diff --git a/lib/compiler.js b/lib/compiler.js
index c148da2..f526a56 100644
--- a/lib/compiler.js
+++ b/lib/compiler.js
@@ -272,7 +272,7 @@ function findModelDefinitions(rootDir, sources) {
   var registry = {};
 
   sources.forEach(function(src) {
-    var srcDir = tryResolveAppPath(rootDir, src);
+    var srcDir = tryResolveAppPath(rootDir, src, { strict: false });
     if (!srcDir) {
       debug('Skipping unknown module source dir %j', src);
       return;
@@ -314,13 +314,14 @@ function tryResolveAppPath(rootDir, relativePath, resolveOptions) {
   var fullPath;
   var start = relativePath.substring(0, 2);
 
-  /* In order to retain backward compatibility, while resolving
-   * component path, `resolveOptions` parameter is added where
-   * `resolveOptions.strict` = true,
-   * means retain backward compatibility when resolving the path and
-   * `resolveOptions.strict` = false,
-   * does not enforce any such restriction when resolving the path */
-  resolveOptions = resolveOptions || { strict: false };
+  /* In order to retain backward compatibility, we need to support
+   * two ways how to treat values that are not relative nor absolute
+   * path (e.g. `relativePath = 'foobar'`)
+   *  - `resolveOptions.strict = true` searches in `node_modules` only
+   *  - `resolveOptions.strict = false` attempts to resolve the value
+   *     as a relative path first before searching `node_modules`
+   */
+  resolveOptions = resolveOptions || { strict: true };
 
   var isModuleRelative = false;
   if (relativePath[0] === '/') {
@@ -535,8 +536,9 @@ function buildComponentInstructions(rootDir, componentConfig) {
 }
 
 function resolveRelativePaths(relativePaths, appRootDir) {
+  var resolveOpts = { strict: false };
   relativePaths.forEach(function(relativePath, k) {
-    var resolvedPath = tryResolveAppPath(appRootDir, relativePath);
+    var resolvedPath = tryResolveAppPath(appRootDir, relativePath, resolveOpts);
     if (resolvedPath !== undefined) {
       relativePaths[k] = resolvedPath;
     } else {