diff --git a/include/tree.h b/include/tree.h
index 702b2c5..e5276da 100644
--- a/include/tree.h
+++ b/include/tree.h
@@ -18,7 +18,7 @@ typedef struct {
 PathBuffer* new_path_buffer();
 void add_path(PathBuffer*, char*);
 void free_path_buffer(PathBuffer*);
-char* find_root(const char*);
-void walk(const char*, const char*, PathBuffer*);
+char* find_root(char*);
+void walk(const char*, const char*, const char*, PathBuffer*);
 
 #endif // TREE_H
diff --git a/include/utilities.h b/include/utilities.h
index 08b5a0d..795707c 100644
--- a/include/utilities.h
+++ b/include/utilities.h
@@ -1,8 +1,13 @@
 #ifndef UTILITIES_H
 #define UTILITIES_H
 
-#include <sys/stat.h>
+#include <stdio.h>
+#include <stdlib.h>
+#include <string.h>
 #include <errno.h>
+#include <dirent.h>
+#include <sys/stat.h>
+#include <unistd.h>
 
 #include "file.h"
 #include "action_list.h"
diff --git a/src/main.c b/src/main.c
index 6164175..1354654 100644
--- a/src/main.c
+++ b/src/main.c
@@ -12,7 +12,7 @@
 #include "tree.h"
 
 static void usage(int exitcode) {
-    printf("usage: merk <command> [<args>]\n\n  init     Initializes a repository in the current directory\n  diff     Displays the difference between the given two files\n");
+    printf("usage: merk <command> [<args>]\n\n  init     Initializes a repository in the current directory\n  diff     Displays the difference between the given two files\n  status   Displays a list of modified and untracked files in the repository\n");
     exit(exitcode);
 }
 
@@ -83,8 +83,7 @@ int main(int argc, char **argv) {
         if (!actions) printf("ERROR: something went wrong while taking the diff!");
         else visualize_diff(file1, file2, actions);
     }
-    // TODO: Make it repo specific and not universal
-    // Gives a list of untracked files in the filesystem
+    // Gives a list of untracked files in the repo
     else if (strcmp(subcmd, "status") == 0) {
         if (argc != 2) {
             printf("ERROR: too many arguments given!\n");
@@ -92,15 +91,23 @@ int main(int argc, char **argv) {
             exit(1);
         }
 
-        printf("Untracked files:\n\n");
         PathBuffer* files = new_path_buffer();
-        walk(".", "./", files);
+        char relative[PATH_MAX] = "";
+        char* root = find_root(relative);
+        if (!root) {
+            free_path_buffer(files);
+            return 1;
+        }
 
+        walk(root, relative, relative, files);
+
+        printf("Untracked files:\n\n");
         for (size_t i = 0; i < files->len; i++) {
             printf("%s\n", files->paths[i]);
         }
 
         free_path_buffer(files);
+        free(root);
         return 0;
     }
     else {
diff --git a/src/tree.c b/src/tree.c
index bb64b59..4d6ea72 100644
--- a/src/tree.c
+++ b/src/tree.c
@@ -73,16 +73,97 @@ static char* join_path(const char* a, const char* b) {
     return s;
 }
 
-void walk(const char* base, const char* rel, PathBuffer* paths) {
-    char* dir_full = rel[0] ? join_path(base, rel) : strdup(base);
-    if (!dir_full) {
-        perror("ERROR: memory allocation failed in walk!");
-        exit(1);
+char* find_root(char* relative) {
+    char* current_dir = calloc(PATH_MAX, sizeof(char));
+    if (!current_dir) {
+        perror("ERROR: calloc in find_root failed!");
+        return NULL;
     }
 
