When adding files to a project, you will be presented with a choice regarding how to store the paths that the project uses to reference the files. At the bottom right of the Add Existing Item dialog box, you will see three radio buttons labeled Auto, Relative and Absolute.
Definition
Auto: Store path as relative to project root if inside project, otherwise store as absolute path
Relative: Store path as relative to project root
Absolute: Store path as absolute path
In general, if a file is inside your project folder, you should choose Relative. This gives you the flexibility to move or rename the project without breaking the links to that file. Absolute is useful for files that are outside your project directory but will not be moved. Then, no matter where you move your project, you will always be pointing correctly to those files. The Auto option will make this choice for you automatically. However, Relative may be desirable files outside of the project directory if the project is created within a larger framework or library, where everything may be moved together to a new location. As long as all files maintain their relative positions to the project root, all file links should still work properly.
With MPLAB X's default settings, Relative will always be the default selection. If you would prefer that Auto or Absolute were selected by default, you may change this option:
From the main menu, select Tools > Options
Select the Embedded icon 
along the top of the window.
Select the Project Options tab.
Click image to enlarge
Select your choice from the File Path Mode combo box.
Backlinks
These pages link back to this one. You may find them helpful.
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