)
-      assert(File.directory?(File.join(path, '.git')))
-      assert(File.exist?(File.join(path, '.git', 'config')))
+      assert(File.exist?(File.join(path, 'config')))
       assert_equal('true', repo.config('core.bare'))
     end
   end
diff --git a/tests/units/test_thread_safety.rb b/tests/units/test_thread_safety.rb
index 401659a5..d2500f10 100644
--- a/tests/units/test_thread_safety.rb
+++ b/tests/units/test_thread_safety.rb
@@ -24,7 +24,7 @@ def test_git_init_bare
     threads.each(&:join)
 
     dirs.each do |dir|
-      Git.bare("#{dir}/.git").ls_files
+      Git.bare(dir).ls_files
     end
   end
 end