diff --git a/lib/mayaUsd/python/wrapUtil.cpp b/lib/mayaUsd/python/wrapUtil.cpp
index fe613cd937..bc5a284b3f 100644
--- a/lib/mayaUsd/python/wrapUtil.cpp
+++ b/lib/mayaUsd/python/wrapUtil.cpp
@@ -55,5 +55,6 @@ void wrapUtil()
                   .def("getDictionaryFromEncodedOptions", getDictionaryFromEncodedOptions)
                   .def(
                       "getPathRelativeToMayaSceneFile",
-                      &UsdMayaUtilFileSystem::getPathRelativeToMayaSceneFile);
+                      UsdMayaUtilFileSystem::getPathRelativeToMayaSceneFile)
+                  .staticmethod("getPathRelativeToMayaSceneFile");
 }
diff --git a/test/lib/testMayaUsdCreateStageCommands.py b/test/lib/testMayaUsdCreateStageCommands.py
index 901a207aa5..ae6df68303 100644
--- a/test/lib/testMayaUsdCreateStageCommands.py
+++ b/test/lib/testMayaUsdCreateStageCommands.py
@@ -53,6 +53,11 @@ def testCreateStageWithNewLayer(self):
         self.assertTrue(cmds.isConnected('time1.outTime', shapeNode+'.time'))
 
     def testCreateStageFromFile(self):
+        # Open top_layer.ma and make sure to have USD stage paths as absolute
+        mayaSceneFilePath = testUtils.getTestScene("ballset", "StandaloneScene", "top_layer.ma")
+        cmds.file(mayaSceneFilePath, force=True, open=True)
+        cmds.optionVar(iv=('mayaUsd_MakePathRelativeToSceneFile', 0))
+
         # We cannot directly call the 'mayaUsdCreateStageFromFile'
         # as it opens a file dialog to choose the scene. So instead
         # we can call what it does once the file is choose.
@@ -72,3 +77,14 @@ def testCreateStageFromFile(self):
 
         # Verify that the shape node is connected to time.
         self.assertTrue(cmds.isConnected('time1.outTime', shapeNode+'.time'))
+
+        # Now switch to having USD stage paths as relative to Maya scene file
+        cmds.optionVar(iv=('mayaUsd_MakePathRelativeToSceneFile', 1))
+        
+        # Create the same stage and verify that now it's open as relative
+        shapeNodeRel = mel.eval('mayaUsd_createStageFromFilePath(\"'+ballFilePath+'\")')
+        filePathAttrRel = cmds.getAttr(shapeNodeRel+'.filePath')
+        self.assertEqual(filePathAttrRel, 'top_layer.usda')
+        
+        # Restore mayaUsd_MakePathRelativeToSceneFile
+        cmds.optionVar(iv=('mayaUsd_MakePathRelativeToSceneFile', 0))
\ No newline at end of file
diff --git a/test/lib/testMayaUsdLayerEditorCommands.py b/test/lib/testMayaUsdLayerEditorCommands.py
index b1317d1847..8b6c8b67f7 100644
--- a/test/lib/testMayaUsdLayerEditorCommands.py
+++ b/test/lib/testMayaUsdLayerEditorCommands.py
@@ -18,6 +18,7 @@
 
 import unittest
 import tempfile
+import testUtils
 from os import path
 from maya import cmds, mel
 import mayaUsd_createStageWithNewLayer
@@ -557,3 +558,22 @@ def addFileBakedLayerByPath(parentLayer):
         testMuteLayerImpl(addAnonymousLayer)
         testMuteLayerImpl(addFileBakedLayer)
         testMuteLayerImpl(addFileBakedLayerByPath)
+
+    def testPathRelativeToMayaSceneFile(self):
+        # Function mayaUsdLib.Util.getPathRelativeToMayaSceneFile is used during 
+        # USD root layer saving/loading, and since we cannot test the full workflow
+        # as it opens a file dialog and requires user input, we make sure to test 
+        # the function itself here.
+        
+        ballFilePath = path.normpath(testUtils.getTestScene('ballset', 'StandaloneScene', 'top_layer.usda')).replace('\\', '/')
+
+        # Without Maya scene file, the absolute path is returned
+        cmds.file(newFile=True, force=True)
+        filePathAbs = mayaUsd.lib.Util.getPathRelativeToMayaSceneFile(ballFilePath)
+        self.assertEqual(filePathAbs, ballFilePath)
+
+        # With Maya scene file, the relative path is returned
+        mayaSceneFilePath = testUtils.getTestScene("ballset", "StandaloneScene", "top_layer.ma")
+        cmds.file(mayaSceneFilePath, force=True, open=True)
+        filePathRel = mayaUsd.lib.Util.getPathRelativeToMayaSceneFile(ballFilePath)
+        self.assertEqual(filePathRel, 'top_layer.usda')