diff --git a/jinja2cli/cli.py b/jinja2cli/cli.py
index edf6210..8c2fed8 100644
--- a/jinja2cli/cli.py
+++ b/jinja2cli/cli.py
@@ -252,9 +252,10 @@ def _load_json5():
 def render(template_path, data, extensions, strict=False):
     from jinja2 import (
         __version__ as jinja_version,
+        BaseLoader,
         Environment,
-        FileSystemLoader,
         StrictUndefined,
+        TemplateNotFound,
     )
 
     # Starting with jinja2 3.1, `with_` and `autoescape` are no longer
@@ -268,8 +269,46 @@ def render(template_path, data, extensions, strict=False):
             if ext not in extensions:
                 extensions.append(ext)
 
+    # Custom loader that allows safe ../ traversal
+    class SafeRelativeLoader(BaseLoader):
+        """Allows ../ in imports while restricting access to project root."""
+        
+        def __init__(self, template_dir, cwd):
+            # Resolve symlinks for consistent path comparison
+            self.template_dir = os.path.realpath(os.path.abspath(template_dir))
+            self.cwd = os.path.realpath(os.path.abspath(cwd))
+            self.root = os.path.commonpath([self.template_dir, self.cwd])
+        
+        def _is_safe(self, path):
+            """Check if path is within security boundary."""
+            real_path = os.path.realpath(os.path.abspath(path))
+            try:
+                os.path.relpath(real_path, self.root)
+                return real_path.startswith(self.root + os.sep) or real_path == self.root
+            except ValueError:
+                return False  # Different drives on Windows
+        
+        def _try_load(self, path):
+            """Try to load a template file if it exists and is safe."""
+            if self._is_safe(path) and os.path.isfile(path):
+                mtime = os.path.getmtime(path)
+                with open(path, encoding='utf-8') as f:
+                    source = f.read()
+                return source, path, lambda: mtime == os.path.getmtime(path)
+            return None
+        
+        def get_source(self, environment, template):
+            # Try resolving relative to template directory, then cwd, then root
+            for base in (self.template_dir, self.cwd, self.root):
+                result = self._try_load(os.path.normpath(os.path.join(base, template)))
+                if result:
+                    return result
+            raise TemplateNotFound(template)
+
+    # Setup the environment
+    template_dir = os.path.dirname(template_path) or "."
     env = Environment(
-        loader=FileSystemLoader(os.path.dirname(template_path)),
+        loader=SafeRelativeLoader(template_dir, os.getcwd()),
         extensions=extensions,
         keep_trailing_newline=True,
     )
diff --git a/tests/files/deep/level1/level2/deep_template.j2 b/tests/files/deep/level1/level2/deep_template.j2
new file mode 100644
index 0000000..c07f0f3
--- /dev/null
+++ b/tests/files/deep/level1/level2/deep_template.j2
@@ -0,0 +1,3 @@
+{% from "../../../macros_lib/formatting.j2" import code, emphasize -%}
+{{ emphasize("Deep nested template") }}
+{{ code(language) }}
diff --git a/tests/files/macros_lib/formatting.j2 b/tests/files/macros_lib/formatting.j2
new file mode 100644
index 0000000..07e3a39
--- /dev/null
+++ b/tests/files/macros_lib/formatting.j2
@@ -0,0 +1,17 @@
+{% macro greeting(name) -%}
+Hello, {{ name }}!
+{%- endmacro %}
+
+{% macro bullet_list(items) -%}
+{%- for item in items %}
+- {{ item }}
+{%- endfor %}
+{%- endmacro %}
+
+{% macro emphasize(text) -%}
+*{{ text }}*
+{%- endmacro %}
+
+{% macro code(value) -%}
+`{{ value }}`
+{%- endmacro %}
diff --git a/tests/files/nested/child_template.j2 b/tests/files/nested/child_template.j2
new file mode 100644
index 0000000..e4ff0e4
--- /dev/null
+++ b/tests/files/nested/child_template.j2
@@ -0,0 +1,3 @@
+{% from "../macros_lib/formatting.j2" import greeting, emphasize -%}
+{{ greeting(name) }}
+{{ emphasize(message) }}
diff --git a/tests/files/template_with_macros.j2 b/tests/files/template_with_macros.j2
new file mode 100644
index 0000000..69a8704
--- /dev/null
+++ b/tests/files/template_with_macros.j2
@@ -0,0 +1,11 @@
+{% macro bold(text) -%}
+**{{ text }}**
+{%- endmacro -%}
+{% from "macros_lib/formatting.j2" import greeting, bullet_list, emphasize, code -%}
+{{ bold(title) }}
+
+{{ greeting(name) }}
+{{ bullet_list(items) }}
+
+{{ emphasize(subtitle) }}
+{{ code(language) }}
diff --git a/tests/test_jinja2cli.py b/tests/test_jinja2cli.py
index 181a8bd..d499d24 100644
--- a/tests/test_jinja2cli.py
+++ b/tests/test_jinja2cli.py
@@ -1,4 +1,6 @@
+import json
 import os
+from optparse import Values
 
 from jinja2cli import cli
 
@@ -6,20 +8,143 @@
 os.chdir(os.path.dirname(os.path.realpath(__file__)))
 
