diff --git a/core/commands/resolve.go b/core/commands/resolve.go
index e8c25a4c1..f6ad91eae 100644
--- a/core/commands/resolve.go
+++ b/core/commands/resolve.go
@@ -5,7 +5,7 @@ import (
 	"strings"
 
 	cmds "github.com/ipfs/go-ipfs/commands"
-	namesys "github.com/ipfs/go-ipfs/namesys"
+	"github.com/ipfs/go-ipfs/core"
 	path "github.com/ipfs/go-ipfs/path"
 	u "github.com/ipfs/go-ipfs/util"
 )
@@ -46,6 +46,11 @@ Resolve the value of another name recursively:
   > ipfs resolve -r /ipns/QmbCMUZw6JFeZ7Wp9jkzbye3Fzp2GGcPgC3nmeUjfVF87n
   /ipfs/Qmcqtw8FfrVSBaRmbWwHxt3AuySBhJLcvmFYi3Lbc4xnwj
 
+Resolve the value of an IPFS DAG path:
+
+  > ipfs resolve /ipfs/QmeZy1fGbwgVSrqbfh9fKQrAWgeyRnj7h8fsHS1oy3k99x/beep/boop
+  /ipfs/QmYRMjyvAiHKN9UTi8Bzt1HUspmSRD8T8DwxfSMzLgBon1
+
 `,
 	},
 
@@ -73,18 +78,38 @@ Resolve the value of another name recursively:
 
 		name := req.Arguments()[0]
 		recursive, _, _ := req.Option("recursive").Bool()
-		depth := 1
-		if recursive {
-			depth = namesys.DefaultDepthLimit
+
+		// the case when ipns is resolved step by step
+		if strings.HasPrefix(name, "/ipns/") && !recursive {
+			p, err := n.Namesys.ResolveN(req.Context(), name, 1)
+			if err != nil {
+				res.SetError(err, cmds.ErrNormal)
+				return
+			}
+			res.SetOutput(&ResolvedPath{p})
+			return
 		}
 
-		output, err := n.Namesys.ResolveN(req.Context(), name, depth)
+		// else, ipfs path or ipns with recursive flag
+		p, err := path.ParsePath(name)
 		if err != nil {
 			res.SetError(err, cmds.ErrNormal)
 			return
 		}
 
-		res.SetOutput(&ResolvedPath{output})
+		node, err := core.Resolve(req.Context(), n, p)
+		if err != nil {
+			res.SetError(err, cmds.ErrNormal)
+			return
+		}
+
+		key, err := node.Key()
+		if err != nil {
+			res.SetError(err, cmds.ErrNormal)
+			return
+		}
+
+		res.SetOutput(&ResolvedPath{path.FromKey(key)})
 	},
 	Marshalers: cmds.MarshalerMap{
 		cmds.Text: func(res cmds.Response) (io.Reader, error) {
diff --git a/core/pathresolver.go b/core/pathresolver.go
index 610eeb50b..153f560bc 100644
--- a/core/pathresolver.go
+++ b/core/pathresolver.go
@@ -17,7 +17,7 @@ var ErrNoNamesys = errors.New(
 
