diff --git a/README.md b/README.md
index 3c86353..bb7a6a5 100644
--- a/README.md
+++ b/README.md
@@ -97,8 +97,9 @@ wine C:\\Program\ Files\ \(x86\)\\Inno\ Setup\ 6\\ISCC.exe $1
 ### `--type zip`
 
 Mainly for debugging purposes, although can be used to bundle an RCP application
-with local runtime. As the IDE launcher does not yet support relative JDK location,
-this is less useful there.
+with local runtime. When a runtime is bundled, the JDK location is written into
+`netbeans.conf` relative to the installation using the launcher's `${BASEDIR}`
+token, so it is found however the application is launched.
 
 ## Building from source
 
diff --git a/src/main/java/org/apache/netbeans/nbpackage/AbstractPackagerTask.java b/src/main/java/org/apache/netbeans/nbpackage/AbstractPackagerTask.java
index d8e65c1..d94cd81 100644
--- a/src/main/java/org/apache/netbeans/nbpackage/AbstractPackagerTask.java
+++ b/src/main/java/org/apache/netbeans/nbpackage/AbstractPackagerTask.java
@@ -360,9 +360,16 @@ private void copyRuntimeFromDirectory(Path runtime, Path destDir) throws IOExcep
 
     private void addRuntimeToConf(Path conf, String jdkhome) throws IOException {
         var contents = Files.readString(conf);
-        contents = contents.replace("#jdkhome=\"/path/to/jdk\"", "jdkhome=\"" + jdkhome + "\"");
-        // @TODO - fix this when relative links work with IDE launcher
-        // contents = contents.replace("#netbeans_jdkhome=\"/path/to/jdk\"", "netbeans_jdkhome=\"" + jdkhome + "\"");
+        // Point at the bundled JDK relative to the installation using the
+        // launcher's ${BASEDIR} token. Unlike passing --jdkhome via a shortcut,
+        // this resolves however the application is launched - eg. directly or
+        // via "Open With..." on a file. Forward slashes are tolerated on all
+        // platforms including Windows.
+        String basedirHome = "${BASEDIR}/" + jdkhome.replace('\\', '/');
+        contents = contents.replace("#jdkhome=\"/path/to/jdk\"",
+                "jdkhome=\"" + basedirHome + "\"");
+        contents = contents.replace("#netbeans_jdkhome=\"/path/to/jdk\"",
+                "netbeans_jdkhome=\"" + basedirHome + "\"");
         Files.writeString(conf, contents);
     }
 
diff --git a/src/test/java/org/apache/netbeans/nbpackage/TestUtils.java b/src/test/java/org/apache/netbeans/nbpackage/TestUtils.java
index 21fc4e1..53ff41e 100644
--- a/src/test/java/org/apache/netbeans/nbpackage/TestUtils.java
+++ b/src/test/java/org/apache/netbeans/nbpackage/TestUtils.java
@@ -49,7 +49,9 @@ public static Path buildFakeApp(Path parent, String dirname, String branding)
         Files.createFile(appBin.resolve(branding));
         Files.createFile(appBin.resolve(branding + ".exe"));
         Files.createFile(appBin.resolve(branding + "64.exe"));
-        Files.createFile(appEtc.resolve(branding + ".conf"));
+        Files.writeString(appEtc.resolve(branding + ".conf"),
+                "#jdkhome=\"/path/to/jdk\"\n"
+                + "#netbeans_jdkhome=\"/path/to/jdk\"\n");
         Files.createFile(platform.resolve("module"));
         return dir;
     }
diff --git a/src/test/java/org/apache/netbeans/nbpackage/innosetup/InnoSetupPackagerTest.java b/src/test/java/org/apache/netbeans/nbpackage/innosetup/InnoSetupPackagerTest.java
index 9622a4e..4238f49 100644
--- a/src/test/java/org/apache/netbeans/nbpackage/innosetup/InnoSetupPackagerTest.java
+++ b/src/test/java/org/apache/netbeans/nbpackage/innosetup/InnoSetupPackagerTest.java
@@ -74,6 +74,11 @@ public void testImageWithX86_64Runtime() throws Exception {
         assertTrue(Files.exists(resolve(image, "app", "bin", "app64.exe")));
         assertTrue(Files.exists(resolve(image, "app", "etc", "app.ico")));
         assertTrue(Files.exists(resolve(image, "app", "jdk", "bin", "java.exe")));
+        // bundled JDK is referenced in netbeans.conf relative to ${BASEDIR}, so
+        // it is found however the launcher is started (not just via a shortcut)
+        String conf = Files.readString(resolve(image, "app", "etc", "app.conf"));
+        assertTrue(conf.contains("jdkhome=\"${BASEDIR}/jdk\""));
+        assertTrue(conf.contains("netbeans_jdkhome=\"${BASEDIR}/jdk\""));
     }
 
 }