-    DIR* dir = opendir(dir_full);
+    if (!getcwd(current_dir, PATH_MAX)) {
+        perror("ERROR: getcwd in find_root failed!");
+        free(current_dir);
+        return NULL;
+    }
+
+    char* search_dir = strdup(current_dir);
+    if (!search_dir) {
+        perror("ERROR: strdup in find_root failed!");
+        free(current_dir);
+        return NULL;
+    }
+
+    while (1) {
+        size_t dir_len = strlen(search_dir);
+        size_t merk_path_len = dir_len + strlen("/.merk") + 1;
+        char* merk_path = calloc(merk_path_len, sizeof(char));
+        if (!merk_path) {
+            perror("ERROR: calloc in find_root failed!");
+            free(current_dir);
+            free(search_dir);
+            return NULL;
+        }
+
+        snprintf(merk_path, merk_path_len, "%s/.merk", search_dir);
+
+        struct stat st;
+        if (stat(merk_path, &st) == 0 && S_ISDIR(st.st_mode)) {
+            free(current_dir);
+            free(merk_path);
+            char* result = strdup(search_dir);
+            free(search_dir);
+            return result;
+        }
+
+        free(merk_path);
+
+        if (strcmp(search_dir, "/") == 0) {
+            break;
+        }
+
+        char temp[PATH_MAX];
+        snprintf(temp, sizeof(temp), "../%s", relative);
+        strcpy(relative, temp);
+
+        char* parent = strrchr(search_dir, '/');
+        if (parent == search_dir) {
+            search_dir[1] = '\0';
+        } else if (parent) {
+            *parent = '\0';
+        } else {
+            break;
+        }
+    }
+    free(current_dir);
+    free(search_dir);
+    printf("ERROR: you are in no merk repository!\nCreate a new repository with merk init\n");
+    return NULL;
+}
+
+void normalize_path(char* path, char* rel) {
+    if (strlen(rel) == 0) return;
+
+    size_t path_len = strlen(path);
+    size_t rel_len = strlen(rel);
+    int consumers = rel_len / 3;
+    int counter = 0;
+    size_t latest = 0;
+
+    for (size_t idx = rel_len; idx < path_len; idx++) {
+        if (path[idx] == '/') {
+            counter++;
+            latest = idx;
+            if (counter == consumers) break;
+        }
+        if (path[idx] == '\0') break;
+    }
+
+    strcpy(path, path+latest+(counter > 0 ? 1 : 0));
+}
+
+void walk(const char* base, const char* base_rel, const char* rel, PathBuffer* paths) {
+    DIR* dir = opendir(base);
     if (!dir) {
-        free(dir_full);
         return;
     }
 
@@ -90,33 +171,58 @@ void walk(const char* base, const char* rel, PathBuffer* paths) {
     while ((de = readdir(dir)) != NULL) {
         if (is_dot_or_dotdot(de->d_name)) continue;
 
-        char* child_rel = rel[0] ? join_path(rel, de->d_name) : strdup(de->d_name);
-        if (!child_rel) {
+        char* child_full = join_path(base, de->d_name);
+        if (!child_full) {
             perror("ERROR: memory allocation failed in walk!");
             closedir(dir);
-            free(dir_full);
             exit(1);
         }
 
-        char* child_full = join_path(base, child_rel);
-
         struct stat st;
         if (lstat(child_full, &st) != 0) {
             free(child_full);
-            free(child_rel);
             continue;
         }
 
         if (S_ISDIR(st.st_mode)) {
-            walk(base, child_rel, paths);
+            char* new_rel;
+            if (rel && rel[0]) {
+                new_rel = join_path(rel, de->d_name);
+            } else {
+                new_rel = strdup(de->d_name);
+            }
+
+            if (!new_rel) {
+                perror("ERROR: memory allocation failed in walk!");
+                free(child_full);
+                closedir(dir);
+                exit(1);
+            }
+
+            walk(child_full, base_rel, new_rel, paths);
+            free(new_rel);
         } else {
-            add_path(paths, child_rel);
+            char* relative_path;
+            if (rel && rel[0]) {
+                relative_path = join_path(rel, de->d_name);
+            } else {
+                relative_path = strdup(de->d_name);
+            }
+
+            if (!relative_path) {
+                perror("ERROR: memory allocation failed in walk!");
+                free(child_full);
+                closedir(dir);
+                exit(1);
+            }
+
+            normalize_path(relative_path, base_rel);
+            add_path(paths, relative_path);
+            free(relative_path);
         }
 
-        free(child_rel);
         free(child_full);
     }
 
     closedir(dir);
-    free(dir_full);
 }