 
+def expected_output(title, name, items, subtitle, language):
+    """Helper to generate expected output for macro tests"""
+    lines = [
+        f"**{title}**",
+        "",
+        f"Hello, {name}!",
+        "",
+    ]
+    lines.extend(f"- {item}" for item in items)
+    lines.extend(["", f"*{subtitle}*", f"`{language}`"])
+    return "\n".join(lines)
+
+
+# ============================================================================
+# Basic Path Resolution Tests
+# ============================================================================
+
+
 def test_relative_path():
+    """Verify templates can be loaded using relative paths"""
     path = "./files/template.j2"
 
     title = b"\xc3\xb8".decode("utf8")
     output = cli.render(path, {"title": title}, [])
+    
     assert output == title
     assert type(output) == cli.text_type
 
 
 def test_absolute_path():
+    """Verify templates can be loaded using absolute paths"""
     absolute_base_path = os.path.dirname(os.path.realpath(__file__))
     path = os.path.join(absolute_base_path, "files", "template.j2")
 
     title = b"\xc3\xb8".decode("utf8")
     output = cli.render(path, {"title": title}, [])
+    
     assert output == title
     assert type(output) == cli.text_type
+
+
+# ============================================================================
+# Macro Import Tests (Same Directory)
+# ============================================================================
+
+
+def test_inline_and_imported_macros():
+    """Verify templates can use inline macros and import from subdirectories"""
+    path = "./files/template_with_macros.j2"
+
+    data = {
+        "title": "Test Title",
+        "name": "World",
+        "items": ["First", "Second", "Third"],
+        "subtitle": "A guide",
+        "language": "python",
+    }
+
+    output = cli.render(path, data, [])
+    expected = expected_output(
+        data["title"], data["name"], data["items"], data["subtitle"], data["language"]
+    )
+
+    assert output.strip() == expected
+    assert type(output) == cli.text_type
+
+
+# ============================================================================
+# Relative Import Tests (Parent Directories)
+# ============================================================================
+
+
+def test_parent_directory_import():
+    """Verify templates can import from parent directory using ../"""
+    path = "./files/nested/child_template.j2"
+    
+    data = {"name": "World", "message": "Testing parent imports"}
+    output = cli.render(path, data, [])
+    
+    # Should import macros from ../macros_lib/formatting.j2
+    expected_lines = ["Hello, World!", "*Testing parent imports*"]
+    assert output.strip() == "\n".join(expected_lines)
+
+
+def test_deep_nested_import():
+    """Verify templates can navigate multiple levels using ../../../"""
+    path = "./files/deep/level1/level2/deep_template.j2"
+    
+    data = {"language": "python"}
+    output = cli.render(path, data, [])
+    
+    # Should import macros from ../../../macros_lib/formatting.j2
+    expected_lines = ["*Deep nested template*", "`python`"]
+    assert output.strip() == "\n".join(expected_lines)
+
+
+# ============================================================================
+# File Output Tests
+# ============================================================================
+
+
+def test_render_to_file(tmp_path):
+    """Verify rendering to a file with JSON data input works correctly"""
+    template_path = "./files/template_with_macros.j2"
+
+    data = {
+        "title": "File Output Test",
+        "name": "Jinja2",
+        "items": ["One", "Two", "Three"],
+        "subtitle": "Template",
+        "language": "cli",
+    }
+
+    data_file = tmp_path / "data.json"
+    data_file.write_text(json.dumps(data))
+
+    outfile = tmp_path / "output.txt"
+
+    opts = Values(
+        {
+            "format": "json",
+            "extensions": set(["do", "loopcontrols"]),
+            "D": None,
+            "section": None,
+            "strict": False,
+            "outfile": str(outfile),
+        }
+    )
+
+    args = [os.path.abspath(template_path), str(data_file)]
+    result = cli.cli(opts, args)
+
+    assert result == 0
+
+    output = outfile.read_text().strip()
+    expected = expected_output(
+        data["title"], data["name"], data["items"], data["subtitle"], data["language"]
+    )
+    assert output == expected
+