diff --git a/internal/provider/resource_docker_registry_image_funcs.go b/internal/provider/resource_docker_registry_image_funcs.go
index 6378de38..7f4d0047 100644
--- a/internal/provider/resource_docker_registry_image_funcs.go
+++ b/internal/provider/resource_docker_registry_image_funcs.go
@@ -292,7 +292,7 @@ func buildDockerImageContextTar(buildContext string) (string, error) {
 
 	pm, err := fileutils.NewPatternMatcher(excludes)
 	if err != nil {
-		return "", fmt.Errorf("unable to create pattern matcher from .dockerignore exlcudes - %v", err.Error())
+		return "", fmt.Errorf("unable to create pattern matcher from .dockerignore excludes - %v", err.Error())
 	}
 
 	tw := tar.NewWriter(tmpFile)
@@ -305,7 +305,8 @@ func buildDockerImageContextTar(buildContext string) (string, error) {
 		}
 
 		// if .dockerignore is present, ignore files from there
-		skip, err := pm.Matches(file)
+		rel, _ := filepath.Rel(buildContext, file)
+		skip, err := pm.Matches(rel)
 		if err != nil {
 			return err
 		}
diff --git a/internal/provider/resource_docker_registry_image_test.go b/internal/provider/resource_docker_registry_image_test.go
index b1b6a263..1e79b133 100644
--- a/internal/provider/resource_docker_registry_image_test.go
+++ b/internal/provider/resource_docker_registry_image_test.go
@@ -158,48 +158,49 @@ func TestAccDockerRegistryImageResource_buildWithDockerignore(t *testing.T) {
 	pushOptions := createPushImageOptions("127.0.0.1:15000/tftest-dockerregistryimage-ignore:1.0")
 	wd, _ := os.Getwd()
 	context := strings.ReplaceAll((filepath.Join(wd, "..", "..", "scripts", "testing", "docker_registry_image_context_dockerignore")), "\\", "\\\\")
+	ignoredFile := context + "/to_be_ignored"
+	expectedSha := ""
 
 	resource.Test(t, resource.TestCase{
 		PreCheck:          func() { testAccPreCheck(t) },
 		ProviderFactories: providerFactories,
 		Steps: []resource.TestStep{
 			{
-				Config: fmt.Sprintf(loadTestConfiguration(t, RESOURCE, "docker_registry_image", "testBuildDockerRegistryImageNoKeepConfig"), pushOptions.Registry, pushOptions.Name, context),
+				Config: fmt.Sprintf(loadTestConfiguration(t, RESOURCE, "docker_registry_image", "testBuildDockerRegistryImageNoKeepJustCache"), pushOptions.Registry, "one", pushOptions.Name, context),
 				Check: resource.ComposeTestCheckFunc(
-					resource.TestCheckResourceAttrSet("docker_registry_image.foo", "sha256_digest"),
+					resource.TestCheckResourceAttrSet("docker_registry_image.one", "sha256_digest"),
+					resource.TestCheckResourceAttrWith("docker_registry_image.one", "sha256_digest", func(value string) error {
+						expectedSha = value
+						return nil
+					}),
 				),
 			},
 			{
-				Config: fmt.Sprintf(loadTestConfiguration(t, RESOURCE, "docker_registry_image", "testBuildDockerRegistryImageNoKeepConfig"), pushOptions.Registry, pushOptions.Name, context),
-				Check: func(*terraform.State) error {
-					// we will modify the ignored file
-					f, err := os.OpenFile(context+"/empty_to_ignore", os.O_APPEND|os.O_CREATE|os.O_WRONLY, 0644)
+				PreConfig: func() {
+					// create a file that should be ignored
+					f, err := os.OpenFile(ignoredFile, os.O_APPEND|os.O_CREATE|os.O_WRONLY, 0644)
 					if err != nil {
-						return fmt.Errorf("failed to open file: %w", err)
+						panic("failed to create test file")
 					}
-					defer f.Close()
-
-					_, err = f.WriteString("modify-me")
-					if err != nil {
-						return fmt.Errorf("failed to write to file: %w", err)
-					}
-					return nil
+					f.Close()
 				},
-			},
-			{
-				Config: fmt.Sprintf(loadTestConfiguration(t, RESOURCE, "docker_registry_image", "testBuildDockerRegistryImageNoKeepConfig"), pushOptions.Registry, pushOptions.Name, context),
+				Config: fmt.Sprintf(loadTestConfiguration(t, RESOURCE, "docker_registry_image", "testBuildDockerRegistryImageNoKeepJustCache"), pushOptions.Registry, "two", pushOptions.Name, context),
 				Check: resource.ComposeTestCheckFunc(
-					resource.TestCheckResourceAttrSet("docker_registry_image.foo", "sha256_digest"),
+					resource.TestCheckResourceAttrWith("docker_registry_image.two", "sha256_digest", func(value string) error {
+						if value != expectedSha {
+							return fmt.Errorf("Image sha256_digest changed, expected %#v, got %#v", expectedSha, value)
+						}
+						return nil
+					}),
 				),
 			},
 		},
 		CheckDestroy: resource.ComposeTestCheckFunc(
 			testDockerRegistryImageNotInRegistry(pushOptions),
 			func(*terraform.State) error {
-				// the 0 specifies the file will be empty afterwards
-				err := os.Truncate(context+"/empty_to_ignore", 0)
+				err := os.Remove(ignoredFile)
 				if err != nil {
-					return fmt.Errorf("failed to truncate the ignored file: %w", err)
+					return fmt.Errorf("failed to remove ignored file: %w", err)
 				}
 				return nil
 			},
diff --git a/scripts/testing/docker_registry_image_context_dockerignore/.dockerignore b/scripts/testing/docker_registry_image_context_dockerignore/.dockerignore
index 90fd1815..c7715a3a 100644
--- a/scripts/testing/docker_registry_image_context_dockerignore/.dockerignore
+++ b/scripts/testing/docker_registry_image_context_dockerignore/.dockerignore
@@ -1 +1 @@
-empty_to_ignore
\ No newline at end of file
+to_be_ignored
diff --git a/scripts/testing/docker_registry_image_context_dockerignore/Dockerfile b/scripts/testing/docker_registry_image_context_dockerignore/Dockerfile
index ef5380d1..75c1dbc7 100644
--- a/scripts/testing/docker_registry_image_context_dockerignore/Dockerfile
+++ b/scripts/testing/docker_registry_image_context_dockerignore/Dockerfile
@@ -1,2 +1,2 @@
 FROM scratch
-COPY empty /empty
\ No newline at end of file
+COPY * /
diff --git a/scripts/testing/docker_registry_image_context_dockerignore/empty_to_ignore b/scripts/testing/docker_registry_image_context_dockerignore/empty_to_ignore
deleted file mode 100644
index e69de29b..00000000
diff --git a/testdata/resources/docker_registry_image/testBuildDockerRegistryImageNoKeepJustCache.tf b/testdata/resources/docker_registry_image/testBuildDockerRegistryImageNoKeepJustCache.tf
new file mode 100644
index 00000000..4268b81e
--- /dev/null
+++ b/testdata/resources/docker_registry_image/testBuildDockerRegistryImageNoKeepJustCache.tf
@@ -0,0 +1,18 @@
+provider "docker" {
+  alias = "private"
+  registry_auth {
+    address = "%s"
+  }
+}
+resource "docker_registry_image" "%s" {
+  provider             = "docker.private"
+  name                 = "%s"
+  insecure_skip_verify = true
+
+  build {
+    context      = "%s"
+    remove       = false
+    force_remove = false
+    no_cache     = false
+  }
+}