diff --git a/compiler/rustc_metadata/src/locator.rs b/compiler/rustc_metadata/src/locator.rs
index 112954eca0dfe..f0a898d678cae 100644
--- a/compiler/rustc_metadata/src/locator.rs
+++ b/compiler/rustc_metadata/src/locator.rs
@@ -427,12 +427,21 @@ impl<'a> CrateLocator<'a> {
 
                         let (rlibs, rmetas, dylibs) =
                             candidates.entry(hash.to_string()).or_default();
-                        let path =
-                            try_canonicalize(&spf.path).unwrap_or_else(|_| spf.path.to_path_buf());
-                        if seen_paths.contains(&path) {
-                            continue;
-                        };
-                        seen_paths.insert(path.clone());
+                        {
+                            // As a perforamnce optimisation we canonicalize the path and skip
+                            // ones we've already seeen. This allows us to ignore crates
+                            // we know are exactual equal to ones we've already found.
+                            // Going to the same crate through different symlinks does not change the result.
+                            let path = try_canonicalize(&spf.path)
+                                .unwrap_or_else(|_| spf.path.to_path_buf());
+                            if seen_paths.contains(&path) {
+                                continue;
+                            };
+                            seen_paths.insert(path);
+                        }
+                        // Use the original path (potentially with unresolved symlinks),
+                        // filesystem code should not care, but this is nicer for diagnostics.
+                        let path = spf.path.to_path_buf();
                         match kind {
                             CrateFlavor::Rlib => rlibs.insert(path, search_path.kind),
                             CrateFlavor::Rmeta => rmetas.insert(path, search_path.kind),
diff --git a/tests/run-make/crate-loading-multiple-candidates/crateresolve1-1.rs b/tests/run-make/crate-loading-multiple-candidates/crateresolve1-1.rs
new file mode 100644
index 0000000000000..fe00f041a862e
--- /dev/null
+++ b/tests/run-make/crate-loading-multiple-candidates/crateresolve1-1.rs
@@ -0,0 +1,6 @@
+#![crate_name = "crateresolve1"]
+#![crate_type = "lib"]
+
+pub fn f() -> isize {
+    10
+}
diff --git a/tests/run-make/crate-loading-multiple-candidates/crateresolve1-2.rs b/tests/run-make/crate-loading-multiple-candidates/crateresolve1-2.rs
new file mode 100644
index 0000000000000..0fb8591b3a52e
--- /dev/null
+++ b/tests/run-make/crate-loading-multiple-candidates/crateresolve1-2.rs
@@ -0,0 +1,6 @@
+#![crate_name = "crateresolve1"]
+#![crate_type = "lib"]
+
+pub fn f() -> isize {
+    20
+}
diff --git a/tests/run-make/crate-loading-multiple-candidates/multiple-candidates.rs b/tests/run-make/crate-loading-multiple-candidates/multiple-candidates.rs
new file mode 100644
index 0000000000000..27cd7ca5c2039
--- /dev/null
+++ b/tests/run-make/crate-loading-multiple-candidates/multiple-candidates.rs
@@ -0,0 +1,3 @@
+extern crate crateresolve1;
+
+fn main() {}
diff --git a/tests/run-make/crate-loading-multiple-candidates/multiple-candidates.stderr b/tests/run-make/crate-loading-multiple-candidates/multiple-candidates.stderr
new file mode 100644
index 0000000000000..de7fc3b0feb93
--- /dev/null
+++ b/tests/run-make/crate-loading-multiple-candidates/multiple-candidates.stderr
@@ -0,0 +1,12 @@
+error[E0464]: multiple candidates for `rlib` dependency `crateresolve1` found
+  --> multiple-candidates.rs:1:1
+   |
+LL | extern crate crateresolve1;
+   | ^^^^^^^^^^^^^^^^^^^^^^^^^^^
+   |
+   = note: candidate #1: ./mylibs/libcrateresolve1-1.rlib
+   = note: candidate #2: ./mylibs/libcrateresolve1-2.rlib
+
+error: aborting due to 1 previous error
+
+For more information about this error, try `rustc --explain E0464`.
diff --git a/tests/run-make/crate-loading-multiple-candidates/rmake.rs b/tests/run-make/crate-loading-multiple-candidates/rmake.rs
new file mode 100644
index 0000000000000..ce090850500b8
--- /dev/null
+++ b/tests/run-make/crate-loading-multiple-candidates/rmake.rs
@@ -0,0 +1,34 @@
+//@ needs-symlink
+//@ ignore-cross-compile
+
+// Tests that the multiple candidate dependencies diagnostic prints relative
+// paths if a relative library path was passed in.
+
+use run_make_support::{bare_rustc, diff, rfs, rustc};
+
+fn main() {
+    // Check that relative paths are preserved in the diagnostic
+    rfs::create_dir("mylibs");
+    rustc().input("crateresolve1-1.rs").out_dir("mylibs").extra_filename("-1").run();
+    rustc().input("crateresolve1-2.rs").out_dir("mylibs").extra_filename("-2").run();
+    check("./mylibs");
+
+    // Check that symlinks aren't followed when printing the diagnostic
+    rfs::rename("mylibs", "original");
+    rfs::symlink_dir("original", "mylibs");
+    check("./mylibs");
+}
+
+fn check(library_path: &str) {
+    let out = rustc()
+        .input("multiple-candidates.rs")
+        .library_search_path(library_path)
+        .ui_testing()
+        .run_fail()
+        .stderr_utf8();
+    diff()
+        .expected_file("multiple-candidates.stderr")
+        .normalize(r"\\", "/")
+        .actual_text("(rustc)", &out)
+        .run();
+}