diff --git a/ldoc.lua b/ldoc.lua
index 9542d16..96f3e1b 100644
--- a/ldoc.lua
+++ b/ldoc.lua
@@ -232,7 +232,7 @@ local function process_file (f, file_list)
    local ftype = file_types[ext]
    if ftype then
       if args.verbose then print(path.basename(f)) end
-      local F,err = parse.file(f,ftype)
+      local F,err = parse.file(f,ftype,args)
       if err then quit(err) end
       file_list:append(F)
    end
@@ -240,6 +240,9 @@ end
 
 local process_file_list = tools.process_file_list
 
+setup_package_base()
+
+
 if type(args.file) == 'table' then
    -- this can only be set from config file so we can assume it's already read
    process_file_list(args.file,'*.*',process_file, file_list)
@@ -280,8 +283,6 @@ else
    quit ("file or directory does not exist: "..quote(args.file))
 end
 
-setup_package_base()
-
 
 local multiple_files = #file_list > 1
 local first_module
diff --git a/ldoc/parse.lua b/ldoc/parse.lua
index f5e92c3..c52e1df 100644
--- a/ldoc/parse.lua
+++ b/ldoc/parse.lua
@@ -68,7 +68,7 @@ end
 -- encountered, then ldoc looks for a call to module() to find the name of the
 -- module if there isn't an explicit module name specified.
 
-local function parse_file(fname,lang)
+local function parse_file(fname,lang, package)
    local line,f = 1
    local F = File(fname)
    local module_found, first_comment = false,true
@@ -157,7 +157,7 @@ local function parse_file(fname,lang)
             if not module_found or module_found == '...' then
                if not t then return nil, fname..": end of file" end -- run out of file!
                -- we have to guess the module name
-               module_found = tools.this_module_name(args.package,fname)
+               module_found = tools.this_module_name(package,fname)
             end
             if not tags then tags = extract_tags(comment) end
             add_module(tags,module_found,old_style)
@@ -191,8 +191,8 @@ local function parse_file(fname,lang)
    return F
 end
 
-function parse.file(name,lang)
-   local F,err = parse_file(name,lang)
+function parse.file(name,lang, args)
+   local F,err = parse_file(name,lang, args.package)
    if err then return nil,err end
    F:finish()
    return F