 // Resolve resolves the given path by parsing out protocol-specific
 // entries (e.g. /ipns/<node-key>) and then going through the /ipfs/
-// entries and returning the final merkledage node.  Effectively
+// entries and returning the final merkledag node.  Effectively
 // enables /ipns/, /dns/, etc. in commands.
 func Resolve(ctx context.Context, n *IpfsNode, p path.Path) (*merkledag.Node, error) {
 	if strings.HasPrefix(p.String(), "/ipns/") {
diff --git a/test/sharness/t0160-resolve.sh b/test/sharness/t0160-resolve.sh
new file mode 100755
index 000000000..02b457c54
--- /dev/null
+++ b/test/sharness/t0160-resolve.sh
@@ -0,0 +1,117 @@
+#!/bin/sh
+
+test_description="Test resolve command"
+
+. lib/test-lib.sh
+
+test_init_ipfs
+
+test_expect_success "resolve: prepare files" '
+	mkdir -p a/b &&
+	echo "a/b/c" >a/b/c &&
+	a_hash=$(ipfs add -q -r a | tail -n1) &&
+	b_hash=$(ipfs add -q -r a/b | tail -n1) &&
+	c_hash=$(ipfs add -q -r a/b/c | tail -n1)
+'
+
+test_resolve_setup_name() {
+	ref=$1
+
+	test_expect_success "resolve: prepare name" '
+		id_hash=$(ipfs id -f="<id>") &&
+		ipfs name publish "$ref" &&
+		printf "$ref" >expected_nameval &&
+		ipfs name resolve >actual_nameval &&
+		test_cmp expected_nameval actual_nameval
+	'
+}
+
+test_resolve_setup_name_fail() {
+	ref=$1
+
+	test_expect_failure "resolve: prepare name" '
+		id_hash=$(ipfs id -f="<id>") &&
+		ipfs name publish "$ref" &&
+		printf "$ref" >expected_nameval &&
+		ipfs name resolve >actual_nameval &&
+		test_cmp expected_nameval actual_nameval
+	'
+}
+
+test_resolve() {
+	src=$1
+	dst=$2
+
+	test_expect_success "resolve succeeds: $src" '
+		ipfs resolve -r "$src" >actual
+	'
+
+	test_expect_success "resolved correctly: $src -> $dst" '
+		printf "$dst" >expected &&
+		test_cmp expected actual
+	'
+}
+
+test_resolve_cmd() {
+
+	test_resolve "/ipfs/$a_hash" "/ipfs/$a_hash"
+	test_resolve "/ipfs/$a_hash/b" "/ipfs/$b_hash"
+	test_resolve "/ipfs/$a_hash/b/c" "/ipfs/$c_hash"
+	test_resolve "/ipfs/$b_hash/c" "/ipfs/$c_hash"
+
+	test_resolve_setup_name "/ipfs/$a_hash"
+	test_resolve "/ipns/$id_hash" "/ipfs/$a_hash"
+	test_resolve "/ipns/$id_hash/b" "/ipfs/$b_hash"
+	test_resolve "/ipns/$id_hash/b/c" "/ipfs/$c_hash"
+
+	test_resolve_setup_name "/ipfs/$b_hash"
+	test_resolve "/ipns/$id_hash" "/ipfs/$b_hash"
+	test_resolve "/ipns/$id_hash/c" "/ipfs/$c_hash"
+
+	test_resolve_setup_name "/ipfs/$c_hash"
+	test_resolve "/ipns/$id_hash" "/ipfs/$c_hash"
+}
+
+#todo remove this once the online resolve is fixed
+test_resolve_fail() {
+	src=$1
+	dst=$2
+
+	test_expect_failure "resolve succeeds: $src" '
+		ipfs resolve "$src" >actual
+	'
+
+	test_expect_failure "resolved correctly: $src -> $dst" '
+		printf "$dst" >expected &&
+		test_cmp expected actual
+	'
+}
+
+test_resolve_cmd_fail() {
+	test_resolve "/ipfs/$a_hash" "/ipfs/$a_hash"
+	test_resolve "/ipfs/$a_hash/b" "/ipfs/$b_hash"
+	test_resolve "/ipfs/$a_hash/b/c" "/ipfs/$c_hash"
+	test_resolve "/ipfs/$b_hash/c" "/ipfs/$c_hash"
+
+	test_resolve_setup_name_fail "/ipfs/$a_hash"
+	test_resolve_fail "/ipns/$id_hash" "/ipfs/$a_hash"
+	test_resolve_fail "/ipns/$id_hash/b" "/ipfs/$b_hash"
+	test_resolve_fail "/ipns/$id_hash/b/c" "/ipfs/$c_hash"
+
+	test_resolve_setup_name_fail "/ipfs/$b_hash"
+	test_resolve_fail "/ipns/$id_hash" "/ipfs/$b_hash"
+	test_resolve_fail "/ipns/$id_hash/c" "/ipfs/$c_hash"
+
+	test_resolve_setup_name_fail "/ipfs/$c_hash"
+	test_resolve_fail "/ipns/$id_hash" "/ipfs/$c_hash"
+}
+
+# should work offline
+test_resolve_cmd
+
+# should work online
+test_launch_ipfs_daemon
+test_resolve_cmd_fail
+test_kill_ipfs_daemon
+
+test_done