diff --git a/src/ln.js b/src/ln.js
index 2cf87cd8..f1f4a73f 100644
--- a/src/ln.js
+++ b/src/ln.js
@@ -35,7 +35,19 @@ function _ln(options, source, dest) {
   var isAbsolute = (path.resolve(source) === sourcePath);
   dest = path.resolve(process.cwd(), String(dest));
 
-  if (fs.existsSync(dest)) {
+  if (fs.existsSync(dest) && common.statFollowLinks(dest).isDirectory()) {
+    dest = path.join(dest, path.basename(sourcePath));
+  }
+
+  var destinationExists;
+  try {
+    fs.lstatSync(dest);
+    destinationExists = true;
+  } catch (err) {
+    destinationExists = false;
+  }
+
+  if (destinationExists) {
     if (!options.force) {
       common.error('Destination file exists', { continue: true });
     }
@@ -47,7 +59,16 @@ function _ln(options, source, dest) {
     var isWindows = process.platform === 'win32';
     var linkType = isWindows ? 'file' : null;
     var resolvedSourcePath = isAbsolute ? sourcePath : path.resolve(process.cwd(), path.dirname(dest), source);
-    if (!fs.existsSync(resolvedSourcePath)) {
+
+    var resolvedSourceExists;
+    try {
+      fs.lstatSync(resolvedSourcePath);
+      resolvedSourceExists = true;
+    } catch (err) {
+      resolvedSourceExists = false;
+    }
+
+    if (!resolvedSourceExists) {
       common.error('Source file does not exist', { continue: true });
     } else if (isWindows && common.statFollowLinks(resolvedSourcePath).isDirectory()) {
       linkType = 'junction';
diff --git a/test/ln.js b/test/ln.js
index b1682058..2f00f5a9 100644
--- a/test/ln.js
+++ b/test/ln.js
@@ -16,6 +16,7 @@ test.beforeEach(t => {
 });
 
 test.afterEach.always(t => {
+  process.chdir(CWD);
   shell.rm('-rf', t.context.tmp);
 });
 
@@ -48,6 +49,13 @@ test('destination already exists', t => {
   t.is(result.code, 1);
 });
 
+test('destination already exists inside directory', t => {
+  shell.cd(t.context.tmp);
+  const result = shell.ln('-s', 'file1', './');
+  t.truthy(shell.error());
+  t.is(result.code, 1);
+});
+
 test('non-existent source', t => {
   const result = shell.ln(`${t.context.tmp}/noexist`, `${t.context.tmp}/linkfile1`);
   t.truthy(shell.error());
@@ -134,7 +142,28 @@ test('To current directory', t => {
   t.truthy(fs.existsSync('dest/testfile.txt'));
   t.truthy(fs.existsSync('dir1/insideDir.txt'));
   t.falsy(fs.existsSync('dest/insideDir.txt'));
-  shell.cd('..');
+});
+
+test('Inside existing directory', t => {
+  shell.cd(t.context.tmp);
+  const result = shell.ln('-s', 'external/node_script.js', './');
+  t.is(result.code, 0);
+  t.falsy(result.stderr);
+  t.falsy(shell.error());
+  t.truthy(fs.existsSync('node_script.js'));
+  t.is(
+    fs.readFileSync('external/node_script.js').toString(),
+    fs.readFileSync('node_script.js').toString()
+  );
+});
+
+test('Link to dead source links', t => {
+  shell.cd(t.context.tmp);
+  const result = shell.ln('-s', 'badlink', 'link-to-dead-link');
+  t.is(result.code, 0);
+  t.falsy(result.stderr);
+  t.falsy(shell.error());
+  fs.lstatSync('link-to-dead-link');
 });
 
 test('-f option', t => {
@@ -161,6 +190,18 @@ test('-sf option', t => {
   });
 });
 
+test('Override dead destination links with -sf', t => {
+  shell.cd(t.context.tmp);
+  const result = shell.ln('-sf', 'file1.txt', 'badlink');
+  t.is(result.code, 0);
+  t.falsy(result.stderr);
+  t.falsy(shell.error());
+  t.is(
+    fs.readFileSync('file1.txt').toString(),
+    fs.readFileSync('badlink').toString()
+  );
+});
+
 test('Abspath regression', t => {
   utils.skipOnWinForEPERM(shell.ln.bind(shell, '-sf', 'file1', path.resolve(`${t.context.tmp}/abspath`)), () => {
     t.truthy(fs.existsSync(`${t.context.tmp}/abspath`));